Wilh. Wilhelmsen ASA: Results for the second quarter of 2016

WWASA had an increase in transported volumes in the

second quarter 2016, positively impacting results. In

addition, a non-recurring gain lifted WWASA's total

income and operating profit substantially.

Total income for the second quarter was USD 905

million, up from USD 608 million in the first quarter.

The operating profit ended at USD 417 million, up from

USD 126 million in the previous quarter. Adjusted for

non-recurring items, both total income and operating

profit increased.

"Transportation of both cars and high and heavy

equipment improved from a weak first quarter, partly

due to seasonality. This improved the underlying

operating profit to USD 44 million for the quarter.

The significant contribution in the second quarter

was, however, the non-recurring gain of USD 375

million from the demerger of Den Norske Amerikalinje,"

says Jan Evyin Wang, president and CEO of WWASA.

Contribution from Hyundai Glovis was discontinued in

the second quarter following the demerger. Operating

profit from land-based activities in Wallenius

Wilhelmsen Logistics (WWL) continued on a healthy

level and was on par with the first quarter.

Visualising values for WWASA's shareholders through

the spin-off, the annual general meeting held 3 May

2016 resolved not to pay dividend for the fiscal year

2015. In July, WWL reached a settlement with the US

Department of Justice (DOJ), agreeing to pay a fine of

USD 98.9 million (USD 49.5 million for WWASAs

account). WWASA made a provision for the outcome of

the anti-trust investigation in several jurisdictions,

in the third quarter of 2015. Consequently, the fine

will not have a profit and loss effect for WWASA in

2016. The settlement also closed DOJ's investigation

into EUKOR. EUKOR did not receive a fine.

Commenting on the prospects for WWASA, the board

states: "We anticipate volume growth to remain weak

over the next period, with continued pressure on

margins. The current global political landscape adds

further uncertainties".

Source: NewsWeb