Wilh. Wilhelmsen ASA - results for the third quarter 2014
(Lysaker, 11 November 2014) Decline in volumes
transported deep-sea, mainly seasonal, and
unfavourable cargo and trade mix led to weaker
results for WWASA in the third quarter. Adjusted
total income declined 6% compared with the second
quarter, while the operating profit fell 19%.
The operating profit for the third quarter totalled
USD 66 million against USD 78 million in the same
quarter 2013 (third quarter 2013 hereafter in
bracets). Total income ended at USD 650 million (USD
667 million). Hyundai Glovis contributed with a non-
recurring gain of USD 12 million in quarter,
positively affecting both operating profit and total
income. The operating profit was, however, negatively
impacted by non-recurring items of USD 10 million
related to American Shipping and Logistics. In the
same quarter last year, the operating profit was
negatively affected by an accrual of USD 3 million
related to internal restructuring of WWASA. Adjusted
for non-recurring items, the operating profit was USD
64 million (USD 81 million), while the total income
was USD 638 million (667 million).
"The volumes transported deep-sea decreased 8% from
the second quarter. Most of the decline is related to
seasonality, with lower sales and production
following holiday season in Europe and the US. In
addition, labour strikes impacted export volumes from
Korea," comments Jan Eyvin Wang, president and CEO in
WWASA. "High and heavy volumes were also down, with
agriculture season-ending in both Europe and North
America."
When commenting on a decline in contribution from the
group's logistics activities, Mr Wang
says: "Wallenius Wilhelmsen Logistics delivered
slightly lower figures. The activity level in
American Shipping and Logistics fell substantially
following the loss of the Privately Owned Vehicle
contract, effective 1 May. Contribution from Hyundai
Glovis more than doubled, with USD 12 million being
attributed to a non-recurring gain."
The board of WWASA anticipates the group's
profitability to continue to be negatively affected
by the challenging market sentiment. Volumes
transported deep-sea and handled at the group's
logistics facilities is expected to increase slightly
in the fourth quarter compared with the previous
quarter. Short term, a decrease in the bunker price
will have a positive effect on net bunker cost.
"We have a strong financial position with a healthy
balance sheet, and are positioned to meet the
challenges in the industry and act upon market
opportunities," concludes Wang.
WWASA's board has, based on an authorisation granted
by the annual general meeting on 24 April 2014,
resolved to pay a second dividend of NOK 1.00 per
share, totalling USD 32 million. Dividend is expected
to be paid on or about 27 November 2014.