Wallenius Wilhelmsen reports EBITDA of USD 213 million in the third quarter, continuing to deliver improved results in a challenging market. The results reflect higher net freight/CBM, more efficient operations and lower net bunker cost. The company declares a dividend of USD 6 cents per share.
Total income was USD 955 million in the third quarter, down 7% compared to the same period last year, primarily as a result of lower revenues in the ocean segment. The decrease in ocean revenues was due to lower volumes (down 7% y-o-y) and reduced other operating income. A key driver behind the reduced volumes are commercial priorities where Wallenius Wilhelmsen chooses not to carry low paying or unprofitable cargo, together with slower markets.
EBITDA in the third quarter of 2019 was USD 213 million, up by USD 61 million compared to the same quarter last year, of which USD 41 million was related to the implementation of IFRS 16. The underlying improvement was driven by the Ocean segment.
“I am pleased to see the continued improvement in profitability for the Ocean business. We continue to make conscious choices not to renew Ocean business under conditions that we do not consider economically sustainable. While we do see a softening of auto markets globally, we are prepared to adjust to changes in volumes and continue to run a profitable business, serving our clients in the best possible way,” says Craig Jasienski, CEO Wallenius Wilhelmsen.
In line with the decision from the Annual General Meeting in April 2019, the Board has approved a second dividend payment of USD 6 cents per share, equivalent to USD 25 million.
The Board maintains a balanced view on the prospects for Wallenius Wilhelmsen. However, uncertainty remains on 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 and generally under pressure, although some contracts have been renewed at stable or improved rates in the first half of the year.
Wallenius Wilhelmsen has a solid platform for growth, an efficient cost base and is well positioned to succeed in a challenging market. Furthermore, continuous focus on efficiency in operations will continue to support profitability going forward.