Business, Freight News, Sea

Wallenius Wilhelmsen Posts Strong Q3

[ November 15, 2024   //   Gary G Burrows ]

Swedish-Norwegian roll-on, roll-off carrier Wallenius Wilhelmsen said its third quarter was its second-strongest quarter of record, despite a slight dip in adjusted EBITDA, to US$503 million.
“All business units are performing well, and the activity level is high across the organization,” said Lasse Kristoffersen, CEO of Wallenius Wilhelmsen. “Year-to-date, all segments have delivered better than in 2023 and we are confident that 2024 EBITDA will be somewhat better than 2023.”
Negotiations for renewals for contracts expiring in 2024 “are progressing well, as evidenced by the latest announcement of a five-year contract in the high-and-heavy segment,” Kristoffersen said. “We see strong and increased demand in areas where we have industry leading offerings, including shipping, logistics, integrated supply chain, digital and reduced emissions services.”
Total third quarter revenue improved 3 percent to US$1.35 billion, compared with US$1.31 billion in the third quarter 2023. Stable shipping services volumes and revenues and increased revenues in the government segment were offset by seasonal reduction in logistics services.
Total revenue for the group increased despite the volume reduction following the Red Sea diversion in the shipping services. The reduced year-over-year shipping volumes were more than offset by higher net freight rates and growth in the government and logistics segments, the company said.
Operating profit slipped 2 percent to US328 million, and net income fell 7 percent to US$328 million. Of the third quarter adjusted EBITDA, shipping delivered US$416 million; logistics, US$47 million; and government, US$49 million.
During the quarter, the carrier entered into a five-year agreement with a leading agriculture, forestry and roadbuilding equipment manufacturer, valued at about US$766 million, based on expected volumes over the five-year period. Rates are in line with current market levels and the agreement includes a partnership on decarbonization, whereby the customer agrees to pay for the phase-in of green and renewable fuels, the company said.
2024 will be another strong year for Wallenius Wilhelmsen, Kristofferson said, “providing a solid backdrop for our pay-as-you-go dividend policy and allowing us to invest in renewing and growing our business.”

Tags: Wallenius Wilhelmsen