Norwegian roll-on/roll-off shipping company Wallenius Wilhelmsen has reported third quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) of $223 million, its highest level since the merger of Wilh. Wilhelmsen and Wallenius Lines in 2017.
The company said strong rates and profitability in its shipping segment outweighed a reduction in volumes and lower activity in logistics and government services. Semiconductor chip shortages weighed on volumes across all segments.
“?Despite trade imbalances, semiconductor and other supply chain disruptions, Wallenius Wilhelmsen delivers the highest quarterly EBITDA since the merger in 2017,” said Torbjørn Wist, CFO and Acting CEO of Wallenius Wilhelmsen.
“Strong shipping performance countered muted development in other areas this quarter. In the Shipping segment, we demonstrated our operating flexibility and ability to adapt to secure higher margin cargos, despite the volume drop in autos caused by the chip shortage,” Wist said.
In response the outbreak of COVID-19, Wallenius Wilhelmsen had put a portion of its fleet into cold layup and also scrapped vessels, but with the market recovering it’s been reactivating ships. The company also recently took delivery of the last of four 7,700 vehicle-capacity HERO-class vessels.
“The global economy is in recovery, but we are still prepared for continued volatility and imbalance in the market. On our journey back to normalization we continue to increase active vessel days through Q4 with reactivation of vessels and delivery of the final newbuild?,” Wist said.
Wallenius Wilhelmsen was formed in 2017 through the merger of Wilh. Wilhelmsen and Wallenius Lines.
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