Wallenius Wilhelmsen reports EBITDA of USD 150m in Q4 2020
Oslo, 9 February 2021 - Wallenius Wilhelmsen reports adjusted EBITDA of USD 150m in Q4, a flat development from the preceding quarter. The positive EBITDA effects from ocean volume recovery and improved landbased results were offset by a lower high&heavy share, activity ramp-up costs and temporary market inefficiencies.
In Q4 2020, both ocean and landbased volume levels were below last year but have recovered significantly from the low point in Q2.
Total revenue in Q4 was USD 822m, down 12% YoY due to lower revenues in the ocean segment. The decrease in ocean revenue was a result of lower volumes, down 4% YoY, lower net freight earned per cubic meter, lower fuel surcharge revenue and limited charter income due to capacity constraints. Landbased revenue was up 2% YoY on increased high-margin volumes with solid automotive related business recovery and continued resilience in terminals. Compared to Q3, total revenue for the group was up 18% as both ocean and landbased volumes recovered.
"Wallenius Wilhelmsen finished off a challenging year with a solid final quarter, and I'm pleased with the development in both landbased and ocean activities," said Craig Jasienski, President & CEO of Wallenius Wilhelmsen.
The COVID19 pandemic has had a significant impact on the world economy and especially on intercontinental trade patterns in our markets. The group took early and decisive action to adjust capacity, reduce costs, limit capex and preserve cash. Seven vessels available for redelivery at end of charter contracts were returned, 15 vessels were put in cold lay-up, and vessel operations optimised to further reduce capacity and costs.
"Our proactive and prudent approach has served us well during the year. Close cooperation with our customers and partners enabled us to offer sufficient shipping capacity and seamless demand driven operations across our land-based facilities throughout the COVID19 pandemic. I am truly proud of the achievements of our employees and the collaborative spirit they have shown during this demanding year," said Craig Jasienski.
At the end of 2020, the markets in which the group operate have recovered significantly since the sharp drop in volumes observed during April and May 2020. However, volumes remain below 2019 levels and sales patterns remain unstable. Looking further into 2021, it is hard to predict the ongoing potential impact on production from virus intensity in parts of the world. Due to overall global fleet reduction, low order book and a rebound in volumes anticipated to come close to pre-COVID19 levels during 2021, overall industry supply-demand balance is expected to improve mid-term. Stabilisation of the market conditions will provide the group with more flexibility with regards to payment of dividends and further growth investments.
Wallenius Wilhelmsen has taken a range of actions to adjust capacity, reduce costs and protect its cash position through this turbulent phase. Together with an efficient and adjustable cost base and starting from a strong financial situation, the company is well prepared to continue to manage its way through this unprecedented market situation.
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About Wallenius Wilhelmsen
The Wallenius Wilhelmsen group (OEX: WAWI) 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 8 700 employees in 29 countries worldwide.
Read more at walleniuswilhelmsen.com