Norwegian shortsea carrier Wilson Shipping is reporting fairly stable earnings despite the lower day rates and difficult market circumstances due to Covid-19. In the third quarter, the company’s operating profit amounted to EUR 11.5 million, just 600,000 euros lower than last year’s Q3 result. 

Net earnings per day amounted to EUR 3,255, a decrease of EUR 274/day from the same period last year. However, good cost control ensured reduced operating costs of EUR 22.8 million compared to EUR 24.1 in 2019. As a result, operating profit before depreciation (EBITDA) for the third quarter was remained stable at EUR 11.5 million.

The company has also successfully started up the Arkon transaction and now operates a fleet of 124 vessels, the highest number in the shortsea carrier’s history.

In May this year, Wilson and Arkon Shipping signed a deal to join forces and create Europe’s largest shortsea shipping company with a fleet of more than 130 vessels. The deal will see Wilson take 20 dry bulk carriers from Arkon’s fleet on a long-term lease, including five eco-friendly multipurpose vessels that are set to join the fleet in two years time. Arkon Shipping will become an exclusive commercial representative and handle all Mediterranean export fixtures for the entire Wilson fleet.

According to Wilson’s CFO Stig Vangen this move was much needed as the European shortsea sector is fragmented and has been struggling for over a decade.“Consolidation is much needed. There should be fewer, bigger players because the options are running out”, he told PCJ in an interview earlier this year.