EMEA News
Rising Bunker Costs Affect Wilh. Wilhelmsen Second-Quarter Results
Despite an increase in volumes in parts of its business, second-quarter results for Norway-based Wilh. Wilhelmsen Holding ASA Group (WWH) were impacted by a rise in net bunker costs, the company announced this week.
Compared to this time last year, revenues for the shipping and logistics company fell to $854 million from $965 million, though the figures are flat compared to the first quarter of this year.
While operating profit rose to $103 million from $80 million this time last year, the second-quarter numbers are a drop from the $123 million reported in the first quarter.
According to the WWH, the drop was largely due to rising bunker costs and off-hire, while the rise compared to last year was attributed to the rising strength of the U.S. dollar.
Net profits in the second quarter followed much the same trend as operating profit, having risen to $66 million from $30 million last year, but below the $68 million seen in the first quarter.
According to Group CEO Thomas Wilhelmsen, the maritime segment remains challenging for the company, though there was still an "underlying positive trend."
"Technical solutions grew its top line, supported by most of the activities outside offshore, while ships service and ship management reported reduced total income," he said.
"Over the last 12 months the strong USD has had a positive influence on the group’s operating profit, in particular the maritime service segment."
The company added that its oil and offshore operations also saw a seasonal pick up in its supply base activity.
Last month, it was reported that a unit of the company, Wilhelmsen Ships Service, had warned that general marine fuel quality was "deteriorating" due to a myriad of factors.
