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Wallenius Wilhelmsen Reports Strong Q3 Performance Across Segments

Wallenius Wilhelmsen, a global leader in roll-on/roll-off (RoRo) shipping and vehicle logistics, has announced robust results for the third quarter of 2023. The company reported an impressive USD 478 million in EBITDA, reaffirming its market dominance and operational prowess.

Steady Growth in Key Segments

The stellar performance was attributed to a combination of factors, including higher net rates and an improved customer mix in the shipping segment. Despite a slight dip in fuel surcharges and volumes, the underlying EBITDA in shipping exhibited a noteworthy increase.

Meanwhile, the logistics arm of Wallenius Wilhelmsen demonstrated remarkable strength, posting solid EBITDA figures driven by outstanding performance in the automotive sector. Notably, the government segment emerged as a standout performer, registering the largest EBITDA gain quarter-over-quarter. This success can be attributed to an improved cargo mix and sustained high demand from the U.S. government.

Strides in Sustainability and Efficiency

One of the most significant achievements highlighted in the report is the continued reduction in fuel consumption during Q3. This stands as a testament to the company’s sustained efforts in implementing fuel efficiency initiatives over an extended period. Lasse Kristoffersen, President and CEO at Wallenius Wilhelmsen, emphasized, “Our efforts to reduce CO2 emissions are paying off, with emissions trending down and stabilizing at lower levels. Additionally, we are experiencing a recurring reduction in fuel consumption and fuel cost.”

Challenges Persist at Ports

Despite the remarkable performance, Wallenius Wilhelmsen faced challenges with waiting times at key ports. Approximately 9% of the available trading days were affected by congestion during the quarter, underscoring the need for continued strategic planning and operational adjustments.

Post-Quarter Momentum

Building on the momentum of a successful quarter, Wallenius Wilhelmsen took a significant step forward on October 24 by converting a Letter of Intent (LOI) into contracts for the construction of twelve vessels, including four firm and eight optional 9,300 CEU methanol-capable and ammonia-ready vessels. These vessels are slated for delivery from mid-2026 and onwards. Kristoffersen emphasized, “We continue to strengthen our business platform by renegotiating contracts at higher rates and securing attractively priced tonnage.”

Q3 Highlights at a Glance:

  • EBITDA of USD 478 million for Wallenius Wilhelmsen
  • Shipping segment contributed USD 392 million in EBITDA, supported by higher net rates
  • Logistics segment maintained steady EBITDA at USD 48 million
  • Government segment recorded the largest EBITDA gain QoQ, culminating at USD 46 million
  • Strong demand prevailed despite the uncertain macroeconomic backdrop
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