Wilh. Wilhelmsen Holding: Presentation of the result for the second quarter and first half

Wilh. Wilhelmsen Holding: Presentation of the result for the second quarter and first half

09.08.2017 20:08

Positive development in income

Our operating profit improved in the second quarter, supported by increased activities in maritime services. Recent restructuring activities lead to substantial accounting effects.

Positive trend for group revenue

The group delivered a total income of USD 344 million in second quarter. Adjusted for a non-recurring accounting gain the total income was USD 146 million, up 5% from the previous quarter.

In ships service, the revenue showed a positive trend, while ship management delivered just below target due to loss of vessels.

In addition to maritime services, we have investments and shareholding in several companies, including Wallenius Wilhelmsen Logistics ASA, NorSea Group and Treasure ASA. All in all, we saw a positive development in the market valuation of our strategic investments and listed entities. As an example, the share price of Wallenius Wilhelmsen improved 17% in the second quarter.

Structural activities

In addition to the finalising of the merger leading to establishing Wallenius Wilhelmsen Logistics ASA, several entities in the group implemented and finalised organisational changes in the second quarter.

The second quarter was also busy with other structural activities, including:

- With effect from 1 April, we took over Kemetyl's sales and marketing activities for consumer products in Norway.

- We announced an intention to by the technical solutions business from Drew Marine. The final agreement is subject regulatory approval.

- And we announced an intent to buy an additional 32% of the shares in the NorSea Group.

What do we expect going forward?

Although the market conditions for ship service's products and services continue to be challenging across vessel segments. Ship management's services are also under price pressure due to a frail market. Our revenue development will therefore continue to be affected by a soft business environment.

A new cost and organisational structure will support an uplift in operating result for the maritime service segment.

Merger synergies will have a positive impact on net results from our holding and investment segment, while the value development of the investments for the listed entities are subject to market pricing.

The first half of 2017 was characterised by several structural changes and activities, and we will continue to look for interesting opportunities to develop the group further.

For further information, contact Thomas Wilhelmsen, group CEO tel: +47 67 58 40 00 Christian Berg, group CFO tel: +47 917 46 910 (mob) Åge S Holm, IRO tel: +47 900 87 670 (mob) Benedicte Teigen Gude, GVP corporate communications tel: +47 959 07 951 (mob)

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