A record quarter has allowed Wallenius Wilhelmsen to reward investors with a big first-half dividend.
The world’s largest car carrier operator announced in its second-quarter financial report on Tuesday that it would issue a $0.61 per share dividend, good for half its net profit for the first six months.
“[The second quarter of 2024] is the strongest quarter on record with all-time-high Ebitda,” said chief executive Lasse Kristoffersen, with that figure coming in at $507m, up from $477m year over year.
“We remain confident that 2024 will be another strong year for Wallenius Wilhelmsen.
“We expect Ebitda for the year to be somewhat better than 2023, and continue to deliver solid dividends under our new pay-as-you-go dividend policy.”
The company earned $315m in profit, up from $296m for the same quarter last year, with revenue jumping slightly, from $1.3bn to $1.4bn.
The top-line figure came as shipping volumes dropped — from 15.3m cbm in the second quarter of 2023 to 14.1m cbm — but rates shot up to $60.30 per cbm from $50 per cbm.
Rates were also higher in its government and logistics segments, helping to offset the drop in shipping volumes.
Shipping volumes, however, did peek up from the first quarter, when the company reported 13.2m cbm as it dealt with tighter tonnage supply as ships were rerouted around the Cape of Good Hope to deal with Houthi attacks in the Red Sea.
Kristoffersen said the market remains tight and “the ongoing contract negotiations reflect this”. The company is set to renegotiate nearly half its contracts in the second half.
A new policy was enacted earlier this year to pay out two semi-annual dividends, plus the potential for extraordinary dividends as the board deems necessary.
The first-half dividend, the first paid out under this policy, has an ex-date of 25 September with payment in October.
