- Wallenius Wilhelmsen reported strong financial performance for Q1 2024, with an EBITDA of USD 438 million and a net profit of USD 185 million.
- Customers are increasingly seeking integrated shipping and logistics solutions, particularly ahead of contract renewals.
- Wallenius Wilhelmsen met its CO2 intensity target for 2023 and has committed to new, more ambitious decarbonization goals
- It aims to reduce emissions by 40% by 2030 and achieve net-zero emissions by 2040.
- Despite financial implications from external events, Wallenius Wilhelmsen expects 2024 to be better than 2023.
Strong Performance in Q1 2024
Wallenius Wilhelmsen reported a robust performance for the first quarter of 2024, achieving an EBITDA of USD 438 million and a net profit of USD 185 million. Despite challenges such as shipping reroutes and the Baltimore bridge collapse affecting operations, the company delivered a strong quarter, thanks to the extraordinary efforts of its teams.
Segment Performance
The first quarter of 2024 showed high activity and profitability across all segments, with EBITDA of USD 438 million, comprising USD 366 million from shipping, USD 46 million from logistics, and USD 34 million from government services.
Increased Demand for Integrated Services
Due to ongoing capacity constraints, many customers are seeking integrated shipping and logistics solutions before contract renewals. Wallenius Wilhelmsen anticipates increased demand for logistics and integrated services, along with support for emissions reduction efforts.
Decarbonization Efforts and New Goals
The company met its 2023 CO2 intensity target and is committed to new net zero goals, aiming to reduce emissions by 40% by 2030 (compared to 2022) and achieve net zero by 2040.Wallenius Wilhelmsen has ordered four additional Shaper Class methanol dual fuel vessels and is implementing energy efficiency measures and vessel upgrades to reduce emissions, aligning with its journey towards net zero.
Highlights of Q1 2024
Q1 EBITDA reached USD 438 million, showing strong performance across all segments despite challenges in the Red Sea and Baltimore.Shipping contributed USD 366 million to EBITDA (adjusted for sales gain), while logistics and government segments contributed USD 46 million and USD 34 million, respectively.Strong customer demand and improved contract terms led to a 5% quarter-over-quarter (QoQ) and 8% year-over-year (YoY) increase in net rates. The H&H share ended at 25% for the quarter.The company placed orders for four 9,300 CEU vessels, bringing the total newbuilding count to eight vessels. Wallenius Wilhelmsen committed to updated net-zero emission targets and achieved its 2023 sustainability goals.
Despite financial implications from external events, the company expects 2024 to be another strong year, potentially surpassing 2023.
Outlook for 2024
Despite financial impacts from external events, Wallenius Wilhelmsen expects 2024 to be another strong year, potentially surpassing the performance of 2023.
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Source: Wallenius Wilhelmsen
