Wallenius Wilhelmsen announces another solid quarter
(Oslo - May 8, 2024) Wallenius Wilhelmsen reported strong performance for the
first quarter of 2024 with EBITDA at USD 438m and a net profit of USD 185m.
"We are very pleased with our results in Q1 2024, in particular in view of the
impacts from multiple, external events. Shipping volumes and available capacity
were negatively impacted by the rerouting away from the Red Sea. In addition,
the bridge collapse in Baltimore impacted operations on the US east coast.
Despite this, and thanks to our teams' extraordinary efforts, we delivered
another strong quarter," says Lasse Kristoffersen, President, and CEO at
Wallenius Wilhelmsen.
The first quarter of 2024 reflected continued high activity and profitability
across all segments, despite geopolitical and operational challenges. Q1 EBITDA
was USD 438m, of which shipping delivered USD 366m, logistics USD 46m and
government USD 34m.
Increased demand for integrated services
With capacity constraints ongoing, many customers are increasingly looking to
secure integrated shipping and logistics solutions ahead of scheduled contract
renewals. "In 2024, a substantial portion of our contracts are due for renewal.
Scarcity of shipping capacity provides a firm backdrop for negotiations and
business activity. We see increased demand for logistics and integrated
services, and support for the ambition to reduce emissions," says
Kristoffersen.
Delivering on CO2 intensity targets and setting new goals
Wallenius Wilhelmsen met the CO2 intensity target set for 2023, enshrined in the
sustainability-linked financing framework established in 2022, and is actively
committing to new net zero goals. "We have upped our ambitions on
decarbonization with a goal of reducing our emissions by 40% by 2030 (compared
to 2022) and becoming net zero by 2040," says Kristoffersen.
During the quarter Wallenius Wilhelmsen also ordered four additional Shaper
Class methanol dual fuel vessels, for a total of eight firm orders. Further, the
company utilizes various energy efficiency measures and vessel upgrades to
further reduce the fleet's emissions. The newbuilds and energy efficiency
initiatives are key elements in the company's journey towards net zero.
Despite the financial implications of external events, the company expects 2024
to be another strong year, somewhat better than 2023.
Q1 2024 highlights
Wallenius Wilhelmsen:
- Delivers a Q1 EBITDA of USD 438m, with strong contributions from all segments
despite the effect of external events in the Red Sea and Baltimore. Shipping
delivers EBITDA of USD 366m (adj. for sales gain), logistics USD 46m and
government USD 34m
- Sees strong customer demand and improved contract terms with net rates
improving 5% QoQ and 8% YoY. The H&H share ended at 25% for the quarter
- Orders four 9,300 CEU vessels, bringing newbuilding count to a total of eight
vessels
- Commits to updated net zero target and delivers on 2023 sustainability goals
- Maintains expectation that 2024 is likely to be another strong year, somewhat
better than 2023, despite the financial implications of external events
For further information, please contact:
Anders Redigh Karlsen, VP IR & Market Insight
Tel: +47 994 20 293 Email: anders.karlsen@walwil.com
For media:
David Hopkins, External Communications Manager
Tel: +47 942 88 486 Email: david.hopkins@walwil.com
Or visit our website:
https://www.walleniuswilhelmsen.com/who-we-are/investors
About Wallenius Wilhelmsen
The Wallenius Wilhelmsen group is a market leader in roll-on/roll-off (RoRo)
shipping and vehicle logistics, managing the distribution of cars, trucks,
rolling equipment and breakbulk to customers all over the world. The company
operates around 125 vessels servicing 15 trade routes to six continents, a
global inland distribution network, 66 processing centers and eight marine
terminals. With a head office in Oslo, Norway, the Wallenius Wilhelmsen group
has 9,500 employees working across 28 countries worldwide.