Wallenius Wilhelmsen (WAWI) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 adjusted EBITDA of USD 507 million, with all segments contributing and Government and Logistics showing the strongest quarter-over-quarter growth.

• Revenue reached USD 1.4 billion, up 8% quarter-over-quarter, and adjusted EBITDA rose 16%.

• Declared H1 2024 dividend of USD 0.61 per share, representing 50% of net profit, under a new pay-as-you-go policy; total 2024 dividend to date is USD 1.75 per share.

• Announced sale of the MIRRAT terminal in Melbourne for USD 220 million, expected to close late 2024/early 2025.

• Placed orders for four additional methanol-ready Shaper class vessels, bringing the total order book to 12.

Financial highlights

• Q2 2024 revenue was USD 1,359 million, up 8% quarter-over-quarter and 4% year-over-year; adjusted EBITDA reached USD 507 million, up 16% quarter-over-quarter and 6% year-over-year.

• Net profit for H1 2024 was USD 516 million; proposed dividend is 50% of this, or USD 258 million.

• Operating cash flow for Q2 was USD 393 million, with cash conversion at 77%.

• Net debt at quarter-end was USD 1.8 billion, with a $40 million decline due to debt service and cash flow.

• Equity ratio stood at 35.7% at the end of Q2.

Outlook and guidance

• Expects 2024 EBITDA to be somewhat better than 2023, supported by tight RoRo shipping markets, strong Asian auto exports, and improved contract terms.

• High and heavy segment has stabilized at a new low, with a rebound expected in 2025.

• Logistics and Government segments expected to remain busy in the second half, with high activity levels.

• No specific earnings guidance for 2025, but volumes and rates are expected to be higher.

• Risks include geopolitical tensions, trade uncertainties, supply chain challenges, and potential impacts from EV tariffs and macroeconomic factors.