Wilh. Wilhelmsen Holding ASA Third quarter 2020
November 2020
Wilh. Wilhelmsen Holding ASA group Stable contribution from operating activities and a strong increase in financial asset values
USD 198 million total income
USD 37 million EBITDA
USD 3 million profit from associates
USD 174 million financial income
USD 146 million net profit (USD 3.27 EPS)
USD
mill |
|
|
Q-on-Q |
|
Y-o-Y |
- unless
otherwise
indicated |
Q3'20 |
Q2'20 |
Change |
Q3'19 |
Change |
income
Total |
198 |
197 |
0
% |
220 |
-10
% |
- of
which
operating
revenue |
199 |
195 |
2
% |
219 |
-9
% |
- of
which
gain/(loss)
on sale
of
assets |
-1 |
2 |
|
1 |
|
| EBITDA |
37 |
36 |
4
% |
42 |
-12
% |
Operating
profit/EBIT |
21 |
10 |
102
% |
24 |
-15
% |
Share
of
profit/(loss)
from
associates |
3 |
-21 |
neg. |
18 |
-81
% |
Change
in
fair
value
financial
assets |
164 |
69 |
|
-37 |
|
Other
financial
income/(expenses) |
10 |
18 |
|
-20 |
|
Profit/(loss)
before
tax/EBT |
198 |
76 |
159
% |
-15 |
neg. |
income/(expenses)
Tax |
-4 |
-5 |
|
-2 |
|
Profit/(loss)
for
the
period |
193 |
71 |
172
% |
-17 |
neg. |
Profit/(loss)
owners of
the
to
parent |
146 |
57 |
157
% |
-7 |
neg. |
EPS
(USD) |
3
27
, |
1
27
, |
157
% |
-0
15
, |
neg. |
|
|
|
|
|
|
Other
comprehensive
income |
17 |
52 |
|
-43 |
|
Total
comprehensive
income |
211 |
123 |
72
% |
-61 |
neg. |
Total
comprehensive
income
owners of
parent |
163 |
108 |
52
% |
-47 |
neg. |
|
|
|
|
|
|
Total
assets |
3
075 |
2
857 |
8
% |
3
256 |
-6
% |
Equity
parent |
1
735 |
1
573 |
10
% |
1
859 |
-7
% |
Total
equity |
1
935 |
1
726 |
12
% |
2
068 |
-6
% |
Equity
ratio |
63
% |
60
% |
3
% |
64
% |
-1
% |
Maritime services
Total income and adjusted EBITDA margin *)
Income down 13% y-o-y
- Sale of marine products and income from agency services both saw some recovery from the second quarter lows but remained well below pre-pandemic levels mainly due to continued low cruise activities.
- Shift in ship management income, with more lay-up activities and a continuous growth within offshore wind.
USD 24 million EBITDA
- Down 24% y-o-y.
- EBITDA margin of 18%.
Acquisition of 50% in Ahrenkiel Steamship GmbH & Co KG
- Rebranded Wilhelmsen Ahrenkiel Ship Management.
- Manage a fleet of 72 container ships.
- Agreement signed in July and completed in October.
Income stabilized at reduced level; operating margin maintained
Income down 4% y-o-y
Supply services Continued high activity level
- Reduction reflecting FX effect from converting NOK into USD.
- Overall stable activity level.
USD 16 million EBITDA
- Up 5% y-o-y.
- EBITDA margin of 24%.
USD 1 million share of profit from associates
Holding and investments
Direct investments – Value adjusted
(WALWIL and TRE based on share price, other financial investments based on account value)
40 60 80 100 120 140
Further recovery in financial asset values from first quarter low
USD 3 million profit from associates
• Rebound in Wallenius Wilhelmsen's auto volume from second quarter lows.
USD 164 million gain on change in fair value financial assets
- Hyundai Glovis value up USD 175 million.
- Treasure ASA buy-back of 1 million own shares.
- Qube ownership reduced from 46.3 million to 35 million shares.
USD 6 million other financial income
• Investment portfolio gain.
Acquisition of 25% in Edda Wind
- Option to buy another 25% before June 2021.
- Owns and operates service vessels for offshore wind.
- Agreement signed in September and completed in October.
Wilh. Wilhelmsen Holding ASA group Steady cash flow from operating activities
Wilhelmsen group total assets and equity ratio
Wilh. Wilhelmsen Holding ASA group Balance sheet remains solid and with long-term debt maturity profile
Debt maturity profile
The spread of Covid-19 and the measures undertaken to contain it will continue to impact global economic activity.
The extent of its future impact on operating income and result and on asset prices remains uncertain.
Wilhelmsen retains its robustness and capacity to meet this uncertainty.
Supplementary slides – Third quarter 2020
Maritime services
Ships service Ship management
Supply services NorSeaGroup
Holding and investments WalleniusWilhelmsen ASA Treasure ASA Financial investments
Ships service
Wilhelmsen Ships Service is a global provider of standardised product brands and service solutions to the maritime industry, focusing on marine products, maritime logistics and ships agency. Ships service is fully owned by Wilhelmsen.
- Sale of marine products and income from agency services both saw a part-recovery from the second quarter lows but remained well below pre-pandemic levels mainly due to continued low cruise activities.
- Non-marine income continued to benefit from demand for sanitizing products, but with sale down from a very strong second quarter.
- EBITDA improved from the second quarter but remained below previous year due to reduced income.
Q3'20 highlights
Entire Maersk Line fleet to be equipped with Wilhelmsen's Timm ropes featuring Snap Back Arrestor (SBA)
Ship management
Wilhelmsen Ship Management provides full technical management, crewing and related services for all major vessel types, and includes 50% of NorSea Wind. Ship management is fully owned by Wilhelmsen.
- Stable income development year-over year, but an increase from the second quarter due to more lay-up activities and a continuous growth within offshore wind.
- EBITDA down from last year but up from the second quarter.
- Agreement signed in July to acquisition 50% of Ahrenkiel Steamship GmbH & Co KG, with transaction completed in October. The company has been rebranded Wilhelmsen Ahrenkiel Ship Management and manage a fleet of 72 container ships.
Q3'20 highlights
Photo: Wilhelmsen Ahrenkiel Ship Management
- Flat development in total income reflected an overall stable activity level.
- EBITDA was also stable for the quarter.
Q3'20 highlights
NorSea Group
NorSea Group provides supply bases and integrated logistics solution to the offshore industry. Wilhelmsen owns ~75,2% of NorSea Group (as per 30 September 2020).
Mongstad Industrial Park has been selected as the location for what could become Norway's first production plant for liquid hydrogen serving the maritime market. Photo: Øyvind Hagen, Equinor Mongstad.
- from second quarter lows.
- Landbased revenue down 21% y-o-y.
- actions to adjust fleet and reduce cost.
Q3'20 highlights
Photo: Wallenius Wilhelmsen
Wallenius Wilhelmsen ASA
Wallenius Wilhelmsen ASA is a global provider of shipping and logistics services towards car and ro-ro customers and is listed on Oslo Børs. Wilhelmsen owns ~37,8% of Wallenius Wilhelmsen ASA (as per 30 September 2020).
- USD 175 million gain from change in fair value of Hyundai Glovis
- Hyundai Glovis reported their 1st half results on 24 July 2020, again well-received by the stock market, and showed a healthy underlying development and financial performance, with somewhat lower topline, but better operating margins than expected.
- During the quarter, Treasure ASA bought 1 000 000 own shares. Pursuant to the transaction, Treasure ASA owns 3 965 000 own shares by end of the third quarter.
Q3'20 highlights
Treasure ASA
Treasure ASA holds a 12.04% ownership interest in Hyundai Glovis and is listed on Oslo Børs. Wilhelmsen owns ~73.5% of Treasure ASA (as per 30 September 2020, not adjusted for shares held by the company).
Photo: Hyundai Glovis
Market value of Wilhelmsen's investment in Treasure ASA
Financial investments
Financial investments include cash and cash equivalents, current financial investments and financial assets held by the parent and fully owned subsidiaries reported under the holding and investments segment.
- USD 11 million in fair value loss from financial assets *)
- During the quarter, Wilhelmsen reduced its ownership in Qube Holdings from 46.3 million to 35 million shares.
- USD 6 million gain from investment management **)
Q3'20 highlights
Photo: Qube/Oslo Børs
29 83 0 100 200 300 216 159 USD mill Q3'17 Q3'20 251 103 226 244 267 256 235 241 203 219 248 Q3'18 Q3'19 Q2'20 215 -10 +1 Current financial investments Non-current financial investments Cash Financial assets, investment portfolio and cash (Holding and investment segment excluding Treasure ASA / Hyundai Glovis)
*) Excluding currency gain/(loss) reported under comprehensive income, and gain/(loss) from Hyundai Glovis reported under Treasure ASA **) Excluding currency gain/(loss)
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