Since the outbreak of covid-19, Wilhelmsen has been following events closely and taken a pro-active and preventative approach towards safeguarding the health, safety and security of our employees, crew and members of the society at large. We are at the same time making our best effort to serve our customers and to support the continued operation of critical global supply chain and infrastructure. Our operations in affected countries are following governmental advice to minimize risk of exposure as well as operational impact.
In order to secure a financially sound holding company in today uncertain environment, the board has decided to reduce the proposed dividend to NOK 2 per share from the previously announced NOK 3 per share. The board has also decided to withdraw the previously announced proposal to the annual general meeting for the board to declare additional dividend. The group will also implement a range of other measures in order to secure desired liquidity and solidity.
Related to our main operating activities we have the following operational and financial update:
- Wilhelmsen Ships Service (owned 100%) is a global provider of standardised product brands and service solutions to the maritime industry, focusing on marine products, marine chemicals, maritime logistics and ships agency. So far, most shipping segments have continued to operate at close to historic levels, but the strong reduction in cruise activities representing 10-15% of total income will impact both operating activities and results. Measures implemented to contain spread of the coronavirus also have an impact on the global operation, with ~80% of employees presently working from home.
- Wilhelmsen Ship Management (owned 100%) provides full technical management, crewing and related services for all major vessel types. The financial impact from covid-19 has so far been limited, but with a risk of reduced income from any ships taken out of serve. While having limited financial impact, travel restrictions in many countries are creating operational issues related to crew changes.
- NorSea Group (owned ~75%) provides supply bases and integrated logistics solution to the offshore industry. Most supply bases are still operating at close to historic levels, but the situation with low oil price on top of the covid-19 issues is expected to result in reduced activity in the coming quarters.
Related to our holding and investment activities we have the following operational and financial update:
- Wallenius Wilhelmsen ASA (owned ~38%) is a global provider of ocean and land-based logistics services towards car and ro-ro customers and is listed on Oslo Børs. Wallenius Wilhelmsen has announced an estimated 20% reduction in Q1 volumes and has taken decisive action in preparation for a challenging time ahead. These includes cancellation of dividend, recycling and lay-ups of vessels, and temporary layoffs.
- Treasure ASA (owned ~75%) holds a 12.04% ownership interest in Hyundai Glovis and is listed on Oslo Børs. The value of Treasure ASA’s investment in Hyundai Glovis has fallen due to reduced share price and a depreciation of KRW versus USD. The estimated change in fair value in the Q1’20 results is a loss of approximately USD 225 million USD, of which approximately USD 165 million relates to Wilhelmsen’s ~75% majority share.
- Current financial investments and other financial assets held by the parent and fully owned subsidiaries have also been reduced in value due to falling equity and bond markets and appreciation of the USD. Total investments were USD 211 million at 31 December 2019.
Wilhelmsen holds leading positions in several maritime industry segments. The combined forces of extensive business knowledge, global network, innovative organisation, and strong solidity will continue to support development of the group.
For further information, contact:
Åge Sturtzel Holm, IRO
Tel: +47 900 87 670
Email: aage.s.holm@wilhelmsen.com
Benedicte Teigen Gude, SVP HR and communication
Tel: +47 959 07 951
Email: benedicte.teigen.gude@wilhelmsen.com