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 January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

BP Freezes Pay in 2015 to Cut Costs

BP is freezing base pay across the group this year, the latest in a series of steps by oil majors to cut costs in response to sinking oil prices.   Over the past year,

Metcalf to Succeed Cox at CSA Helm

Kathy J. Metcalf will assume the role of president and CEO of the Chamber of Shipping of America (CSA), succeeding Joseph J. Cox, who will retire on May 31, 2015,

InterMoor Completes Juniper Mooring Installation Contract

InterMoor has completed a mooring and foundation installation campaign for bpTT’s Juniper gas project offshore Trinidad and Tobago, reportedly the largest foundation

Finance

BP Freezes Pay in 2015 to Cut Costs

BP is freezing base pay across the group this year, the latest in a series of steps by oil majors to cut costs in response to sinking oil prices.   Over the past year,

Study Examines Impacts of Inland Waterway Investment

The National Waterways Foundation (NWF) has commissioned and released a two-year study to examine the U.S. inland waterways’ national economic return on investment

Gypsy Moth Clause Takes Balanced Approach to Risk

A new BIMCO clause provides a simple, practical and commercial solution focusing on the basic obligations and responsibilities of owners and charterers when dealing with the Asian Gypsy Moth (AGM).

Logistics

Study Examines Impacts of Inland Waterway Investment

The National Waterways Foundation (NWF) has commissioned and released a two-year study to examine the U.S. inland waterways’ national economic return on investment

Winter Storm Closes New York/New Jersey Terminals

All marine terminals at the Port of New York and New Jersey are expected to close around 3: 30 p.m. today and remain closed all day tomorrow as a severe winter

Batangas Port Sets Container Record

Batangas Container Terminal (BCT) set a new record in 2014 for containers handled, says its operator Asian Terminals, Inc. (ATI).  Port handled over 98,000 twenty-foot-equivalent

 
 
Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.6125 sec (2 req/sec)