Wilh. Wilhelmsen says results “marginally weaker”
Wilh. Wilhelmsen says results “marginally weaker”
Wilh. Wilhelmsen, a company involved in roll-on/roll-off shipping through partial ownership of several car carrier companies, as well as heavy-lift shipping company through ownership of Dockwise, reported net operating profit of $70 million for the third quarter. The company said this was 'marginally weaker than in the same period of last year, after adjusting for special items.'
Total operating income for the quarter was $542 million, compared with $603 million in the same period of last year. Operating income reflects the strike and exclusion of a logistics company Compagnie d’Affr'tement et de Transport from the accounts after its value was earlier written down to zero.
Fleet utilization at 50-percent-owned Wallenius Wilhelmsen Logistics 'remained very high. The start of the third quarter was characterized by somewhat lower volumes of high and heavy cargo to Oceania, particularly from North America, owing to drought and high stocks in Australia,' the company said.
'However, large volumes in the Pacific from Japan to the USA yielded good earnings but also required substantial capacity. Some ballast legs are needed to meet contract commitments. High charter and bunkers costs continue to mean that rising incomes is offset to a considerable extent by increasing costs,' Wilh. Wilhelmsen said.
The company said three new car carriers were delivered to Wallenius Wilhelmsen in the third quarter and one to its 40 percent-owned subsidiary Eukor.
It said results for Eukor were strongly affected by a lengthy strike at the Korean car factories.
The company said hedging contracts were concluded to protect the group against negative movements in bunkers prices, interest rates and currencies, and that weak financial performance can be largely attributed to a fall in the value of these hedging contracts.
'In addition, a substantial proportion of the group's bunkers hedges will expire during the present year and, as previously announced, this will have a negative effect on results,' the company said.
'However, developments in the bunkers, interest rate and currency markets have been positive for underlying operations in the group,' noted Ingar Skaug, group chief executive officer.