Wallenius Wilhelmsen is on track to deliver on its “somewhat better” than last year target.
The Oslo-listed car carrier owner said on Wednesday that all its business segments are performing better so far this year, making its forecast of just beating its $1.8bn 2023 Ebitda figure achievable.
Chief executive Lasse Kristoffersen, referring to Monday’s announcement of a $766m contract, said: “Renewals for contracts expiring in 2024 are progressing well, as evidenced by the latest announcement of a five-year contract in the [high and heavy] segment.
“We see strong and increased demand in areas where we have industry-leading offerings, including shipping, logistics, integrated supply chain, digital and reduced emissions services.
“2024 will be another strong year for Wallenius Wilhelmsen, providing a solid backdrop for our pay-as-you-go dividend policy and allowing us to invest in renewing and growing our business.”
In February, the company tempered expectations for the year after the Red Sea crisis forced its ships to opt for the Cape of Good Hope to avoid becoming a target for Houthi attacks from Yemen.
Then, Kristoffersen started describing the 2024 outlook as “somewhat better” rather than “better”, while acknowledging that the reroutings would have an impact on the company’s financial performance.
For the third quarter, Wallenius Wilhelmsen earned a $259m profit, down from $279m year on year as interest and tax expenses grew.
Revenue grew from $1.3bn to $1.4bn.
For the quarter, its shipping segment contributed just over $1bn in revenue, rising 3% year over year from $976m.
The net freight rate for the quarter came in at $60.80 per cbm, up from $60.70 per cbm in the second quarter and $52 per cbm for the same period last year.
Volumes, though, dropped to 14m cbm from 15m cbm.
It said the market remains tight and all its vessels are currently utilised.
Logistics revenue ticked upward from $290m to $294m a year earlier, but fell sequentially, with the company blaming falling auto volumes in a softening market.
In the US-focused government services division, revenue jumped to $117m from $91m.
It said the invasion of Ukraine and the resulting increased activity from Nato members had driven activity in the division.
