WWH Q3 2013 Results Impacted by Weak Shipping Market

MarineLink.com
Wednesday, November 06, 2013
Photo courtesy of Wilhelmsen

Reduced volumes of high and heavy cargo and seasonally lower demand for maritime services negatively affected Wilh. Wilhelmsen Holding ASA (WWH) total income and result in the third quarter of 2013. Current activity level for group entities is expected to continue.

Operating profit for the third quarter of 2013 was USD 96 million (USD 260 million) based on a total income of USD 873 million (USD 1 075 million). Income and results for the third quarter of 2012 were positively impacted by a USD 134 million sales gain related to Wilh. Wilhelmsen ASA’s downward sale of shares in Hyundai Glovis. Adjusting for the gain, the operating profit was down 24% and the total income down 7% year over year.

“Compared with the second quarter, our operating profit dropped 9% while the total income was down 3%. The main reason was a decline in ocean transported volumes, less profitable cargo mix and suboptimal utilisation of our advanced ro-ro fleet,” says Thomas Wilhelmsen, group CEO in WWH. “The lower contribution from our shipping activities was partly offset by a seasonally strong quarter for our land-based logistics services, which resulted in a sound contribution to group accounts.”

Commenting on the demand for maritime products and services, Mr Wilhelmsen highlights: “Although somewhat down from a strong second quarter, the maritime services segment continued on the positive trend from the previous quarter. The operating profit is at a level close to our long term target. Year over year, the results are supported by increase in sale of consumables, higher order book and minor acquisitions.”

When commenting on future prospects, Mr Wilhelmsen upholds the generally weak shipping markets as a challenge: “Despite a gradual increase in newbuilding ordering activity and the global merchant fleet, the shipping markets in general continue to be weak. This has a negative effect on owners’ purchasing capabilities and puts pressure on margins. For our shipping and logistics activities we anticipate volumes to remain at the same level as the third quarter.”

The board has proposed that the extraordinary general meeting to be held 27 November 2013 approves a second dividend of NOK 2.00 per share to be paid on or about 10 December. A first dividend of NOK 3.50 per share was paid in May.
 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

300 Missing After Korean Ferry Capsizes

Almost 300 people were missing after a ferry capsized off South Korea on Wednesday, despite frantic rescue efforts involving coastguard vessels, fishing boats and helicopters,

Samsung Heavy Takes Up 7 Container Ship Order

South Korea's Samsung Heavy Industries said on Wednesday that it is proceeding with a project worth 642.9 billion won ($617.67 million) to build seven container ships as planned.

South Stream Gas Pipeline Re-route via Turkey Possible

Turkish Energy Minister Taner Yildiz said on Wednesday that Ankara would consider the passage of the South Stream natural gas pipeline through Turkey if Russia made such a request.

Finance

Litigation Can Cost Shipbrokers an Arm & a Leg

A survey of London solicitors by specialist intermediaries insurer ITIC has highlighted the high cost of litigation for shipbrokers and others seeking judgment in the English courts,

Scorpio Tankers' Latest Sale & Purchase Deals

Scorpio Tankers says it recorded a gain of US$51-million from the sale of the 7 VLCC newbuilding contracts announced earlier. In March 2014, the Company received

Topaz secures another West Africa contract

Topaz Energy and Marine, a leading offshore support vessel company with primary operations in the Middle East and Caspian, today announced a new contract win for

Logistics

First Crude Lifting in 9 months at Libya's port of Hariga

A tanker has started loading crude at Libya's eastern port of Hariga for the first time in nearly nine months, after a federalist group agreed to re-open it last week,

Hong Kong Tin Hau Festival

The Tin Hau Festival at Tai Miu Wan will be celebrated this year on 22 April 2014. Coxswains, owners and operators of local vessels are advised that arrangements

Med Urals Market Awaits Short May Loading Schedule

Activity in the Russian Urals crude market froze on Tuesday as traders said they were awaiting the first loading dates for May for signs of how much supplies from

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1816 sec (6 req/sec)