Wilh. Wilhelmsen ASA

Earnings Release • Feb 13, 2015

Wilh. Wilhelmsen Holding ASA: Results for the fourth quarter 2014

Wilh. Wilhelmsen Holding ASA: Results for the fourth quarter 2014

(Lysaker, 13 February 2015) WWH delivered a slight

decrease in total income and an operating profit on

par with the previous quarter, adjusted for non-

recurring items. The group's activity level is

expected to continue into 2015, supported by

stronger USD and lower fuel costs.

In the fourth quarter, WWH delivered a total income

of USD 890 million (USD 934 million) and an

operating profit of USD 142 million (USD 82

million). Non-recurring items for the quarter

included termination of a defined benefit plan and

impairment of two vessels sold to recycling,

resulting in one-off accounting gains. A non-

recurring loss related to a fine in a subsidiary and

a small sales gain on a vessel affected figures for

the fourth quarter 2013. Adjusted for non-recurring

items, the operating profit was USD 83 million (USD

98 million).

While summarising the fourth quarter income, Thomas

Wilhelmsen, group CEO of WWH, says: "Despite an

increase in deep sea volumes, our cargo mix

continued to be unfavourable. Combined with less

contribution from Hyundai Glovis this led to a

decline in income in our shipping and logistics

segment. We also recorded a slight decrease in

revenue from our maritime services segment. While

technical solutions continued its positive topline

trend, income was down for ships service and ship

management. Our investment activities contributed

less to group accounts due to seasonality and

currency."

The group saw a high 72% rise in operating

profit: "The main reason behind the increase was a

termination of the defined benefit plan for

Norwegian employees, resulting in a substantial non-

recurring accounting gain. Lower bunker costs, cost

reducing initiatives and the strong dollar also

contributed positively to our operating profit

compared with the third quarter," says Wilhelmsen.

WWH paid NOK 5.00 per share in dividend in 2014, of

which NOK 2.00 per share in the fourth quarter. The

board proposes to pay NOK 3.00 per share in May and

to receive authority to pay a second dividend of up

to NOK 3.00 per share later in 2015. The decisions

are pending approval by the annual general meeting

to be held 23 April.

The year ended on a slightly positive note, with

underlying results supported by a stronger USD and

lower fuel cost. The board expects the group's

activity level to continue into 2015.

Mr Wilhelmsen offered supporting arguments stating

that: "Volumes transported deep sea and handled at

our logistics facilities will remain flat, adjusted

for seasonality. The cargo mix continues to be

unfavourable. Low bunker price, a strong USD and

improvement initiatives should have a positive

effect on our profit. The underlying sentiment for

maritime services is positive, but the market

sentiment will continue to have an impact on general

purchasing activities."