Wilh. Wilhelmsen Holding ASA: Second quarter results for 2012

08.08.2012

Continued growth in shipping earnings and rebound in operating margin for the maritime services segments lifted operating profit in the second quarter for Wilh. Wilhelmsen Holding ASA (WWH).

Operating profit for the second quarter was USD 139 million (USD 71 million), an increase of 94% compared with the second quarter of 2011 and up 31% from the first quarter of 2012. Total income amounted to USD 972 million (USD 836 million), representing an increase of 16% compared with the similar period last year and an increase of 3% from the first quarter of 2012. Profit after tax and minority interests ended at USD 64 million (18 million), a reduction of USD 5 million from the first quarter.

“With continued increase in volumes combined with sound cargo and trade mix, our shipping and logistics segment delivers record earnings in the second quarter,” says Thomas Wilhelmsen, group CEO at WWH. “Although volumes have increased steadily from a low level in 2009, we’ve seen that the growth rate has now softened in some markets.”

The strong performance of Wilhelmsen Maritime Services (WMS) reflects the full impact of profit improvement programmes implemented during 2011 as well as appreciation of the USD.

“We are pleased to see that WMS are back at all time high operating profit and a margin well above our 9% target. However, we still see and expect a weak shipping market impacting owners’ purchasing capabilities, reducing demand for certain maritime products and services.”

During the quarter, WWH acquired 35.4% of the shares in NorSea Group, the leading supplier of base services and integrated logistics systems to the Norwegian oil and gas industry. The total investment was USD 80 million.

“The investment follows our previously announced strategy aiming at exploring new opportunities within the energy-, offshore- and maritime industry, supplementing the activities of Wilh. Wilhelmsen ASA and WMS,” says Thomas Wilhelmsen, group CEO in WWH. “While the investment is made on a standalone basis, there is future synergy potential between NorSea Group and WMS related to products and services towards the offshore fleet.”

The board maintains a cautiously optimistic view short term, but underlines that medium term prospects will depend on the development of the world economy.

Wilh. Wilhelmsen Holding ASA is a global maritime industry group focusing on shipping and integrated logistics services for cars and rolling cargo through its shareholding in Wilh. Wilhelmsen ASA. The group also occupies a leading position in the global maritime service industry through Wilhelmsen Maritime Services AS, delivering products and services to some 200 shipyards and 22 000 vessels annually. Through Wilh. Wilhelmsen Holding Invest AS the group aims at exploring and developing new opportunities within the energy-, offshore- and maritime industry. For more information, please visit wilhelmsen.com

Wilhelmsen Ships Service press release