WWASA's underlying performance in the fourth quarter
was as expected in line with the third quarter.
Volumes transported deep sea were lifted by an
increase in auto volumes.
The WWASA group delivered an operating profit of USD
66 million or USD 82 million adjusted for non
recurring items (USD 81 million in the third quarter
2013 and fourth quarter 2012). The total income in
the quarter was USD 630 million (USD 659 millioner).
Figures for the fourth quarter 2013 were negatively
affected by an accrual of USD 16.5 million (WWASA's
share) related to a draft cease and desist order
which partly owned Wallenius Wilhelmsen Logistics
(WWL) received from the Japanese Fair Trade
Commission in January 2014. A non-recurring item of
USD 1 million related to a sales gain from the
recycling of Terrier had a positive effect.
"Global trade continued to improve in the last
quarter of 2013, and first and foremost an
improvement in the demand for car transportation,"
says Jan Eyvin Wang, president and CEO of WWASA. "At
group level the amount of high and heavy volumes
fell."
Commenting on the group's trade mix, Wang notes: "All
main trades, except Asia to Europe, noted a positive
development in the fourth quarter. There was a
particularly strong growth in the trade from Asia to
North America. Export out of Europe was also
positive, but domestic demand in Europe is still weak
following the financial challenges in many European
countries."
"Our fleet of vessels are tailormade to ship a
combination of cars and high and heavy cargo. An
optimal cargo and trade mix is therefore essential to
maximise the benefit of our advanced fleet," says
Wang. "To contoniously improve, we implement fleet
optimising initatives on an ongoing basis."
The logistics segment continued to deliver a sound
contribution to group accounts."The seasonal slowdown
in US based logistics activities was more or less
outweighed by increased contribution from Hyundai
Glovis and inland transportation services in WWL.
Following uncertainty regarding the future US
logistics activities and a general pressure on
margins in both the shipping and logistics segments,
we have initiated an efficiency programme to improve
our profitability," says Wang.
A total dividend of NOK 4.75 was paid in 2013. The
board will propose to the Annual General Meeting
(AGM) to be held 24 April 2014 to pay a dividend of
NOK 1 per share, totalling USD 36 million. Following
changes to the Norwegian Companies Act made last
year, the board will also propose that the AGM gives
the board authority to approve further dividend
payment of up to NOK 1.25 per share limited to a
period up to the next AGM.
Going forward, the board expects a modest growth in
the demand for the group's seaborne services.
Prospects for car volumes are more positive than the
demand for transportation of high and heavy units.