WWH posts Q2 results
Lysaker, Norway-headquartered Wilh. Wilhelmsen Holding ASA (WWH) [WLHSF] has reported a 94% increase in earnings before interest and tax (EBIT) for the second quarter of 2012 to a historic high of USD $139 million compared to the same period in 2011, Ship & Bunker reports.
Net financials were negatively impacted by an expense of $8 million on the valuation of bunker hedges, WWH said.
Both shipping and logistics division Wilh. Wilhelmsen ASA (WWASA) and Wilhelmsen Maritime Services (WMS) had all time high operating profits of $117 million and $26 million respectively.
The results were attributed to increased income, a favourable cargo and trade mix, appreciation of the US dollar value, and the introduction of new efficient vessels.
During the second quarter, WWH also acquired a 35.4% equity interest in NorSea Group, a supplier of base services and integrated logistics systems to the Norwegian oil and gas industry for 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," said 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," he added.
Looking ahead, WWH said it was "cautiously optimistic" but stressed that medium term prospects will depend on the development of the world economy.
WHL said economic challenges in Europe, the US, and the BRIC countries would reduce the volume growth in the key car and high and heavy markets, but long term growth prospects for deep sea transportation were positive, and as such WWASA is "cautiously optimistic regarding the volumes and earnings for the second half of 2012."
WMS will be impacted by a "generally weak shipping market" with total income for marine products, ships agency and logistics services division Wilhelmsen Ships Service expected to remain "subdued" in the short term.
Wilhelmsen Ship Management income is expected to remain at a high level following an increased number of vessels on full technical management, and the outlook for Wilhelmsen Technical Solutions was mixed.
"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," commented Wilhelmsen.