Wallenius Wilhelmsen Q1 2019 results
Oslo, 7 May, 2019 - Wallenius Wilhelmsen reports EBITDA of USD 218 million in the first quarter. The results are positively impacted by the performance improvement initiatives and lower net bunker cost. Total income was USD 1 018 million in the first quarter, up 5% compared to the same period last year due to increased revenues for the ocean segment. The ocean revenues increased despite slightly lower volumes, driven by a more favourable cargo mix, strong project cargo shipments in the Atlantic, and higher fuel cost compensation from customers. The landbased segment delivered stable performance.
EBITDA ended at USD 218 million in the first quarter, up USD 93 million compared to the same quarter last year of which USD 42 million was related to the implementation of IFRS 16 for leases as of 1 January 2019, with underlying improvement driven by the Ocean segment.
"This is a good start to the year. I am very happy to see such strong performance in a quarter that is usually seasonally weak and that we have been able to lift rates for several smaller contracts. Our efforts to improve our operations are starting to pay off. On the other hand, the market environment remains challenging and the volume outlook is increasingly uncertain", says Craig Jasienski, President and CEO of Wallenius Wilhelmsen ASA.
At the end of the first quarter about USD 60 million of the USD 100 million performance improvement program has been confirmed, up from USD 55 million in the previous quarter. The increase of USD 5 million comes mainly through voyage optimization and more efficient hull cleaning.
The Board maintains a balanced view on the prospects for Wallenius Wilhelmsen. However, there is increased uncertainty around the volume outlook in light of weaker auto sales in most markets, potential risk of increased trade barriers and a continued soft macro picture. Market rates remain at a low level although a few smaller contracts have been renewed at improved rates in the early part of the year.
Wallenius Wilhelmsen has a solid platform for growth and is well positioned to succeed in a challenging market. Furthermore, the new two-year performance improvement program will continue to support profitability going forward.
About Wallenius Wilhelmsen The Wallenius Wilhelmsen group (OEX: WALWIL) is a market leader in RoRo shipping and vehicle logistics, transporting cars, trucks, rolling equipment and breakbulk around the world. The company operates around 130 vessels servicing 15 trade routes to six continents, and a global inland distribution network, 120 processing centres, and 11 marine terminals. The Wallenius Wilhelmsen group consist of Wallenius Wilhelmsen Ocean, Wallenius Wilhelmsen Solutions, EUKOR and ARC. The group is headquartered in Oslo, Norway with 9 500 employees in 29 countries worldwide. Read more at walleniuswilhelmsen.com
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