The case is updated
The result was 12 million dollars better than in the first quarter of last year and 51 million dollars better than in the fourth quarter of last year.
– We are very satisfied with the result in the first quarter of 2024, especially one in light of the fact that earnings were negatively affected by several external events, says CEO Lasse Kristoffersen in a comment.
The car shipping market has been extremely strong in the past two years, and Wallenius Wilhemsen has delivered solid profits throughout the period, even if the results have not quite met expectations on several occasions.
The liner company writes in its quarterly report that it expects an even better result in 2024 than in the record year 2023.
The shipping company took a real beating on the stock exchange both after the presentation of the results for the first quarter last year and also after the fourth quarter figures for 2023, which were presented in February this week.
So far this year, the stock is up around 35 percent. In the wake of the pandemic in March 2020, Wallenius Wilhelmsen bottomed out at NOK 8, while on Tuesday the share traded at NOK 115.50.
High contracting activity
Wallenius Wilhelmsen contracted four new buildings with an option for a further eight in August last year. At the time, it was suggested that the construction price of the first four was around 450 million dollars. Just over three months ago, the shipping company declared options on four sister ships, bringing the series up to eight ships. Late in March, it became known that the shipping company has entered into options on a further four ships, so that the number of options is now up to eight.
ABG Sundal Collier analyst Petter Haugen believes that it is now obvious that the market does not want Wallenius Wilhelmsen to order more new builds. He believes that new-build prices are now too high.
“It is difficult to justify paying 97 million dollars for a new building. It is far better to pay out the profit to the shareholders,” he told Finansavisen just under a month ago.
The order book in the car carrier market has picked up sharply in the past two years and has now reached over 35 per cent of the fleet.
WATCH LIVE: Webcast from the quarterly presentation at 8.30
