Wallenius Wilhelmsen reports EBITDA of USD 211 million in the second quarter, delivering improved results despite lower revenues. The results were positively impacted by higher net freight/CBM, more efficient operations and lower net bunker cost.
Total income was USD 1 005 million in the second quarter, down 4% compared to the same period last year due to lower revenues for the ocean segment. The revenue decrease was mainly a result of lower volumes (down 8% y-o-y), partly offset by higher fuel cost compensation from customers. Commercial prioritization of profitable volumes was the main factor behind the volume decline. In addition, generally weaker auto markets had a negative effect. Furthermore, volumes were over-inflated in Q2 2018 ahead of the WLTP introduction, impacting the y-o-y comparison. The landbased segment delivered stable performance.
EBITDA came in at USD 211 million in the second quarter, up by USD 55 million compared to the same quarter last year, of which USD 42 million was related to the implementation of IFRS 16, with underlying improvement driven by the ocean segment.
“I am very happy to see that our efforts to improve our operations are continuing to bear fruit. While volumes are lower compared to one year ago, our EBITDA increased as we carry better-paying cargo and operate more efficiently. With the uncertain volume outlook and volatile macro environment we continue to focus on efficiency and flexibility in our operations and agility in our organisation to be able to respond to changes in the market,” says Craig Jasienski, President and CEO of Wallenius Wilhelmsen ASA.
At the end of the second quarter about USD 65 million of the USD 100 million performance improvement program has been confirmed and realized, up from USD 60 million in the previous quarter. The increase of USD 5 million comes mainly through voyage optimization and more efficient hull cleaning.
The Board maintains a balanced view on the prospects for Wallenius Wilhelmsen. However, there is increased uncertainty around the volume outlook in light of weaker auto sales in all major markets, potential risk of increased trade barriers and a volatile macro picture. Market rates remain at a low level although a few contracts have been renewed at improved rates in the first half of the year.
Wallenius Wilhelmsen has a solid platform for growth and is well positioned to succeed in a challenging market. Furthermore, the new two-year performance improvement program and continuous focus on efficiency in operations will continue to support profitability going forward.
See Q2 report here
See Q2 presentation here