Wallenius Wilhelmsen: Results for Q2 2020
Oslo, 18 August 2020 - Wallenius Wilhelmsen reports adjusted EBITDA of USD 104 million for the second quarter, as volumes and income for the group were highly impacted by the evolution of the Covid-19 pandemic and measures taken to try to reduce its spread. This was somewhat balanced by effective cost control, low net bunker costs and higher net freight per CBM.
Total income was USD 606 million for the quarter, down 40% compared to the same period last year because of lower volumes across all trade lanes and product segments. Ocean volumes were down 45% y-o-y and landbased volumes were sharply affected by OEM plant closures and production cutbacks. Ocean income did however benefit from a higher net freight per CBM due to favourable cargo mix with a substantial share of high and heavy cargo. Compared to the first quarter, total income for the group was down 27%.
"As the pandemic and its impact on people, societies and business around the world continues to evolve, we have successfully taken a range of actions to ensure safe workplaces, adjust capacity, reduce costs and protect our cash position. Though the future remains unpredictable, we are encouraged to see volumes beginning to return and are now focused on supporting our customers through the market recovery whilst maintaining tight cost control," says Craig Jasienski, President & CEO of Wallenius Wilhelmsen.
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. The group took decisive action early on to adjust capacity, reduce costs and preserve cash, and supported by these measures cash reserves stood at USD 539 million at the end of the second quarter, up from USD 451 in the first quarter.
Prospects In the very near term the company is impacted by a sharp drop in volumes driven by measures taken globally to fight the Covid-19 pandemic. The drop in volumes has created excess capacity in the industry, which is likely to persist for some time, delaying market improvements. Measures taken to recycle, lay-up, idle and slow-steam ships will go some way in countering this effect.
Wallenius Wilhelmsen is undertaking significant measures to reduce costs and strengthen liquidity. Together with an efficient and flexible cost base and starting from a strong financial situation going into this, the company is well prepared to manage through this unprecedented market situation.
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 125 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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