Wallenius Wilhelmsen

Earnings Release • Aug 6, 2015

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

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

(Lysaker, 6 August 2015) Wilh. Wilhelmsen ASA

(WWASA) delivered an operating profit in line with

previous quarter adjusted for non-recurring items.

With a seasonal increase of 6% in transported

volumes, the total income improved. The WWASA board

expects a flat development for the second half of

The total income for WWASA amounted to USD 596

million for the second quarter with the operating

profit ending at USD 73 million. With a net

financial income of USD 4 million and a tax expense

of USD 7 million, the group delivered a net profit

after tax and minority interests amounting to USD 70

million. Earnings per share was USD 0.32.

Commenting on the highlights for the quarter, Mr Jan

Eyvin Wang, president and CEO of WWASA says: "Total

income for the second quarter came in on par with

adjusted income in the first quarter. Auto volumes

increased in all trades, except Asia to Europe,

which had a flat development in the second quarter.

The high and heavy market remained challenging. A

suboptimal cargo- and trade mix negatively affected

our profit." In addition, there was a smaller

compensation from bunker adjustment factor (BAF)'s

in our contracts.

Explaining the operating profit Wang says: "With

increased net bunker costs and more than normal off-

hire, we saw an operating profit on par with the

previous quarter, adjusted for the USD 26 million

gain on the share reduction in Hyundai Glovis in the

first quarter."

In the logistics segment improved results in Hyundai

Glovis increased contribution. In addition,

Wallenius Wilhelmsen Logistics (WWL) activities

contributed well. "Our activity level was on par

with the first quarter, with slightly higher

contribution from terminal operations and technical

services following somewhat stronger volumes," says

Wang.

Year over year, WWASA reported lower underlying

topline and operating profit: "The demand for

transportation of cargo was less in the second

quarter 2015 compared with the same quarter 2014 and

lower bunker compensation. In addition, we have lost

the contribution from our American logistics

activities. This lead to lower total income and

operating profit year over year."

The forecasted growth for light vehicle sales and

high and heavy volumes is modest for 2015. Based on

the market outlook, the WWASA board expects

seasonally lower auto volumes and continued soft

high and heavy volumes in the second half of 2015.

WWASA's annual general meeting held on 23 April 2015

resolved to pay a dividend of NOK 1 per share,

totalling NOK 220 million. The board also received

an authorisation from the annual general meeting to

pay additional dividend limited up to NOK 1.25 per

share. The authorisation is valid until the annual

general meeting in 2016, although not longer than 30

June 2016.