Bucking the Trend, Wilh. Wilhelmsen Reports Record High Profits

In their second quarter earnings report, Wilh. Wilhelmsen ASA (WWASA) reports further growth led to record high total income and operating profit.

“We are cautiously optimistic about the second half of the year,” says Wilh. Wilhelmsen President and CEO, Jan Eyvin Wang.

Wilhelmsen ASA delivered an operating profit of USD 117 million in the second quarter of 2012, up 13% from a strong first quarter. Total income amounted to USD 734 million, up 3% from the first three months of 2012. The bottom line ended at USD 70 million, down 20% compared with the first quarter due to an unrealised loss on the group’s hedging portfolio.“Volumes increased by 4% from a strong first quarter.

We still see high and heavy volumes growing faster than auto. Our trade mix is favourable, with especially the Oceania and Atlantic trades doing well,” says Wang. “Although Europe still struggles with low demand for cars, we see increased export from particularly Europe to Asia. Import to the US also holds up well.”

Through operating companies, the group controls a total of 141 vessels (127 vessels), a net increase of four vessels quarter on quarter. The newbuilding orderbook totals ten vessels to be delivered in 2012-2014, including two Post-Panamax car carriers ordered by EUKOR in July.

“New, modern vessels contribute to optimising operations and reduce costs per transported unit. With volume growth, although at a moderate level, we will continue to gradually grow the fleet through investments in next generation newbuildings or by chartering in tonnage,” says Wang.

Medium term, the economic challenges seen in Europe, the US and the BRIC countries can postpone private consumption and corporate investment decisions and thereby reduce the volume growth in the car and high and heavy markets. The long term growth prospects for deep sea transportation are however positive.

Despite macroeconomic uncertainties, the board is cautiously optimistic regarding the volumes and earnings for the second half of 2012.

Through its subsidiaries ,Wilh. Wilhelmsen ASA operates a flexible and modern fleet of chartered and owned tonnage. Their fleet of 133 vessels includes pure car and truck carriers (PCCs), pure car and truck carriers (PCTCs), large car and truck carriers (LCTCs) and ro-ro vessels. Purposely built to transport cars and high and heavy cargo, their fleet represents a 22% global market share measured in CEUs.

The following is a video tour of the world’s largest Ro-Ro Vessel, WWASA’s Mark V.