Quarterly Report • Nov 2, 2022
Quarterly Report
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Wilhelmsen delivered steady operating results and a strong contribution from associates in the third quarter. This was offset by financial losses, resulting in a net loss of USD 26 million for the quarter. Net profit to equity holders of the company was nil.
USD 36 million in EBITDA.
• Higher income offset by lower operating margin.
USD 87 million in share of profit from joint ventures and associates.
• USD 81 million in share of profit from Wallenius Wilhelmsen.
USD 135 million in net financial loss, mainly unrealised.
Second dividend of NOK 3.00 per share to be paid 24 November.
On 12 October, Wilhelmsen Port Services entered into an agreement to acquire Vopak Agencies.
| USD million | Q-on-Q | Y-o-Y | 01.01- | 01.01- | Y-o-Y | |||
|---|---|---|---|---|---|---|---|---|
| Q3'22 | Q2'22 | Change | Q3'21 | Change | 30.09.22 | 30.09.21 | Change | |
| Total income | 234 | 238 | -2% | 216 | 8% | 712 | 642 | 11% |
| of which operating revenue | 236 | 239 | -1% | 216 | 9% | 706 | 645 | 10% |
| of which other gain/(loss) | (2) | (1) | (0) | 6 | (3) | |||
| EBITDA | 36 | 39 | -9% | 38 | -7% | 119 | 110 | 8% |
| Operating profit/EBIT | 22 | 27 | -16% | 21 | 5% | 77 | 59 | 30% |
| Share of profit/(loss) from JVs and associates | 87 | 45 | 91% | 24 | 263% | 195 | 38 | 412% |
| Financial items | (135) | (117) | (187) | (178) | (105) | |||
| of which change in fair value financial assets | (106) | (92) | (180) | (128) | (108) | |||
| of which other financial income/(expenses) | (29) | (24) | (7) | (50) | 3 | |||
| Profit/(loss) before tax/EBT | (26) | (44) | neg. | (142) | neg. | 94 | (8) | neg. |
| Tax income/(expenses) | 0 | 6 | (1) | 1 | (7) | |||
| Profit/(loss) for the period | (26) | (38) | neg. | (143) | neg. | 95 | (14) | neg. |
| Profit/(loss) to equity holders of the company | (0) | (19) | neg. | (99) | neg. | 114 | 6 | >500% |
| EPS (USD) | (0.01) | (0.42) | neg. | (2.21) | neg. | 2.55 | 0.13 | >500% |
| Other comprehensive income | (62) | (89) | (20) | (142) | (31) | |||
| Total comprehensive income | (88) | (127) | neg. | (163) | neg. | (47) | (45) | neg. |
| Total comp. income equity holder of the company | (63) | (96) | neg. | (118) | neg. | (18) | (24) | neg. |
| Total assets | 3,271 | 3,393 | -4% | 3,372 | -3% | 3,271 | 3,372 | -3% |
| Shareholders' equity | 1,968 | 2,034 | -3% | 1,968 | 0% | 1,968 | 1,968 | 0% |
| Total equity | 2,093 | 2,187 | -4% | 2,190 | -4% | 2,093 | 2,190 | -4% |
| Equity ratio | 64% | 64% | 0% | 65% | -1% | 64% | 65% | -1% |
Total income for the Wilh. Wilhelmsen Holding ASA group (referred to as Wilhelmsen or group) was USD 234 million in the third quarter of 2022, up 8% from the corresponding period last year but down 2% from the second quarter. The positive trend with year-over-year growth in operating revenue continued, driven by Maritime Services.
EBITDA was USD 36 million, down 7% from one year earlier and down 9% from the previous quarter. The reduction is mainly due to the currency effect from converting EBITDA in local currencies into a stronger USD. Lower operating margin also had a negative impact.
Share of profit from joint ventures and associates was USD 87 million. The contribution from Wallenius Wilhelmsen ASA remained strong and well above both previous year and the second quarter.
Financial items were negative with USD 135 million, including a USD 106 million negative change in fair value of financial assets and a USD 24 million unrealised loss on FX hedges.
Net profit to equity holders of the company was nil for the quarter, equal to a negative USD 0.01 earnings per share (EPS).
Other comprehensive income was negative with USD 62 million, mainly from currency translation differences related to non-USD entities. Total comprehensive income, including net profit and other comprehensive income, attributable to equity holders of the company was negative with USD 63 million.
Total assets were down 3% in the third quarter, mainly due to lower value of assets in non-USD entities following the strong appreciation of USD. Shareholders' equity was also down 3% for the quarter, to USD 1 968 million. As of 30 September, the group equity ratio was 64%.
| USD million | Cash & cash |
Curr. fin. |
||||
|---|---|---|---|---|---|---|
| equiv. | inv. | IBD | Lease liabil. |
NIBD | ||
| Maritime Services | 128 | 0 | 188 | 30 | 89 | |
| New Energy | 7 | 0 | 278 | 54 | 325 | |
| Strategic Holdings and Inv. | 24 | 81 | 29 | 26 | (50) | |
| Elimination | 0 | 0 | 0 | (9) | (9) | |
| Wilhelmsen group | 159 | 82 | 495 | 101 | 356 |
Cash and cash equivalents were USD 159 million at the end of the third quarter, down USD 4 million from the previous quarter. Operating cash flow improved during the quarter but was offset by investments in fixed assets and debt repayments.
Total interest-bearing debt including lease liabilities was USD 596 million by the end of the third quarter. This was down USD 54 million from the previous quarter due to FX effect on non-USD debt and a net repayment.
This includes Ships Service, Port Services, Ship Management, and other activities reported under the Maritime Services segment.
| USD million | Q-on-Q | Y-o-Y | 01.01- | 01.01- | Y-o-Y | |||
|---|---|---|---|---|---|---|---|---|
| Q3'22 | Q2'22 | Change | Q3'21 | Change | 30.09.22 | 30.09.21 | Change | |
| Total income | 157 | 156 | 1% | 138 | 13% | 466 | 404 | 15% |
| of which Ships Service | 100 | 99 | 1% | 86 | 16% | 292 | 254 | 15% |
| of which Port Services | 34 | 35 | -3% | 34 | 1% | 102 | 92 | 12% |
| of which Ship Management | 17 | 17 | 2% | 12 | 41% | 50 | 36 | 38% |
| of which other activities/eliminations | 6 | 5 | 6 | 21 | 22 | |||
| EBITDA | 24 | 25 | -6% | 23 | 3% | 69 | 65 | 7% |
| EBITDA margin (%) | 15% | 16% | 17% | 15% | 16% | |||
| Operating profit/EBIT | 18 | 19 | -6% | 16 | 12% | 51 | 44 | 15% |
| EBIT margin (%) | 12% | 12% | 12% | 11% | 11% | |||
| Share of profit/(loss) from JVs and associates | 2 | 2 | 2 | 5 | 4 | 42% | ||
| Financial items | (23) | (23) | (8) | (42) | (19) | |||
| Tax income/(expense) | 1 | 0 | (2) | (3) | (6) | |||
| Profit/(loss) | (2) | (1) | neg. | 8 | neg. | 12 | 23 | -48% |
| Profit margin (%) | -1% | -1% | 6% | 2% | 6% | |||
| Non controlling interests | 0 | (0) | 0 | 1 | 0 | |||
| Profit/(loss) to equity holders of the company | (2) | (1) | neg. | 8 | neg. | 11 | 22 | -51% |
Total income for the Maritime Services segment was USD 157 million in the third quarter. This was up 13% from the corresponding period last year and up 1% from the previous quarter. The year-over-year increase reflected higher operating revenue in Ships Service and Ship Management, while income in Port Services was stable.
EBITDA was USD 24 million, up 3% year-over-year and down 6% from the previous quarter. EBITDA was supported by the year-over-year increase in income and a strong USD but held back by higher freight and other cost. The quarter also included a USD 1 million reversal of a first quarter provision of USD 3 million for potential losses related to the Russian invasion of Ukraine.
Share of profit from joint ventures and associates was USD 2 million. Financial items were an expense of USD 23 million, including a USD 22 million unrealised FX loss related to hedging of non-USD operating cost.
The quarter ended with a loss to equity holders of the company of USD 2 million.
Wilhelmsen Ships Service offers a portfolio of maritime solutions to the merchant fleet. Wilhelmsen Ships Service is fully owned by Wilhelmsen.
Total income for Ships Service was USD 100 million. This was up 16% from the corresponding period last year and up 1% from the previous quarter. Both higher volumes and price increases had a positive impact on income. Demand for refrigerants and chemicals remained up from last year, supported by higher cruise activities. The increases in sales prices mainly reflected higher product and freight cost, which is gradually being passed on to the customer.
The previously announced acquisition of Stromme was completed in September. Stromme is a specialised cargo hold cleaning company in the marine industry with offices in Oslo, Hamburg, and Singapore.
Wilhelmsen Port Services provides full agency, husbandry, and protective agency services to the merchant fleet. Wilhelmsen Port Services is fully owned by Wilhelmsen.
Total income for Port Services was USD 34 million. This was up 1% from the corresponding period last year but down 3% from the previous quarter. The overall activity level was stable for the quarter.
Post quarter, on 12 October, Wilhelmsen entered into an agreement to acquire Vopak Agencies, a leading provider of hub services and port agency within the tanker segments in Europe.
Wilhelmsen Ship Management provides full technical management, crewing, and related services for all major vessel types. Wilhelmsen Ship Management is fully owned by Wilhelmsen.
Total income for Ship Management was USD 17 million, up 41% from the corresponding period last year and up 2% from the previous quarter. The increase year-over-year primarily related to a new vessel management contract reported on a gross value basis. Project related activities remained above last year level, while number of vessels under management was down.
This includes Wilhelmsen Chemicals, Wilhelmsen Insurance Services and Global Business Services (all fully owned by Wilhelmsen) and certain other activities reported under the Maritime Services segment.
Income from other activities was stable for the quarter.
This includes NorSea, Edda Wind ASA, and other activities reported under the New Energy segment.
| USD million | Q-on-Q | Y-o-Y | 01.01- | 01.01- | Y-o-Y | |||
|---|---|---|---|---|---|---|---|---|
| Q3'22 | Q2'22 | Change | Q3'21 | Change | 30.09.22 | 30.09.21 | Change | |
| Total income | 76 | 81 | -7% | 76 | 0% | 250 | 231 | 8% |
| of which NorSea | 64 | 70 | -8% | 66 | -3% | 218 | 201 | 9% |
| of which other activities/eliminations | 11 | 11 | 0% | 10 | 18% | 32 | 30 | 4% |
| EBITDA | 13 | 15 | -13% | 17 | -22% | 60 | 49 | 21% |
| EBITDA margin (%) | 17% | 18% | 22% | 24% | 21% | |||
| Operating profit/EBIT | 7 | 10 | -33% | 8 | -20% | 38 | 23 | 68% |
| EBIT margin (%) | 9% | 12% | 11% | 15% | 10% | |||
| Share of profit/(loss) from JVs and associates | 3 | 3 | 20% | 2 | 61% | 7 | 8 | -5% |
| Financial items | (4) | (3) | (4) | (10) | (12) | |||
| Tax income/(expense) | 0 | (0) | 0 | 1 | (0) | |||
| Profit/(loss) | 6 | 9 | -34% | 6 | -3% | 36 | 18 | 97% |
| Profit margin (%) | 8% | 11% | 8% | 14% | 8% | |||
| Non controlling interests | 0 | 1 | 2 | 7 | 6 | |||
| Profit/(loss) to equity holders of the company | 6 | 8 | -24% | 4 | 49% | 29 | 12 | 143% |
Total income for the New Energy segment was USD 76 million in the third quarter. This was unchanged from the corresponding period last year and down 7% from the previous quarter. Income was strongly impacted by the appreciation of USD versus NOK and other European currencies. When measured in local currencies, income was up year-over-year and in line with the second quarter.
EBITDA was USD 13 million, down 22% from the corresponding period last year and down 13% from the previous quarter. The reduction was mainly due to the currency effect from a stronger USD when converting from local currencies. Year-over-year, EBITDA was also negatively impacted by a reclassification of cost due to the full consolidation of Vikan Næringspark Invest and a reallocation of corporate cost to the New Energy segment.
Share of profit from joint ventures and associates was USD 3 million in the third quarter, while financial items were included with a net expense of USD 4 million.
Profit to equity holders of the company was USD 6 million for the quarter.
NorSea provides supply bases and integrated logistics solutions to the offshore industry. Wilhelmsen owns 99.0% of NorSea.
Total income for NorSea was USD 64 million in the third quarter. This was down 3% from the corresponding period last year and down 8% from the second quarter. The reduction in total income was mainly due to a stronger USD, reducing the USD value of income in other currencies. Income in local currencies was up year-overyear, supported by higher activity in Denmark. Compared with the second quarter, activity level was stable with income measured in local currencies down 2%.
Share of profit from joint ventures and associates in NorSea was USD 2 million.
Edda Wind ASA provides services to the global offshore wind industry and is listed on Oslo Børs. Wilhelmsen owns 25.7% of the company, which is reported as associate in Wilhelmsen's accounts.
Share of profit from Edda Wind ASA is included with nil for the quarter.
The book value of the 25.7% shareholding in Edda Wind ASA was USD 49 million at the end of the third quarter.
This includes NorSea Wind (owned 50% by NorSea and 50% by Wilhelmsen Ship Management), Reach Subsea ASA (owned 21%), Raa Labs AS (fully owned), Massterly AS (owned 50%), Dolittle AS (owned 46%) and certain other activities reported under the New Energy segment.
Total income for NorSea Wind was USD 11 million in the third quarter, up both year-over-year and quarter-onquarter.
The book value of Wilhelmsen's 21% shareholding in Reach Subsea ASA was USD 16 million at the end of the third quarter.
This includes the strategic holdings in Wallenius Wilhelmsen ASA and Treasure ASA, other financial and non-financial investments, and other activities reported under the Strategic Holdings and Investments segment.
| USD million | Q-on-Q | Y-o-Y | 01.01- | 01.01- | Y-o-Y | |||
|---|---|---|---|---|---|---|---|---|
| Q3'22 | Q2'22 | Change | Q3'21 | Change | 30.09.22 | 30.09.21 | Change | |
| Total income | 4 | 4 | 1% | 4 | 3% | 6 | 13 | -54% |
| of which operating revenue | 4 | 5 | -15% | 4 | -3% | 13 | 13 | 2% |
| of which gain/(loss) on sale of assets | 0 | (0) | 0 | (7) | 0 | |||
| EBITDA | (1) | (1) | (2) | (10) | (4) | |||
| Operating profit/EBIT | (2) | (2) | (3) | (13) | (9) | |||
| Share of profit/(loss) from JVs and associates | 81 | 41 | 100% | 20 | 300% | 183 | 27 | >500% |
| of which Wallenius Wilhelmsen ASA | 81 | 41 | 100% | 20 | >500% | 183 | 27 | >500% |
| of which other/eliminations | 0 | 0 | 0 | 0 | 0 | |||
| Change in fair value financial assets | (106) | (92) | (180) | (128) | (108) | |||
| of which Hyundai Glovis | (103) | (84) | (183) | (116) | (118) | |||
| of which other financial assets | (3) | (8) | 3 | (12) | 11 | |||
| Other financial income/(expenses) | (3) | 1 | neg. | 5 | neg. | 3 | 35 | -93% |
| of which investment management in parent | (5) | (2) | 3 | (15) | 21 | |||
| of which dividend income Hyundai Glovis | 0 | (0) | 0 | 13 | 13 | |||
| of which other financial income/(expense) | 2 | 3 | 1 | 5 | 1 | |||
| Tax income/(expense) | (1) | 6 | 1 | 3 | (0) | |||
| Profit/(loss) for the period | (30) | (46) | (157) | 47 | (55) | |||
| Non controlling interests | (26) | (21) | (47) | (26) | (27) | |||
| Profit/(loss) to equity holders of the company | (4) | (25) | (110) | 73 | (28) |
The Strategic Holdings and Investments segment reported a USD 4 million loss to equity holders of the company in the third quarter. This reflected a continued strong contribution from Wallenius Wilhelmsen ASA, which was offset by a negative change in the value of Hyundai Glovis.
Wallenius Wilhelmsen ASA is a market leader in RoRo shipping and vehicle logistics and is listed on Oslo Børs. Wilhelmsen owns 37.9% of the company, which is reported as associate in Wilhelmsen's accounts.
Share of profit from Wallenius Wilhelmsen ASA was USD 81 million for the quarter. This was up from USD 20 million in the corresponding period last year and up from USD 41 million in the previous quarter.
On 26 August, Wilhelmsen bough 210 000 shares in Wallenius Wilhelmsen ASA for USD 1 million. The transaction increased the Wilhelmsen shareholding in Wallenius Wilhelmsen ASA to 160 210 000 shares, representing 37.9% of total shares.
The book value of the 37.9% shareholding in Wallenius Wilhelmsen ASA was USD 1 050 million at the end of the third quarter.
Treasure ASA holds a 11.0% ownership interest in Hyundai Glovis and is listed on Oslo Børs. Wilhelmsen owns 77.0% of Treasure ASA.
Change in fair value of the shareholding in Hyundai Glovis was a loss of USD 103 million for the quarter. The value of the investment in Hyundai Glovis was USD 467 million at the end of the third quarter.
On 8 September, Treasure ASA announced buy back of 2 594 566 own shares out of a total of 207 835 000 shares issued. Wilhelmsen did not sell any shares, maintaining its holding of 160 000 000 shares in Treasure ASA.
Financial investments include cash and cash equivalents, current financial investments and other financial assets held by the parent and fully owned subsidiaries.
Net income from investment management was a loss of USD 5 million for the quarter. The market value of current financial investments was USD 81 million by the end of the third quarter.
Change in fair value of non-current financial assets was a loss of USD 3 million for the quarter. The market value at the end of the third quarter was USD 62 million. The largest investment was 25 million shares held in Qube Holdings Limited.
This includes WilNor Governmental Services (owned 51% directly and 49% through NorSea), holding company activities, and certain other activities reported under the Strategic Holdings and Investments segment.
Total income from other activities were stable both yearover-year and quarter-on-quarter. Reduced income in WilNor Governmental Services was offset by an increase in other income.
Wilhelmsen is an industrial holding company within the maritime industry. The group's activities are carried out through fully and partly owned entities, most of which are among the market leaders within their segments. Our ambition is to develop companies within maritime services, shipping, logistics, renewables, and related infrastructure through active ownership.
Maritime Services delivers value creating solutions to the global merchant fleet, focusing on Ships Service, Ports Services, and Ship Management.
The maritime services operation is presently supported by a generally positive global shipping market, and with some further upside related to cruise. At the same time, inflationary pressure, raw material shortages, and supply chain issues are putting pressure on both the operation and on operating margins. We expect these factors to remain in the short term. To compensate for the cost increases, the operating companies are in the process of implementing necessary price increases.
Looking further ahead, we believe that the maritime services market will continue to grow, supported by a growing world economy. With global networks and strong brands built over many years, and with a long history of innovation and market adaption, Wilhelmsen is in a good position to service this market.
The focus of New Energy is to create new opportunities and partnerships in renewables, zero-emission shipping, and marine digitalisation.
High energy prices and supply constrains following the Russian invasion of Ukraine have increased focus on securing Europe's need for energy. This supports a continued high activity level at the offshore fields supported by NorSea and other Wilhelmsen operations. We believe this situation to remain in the short term.
A strong focus on climate measures in Europe and globally will support, among others, a gradual shift from offshore oil and gas to offshore wind, and decarbonization of the global fleet. With a broad range of operations, infrastructure, and new initiatives across offshore and other maritime activities, Wilhelmsen is well positioned to participate in these energy and technology shifts.
Wilhelmsen holds large strategic shareholdings in Wallenius Wilhelmsen ASA and, through its 77% shareholding in Treasure ASA, Hyundai Glovis. Through our shareholdings in these companies, we will continue to provide and develop world leading logistics services to the global automotive and ro-ro industries.
A favorable supply-demand balance in global ro-ro shipping has recently lifted the earnings and dividend capacity of our strategic holdings. We expect this situation to remain over the mid-term.
Long term, we believe that both Wallenius Wilhelmsen ASA and Hyundai Glovis have the size, global reach, human and physical assets, and customer base to succeed in a continuously changing world.
Wilhelmsen retains a strong balance sheet and a balanced portfolio of leading maritime operations and investments.
While uncertainty persists, specifically regarding inflationary pressure, supply chain issues, and geopolitical tension, the group retains its capacity to support and grow the portfolio, and to deliver consistent yearly dividend.
The board of directors of Wilh. Wilhelmsen Holding ASA
Forward-looking statements presented in this report are based on various assumptions. These assumptions were reasonable when made, but as assumptions are inherently subject to uncertainties and contingencies which are difficult or impossible to predict, Wilhelmsen cannot give assurances that expectations regarding the outlook will be achieved or accomplished.
| USD mill | Note | Q3 | Q3 | YTD | YTD | Full year |
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | ||
| Operating revenue | 236 | 216 | 706 | 645 | 873 | |
| Other income | ||||||
| Other gain/(loss) | 5 | (2) | (0) | 6 | (3) | 2 |
| Total income | 234 | 216 | 712 | 642 | 874 | |
| Operating expenses | ||||||
| Cost of goods and change in inventory | (80) | (67) | (232) | (199) | (277) | |
| Employee benefits | (83) | (80) | (250) | (236) | (321) | |
| Other expenses | (34) | (32) | (112) | (98) | (136) | |
| Operating profit before depreciation and amortisation | 36 | 38 | 119 | 110 | 141 | |
| Depreciation, amortisation and impairment | 7/8 | (13) | (17) | (42) | (51) | (68) |
| Operating profit | 22 | 21 | 77 | 59 | 73 | |
| Share of profit from joint ventures and associates | 4 | 87 | 24 | 195 | 38 | 101 |
| Financial items | ||||||
| Change in fair value financial assets | 10 | (106) | (180) | (128) | (108) | (107) |
| Other financial income/(expenses) | 11 | (29) | (7) | (50) | 3 | (1) |
| Net financial items | (135) | (187) | (178) | (105) | (108) | |
| Profit/(loss) before tax | (26) | (142) | 94 | (8) | 66 | |
| Tax income/(expense) | 0 | (1) | 1 | (7) | (13) | |
| Profit/(loss) for the period | (26) | (143) | 95 | (14) | 53 | |
| Attributable to: equity holders of the company | (0) | (99) | 114 | 6 | 72 | |
| non-controlling interests | (26) | (44) | (19) | (20) | (20) | |
| Basic earnings per share (USD) | 9 | (0.0) | (2.21) | 2.55 | 0.13 | 1.63 |
| Comprehensive income - financial report | ||||||
| Q3 | Q3 | YTD | YTD | Full year | ||
| USD mill | 2022 | 2021 | 2022 | 2021 | 2021 | |
| Profit/(loss) for the period | (26) | (143) | 95 | (14) | 53 | |
| Items that may be reclassified to income statement | ||||||
| Cash flow hedges (net after tax) | 0 | 1 | 4 | 3 | 4 | |
| Comprehensive income from associates | 3 | 0 | 1 | 0 | 4 | |
| Currency translation differences | (67) | (21) | (149) | (34) | (44) | |
| Items that will not be reclassified to income statement | ||||||
| Remeasurement postemployment benefits, net of tax | 2 | 2 | 1 | |||
| Other comprehensive income, net of tax | (62) | (20) | (142) | (31) | (35) | |
| Total comprehensive income for the period | (88) | (163) | (47) | (45) | 17 | |
| Total comprehensive income attributable to: | ||||||
| Equity holders of the company | (63) | (118) | (18) | (24) | 41 | |
| Non-controlling interests | (25) | (45) | (29) | (22) | (23) | |
| Total comprehensive income for the period | (88) | (163) | (47) | (45) | 17 |
| USD mill | Note | 30.09.2022 | 30.09.2021 | 31.12.2021 |
|---|---|---|---|---|
| Deferred tax assets | 6 | 63 | 63 | 64 |
| Goodwill and other intangible assets | 7 | 111 | 139 | 135 |
| Properties and other tangible assets | 7 | 575 | 549 | 542 |
| Right-of-use assets | 8 | 91 | 163 | 155 |
| Investments in joint ventures and associates | 4 | 1,228 | 1,020 | 1,093 |
| Financial assets to fair value | 10 | 529 | 686 | 688 |
| Other non current assets | 25 | 22 | 25 | |
| Total non current assets | 2,623 | 2,642 | 2,702 | |
| Inventory | 100 | 87 | 93 | |
| Current financial investments | 82 | 136 | 135 | |
| Other current assets | 308 | 293 | 287 | |
| Cash and cash equivalents | 159 | 214 | 231 | |
| Total current assets | 649 | 730 | 746 | |
| Total assets | 3,271 | 3,372 | 3,448 | |
| Paid-in capital | 8 | 118 | 118 | 118 |
| Retained earnings | 9/12 | 1,850 | 1,850 | 1,891 |
| Shareholders' equity | 1,968 | 1,968 | 2,009 | |
| Non-controlling interests | 125 | 222 | 221 | |
| Total equity | 2,093 | 2,190 | 2,230 | |
| Pension liabilities | 20 | 26 | 26 | |
| Deferred tax liabilities | 6 | 10 | 11 | 11 |
| Non-current interest-bearing debt | 13/14 | 424 | 406 | 203 |
| Non-current lease liabilities | 8/13 | 82 | 146 | 139 |
| Other non-current liabilities | 13 | 22 | 17 | |
| Total non current liabilities | 549 | 611 | 396 | |
| Current income tax | 10 | 8 | 13 | |
| Public duties payable | 8 | 9 | 13 | |
| Current interest-bearing debt | 13/14 | 71 | 51 | 270 |
| Current lease liabilities | 8/13 | 19 | 31 | 30 |
| Other current liabilities | 522 | 472 | 495 | |
| Total current liabilities | 629 | 571 | 821 | |
| Total equity and liabilities | 3,271 | 3,372 | 3,448 |
| USD mill | Q3 | Q3 | Full year | |
|---|---|---|---|---|
| Note | 2022 | 2021 | 2021 | |
| Cash flow from operating activities | ||||
| Profit before tax | (26) | (142) | 66 | |
| Share of (profit)/loss from joint ventures and associates | (87) | (24) | (101) | |
| Changes in fair value financial assets | 10 | 106 | 180 | 107 |
| Other financial (income)/expenses | 29 | 7 | 1 | |
| Depreciation, amortisation and impairment | 7/8 | 13 | 17 | 68 |
| Other (gain)/loss | 5 | 1 | (2) | |
| Change in net pension asset/liability | (3) | 1 | 1 | |
| Change in inventories | (12) | (7) | (13) | |
| Change in working capital | 14 | 7 | 8 | |
| Tax paid (company income tax, withholding tax) | (7) | (2) | (14) | |
| Net cash provided by operating activities | 28 | 37 | 122 | |
| Cash flow from investing activities | ||||
| Dividend received from joint ventures and associates | 1 | 2 | 13 | |
| Proceeds from sale of fixed assets | 7/8 | 0 | 0 | 26 |
| Investments in fixed assets | 7 | (12) | (7) | (45) |
| Investments in subsidiaries, joint ventures and associates | (4) | (1) | (36) | |
| Loan repayments received from sale of subsidiaries | - | - | 2 | |
| Loans granted to joint ventures and associates | - | - | (16) | |
| Proceeds from dividend and sale of financial investments | 9 | 10 | 62 | |
| Purchase of current financial investments | (8) | (13) | (54) | |
| Interest received | 1 | 0 | 1 | |
| Changes in other investments | (6) | |||
| Net cash flow from investing activities | (12) | (10) | (53) | |
| Cash flow from financing activities | ||||
| Net proceeds from issue of debt after debt expenses | 2 | 6 | 70 | |
| Repayment of debt | (7) | (10) | (71) | |
| Repayment of lease liabilities | (6) | (9) | (30) | |
| Interest paid including interest derivatives | (5) | (5) | (15) | |
| Interest paid lease liabilities | (1) | (2) | (9) | |
| Cash from/ to financial derivatives | 0 | 1 | 7 | |
| Dividend to shareholders/purchase of own shares | (4) | (58) | ||
| Net cash flow from financing activities | (20) | (18) | (106) | |
| Net increase in cash and cash equivalents 1 | ||||
| Cash and cash equivalents at the beg. of the period 1 | (4) | 9 | (37) | |
| Cash and cash equivalents at the end of the period 1 | 163 | 205 | 269 | |
| 159 | 214 | 231 |
The group is located and operating world wide, and every entity has several bank accounts in different currencies. Unrealised currency effects are included in net cash provided by operating activities.
Statement of changes in equity - Year to date
| Retained | Non controlling |
|||||
|---|---|---|---|---|---|---|
| USD mill | Share capital | Own shares | earnings | Total | interests | Total equity |
| Balance at 31.12.2021 | 118 | - | 1,891 | 2,009 | 221 | 2,230 |
| Profit/(loss) for the period | 114 | 114 | (19) | 95 | ||
| Other comprehensive income | (132) | (132) | (10) | (142) | ||
| Liquidation of own shares | ||||||
| Change in non-controlling interests | (57) | (57) | ||||
| Purchase of own shares Treasure Group | (4) | (4) | (4) | |||
| Paid dividend to shareholders | (20) | (20) | (9) | (28) | ||
| Balance 30.09.2022 | 118 | 0 | 1,850 | 1,967 | 126 | 2,093 |
| Balance at 31.12.2020 | 122 | (4) | 1,890 | 2,008 | 257 | 2,265 |
| Profit for the period | 6 | 6 | (20) | (14) | ||
| Other comprehensive income | (30) | (30) | (1) | (31) | ||
| Liquidation of own shares | (4) | 4 | 0 | 0 | ||
| Change in non-controlling interests | 10 | 10 | (4) | 6 | ||
| Paid dividend to shareholders | (26) | (26) | (10) | (36) | ||
| Balance 30.09.2021 | 118 | (0) | 1,850 | 1,968 | 222 | 2,190 |
| Retained | Non controlling |
|||||
|---|---|---|---|---|---|---|
| USD mill | Share capital | Own shares | earnings * | Total | interests | Total equity |
| Balance at 31.12.2020 | 122 | (4) | 1,890 | 2,008 | 257 | 2,265 |
| Profit/(loss) for the period | 72 | 72 | (20) | 53 | ||
| Other comprehensive income | (32) | (32) | (3) | (35) | ||
| Liquidation of own shares | (4) | 4 | 0 | 0 | ||
| Change in non-controlling interests | 10 | 10 | (4) | 6 | ||
| Purchase of own shares Treasure Group* | (8) | (8) | (8) | |||
| Paid dividend to shareholders | (42) | (42) | (8) | (50) | ||
| Balance 31.12.2021 | 118 | 0 | 1,891 | 2,009 | 221 | 2,230 |
* Treasure ASA hold 6.000.000 own shares 31 December 2021.
This consolidated interim financial report has been prepared in accordance with International Accounting Standards (IAS 34), "interim financial reporting". The consolidated interim financial reporting should be read in conjunction with the annual financial statements for the year end 31 December 2021 for Wilh.Wilhelmsen Holding ASA group, which has been prepared in accordance with IFRS endorsed by the EU.
Q3 No material acquisitions and disposals.
Q2
Acquisition of external shares in NorSea Group AS, increased the ownership to 99% from 75%. The transaction impacted the non controlling interests only.
No material disposals or acquistion in Q2, Q3 or Q4. During Q1 2021 the group acquired additional 25% of Edda Wind group however after the IPO in Q4 2021, the stake was diluted to 25.66%.
The accounting policies implemented are consistent with those of the annual financial statements for WWI for the year end 31 December 2021.
As a result of rounding adjustments, the figures in one or more columns may not add up to the total of that column.
Acquisition of the remaining part of shares 50% in Vikan Næringspark Invest AS. Reclassed from investment in associates to wholly owned subsidiary of NorSea group.
Acquisition of 21% stake in Reach Subsea ASA Acquisition of 80% of the shares in Ahrenkiel Tankers and renamed to Barber Ship Management.
| Strategic | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Maritime | Holdings and | WWH group | ||||||||
| USD mill | Services | New Energy | Investments | Eliminations | total | |||||
| Quarter Note |
Q3 2022 |
Q3 2021 |
Q3 2022 |
Q3 2021 |
Q3 2022 |
Q3 2021 |
Q3 2022 |
Q3 2021 |
Q3 2022 |
Q3 2021 |
| Operating revenue | 158 | 138 | 76 | 76 | 4 | 4 | (3) (2) | 236 | 216 | |
| Other gain/(loss) 5 |
(2) (0) | (0) (0) | 0 | - | - | - | (2) | (0) | ||
| Total income | 157 | 138 | 76 | 76 | 4 | 4 | (3) (2) | 234 | 216 | |
| Operating expenses | ||||||||||
| Cost of goods and change in inventory | (58) (44) | (22) (22) | (0) | (0) | 0 | 0 | (80) (67) | |||
| Employee benefits | (53) (52) | (27) (25) | (3) | (3) | 0 | 0 | (83) (80) | |||
| Other expenses | (22) (19) | (13) (12) | (2) | (2) | 3 | 2 | (34) (32) | |||
| Operating profit/(loss) before depreciation | ||||||||||
| and amortisation | 24 | 23 | 13 | 17 | (1) | (2) | 0 | 0 | 36 | 38 |
| Depreciation and impairments | (6) (7) | (7) (9) | (1) | (1) | - | - | (13) (17) | |||
| Operating profit/(loss) | 18 | 16 | 7 | 8 | (2) | (3) | 0 | 0 | 22 | 21 |
| Share of profit from joint ventures and associates | 2 | 2 | 3 | 2 | 81 | 20 | - | 87 | 24 | |
| Financial items | ||||||||||
| Change in fair value financial assets | - | - | - | (106) (180) | - | (106) | (180) | |||
| Other financial income/(expenses) | (23) (8) | (4) (4) | (3) | 5 | (0) | (29) | (7) | |||
| Net financial items | (23) (8) | (4) (4) | (109) (175) | (0) | 0 | (135) | (187) | |||
| Profit/(loss) before tax | (2) 10 | 6 | 6 | (30) (158) | 0 | 0 | (26) | (142) | ||
| Tax income/(expense) | 1 | (2) | 0 | 0 | (1) | 1 | - | 0 | (1) | |
| Profit/(loss) | (2) | 8 | 6 | 6 | (30) (157) | 0 | 0 | (26) | (143) | |
| Non-controlling interests | 0 | 0 | 0 | 2 | (26) (47) | - | (26) (44) | |||
| Profit/(loss) to the equity holders of the company |
(2) | 8 | 6 | 4 | (4) (110) | 0 | 0 | (0) (99) |
| Maritime Holdings and WWH group USD mill Services New Energy Investments Eliminations total Full Full Full Full Full YTD YTD year YTD YTD year YTD YTD year YTD YTD year YTD YTD year YTD 2022 2021 2021 2022 2021 2021 2022 2021 2021 2022 2021 2021 2022 2021 2021 Operating revenue 470 407 555 232 231 310 13 13 17 (6) (5) (9) 706 645 873 Other gain/(loss) (4) (3) 2 17 0 0 (7) - - - - 6 (3) Total income 466 404 557 250 231 310 6 13 17 (6) (5) (9) 712 642 874 Operating expenses Cost of goods and change in inventory (167) (131) (185) (64) (67) (91) (1) (1) (1) 0 0 0 (232) (199) (277) |
|
|---|---|
| (159) (149) (200) (83) (76) (106) (8) (10) (15) 0 0 0 (250) (236) (321) |
Employee benefits |
| Other expenses (70) (59) (83) (44) (38) (53) (7) (6) (9) 6 5 9 (112) (98) (136) |
|
| Operating profit before depreciation and | |
| 69 65 89 60 49 60 (10) (4) (8) 0 (0) (0) 119 110 141 amortisation |
|
| Depreciation and impairments (18) (20) (27) (21) (26) (36) (3) (4) (5) - - - (42) (51) (68) |
|
| Operating profit 51 44 62 38 23 24 (13) (9) (13) 0 (0) (0) 76 59 73 |
|
| Share of profit/(loss) from associates 10 183 5 4 5 7 8 27 85 - - 195 38 101 |
|
| Financial items | |
| Changes in fair value financial assets (128) - - - (108) (107) - - (128) (108) (107) |
|
| Net finance income / expenses (42) (19) (19) (10) (12) (18) 3 35 35 (0) 0 (50) 3 (1) |
|
| Net financial items (42) (19) (19) (10) (12) (18) (126) (73) (72) (0) 0 0 (178) (105) (108) |
|
| Profit/(loss) before tax 15 29 48 35 18 17 44 (55) 0 0 0 0 94 (8) 66 |
|
| Tax income/(expense) (3) (6) (10) 1 (0) (3) 3 (0) (1) - 1 (7) (13) |
|
| Profit/(loss) for the period 12 23 38 36 18 14 47 (55) (0) 0 0 0 95 (14) 53 |
|
| Non-controlling interests 1 0 7 6 7 (26) (27) (27) - - - (19) (20) (20) |
|
| Profit/(loss) to the equity holders of the 11 22 38 29 12 8 73 (28) 27 0 0 0 114 6 72 company |
| Strategic Holdings | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| USD mill | Maritime Services | New Energy | and Investments | Eliminations | Total | |||||
| 30.09 | 30.09 | 30.09 | 30.09 | 30.09 | 30.09 | 30.09 | 30.09 | 30.09 | 30.09 | |
| Year to date | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Assets | ||||||||||
| Deferred tax asset | 49 | 47 | 1 | 6 | 13 | 9 | - | - | 63 | 63 |
| Intangible assets | 106 | 132 | 5 | 6 | 1 | 1 | - | - | 111 | 139 |
| Tangible assets | 146 | 166 | 415 | 366 | 14 | 18 | - | - | 575 | 549 |
| Right of use assets | 28 | 34 | 46 | 92 | 25 | 41 | (9) | (4) | 91 | 163 |
| Investments in joint ventures and associates | 23 | 22 | 155 | 174 | 1,050 | 824 | - | - | 1,228 | 1,020 |
| Financial assets to fair value | 0 | 0 | (0) | 0 | 529 | 686 | - | - | 529 | 686 |
| Other non current assets | 7 | 9 | 24 | 22 | 3 | 0 | (8) | (9) | 25 | 22 |
| Current financial investments | 0 | 0 | - | - | 81 | 136 | - | - | 82 | 136 |
| Other current assets | 325 | 288 | 68 | 91 | 21 | 45 | (6) | (43) | 408 | 380 |
| Cash and cash equivalents | 128 | 153 | 7 | 9 | 24 | 52 | - | - | 159 | 214 |
| Total assets | 811 | 852 | 722 | 765 | 1,761 | 1,812 | (23) | (57) 3,271 | 3,372 | |
| Equity and liabilities | ||||||||||
| Equity majority | 109 | 173 | 308 | 222 | 1,551 | 1,573 | 0 | 0 | 1,968 | 1,968 |
| Equity non-controlling interest | (2) | (1) | 2 | 63 | 125 | 160 | - | - | 125 | 222 |
| Deferred tax | 9 | 11 | 1 | 0 | 0 | 0 | - | - | 10 | 11 |
| Interest-bearing debt | 188 | 200 | 278 | 253 | 29 | 4 | - | (0) | 495 | 456 |
| Lease liabilities | 30 | 37 | 54 | 102 | 26 | 42 | (9) | (4) | 101 | 177 |
| Other non current liabilities | 20 | 26 | 7 | 14 | 14 | 17 | (8) | (9) | 33 | 48 |
| Other current liabilities | 458 | 406 | 73 | 110 | 15 | 16 | (6) | (43) | 539 | 489 |
| Total equity and liabilities | 811 | 852 | 722 | 765 | 1,761 | 1,812 | (23) | (57) 3,271 | 3,372 |
| USD mill | Maritime Services | Strategic Holdings and Investments |
||||
|---|---|---|---|---|---|---|
| Quarter | Q3 2022 | Q3 2021 | Q3 2022 | Q3 2021 | Q3 2022 | Q3 2021 |
| Profit/(loss) before tax | (2) | 10 | 6 | 6 | (30) | (158) |
| Change in fair value financial assets | - | - | - | - | 106 | 180 |
| Share of (profit)/loss from joint ventures and associates | (2) | (2) | (3) | (2) | (81) | (20) |
| Other financial (income)/expenses | 23 | 8 | 4 | 4 | 3 | (5) |
| Depreciation/impairment | 6 | 7 | 7 | 9 | 1 | 1 |
| Change in working capital | 0 | (1) | (1) | 0 | 3 | 3 |
| Net (gain)/loss from sale of assets | 2 | 1 | 0 | 0 | 0 | - |
| Net cash provided by operating activities | 26 | 22 | 12 | 17 | 2 | 1 |
| Dividend received from joint ventures and associates | 1 | 0 | (1) | 0 | ||
| Net sale/(investments) in fixed assets | (7) | (4) | (3) | (2) | (1) | (1) |
| Net sale/(investments) and repayment/(granted loan) to entities | (1) | 3 | (2) | 0 | (0) | 1 |
| Purchase of current financial investments | 0 | 0 | 0 | 0 | 3 | (1) |
| Net changes in other investments/financial items | - | - | (0) | (5) | - | |
| Net cash flow from investing activities | (7) | (1) | (5) | (7) | 2 | (1) |
| Net change of debt | (13) | (2) | (6) | (5) | 1 | (1) |
| Net change in other financial items | (2) | (2) | (4) | (4) | (0) | 0 |
| Net dividend/ loan from other segments/ to shareholders | (1) | (7) | 3 | 0 | (12) | (2) |
| Net cash flow from financing activities | (16) | (11) | (7) | (9) | (11) | (3) |
| Net increase in cash and cash equivalents | 3 | 10 | (0) | 2 | (6) | (3) |
| Cash and cash equivalents at the beg.of the period | 125 | 143 | 8 | 7 | 30 | 55 |
| Cash and cash equivalents at the end of period | 128 | 153 | 7 | 9 | 24 | 52 |
| USD mill | |||
|---|---|---|---|
| Strategic Holdings and Investments: | Ownership | 30.09.2022 Booked value |
30.09.2021 Booked value |
| Wallenius Wilhelmsen ASA | 37.8% | 1050 | 824 |
| Maritime services: | |||
| Wilhelmsen Ahrenkiel Ship group | 50% | 8 | 9 |
| Associates | 20 - 50% | 14 | 13 |
| New Energy: | |||
| Joint venture | |||
| Coast Center Base | 50% | 83 | 104 |
| Vikan Næringspark Invest AS | 50% | 0 | 18 |
| Associates | |||
| Edda Wind ASA | 25.7% | 49 | 44 |
| Reach Subsea ASA | 21% | 16 | |
| Other | 33-49% | 8 | 8 |
| Total investment in joint ventures and associates | 1,228 | 1,020 |
| Share of profit from joint ventures and associates | Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 |
|---|---|---|---|---|
| Wallenius Wilhelmsen ASA | 81 | 20 | 183 | 27 |
| Joint ventures and associates in New Energy | 3 | 2 | 7 | 8 |
| Joint ventures and associates in Maritime Services | 2 | 2 | 5 | 4 |
| Share of profit from joint ventures and associates | 87 | 24 | 195 | 38 |
Q3 No material gain/(loss) from sale of assets
Q2: No material gain/(loss) from sale of assets
The effective tax rate for the group will, from period to period, change dependent on the group gains and losses from investments inside the exemption method.
Q1: Step up gain Vikan Næringspark Invest AS, from associate to subsidiary, result in an accounting gain of USD 17 million.
The group was exposed to a fraud with an estimated loss of USD 7 million. The case is subject to criminal procedures in four jurisdictions and total exposure is
| Other tangible | Intangible | ||||
|---|---|---|---|---|---|
| USD mill | Vessels | Properties | assets | assets | Total |
| 2022 - Year to date | |||||
| Cost 1.1 | 35 | 601 | 229 | 193 | 1,058 |
| Acquisition | - | 152 | 14 | 2 | 168 |
| Reclass/disposal | - | (1) | (7) | 2 | (5) |
| Currency translation differences | (7) | (132) | (26) | (33) | (198) |
| Cost 30.09 | 29 | 621 | 209 | 164 | 1,023 |
| Accumulated depreciation and impairment losses 1.1 | (23) | (207) | (93) | (57) | (381) |
| Depreciation/amortisation | (1) | (14) | (7) | (5) | (27) |
| Reclass/disposal | - | (2) | 3 | 0 | 1 |
| Currency translation differences | 4 | 42 | 14 | 9 | 70 |
| Accumulated depreciation and impairment losses 30.09 | (19) | (182) | (83) | (53) | (337) |
| Carrying amounts 30.09 | 9 | 439 | 126 | 111 | 686 |
| USD mill | Vessel | Property | Other tangible assets |
Intangible assets |
Total |
|---|---|---|---|---|---|
| 2021 - Year to date | |||||
| Cost 1.1 | 36 | 596 | 241 | 194 | 1,067 |
| Acquisition | 0 | 26 | 9 | 3 | 38 |
| Reclass/disposal | - | (8) | (5) | 4 | (9) |
| Currency translation differences | (1) | (18) | (8) | (5) | (32) |
| Cost 30.09 | 36 | 596 | 238 | 195 | 1,065 |
| Accumulated depreciation and impairment losses 1.1 | (23) | (198) | (92) | (52) | (366) |
| Depreciation/amortisation | (1) | (14) | (8) | (5) | (28) |
| Reclass/disposal | - | 2 | 3 | (0) | 4 |
| Currency translation differences | 1 | 6 | 3 | 1 | 12 |
| Accumulated depreciation and impairment losses 30.09 | (23) | (203) | (94) | (56) | (377) |
| Carrying amounts 30.09 | 13 | 393 | 143 | 139 | 688 |
| USD mill | Vessels | Properties | Other tangible assets |
Intangible assets |
Total |
|---|---|---|---|---|---|
| 2021 - Full year | |||||
| Cost 1.1 | 36 | 596 | 241 | 194 | 1,067 |
| Acquisition | 1 | 33 | 15 | 3 | 52 |
| Reclass/disposal | - | (4) | (19) | 3 | (19) |
| Currency translation differences | (1) | (24) | (8) | (7) | (41) |
| Cost 31.12 | 35 | 601 | 229 | 193 | 1,058 |
| Accumulated depreciation and impairment losses 1.1 | (23) | (198) | (92) | (52) | (366) |
| Depreciation/amortisation | (1) | (18) | (11) | (7) | (37) |
| Reclass/disposal | - | (0) | 6 | 0 | 6 |
| Impairment | - | - | - | - | - |
| Currency translation differences | 1 | 9 | 4 | 2 | 16 |
| Accumulated depreciation and impairment losses 31.12 | (23) | (207) | (93) | (57) | (381) |
| Carrying amounts 31.12 | 12 | 394 | 136 | 135 | 678 |
The group leases several assets such as property, machinery, equipment and vehicles. The group's right-of-use assets are categorised and presented in the tables below:
| Other tangible | ||||
|---|---|---|---|---|
| 2022 - Year to date | Property | assets | Total | |
| Cost 1.1 | - 199 |
15 | 214 | |
| Additions including remeasurements | - 27 |
2 | 29 | |
| Reclass/disposal including cancellations | - (86) |
(1) | (87) | |
| Currency translation differences | - (25) |
(3) | (28) | |
| Cost 30.09 | - 115 |
13 | 128 | |
| Accumulated depreciation and impairment losses 1.1 | - (55) |
(4) | (59) | |
| Depreciation/amortisation | - (13) |
(3) | (15) | |
| Reclass/disposal | - 28 |
1 | 29 | |
| Currency translation differences | - 7 |
1 | 8 | |
| Accumulated depreciation and impairment losses 30.09 | - (33) |
(5) | (38) | |
| Carrying amounts 30.09 | - 82 |
8 | 90 |
| 2021 - Year to date | Other tangible | |||
|---|---|---|---|---|
| Property | assets | Total | ||
| Cost 1.1 | - 201 |
13 | 214 | |
| Additions including remeasurements | 31 | 2 | 33 | |
| Reclass/disposal including cancellations | - (22) |
(2) | (24) | |
| Currency translation differences | - (6) |
(0) | (6) | |
| Cost 30.09 | - 205 |
12 | 217 | |
| Accumulated depreciation and impairment losses 1.1 | - (34) |
(3) | (37) | |
| Depreciation/amortisation | - (21) |
(2) | (23) | |
| Reclass/disposal | 3 | 1 | 4 | |
| Currency translation differences | - 1 |
0 | 2 | |
| Accumulated depreciation and impairment losses 30.09 | - (50) |
(4) | (54) | |
| Carrying amounts 30.09 | - 154 |
8 | 163 |
| 2021 - Full year | Other tangible | ||
|---|---|---|---|
| Property | assets | Total | |
| Cost 1.1 - |
201 | 13 | 214 |
| Additions including remeasurements - |
35 | 5 | 41 |
| Reclass/disposal including cancellations - |
(30) | (3) | (33) |
| Currency translation differences - |
(8) | (1) | (8) |
| Cost 31.12 - |
199 | 15 | 214 |
| Accumulated depreciation and impairment losses 1.1 - |
(34) | (3) | (37) |
| Depreciation/amortisation - |
(28) | (3) | (30) |
| Reclass/disposal - |
5 | 2 | 6 |
| Currency translation differences - |
2 | 0 | 2 |
| Accumulated depreciation and impairment losses 31.12 - |
(55) | (4) | (59) |
| Carrying amounts 31.12 - |
145 | 10 | 155 |
| A - shares | 34,000,000 |
|---|---|
| B - shares | 10,580,000 |
| Total shares | 44,580,000 |
Earnings per share taking into consideration the number of outstanding shares in the period.
Basic earnings per share is calculated by dividing profit for the period after noncontrolling interests, by average number of total outstanding shares.
Earnings per share is calculated based on 44 580 000 shares for 2022 and 2021.
| USD mill | 30.09.2022 | 30.09.2021 | 31.12.2021 |
|---|---|---|---|
| Financial assets to fair value | |||
| At 31 December | 688 | 801 | 801 |
| Acquisition | 0 | 2 | 2 |
| Sale during the year | (22) | ||
| Return of capital | (0) | (2) | (2) |
| Currency translation adjustment through other comprehensive income | (9) | (7) | (6) |
| Change in fair value through income statement | (128) | (108) | (107) |
| Total financial assets to fair value | 529 | 686 | 688 |
Financial assets to fair value are held in subsidiaries with different functional currencies and thereby creating translation adjustment.
| Q3 | Q3 | YTD | YTD | |
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| Investment management | (5) | 3 | (15) | 21 |
| Other financial income | 1 | 2 | 17 | 16 |
| Interest expenses | (6) | (7) | (18) | (22) |
| Net financial currency | 4 | 1 | 17 | 1 |
| Net financial currencies derivatives | (24) | (5) | (51) | (13) |
| Other financial income/(expenses) | (29) | (7) | (50) | 3 |
Dividend for fiscal year 2020 was NOK 5.00 (NOK 3.00 plus extraordinary NOK 2.00) and approved by the annual general meeting on 22 April 2021. The dividend was paid to the shareholders in May 2021. The annual general meeting additionally authorised a second dividend of NOK 3.00 per share and this was paid in December 2021, bringing the total dividend paid in 2021 to NOK 8.00 per share.
The proposed dividend for fiscal year 2021 was NOK 4.00 and approved by the annual general meeting on 27 April 2022. The dividend was paid to the shareholders in May 2022.
| USD mill | 30.09.2022 | 30.09.2021 | 31.12.2021 |
|---|---|---|---|
| Non current interest-bearing debt | 424 | 406 | 203 |
| Current interest-bearing debt | 71 | 51 | 270 |
| Non current lease liabilities | 82 | 146 | 139 |
| Current lease liabilities | 19 | 31 | 30 |
| Total interest-bearing debt | 596 | 633 | 642 |
| Cash and cash equivalents | 159 | 214 | 231 |
| Current financial investments | 82 | 136 | 135 |
| Net interest-bearing debt | 356 | 283 | 276 |
Loan agreements entered into by group companies contain financial covenants related to equity ratio, liquidity, current ratio and net interest-bearing debt / EBITDA measured in respect of the relevant borrowing company or group of
companies. The group was in compliance with these covenants at 30 September 2022 (analogous for 30 September 2021).
| Specification of interest-bearing debt | |||
|---|---|---|---|
| USD mill | 30.09.2022 | 30.09.2021 | 31.12.2021 |
| Interest-bearing debt | |||
| Bankloan | 495 | 456 | 473 |
| Lease liabilities | 101 | 177 | 169 |
| Total interest-bearing debt | 596 | 633 | 642 |
| Repayment schedule for interest-bearing debt | |||
| Due in 1 year | 89 | 82 | 300 |
| Due in 2 year | 185 | 215 | 204 |
| Due in 3 year | 25 | 18 | 22 |
| Due in 4 year | 57 | 22 | 26 |
| Due in 5 year and later | 240 | 297 | 90 |
| Total interest-bearing debt | 596 | 633 | 642 |
| USD mill | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| 2022 | ||||
| Financial assets at fair value | ||||
| Equities | 52 | 52 | ||
| Bonds | 31 | 31 | ||
| Financial derivatives | 1 | 1 | ||
| Financial assets at fair value | 507 | 4 | 18 | 529 |
| Total financial assets 30.09 | 591 | 4 | 18 | 613 |
| Financial liabilities at fair value | ||||
| Financial derivatives | (2) | (2) | ||
| Total financial liabilities 30.09 | - | (2) | 0 | (2) |
| 2021 | ||||
| Financial assets at fair value | ||||
| Equities | 77 | 77 | ||
| Bonds | 59 | 59 | ||
| Financial assets at fair value | 664 | 5 | 18 | 686 |
| Total financial assets 30.09 | 800 | 5 | 18 | 823 |
| Financial liabilities at fair value | ||||
| Financial derivatives | (6) | (6) | ||
| Total financial liabilities 30.09 | (0) | (6) | 0 | (6) |
The fair value of financial instruments traded in an active market is based on quoted market prices at the balance sheet date. The fair value of financial instruments that are not traded in an active market (over-the-counter contracts) are based on third party quotes. These quotes use the maximum number of observable market rates for price discovery. Specific valuation techniques used by financial counterparties (banks) to value financial derivatives include: - Quoted market prices or dealer quotes for similar derivatives
The fair value of interest rate swaps is calculated as the net present value of the estimated future cash flows based on observable yield curves
The fair value of interest rate swap option (swaption) contracts is determined using observable volatility, yield curve and time-to-maturity parameters at the balance sheet date, resulting in a swaption premium. Options are typically valued by applying the Black-Scholes model.
The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the resulting value discounted back to net present value
The fair value of foreign exchange option contracts is determined using observable forward exchange rates, volatility, yield curves and time-to-maturity parameters at the balance sheet date, resulting in an option premium. Options are typically valued by applying the Black-Scholes model.
The carrying value less impairment provision of receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the group for similar financial derivatives.
The fair values, except for bond debt, are based on cash flows discounted using a rate based on market rates including margins and are within level 2 of the fair value hierarchy. The fair values of the bond debt are based on quoted prices and are also classified within level 2 of the fair value hierarchy due to limited trading in an active market.
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
The quoted market price used for financial assets held by the group is the current mid price. These instruments are included in level 1. Instruments included in level 1 at the end of September 2022 are liquid investment grade bonds (analogous for 2021).
The fair value of financial instruments that are not traded in an active market (over-the-counter contracts) are based on third party quotes (Mark-to-Market). These quotes use the maximum number of observable market rates for price discovery. The different techniques typically applied by financial counterparties (banks) were described above. These instruments - FX and IR derivatives - are included in level 2.
If one or more of the significant inputs is not based on observable market data, the derivatives is in level 3. Primarily illiquid investment funds and structured notes are included in level 3.
WWH delivers services to the Wallenius Wilhelmsen group. These include primarily in-house services such as canteen, post, switchboard and rent of office facilities.
Generally, Shared Services are priced using a cost plus 5% margin calculation, in accordance with the principles set out in the OECD Transfer Pricing Guidelines and are delivered according to agreements that are renewed annually.
Note 16 - Contingencies
The size and global activities of the group dictate that companies in the group will be involved from time to time in disputes and legal actions.
The group is not aware of any financial risk associated with disputes and legal actions which are not largely covered through insurance arrangements.
In October, Wilhelmsen have reached an agreement to buy 100% of the shares in Vopak Agencies.
In addition Maritime Services have several transactions with associates. The contracts governing such transactions are based on commercial market terms.
Nevertheless, any such disputes/actions which might exist are of such a nature that they will not significantly affect the group's financial position.
No other material events occured between the balance sheet date and the date when the accounts were presented providing new information about the conditions prevailing on the balance sheet date.
This section describes non-GAAP financial alternative performance measures (APM) that may be used in the quarterly and annual reports and related presentations.
The following measures are not defined nor specified in the applicable financial reporting framework of IFRS. They may be considered as non-GAAP financial measures that may include or exclude amounts that are calculated and presented according to the IFRS. These APMs are intended to enhance comparability of the results, balance sheet and cash flows from period to period and it is the Company's experience that these are frequently used by investors, analysts and other parties. Internally, these APMs are used by the management to measure performance on a regular basis. The APMs should not be considered as a substitute for measures of performance in accordance with IFRS.
EBITDA is defined as Total income (Operating revenue and gain/(loss) on sale of assets) adjusted for Operating expenses. EBITDA is used as an additional measure of operational profitability, excluding the impact from financial items, taxes, depreciation and amortization.
EBITDA adjusted is defined as EBITDA excluding certain income and/or cost items which are not regarded as part of the underlying operational performance for the period. The Company do not report EBITDA adjusted on a regular basis, but may use it on a case by case basis to better explain operational performance.
EBITDA margin is defined as EBITDA as a per cent of of Total income.
EBITDA margin adjusted is defined as EBITDA adjusted as a per cent of Total income, with Total income also adjusted for the same income elements as those which have been adjusted for in EBITDA adjusted.
EBIT is defined as Total income (Operating revenue and gain/(loss) on sale of assets) less Operating expenses, Other gain/loss and depreciation and amortization. EBIT is used as a measure of operational profitability excluding the effects of how the operations were financed, taxed and excluding foreign exchange gains & losses.
EBIT adjusted, EBIT margin and EBIT margin adjusted will, if used, be prepared in the same manner as described under EBITDA.
Net interest-bearing debt (NIBD) is defined as total interest bearing debt (Noncurrent interest-bearing debt, Non-current lease liabilities, Current interestbearing debt and Current lease liabilities) less Cash and cash equivalenets and Current financial investments.
Equity ratio is defined as Total equity as a percent of Total assets.
Wilh. Wilhelmsen Holding ASA PO Box 33 NO-1324 Lysaker, NORWAY Tel: +47 67 58 40 00 http://www.wilhelmsen.com/
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