(Lysaker, 7 August 2014) Increase in topline for
Wilh. Wilhelmsen Holding (WWH) in the second quarter,
mainly driven by seasonal rebound in seaborne
volumes. Adjusted for seasonality, the group's
performance for the third quarter is expected to be
on par with the second quarter.
For the second quarter of 2014, WWH delivered an
operating profit of USD 80 million (USD 106 million).
The operating profit was negatively impacted by a USD
22 million restructuring cost in Wilh. Wilhelmsen
ASA, but benefitting from a USD 4 million sales gain
in Wilhelmsen Maritime Services (WMS). Adjusted for
non-recurring items, the operating profit was up 29%
quarter on quarter. Total income amounted to USD 965
million (USD 941 million), up 6% compared with the
previous quarter.
The positive development in operating profit compared
with the first quarter was driven by higher
contribution from WWASA shipping activities, while
results were down in WMS due to a less favourable
product mix.
"Our shipping segment saw positive volume development
in all trades compared with a seasonally weak first
quarter," says Thomas Wilhelmsen, group CEO in WWH,
when commenting on the group's increase in revenue in
the second quarter. "Despite reduced activity for
some of the US based entities, the contribution from
our logistics segment also improved quarter on
quarter."
Although some niches are improving, the total
shipping market is still weak, affecting newbuilding
orders and owners' purchasing patterns.
"Despite a difficult market affecting the demand for
our maritime services and products, the segment
delivered stable income compared with the previous
quarter. The profit fell 8% following a less
favourable product mix and lower contribution from
ship services," comments Wilhelmsen. "During the
quarter, we entered into four loan agreements with
Nordic banks, securing a five year funding of USD 430
million, which will be used to further growth and
expand our maritime services offering."
Income increased within the Holding and Investments
segment compared with the first quarter, with
seasonality lifting the contribution from NorSea
Group and the continued positive development in the
value of Qube and the group's investment portfolio.
The board of directors of WWH expects the group's
underlying performance in the third quarter will be
in line with the second quarter adjusted for
seasonality. "The third quarter is seasonally weaker
for our shipping and logistics activities. Combined
with positive, but slow growth for our maritime
services segment, we expect the group's performance
to be on par with the second quarter," Wilhelmsen
predicts for the coming months.
The annual general meeting (AGM), held 24 April 2014,
approved a dividend of NOK 3.00 per share, which was
paid to shareholders 8 May.