Wallenius Wilhelmsen kicks off 2024 with a net earnings jump

RoRo giant Wallenius Wilhelmsen has seen its first-quarter net profit reach $185 million, despite several external events impacting the volumes and available capacity. The Q1 profit is 7 per cent up versus the corresponding period in 2023, and some 38 per cent up over the previous quarter. 

Total revenue in the first quarter was $1.25 billion, down 2 per cent from the previous quarter. Volumes and revenues decreased in the shipping services segment, while the logistics segment was stable and the government saw an increase in non-government activity. Compared to the first quarter in 2023, total revenue for the group was unchanged, as lower fuel surcharges in the shipping services segment offset growth in government and logistics segments.

“We are very pleased with our results in Q1 2024, in particular in view of the impacts from multiple, external events. Shipping volumes and available capacity were negatively impacted by the rerouting away from the Red Sea. In addition, the bridge collapse in Baltimore impacted operations on the US East Coast. Despite this, and thanks to our teams’ extraordinary efforts, we delivered another strong quarter,” says Lasse Kristoffersen, President, and CEO at Wallenius Wilhelmsen.

The first quarter of 2024 reflected continued high activity and profitability across all segments, despite geopolitical and operational challenges. Q1 EBITDA was $438 million of which shipping delivered $366 million, logistics $46 million and government $34 million.

Increased demand for integrated services

With capacity constraints ongoing, many customers are increasingly looking to secure integrated shipping and logistics solutions ahead of scheduled contract renewals.

“In 2024, a substantial portion of our contracts are due for renewal. Scarcity of shipping capacity provides a firm backdrop for negotiations and business activity. We see increased demand for logistics and integrated services and support for the ambition to reduce emissions,” says Kristoffersen.

Delivering on CO2 intensity targets and setting new goals

Wallenius Wilhelmsen met the CO2 intensity target set for 2023, enshrined in the sustainability-linked financing framework established in 2022, and is actively committing to new net zero goals. “We have upped our ambitions on decarbonization with a goal of reducing our emissions by 40% by 2030 (compared to 2022) and becoming net zero by 2040,” says Kristoffersen.

During the quarter Wallenius Wilhelmsen also ordered four additional Shaper Class methanol dual fuel vessels, for a total of eight firm orders. Further, the company utilizes various energy efficiency measures and vessel upgrades to further reduce the fleet’s emissions. The newbuilds and energy efficiency initiatives are key elements in the company’s journey towards net zero.