Wallenius Wilhelmsen releases its annual report for 2023, the best year on record
Oslo, March 15, 2024 - Wallenius Wilhelmsen's 2023 financial results were the
strongest on record. Capacity constraints in the car carrier markets and general
increased demand for cars and heavy equipment have led to solid earnings and
renewal of multi-year contracts at rates reflecting the current market. Contract
renewals have focused on integrating offerings across ocean and land-based
services, combined with decarbonization initiatives such as the use of biofuel.
Wallenius Wilhelmsen has also set a target of reaching net zero by 2040.
The group delivered an all-time high EBITDA at USD 1,807 million, up 18 percent
from 2022. The fiscal year 2023 has been an exceptional year for Wallenius
Wilhelmsen - financially, commercially, and operationally.
"I am deeply impressed by the dedication and hard work of our people, delivering
great performance across our business. Our strong results are helped by strong
demand in the markets we operate, and we are in a position to serve our
customers and deliver value to our shareholders thanks to the people of this
organization," says Lasse Kristoffersen, President and CEO at Wallenius
Wilhelmsen.
Leading the way to net zero
Wallenius Wilhelmsen presents revised climate targets in the annual report. In
line with the strategy of leading the industry towards zero, and in response to
the increasing urgency on climate change, the company has set a target of
reaching net zero by 2040. As part of this, the target for reduction in 2030 as
compared to 2019 is increased to 45%. The new target is aligned to the Science
Based Targets Initiative.
Cementing Wallenius Wilhelmsen's commitment to bringing low and no carbon
services to customers, the company made practical steps towards this goal in
2023.
"This year we made a significant leap towards net zero emission by partnering
with our customers on buying reduced carbon freight. Another key milestone was
the ordering of our Shaper class vessels capable of running on green methanol
upon delivery. We also introduced zero-emission battery electric trucks in the
U.S and opened the Orcelle terminal in Belgium. All these initiatives are vital
parts of our strategic goal to deliver the world's first end-to-end net zero
service to our customers in 2027. This is a very ambitious target, and we need
to break many barriers to get there. But together with our customers, we are
confident that it is both possible and needed," says Kristoffersen.
Financial results demonstrate significant contributions from all three segments
Total revenue was USD 5,149 million for FY 2023, an increase of 2 percent
compared to FY 2022. Shipping volumes were almost flat YoY as global supply
chains were hampered by congestion issues, including the Red Sea effects towards
the end of the year. Revenue for the shipping segment in FY 2023 was USD 3,881
million, down 4 percent YoY. The shipping segment delivered a record adjusted
EBITDA of USD 1,527 million, up 12 percent YoY.
Overall, logistics services saw volume improvements year over year across the
business, positively impacting financial performance. Auto, terminal, and high &
heavy all saw increased volumes, while inland services saw decreased volumes
from the previous year. The total logistics segment revenue for FY 2023 was USD
1,148 million, up 26 percent YoY. The logistics segment delivered an adjusted
EBITDA of USD 174 million, up 62 percent YoY.
Total revenue from the government segment for the full year of 2023 was USD 324
million, up 7 percent YoY from USD 302 million. This was mainly due to increased
US flag cargo activity in large part attributable to cargo moved in support of
the United States and NATO response to the Russian invasion of Ukraine. The
government segment delivered an adjusted EBITDA of USD 130 million, up 61
percent YoY.
Proposed dividend for 2023 and a new dividend policy
The board proposes a total dividend of USD 1.14 per share for 2023. The dividend
will be paid in NOK in two tranches of USD 0.68 and USD 0.46 respectively. Going
forward, the board has proposed a semi-annual pay-as-you-go dividend policy,
under which potential dividends will be declared in connection with the Q2 and
Q4 reports, and be based on H1 and H2 earnings, respectively. The level of
dividends, which will be declared in USD but paid in NOK, will still be based on
a range of 30-50 percent of the company's net profit after tax on an annual
basis. The proposed dividend for 2023 and the revised dividend policy are
pending approval at the upcoming Annual General Meeting on April 30, 2024.
You can find our 2023 annual report here:
https://www.walleniuswilhelmsen.com/who-we-are/investors/annual-report
For further information, please contact:
Investor relations
Anders Redigh Karlsen, VP IR & Market Insight
Tel: +47 994 20 293
Email: anders.karlsen@walwil.com
Media relations
David Hopkins, External Communications Manager
Tel: 942 88 486
Email: david.hopkins@walwil.com
About Wallenius Wilhelmsen
The Wallenius Wilhelmsen group is a market leader in roll-on/roll-off (RoRo)
shipping and vehicle logistics, managing the distribution of cars, trucks,
rolling equipment and breakbulk to customers all over the world. The company
operates around 125 vessels servicing 15 trade routes to six continents, a
global inland distribution network, 66 processing centers and eight marine
terminals. With a head office in Oslo, Norway, the Wallenius Wilhelmsen group
has 9,500 employees working across 28 countries.