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Wallenius Wilhelmsen, a leading Norwegian roll-on/roll-off carrier, achieved financial results in 2023, bolstered by capacity constraints in car carrier markets and increased demand for cars and heavy equipment.
The company is reporting solid earnings and renewed multi-year contracts at current market rates.
The company’s contract renewals have incorporated both ocean and land-based services, in conjunction with decarbonization efforts like the use of biofuel. As part of its ambitious sustainability plan, Wallenius Wilhelmsen has set its sights on achieving net-zero emissions by 2040—a full decade ahead of International Maritime Organization targets.
The fiscal year 2023 was a banner year for Wallenius Wilhelmsen, with the company reporting an all-time high EBITDA of US $1.807 billion, an 18 percent increase from the previous year.
Lasse Kristoffersen, President and CEO at Wallenius Wilhelmsen, attributes the strong results to a robust demand in the markets they serve and the hard work by the company’s team members.
The company reported total revenue of US $5.149 billion for FY 2023, a 2 percent increase from the previous year. Despite global supply chain disruptions, the shipping segment delivered a record adjusted EBITDA of US $1.527 billion, a 12 percent increase YoY.
In its report, Wallenius Wilhelmsen also revealed revised climate targets, increasing their emission reduction target for 2030 to 45%, compared to that of 2019 levels. The company made significant strides towards achieving net zero emissions in 2023, including the introduction of zero-emission battery electric trucks in the U.S and the launch of the Orcelle terminal in Belgium.
“This year we made a significant leap towards net zero emission by partnering with our customers on buying reduced carbon freight. Another key milestone was the ordering of our Shaper class vessels capable of running on green methanol upon delivery,” said Kristoffersen.
“All these initiatives are vital parts of our strategic goal to deliver the world’s first end-to-end net zero service to our customers in 2027. This is a very ambitious target, and we need to break many barriers to get there. But together with our customers, we are confident that it is both possible and needed,” Kristoffersen added.
On the logistics front, the company saw volume improvements across the business, notably in the auto, terminal, and high & heavy sectors. Meanwhile, the government segment’s revenue increased by 7 percent YoY, largely due to increased US flag cargo activity in response to the Russian invasion of Ukraine.
Finally, Wallenius Wilhelmsen’s board proposed a total dividend of USD 1.14 per share for 2023 and has proposed a semi-annual pay-as-you-go dividend policy. The proposed dividend for 2023 and the revised dividend policy are pending approval at the upcoming Annual General Meeting on April 30, 2024.
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