Wilh. Wilhelmsen Reports Profit Growth in Q1 2012

Wilh. Wilhelmsen Holding ASA  reports profit growth lifted by high total income and operating profit in the shipping segment.

Operating profit amounted to USD 106 million for the first quarter of 2012, up 84% year over year from USD 58 million in the corresponding quarter of 2011. Total income increased 26% and ended at USD 946 million (USD 753 million).

“With all time high revenue in the shipping segment, the group’s earnings improved considerably year over year. Despite a seasonally weaker quarter, we also recorded a positive development quarter on quarter,” says Thomas Wilhelmsen, group CEO of WWH. “Our shipping activities benefitted from favourable trade balance and a sound balance between auto and high and heavy volumes. Introduction of new and larger vessels contributed to more efficient operations with a positive effect on earnings,” says Wilhelmsen.

The group’s maritime services segment continued to show a positive development.

“Sales to the merchant fleet have improved and we have increased the number of vessels on management. This contributes to increased total income both quarter on quarter and year over year. The activity level related to newbuildings and retrofits have been slower, with reduced income albeit an increase in order reserve,” says Wilhelmsen.

“Following the withdrawal of the ballast water treatment system earlier this year, the operating profit for the segment was negatively impacted by a loss of USD 15 million. Adjusted for the loss, the maritime services segment recorded a 60% year over year increase in operating profit. The profit improvement plan accomplished last year has lifted the segment back to a 9% operating margin.”

Net financials for the quarter amounted to an expense of USD 9 million (expense of USD 23 million), positively affected by a USD 10 million gain from investment management (gain of USD 4 million) and a gain of USD 2 million from sale of 12 million shares in Qube. WWH owned approximately 8.4% of Qube by the end of the quarter.

Net profit after tax and minority interest was USD 69 million (USD 22 million) for the first three months of 2012, an increase of USD 10 million from the fourth quarter of 2011.

The annual general meeting held on 26 April approved a dividend of NOK 3.50 per share paid on 9 May. The group intends to pay dividend semi-annually.

The board maintains a cautiously optimistic view on medium term prospects, but underlines that prospects will depend on the development of the world economy.