Wallenius Wilhelmsen posts second-strongest quarter on record

RoRo specialist Wallenius Wilhelmsen has closed its second-strongest quarter on record, ending the third quarter of the year with a net profit of $259 million and EBITDA of $471 million. 

“All business units are performing well, and the activity level is high across the organization. Year-to-date, all segments have delivered better than in 2023,” Lasse Kristoffersen, President and CEO at Wallenius Wilhelmsen, said.

During the quarter the company continued to move forward with contract negotiations. “Renewals for contracts expiring in 2024 are progressing well, as evidenced by the latest announcement of a five-year contract in the high and heavy (H&H) segment. We see strong and increased demand in areas where we have industry-leading offerings, including shipping, logistics, integrated supply chain, digital and reduced emissions services,” says Kristoffersen.

The company reported total revenue of $1.35 billion in the third quarter, a slight decrease of 1 per cent compared to the previous quarter. While the Shipping services segment maintained stable volumes and revenues, the Logistics services segment experienced a seasonal decline. However, the Government segment saw increased revenue, contributing to overall growth.

Compared to the same period last year, total revenue increased despite reduced shipping volumes caused by the Red Sea diversion. This increase was driven by higher net freight rates and growth in the Government and Logistics segments.

The quarter ended with a net profit of $259 million, down 13 per cent from $315 million in the second quarter and down 7 per cent from $279 million in the third quarter of 2023.

Fleet

Wallenius Wilhelmsen controlled a fleet of 124 vessels at the end of the third quarter of 2023. That is one vessel down from the second quarter as Dream Diamond was re-delivered to its owners.

On the newbuilding side, four of the twelve Shaper class vessels on order were upsized to 11,700 CEUs during the quarter.

The charter market remains robust, with strong demand and high charter rates. To adapt to evolving market conditions and anticipated growth in shipping volumes, the company has chartered seven additional vessels for a period of five years. These vessels are scheduled for delivery between late 2024 and 2025. Additionally, the company extended two existing charters during the third quarter.

The decision to charter in additional vessels is part of the company’s ongoing fleet optimization strategy, which aims to balance operational efficiency, environmental sustainability, and customer demand.