Wilh. Wilhelmsen Holding ASA Fourth quarter and full year 2021
Highlights Q4 2021
Stable EBITDA
Increased share of profit from joint ventures and associates
Stable financial assets values
- Hyundai Glovis up USD 3 million
USD 67 million net profit to equity holders of the parent - USD 1.46 EPS
Edda Wind ASA listed on Oslo Børs
- Wilhelmsen retaining a 25.7% ownership
Proposed first dividend of NOK 4.00 per share
- Potential second dividend of up to NOK 3.00 per share
Increased income, stable operating margin
USD 153 million total income
- Up 15% y-o-y.
- Continued increase in general shipping activities.
- Income up for Marine Products and Ships Agency.
- Stable underlying income for Ship Management.
- Income for the quarter lifted by a contract reported at gross value, with no net result effect.
USD 24 million EBITDA
- Up 34% y-o-y.
- EBITDA margin of 16%.
USD 1 million share of profit from associates
Total income and adjusted EBITDA margin *)
Total income
Adj EBITDA margin (IFRS 16 from Q1'19)
*) Margin adjusted for main non-recurring items: Q2'19 Property sales gain
Continued year-over-year increase in income, reduced EBITDA
USD 79 million total income
- Up 14% y-o-y.
- General increase in activity for most operations, including related to offshore wind.
USD 11 million EBITDA
- Down 15% y-o-y.
- Restructuring cost and new business ramp up cost.
- EBITDA margin of 14%.
USD 3 million share of profit from JVs and associates
• Mainly NorSea Group JVs and associates.
Edda Wind ASA completed IPO
• Wilhelmsen ownership reduced to 25,7%
Total income and adjusted EBITDA margin *)
Strong increase in asset market value driven by Wallenius Wilhelmsen
USD 59 million share of profit from associates
• Strong improvement in Wallenius Wilhelmsen ASA profit.
USD 1 million gain on change in fair value financial assets
- Modest increase in Hyundai Glovis value.
- Modest decrease for other assets.
Treasure ASA buy back of own shares
• Completed buy back of 6 million own shares.
0 50 100 150 200 250 300 350 1.500 0 500 1.000 2.000 Q4 '20 USD mill Q3 '21 Q4 '18 NOK/share Q4 '19 Q4 '21 1.533 Wallenius Wilhelmsen ASA (OSE: WAWI) Treasure ASA (OSE: TRE) Cash Non-current financial investments Current financial investments NOK/share (right axis) Direct investments – Value adjusted (WAWI and TRE based on share price, other financial investments based on account value)
Highlights year 2021
Safe and timely operations during an ongoing pandemic.
New group structure:
- Maritime Services
- New Energy
- Strategic Holdings and Investments
Increased investment and public listing of Edda Wind ASA.
Increased operating income and profit.
Wallenius Wilhelmsen ASA – strong rebound.
Paid dividend of NOK 8.00 per share.
Solid shareholder return.
Outlook
Maritime Services
High activity level within most shipping segments will continue. Uncertainties will remain related to activity level within cruise.
New Energy
Seasonality continue to impact NorSea Group activities.
Strong market fundamentals for Edda Wind ASA.
Strategic Holdings and Investments
Favorable outlook for Wallenius Wilhelmsen, resuming dividend.
More volatile equity markets.
Wilhelmsen group
Strong position in all main activities.
Forward leaning strategic ambition.
Wilh. Wilhelmsen Holding ASA Fourth quarter and full year 2021
Financials
February 2022
Stable EBITDA and increased profit from joint ventures and associates
|
|
|
Q-on-Q |
|
Y-o-Y |
| USD million |
Q4'21 |
Q3'21 |
Change |
Q4'20 |
Change |
| Total income |
233 |
216 |
8 % |
202 |
15 % |
| - of which operating revenue |
228 |
216 |
5 % |
199 |
14 % |
| - of which gain/(loss) on sale of assets |
5 |
(0) |
|
2 |
|
| EBITDA |
31 |
38 |
-18 % |
29 |
9 % |
| Operating profit/EBIT |
14 |
21 |
-33 % |
9 |
60 % |
| Share of profit/(loss) from JVs and associates |
63 |
24 |
|
29 |
|
| Change in fair value financial assets |
1 |
(180) |
|
215 |
|
| Other financial income/(expenses) |
(4) |
(7) |
|
23 |
|
| Profit before tax/EBT |
73 |
(142) |
|
275 |
-73 % |
| Tax income/(expenses) |
(6) |
(1) |
|
(23) |
|
| Profit for the period |
67 |
(143) |
|
253 |
-73 % |
| Profit to equity holders of the company |
67 |
(99) |
|
198 |
-66 % |
| EPS (USD) |
1,46 |
(2,21) |
|
4,45 |
-67 % |
| Other comprehensive income |
(4) |
(20) |
|
78 |
|
| Total comprehensive income |
63 |
(163) |
|
330 |
-81 % |
| Total comp. inc. equity holders of the comp. |
64 |
(118) |
|
273 |
-77 % |
Stable EBITDA and increased profit from joint ventures and associates
|
01.01- |
01.01- |
Y-o-Y |
| USD million |
31.12.21 |
31.12.20 |
Change |
| Total income |
874 |
812 |
8 % |
| - of which operating revenue |
873 |
807 |
8 % |
| - of which gain/(loss) on sale of assets |
2 |
5 |
-64 % |
| EBITDA |
141 |
138 |
2 % |
| Operating profit/EBIT |
73 |
60 |
21 % |
| Share of profit/(loss) from JVs and associates |
101 |
(50) |
|
| Change in fair value financial assets |
(107) |
192 |
|
| Other financial income/(expenses) |
(1) |
2 |
|
| Profit before tax/EBT |
66 |
205 |
-68 % |
| Tax income/(expenses) |
(13) |
(27) |
|
| Profit for the period |
53 |
178 |
-70 % |
| Profit to equity holders of the company |
72 |
117 |
-38 % |
| EPS (USD) |
1,63 |
2,63 |
-38 % |
| Other comprehensive income |
(35) |
23 |
|
| Total comprehensive income |
17 |
200 |
-91 % |
| Total comp. inc. equity holders of the comp. |
41 |
141 |
-71 % |
EBITDA of USD 141 million
USD 89 million in Maritime Services: USD 60 million in New Energy:
Share of profit of USD 101 million
USD 85 million from Wallenius Wilhelmsen USD 10 million from New Energy USD 5 million from Maritime Services
Fair value loss of USD 107 million
USD 115 million loss from Hyundai Glovis.
USD 1.63 EPS
Steady cash flow; investing in New Energy
Maritime Services loan to be refinanced in 2022, New Energy loan in 2023
Wilhelmsen group total assets and equity ratio
Board proposes first dividend of NOK 4,00 per share
Potential second dividend of up to NOK 3,00 per share
Dividend payments 1)
Cash to shareholders 2)
Supplementary slides – Fourth quarter 2021
Maritime Services Ships Service Ship Management
New Energy NorSea Group Edda Wind ASA
Strategic Holdings 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 and Ships Agency. Wilhelmsen Ships Service is fully owned by Wilhelmsen.
Q4'21 highlights Total income
- Total income for Ships Service was USD 134 million. This was up 12% from the corresponding period previous year and up 6% from the third quarter. The general increase in shipping activities continued, lifting total income for both Marine Products and Ships Agency. When compared with the third quarter, income was up also for non-marine products mainly due to seasonality.
- EBITDA followed the increase in income and was up both yearover-year and compared with the third quarter.
Total income
Photo: Ships Agency COVID-19 crew change requirements
Ship Management
Wilhelmsen Ship Management provides full technical management, crewing and related services for all major vessel types. Wilhelmsen Ship Management is fully owned by Wilhelmsen.
Q4'21 highlights Total income
- Total income for Ship Management was USD 19 million, up 49% from the corresponding period previous year and up 54% from the third quarter. Income for the quarter included the full year effect from changing the reporting of a vessel management contract from net to gross value, with no net result effect. Adjusted for this change in reporting, income was stable. On a year-over-year basis, income from full technical management was up while income from lay-up management was down.
- When compared with the previous year, EBITDA was down while share of profit from associates was up.
Material sales gain
Total income (excl. material sales gain)
Photo: Dry-docking during a pandemic
NorSea Group
NorSea Group provides supply bases and integrated logistics solution to the offshore industry. Wilhelmsen owns 75,2% of NorSeaGroup (as per 31 December 2021).
Q4'21 highlights Total income
- Total income for NorSea Group was USD 69 million. This was up 16% year-over year and up 4% from the third quarter. The increase from previous year followed a general higher activity level in most operations, including related to offshore wind.
- EBITDA was down for the quarter due to a combination of restructuring cost related to a business unit and ramp up cost related to new business development.
- Share of profit from joint ventures and associates in NorSea Group was USD 3 million in the fourth quarter.
Photo: Dusavika supply base, Stavanger.
Material sales gain
Total income (excl. material sales gain) 1)
1) Total income from 1.1.2020 is excluding NorSea Wind
Edda Wind ASA
Edda Wind ASA provides service to the global offshore wind industry and is listed on Oslo Børs. Wilhelmsen owns 25,7% of Edda Winds ASA (as per 31 December 2021).
- On 8 November, Edda Wind ASA announced launching an initial public offering (IPO), which was finally completed on 28 December. Following the IPO, Wilhelmsen owns 16.5 million shares in Edda Wind ASA, representing 25,7% of total shares.
- The book value of the 25,7% shareholding in Edda Wind ASA was USD 57 million at the end of the fourth quarter.
Q4'21 highlights Market value of Wilhelmsen's investment
Edda Wind (book value excluding shareholder loan; pre-listing)
Picture: Edda Wind.
Wallenius Wilhelmsen ASA
Wallenius Wilhelmsen ASA is a is a market leader in RoRo shipping and vehicle logistics and is listed on Oslo Børs. Wilhelmsen owns 37,8% of Wallenius Wilhelmsen ASA (as per 31 December 2021).
- Share of profit from Wallenius Wilhelmsen ASA was USD 58 million in the quarter. This was up from USD 22 million in the corresponding period last year, and up from USD 20 million in the third quarter.
- The book value of the 37,8% shareholding in Wallenius Wilhelmsen ASA was USD 885 million at the end of the fourth quarter.
Q4'21 highlights Market value of Wilhelmsen's investment
Wallenius Wilhelmsen ASA
Photo: Wallenius Wilhelmsen.
Treasure ASA
Treasure ASA holds a 11,0% ownership interest in Hyundai Glovis and is listed on Oslo Børs. Wilhelmsen owns 74,8% of Treasure ASA (as per 31 December 2021).
- Change in fair value of the shareholding in Hyundai Glovis was a gain of USD 3 million for the quarter. The value of the investment in Hyundai Glovis was USD 583 million at the end of the fourth quarter.
- On 15 November, Treasure ASA announced buy back of 6 000 000 own shares out of a total of 213 835 000 shares issued. Wilhelmsen did not participate in the buy back, maintained its holding of 160 000 000 shares in Treasure ASA.
Q4'21 highlights Market value of Wilhelmsen's investment
Photo: Hyundai Glovis.
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 Strategic Holdings and Investments segment.
- USD 2 million in fair value loss from non-current financial assets. *)
- USD 1 million gain on current financial investments. **)
- The market value non-current financial assets at the end of the quarter was USD 105 million. ***)
- The market value of current financial investments was USD 135 million by the end of the quarter.
*) Excluding currency gain/(loss) reported under comprehensive income,
- and gain/(loss) from Hyundai Glovis
- **) Excluding currency gain/(loss)
- ***) Excluding Hyundai Glovis
Q4'21 highlights Market value of Wilhelmsen's financial investments
- Non-current financial investments
- Current financial investments
- Cash