- Wallenius Wilhelmsen has withdrawn the proposed dividend for 2019.
- It has placed up to 10 vessels in cold lay-up in order to address vessel overcapacity.
- The overcapacity was equal to a fleet of 10-15 vessels net of already planned redelivery of charter vessels.
- Under the Ship Recycling Transparency Initiative, the ships will undergo green recycling.
- Due to COVID-19, the company has reduced Capex spend to a minimum.
- Large expansion projects are deferred and canceled scrubber retrofits.
According to an article published in Safety4sea, Wallenius Wilhelmsen decided to take strong action to be ready amid the COVID-19 pandemic.
Company withdraws proposed dividend
The company will withdraw the proposed dividend for 2019, recycle up to four vessels, while it will also place up to 10 vessels in cold lay-up in order to address vessel overcapacity.
According to the company, its overcapacity was equal to a fleet of 10-15 vessels net of already planned redelivery of charter vessels. For this reason, it decided to recycle older vessels, while at the same time cutting operational costs.
Ships to undergo green recycling
Commenting on this decision, the company explained that the ships will undergo green recycling, and they will report accordingly to the Ship Recycling Transparency Initiative.
In addition, up to 10 ships will be placed in cold lay-up, ensuring additional cost reductions.
11 vessels to be redelivered
Additionally, two new buildings that are being constructed will be further delayed.
Reduction in capex
Furthermore, due to the uncertainty by COVID-19, the company’s management has reduced Capex spend to a minimum.
This includes deferring some larger expansion projects in the company’s landbased operations, while it also canceled four scrubber retrofits.
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