Oslo-based Ro-Ro shipping company Wallenius Wilhelmsen has reported another strong quarter for roll-on/roll-off shipping despite challenges in the global supply chain.
The company operates around over 130 vessels servicing 16 trade routes and six continents through its subsidiaries Wallenius Wilhelmsen Ocean, Wallenius Wilhelmsen Solutions, EUKOR and ARC. Today it reported Q2 EBITDA of $311 million, up 1% compared to Q1, on continued solid shipping results. Revenue grew 4%, driven by shipping volumes and fuel surcharge revenues.
“Strong volumes, increased fuel surcharges and full utilization of the fleet countered the cost pressure from higher fuel prices and operational challenges,” Wallenius Wilhelmsen said.
Global supply chain issues continued to pose operational challenges across its portfolio. Auto parts shortages negatively impacted its customers, and thereby volumes and profitability, in its logistics segment. Logistics EBITDA decreased by $4 million quarter over quarter.
“We are proud to deliver another strong quarter, despite the challenging global supply-chain situation. Our financial position is solid and in Q2 we commenced paying out dividends in line with our policy,” says Lasse Kristoffersen, President and CEO at Wallenius Wilhelmsen.
Earlier this year, Wallenius Wilhelmsen launched a sustainability-linked financing framework, and in Q2 it signed $950 million of new debt with pricing linked to emissions reductions targets. On Tuesday, the company announced another $800 million worth of new loans secured by 20 vessels.
“The new financings allow us to extend debt maturities, stretch repayment profiles and build financing capacity for future investment needs”, said CFO Torbjørn Wist.
Wallenius Wilhelmsen has set a target of reducing CO2-intensity by 27.5% from 2019 to 2030.
Wallenius Wilhelmsen saw its business hit hard early in the pandemic, leading the company to lay-up some 10% of its fleet. But business bounced back strong in 2021 with all ships reactivated by the end of year.
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