Wallenius Wilhelmsen

Earnings Release • Nov 11, 2015

Wilh. Wilhelmsen ASA (WWASA): Results for the third quarter of 2015

Wilh. Wilhelmsen ASA (WWASA): Results for the third quarter of 2015

(Lysaker, 11 November 2015) Wilh. Wilhelmsen ASA's top

line declined 6% compared with the previous quarter,

partly related to seasonally weaker volumes. The

operating profit dropped substantially, mainly caused

by a provision of USD 200 million related to ongoing

anti-trust investigations in two of the group's joint

ventures.

WWASA's total income for the third quarter was USD 558

million, down from USD 596 million in the second

quarter.

"A 7% decline in demand for sea transportation of

autos and high and heavy volumes combined with lower

bunker compensations and pressure on rates explain the

decline in total income," says Jan Evyin Wang,

president and CEO of WWASA, when commenting on the

underlying business performance in the third quarter.

The group's logistics activities contributed on par

with previous quarters.

The third quarter results included a provision of USD

200 million. This lead to an operating loss of USD 134

million for the third quarter. Adjusted for non-

recurring items, the group recorded an operating

profit of USD 68 million, down from USD 74 million in

the second quarter.

"It is unfortunate to present a third quarter result

heavily affected by a provision related to ongoing

anti-trust investigations in Wallenius Wilhelmsen

Logistics (WWL, owned 50%) and EUKOR Car Carriers

(owned 40%). We see it as prudent to make a provision

now. Due to the confidential nature of the ongoing

processes, we cannot give any additional details.

However, we expect some clarifications in the fourth

quarter 2015 and 2016. The progress in jurisdictions

differ, meaning the final outcome is uncertain and

processes will still take time", says Wang.

Net financial costs ended on USD 73 million, a notable

drop from a net income of USD 4 million in the

previous quarter. A strong USD and a lower US interest

rate caused large unrealised losses to the company's

hedging contracts. With a tax expense of USD 5

million, WWASA delivered a negative net result of USD

213 million for the quarter.

"Growth for transportation of autos and ro-ro cargo is

expected to be soft also in 2016. The logistics

contribution is anticipated to contribute on par with

2015. We will continue to have focus on operational

efficiency and cost-reducing initiatives," ends Wang.

WWASA's board of directors has, based on an

authorisation granted by the annual general meeting on

23 April 2015, resolved to pay a second dividend of

NOK 0.50 per share, totalling USD 13 million. The low

dividend payment reflects weaker earnings in the

operating companies and the exposure related to anti-

trust investigations in WWL and EUKOR. The pay-out

date is 26 November.