Results for second quarter 2015

Wilh. Wilhelmsen Holding ASA group (WWH) reported a flat top line in the second quarter of 2015, mainly influenced by reduced income from Wilh. Wilhelmsen ASA (WWASA) and Wilhelmsen Maritime Services (WMS).Seasonality and a continued strong USD positively impacted the underlying operating profit.
Press release | (Updated )

WWH delivered a total income of USD 854 million, representing 1% decline from the previous quarter. The operating profit ended at USD 103 million, a reduction from the first quarter, which was positively impacted by a non –recurring gain related to WWASA’s share reduction in Hyundai Glovis. When excluding the USD 26 million sales gain, the operating profit increased by 7%. With a net financial expense of USD 8 million and a tax expense of USD 9 million, the group delivered a net profit of USD 66 million, equal to earnings per share of USD 1.43.

“The group’s performance in second quarter was stable,” stated Thomas Wilhelmsen, group CEO at WWH, when comparing with the first quarter of 2015 and the same period last year. “The total income for our ship operating entities was positively impacted by a seasonal increase in auto volumes. The effect was partly offset by increased net bunker costs and off-hire, which had a negative impact on earnings.

Improved results in Hyundai Glovis increased the contribution from the logistics segment. Wallenius Wilhelmsen Logistics’ activity level was on par with the previous quarter, with a slightly higher contribution from terminal operations and technical services following somewhat stronger volumes.

Commenting on the development in the maritime service segment, Mr Wilhelmsen said: “Total income for the segment was on par with the previous quarter, despite a challenging market. Technical solutions grew its top line, supported by most of the activities outside offshore, while ships service and ship management reported reduced total income.”

The increase in operating profit was mainly driven by a strong USD. “In addition to a favourable currency development, seasonality contributed to the group’s stable profit development,” said Wilhelmsen.

Despite a challenging oil and offshore market, the NorSea Group (owned 40% by WWH) enjoyed a seasonal pick up in its supply base activity in the second quarter.

WWH’s annual general meeting held on 23 April 2015 resolved to pay a dividend of NOK 3 per share, totalling NOK 139 million. The board also received an authorisation to pay additional dividend limited up to NOK 3 per share.

“Based on the anticipated market outlook, we expect seasonally lower auto volumes and continued soft high and heavy volumes in the second half of 2015. Although the current market is still challenging, the underlying positive trend remains. Over the last 12 months the strong USD has had a positive influence on the group’s operating profit, in particular the maritime service segment. This effect is likely to subside going forward,” said Wilhelmsen.

The board concluded that: “We expect a stable activity level for the group, but with a seasonal slowdown in the second half of 2015.”