Wilh. Wilhelmsen Holding ASA Second quarter results 2020
August 2020
Business update and outlook Thomas Wilhelmsen, group CEO
Second quarter 2020
COVID-19 impacting markets and operations
USD 57 million net profit in Q2 – net loss YTD
- Stable contribution from operating companies
- Partial recovery in financial asset prices
- Profit from associates was a loss of USD 21 million
Drive to shape the maritime industry continues
Maritime Services
- Reduction in global shipping
- Relatively stable performance
- Reduced sales for Marine Products and Ships Agency
- Crew change remains an issue
- Capacity reduction Ship Service
- Expanding Ship Management business
Second Quarter 2020 Maritime Services
Second Quarter 2020 Supply Services / Holding and investments
Supply Services
- Pressure on oil and gas services sector
- Stimulus packages having positive effect
- NorSea Group activity levels maintained
- Exploring complimentary usage of logistics assets
Holding and investments
- Low volumes for Wallenius Wilhelmsen
- Focused cost and capacity management
- Recovery in values of financial assets
Joining forces with MPC Capital
An agreement has been signed for Wilhelmsen Ship Management to acquire a 50% stake in Ahrenkiel Steamship GmbH & Co KG, the technical container ship manager within the MPC Capital Group.
Shaping the maritime industry Energy transition and decarbonisation
- Offshore wind
- Hydrogen supply chain
- Zero-emission vessels
- Autonomous shipping
Financial performance Christian Berg, group CFO
Wilh. Wilhelmsen Holding ASA group Stable contribution from operating activities and recovery in financial asset values
USD 197 million total income
USD 36 million EBITDA
USD 11 million goodwill impairment
USD 21 million loss from associates
USD 87 million net financial income
USD 57 million net profit (USD 1.27 EPS)
| USD mill |
|
|
Q-on-Q |
|
Y-o-Y |
-
unless otherwise indicated |
Q2'20 |
Q1'20 |
Change |
Q2'19 |
Change |
| Total income |
197 |
215 |
-8 % |
208 |
-5 % |
-
of which operating revenue |
195 |
213 |
-8 % |
200 |
-2 % |
-
of which gain/(loss) on sale of assets |
2 |
1 |
|
8 |
|
| EBITDA |
36 |
37 |
-3 % |
42 |
-15 % |
| Operating profit/EBIT |
10 |
21 |
-51 % |
25 |
-59 % |
| Share of profit/(loss) from associates |
-21 |
-60 |
neg. |
3 |
neg. |
| Change in fair value financial assets |
69 |
-256 |
|
99 |
|
| Other financial income/(expenses) |
18 |
-48 |
|
-7 |
|
| Profit/(loss) before tax/EBT |
76 |
-344 |
neg. |
120 |
-36 % |
| Tax income/(expenses) |
-5 |
5 |
|
2 |
|
| Profit/(loss) for the period |
71 |
-339 |
neg. |
123 |
-42 % |
| Profit/(loss) to owners of the parent |
57 |
-284 |
neg. |
89 |
-36 % |
| EPS (USD) |
1,27 |
-6,36 |
neg. |
1,92 |
-34 % |
|
|
|
|
|
|
| Other comprehensive income |
52 |
-124 |
|
2 |
|
| Total comprehensive income |
123 |
-464 |
neg. |
125 |
-2 % |
| Total comprehensive income owners of parent |
108 |
-404 |
neg. |
91 |
18 % |
|
|
|
|
|
|
| Total assets |
2 857 |
2 765 |
3 % |
3 390 |
-16 % |
| Equity parent |
1 573 |
1 476 |
7 % |
1 936 |
-19 % |
| Total equity |
1 726 |
1 616 |
7 % |
2 159 |
-20 % |
| Equity ratio |
60 % |
58 % |
2 % |
64 % |
-3 % |
Maritime services
Total income and adjusted EBITDA margin *)
Income down 11% y-o-y
- Sale of marine products and income from agency services down, following a reduction in global shipping activities in general and cruise activities in particular.
- Non-marine income increased, due to a temporary boost in sale of sanitizing products.
- Ship management income lifted by increase in vessels on full technical management and new offshore wind activities.
USD 21 million EBITDA
- Down 11% y-o-y adjusted for 2019 sales gain
- EBITDA margin of 16%
Reduced income, operating margin maintained
Income up 10% y-o-y
Supply services Continued high activity level
- Increased supply base activity
- A partial recovery in the oil price together with a Norwegian stimulus package for the industry has created a more positive market sentiment.
USD 16 million EBITDA
- Up 8% y-o-y
- EBITDA margin of 22% (excluding gain on sale of assets)
USD 2 million share of profit from associates
Direct investments – Value adjusted
(WALWIL and TRE based on share price, other financial investments at fair value)
- 40 60 80 100 120
- 140
- 180
- 200 220
Holding and investments Part recovery in financial asset values from first quarter low
USD 24 million loss on share of profit from associates
• Lower volumes and increased provisions in Wallenius Wilhelmsen
USD 69 million gain on change in fair value financial assets
- Hyundai Glovis value up USD 47 million
- Treasure ASA buy-back of 2.5 million own shares
- Participated in Qube entitlement offer; value up USD 44 million
USD 11 million other financial income
• Investment portfolio gain
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 the future impact on operating income and result and on asset prices remains uncertain.
Wilhelmsen retains its robustness and capacity to meet this uncertainty.
Thank you
Supplementary slides – Second quarter 2020
Maritime services
Ships service Ship management
Supply services NorSea Group
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
- Total income down 10% from the corresponding period last year. Sale of marine products and income from agency services were both down, following a reduction in global shipping activities in general and cruise activities in particular. Non-marine income increased due to a temporary boost in sale of sanitizing products.
- EBITDA was also down for the quarter due to lower income.
Q2'20 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
- An increase in number of ships on full technical management and new offshore wind activities continued to lift operating revenue on a year-over-year basis.
- EBITDA was down from the corresponding period previous year mainly due to a sales gain lifting last year results.
Q2'20 highlights
- Total income up 9% from one year earlier. Total supply base activities increased, but development differed between the various locations.
- EBITDA was up, mainly due to an increase in supply base activities.
Q2'20 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 June 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.
Photo: Wallenius Wilhelmsen
Q2'20 highlights
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 June 2020)
- USD 47 million gain from change in fair value of Hyundai Glovis
- The financial consequences of the Covid-19-related lack of demand and production of light vehicles are severe and reflected in the share price and financial performance of Hyundai Glovis.
- During the quarter, Treasure ASA bought 2 500 000 own shares. Pursuant to the transaction, Treasure ASA owns 2 965 000 own shares.
Q2'20 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 June 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 23 million in fair value gain from financial assets *)
- During the quarter, Wilhelmsen participated in a Qube Holding entitlement offer, increasing ownership from 40 million to 46.3 million shares.
- USD 13 million gain from investment management **)
Q2'20 highlights
Photo: Qube/Oslo Børs
*) 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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