“We’ve had a good year for our business,” says WW chief executive Ingar Skaug.
WW’s net operating profit for the fourth quarter of 2005 came to USD 67 million, with total operating income at USD 608 million. Profit before taxes came to USD 21 million, compared with USD 45 million in the same period of 2004.
This decline is entirely attributable to a repricing, without liquidity effect, of future hedging contracts as a result of new accounting principles which reduced fourth quarter profit before taxes by USD 45 million.
“The market is strong and cargo availability good in the most important trades,” says Skaug. “Fleet utilisation is very high, but bunkers prices and charter costs are also at a high level.”
An extensive newbuilding programme is being pursued by WW to secure new and modern tonnage, with 11 ships ordered by the group for delivery in 2006-09.
WW ranks as one of Norway’s most international companies, with 389 offices in 72 countries. This unique global network was further extended when the group acquired Unitor in the summer of 2005.
The latter company has been incorporated in the wholly owned Wilhelmsen Maritime Services subsidiary, and synergy gains from the merger are estimated at more than USD 30 million per year. These gains are expected to take full effect in 2007, and are likely to total USD 15 million during 2006.
“Our organisation can be trimmed and further efficiency gains realised,” says Skaug. “That means we’ve got room for continued improvements to our results.”
WW expects its net operating profit for 2006, including ordinary financial items, to be in line with the year before.
The management report reflects the WW group’s partner-based ownership structure and underlying operations better than the official accounts. The same accounting principles are applied in both management report and official accounts, but the former takes a different consolidation approach. That provides more detailed information on the total financial results achieved by the group through its many joint ventures. Both sets of accounts are presented in WW’s report.
» Link to press release Q4 2005 (English)
» Link to report for Q4 2005 (English)
» Link to Shipbuilding programme (English)
» Link to press release Q4 2005 (Norwegian)
» Link to report for Q4 2005 (Norwegian)
» Link to Shipbuilding programme (Norwegian)
» Link to Q4 2005 presentation (English)