WWH's Q1 2013 Profits Dip

Press Release
Wednesday, May 08, 2013

Wilh. Wilhelmsen Holding ASA (WWH) operating profit and total income declined quarter on quarter and year over year.

The company attributes the decline in profits mainly as a consequence of continued drop in shipping volumes and a less favourable cargo mix, and in the second quarter, the group’s activity level is expected to be in line with the first quarter.

Operating profit for the first quarter was USD 78 million (USD 106 million), down 27% compared with the same period last year and a decrease of 19% from the previous quarter. Total income ended at USD 864 million (USD 946 million), a reduction of 9% year over year and 4% quarter on quarter.

“The beginning of 2013 has been challenging following the expected decline in shipping volumes, a less favourable cargo and trade mix and lower fleet utilisation. Earnings from our logistics activities improved compared with previous quarters, but do unfortunately not offset the reduced contribution from our shipping segment,” says Thomas Wilhelmsen, group CEO in WWH when explaining the decline in total income and operating profit.

Mr Wilhelmsen continues: “The maritime services segment’s total income increased 2% quarter on quarter based on higher income within ship management and technical solutions. The ships service business area experienced a minor reduction in total income. The operating profit was, however, down following a less optimal product mix within the ships service area, a somewhat weaker USD and a low margin within the growing technical solutions’ business area,” says Wilhelmsen.

“Income from our investment in the NorSea Group was up first quarter. Gain from property sales offset the impact from the seasonal reduction in activity,” explains Wilhelmsen.

The annual general meeting held on 25 April 2013 resolved to pay a dividend of NOK 3.50 per share. The dividend is payable on or about 14 May.

Commenting on the group’s future prospects, Mr Wilhelmsen says: “The shipping market in general is weak. For maritime services the situation impacts owners’ purchasing capabilities and puts pressure on demand and operating margin. For our shipping activities, we expect volumes to stabilise in the coming months. Our main concern is related to the development within the high and heavy segment.”

The group says it has a strong financial position and is well positioned to benefit from the growth potential of the markets in which it operates.
 

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

People & Company News

Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

SUNY Maritime Takes the Ice Bucket Challenge

Taking full advantage of one of the summer’s hottest days, twelve administrators and staff at the State University of New York (SUNY) Maritime College today took the Ice Bucket Challenge,

Fraunhofer Researchers Improve Underwater Images

Videos and images of the submarine world are important for the maritime industry. Researchers from Fraunhofer IGD will show how underwater images can be improved

Finance

Norwegian to Buy Prestige Cruises in $3b Deal

Norwegian Cruise Line Holdings Ltd (NCLH.O) said it would buy Prestige Cruises International Inc from its owner Apollo Global Management LLC (APO.N) in a $3 billion

Master Fined After Wind Farm Collision

The master of a wind farm support vessel has today been made to pay £3,000 in fines and costs after pleading guilty to breaches of maritime collision regulations.

Statoil, DNV GL Drive Subsea Factory Interface Standardization

Statoil has entered into an agreement with DNV GL to establish an industrial cooperation to introduce an international industry standard for subsea process technology.

 
 
Maritime Contracts Navigation Pipelines Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar 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: 0.2743 sec (4 req/sec)