Wallenius Wilhelmsen — 2023-11-01
Members Corner
All three of the company’s segments performed delivering USD 478m in EBITDA.
“With another positive quarter behind us, we expect EBITDA in the second half of 2023 to be at or above what we delivered in the first half, as vessel utilization remains high, and we see solid demand for our logistics services. Moreover, the contribution from government services remains strong,” says Lasse Kristoffersen, President, and CEO at Wallenius Wilhelmsen.
Shipping delivered – on several fronts
Shipping delivered a solid quarter with stronger underlying EBITDA on higher net rates and improved customer mix, slightly offset by a decline in fuel surcharges and volumes.
In addition, fuel consumption continued to be further reduced in Q3, illustrating the lasting effect on consumption from fuel efficiency initiatives implemented over an extended period. Kristoffersen says, “Our efforts to reduce CO2 emissions are paying off and we see emissions trending down and stabilizing at lower levels. An additional effect is a recurring reduction in fuel consumption and fuel cost”.
However, waiting times at key ports continued to create challenges. During the quarter, some 9% of the available trading days were caught up in congestion.
Logistics and government – in demand
Logistics delivered solid EBITDA in Q3 driven by strong performance in auto and it was a very strong quarter for the government segment with the largest EBITDA gain quarter-over-quarter. This was due to both an improvement in cargo mix and continued high U.S. government demand.
Post quarter – building strong foundations
On October 24, the company turned the LOI into contracts for four firm and eight optional 9,300 CEU methanol-capable and ammonia-ready vessels. The vessels are scheduled for delivery from mid-2026 and onwards.
“We continue to strengthen our business platform by renegotiating contracts at higher rates and securing attractively priced tonnage. We have exercised two
purchase options under our long-term charter agreements, and signed contracts for four firm and eight optional newbuildings,” says Kristoffersen.