Wallenius Wilhelmsen reports EBITDA of USD 152m as volumes rebounded in Q3
Oslo, 10 November 2020: Wallenius Wilhelmsen reports EBITDA of USD 152m for Q3 2020, as volumes recovered from the lows in Q2. Actions to adjust fleet capacity and reduce costs contributed to support earnings.
Total revenue in Q3 2020 was USD 697m, down 27% compared to Q3 2019 due to lower revenues in both the ocean and landbased segments. The decrease in ocean revenue was a result of lower volumes, down 23% y-o-y, lower net freight earned per cubic meter, and lower fuel surcharge revenue. Landbased revenue experienced a YoY decrease following lower volumes.
"It is encouraging to see volumes improving from the Q2 low, and I am proud of our employees' efforts to maintain tight cash focus while also delivering a reliable and high-quality service to our customers. However, given current unpredictability we remain prudent and are prepared for volatility in volumes until markets normalise," says Craig Jasienski, President & CEO of Wallenius Wilhelmsen.
The COVID-19 pandemic is affecting demand for vehicles and equipment, impacting production output with social distancing and lockdowns, causing volatile production patterns and disrupting supply chains - all impacting the group's operations. Wallenius Wilhelmsen is taking a preventative and proactive approach to the COVID-19 pandemic, with priority on the welfare of our employees and community, as well as the needs of our customers.
While demand has improved from lows earlier this year, sales patterns remain unstable. Looking into 2021, the potential impact on production from increased virus intensity in parts of the world is hard to predict. For the fourth quarter, the group expects ocean volumes to be down around 5% versus the fourth quarter of 2019.
The group has taken a range of actions to adjust capacity, reduce costs and protect its liquidity position through this turbulent phase. The measures put in place to protect and strengthen cash flow resulted in a cash position of USD 600m at the end of Q3, up from USD 539m in Q2, supported by USD 282m of undrawn credit facilities.
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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 120 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