Norway-based car carrier group Wallenius Wilhelmsen has returned to profit on the back of a resurgent market.
The Oslo-listed company reported net profit of $17m for the second quarter, turning around $69m in the same period last year.
That took the underlying results back to pre-pandemic levels, fuelled by solid demand and improved profitability, said acting chief executive Torbjorn Wist.
Revenue rose 62% to $978m from $606m in the same quarter of last year.
The improvement reflects a drastic change in the car carrier market, which had created a tonnage shortage.
That has resulted in Lysaker-headquartered Wallenius Wilhelmsen reactivating 16 of its car carriers that it placed into lay-up last year due to Covid-19.
Five of those vessels were reactivated and re-entered service in the second quarter.
These joined eight vessels that were reactivated in the first quarter.
Another three vessels, which were in cold lay up at the end of 2020, are expected to be reactivated in the second quarter.
“With most vessels out of lay-up, Wallenius Wilhelmsen is well positioned to thrive as global trade continues to rebound,” Wijst said.
Wallenius Wilhelmsen controls a fleet of 132 vessels, up from 127 in the first quarter after increasing the number of long-term and spot charters.
Two long-term charter vessels were extended in the second quarter and the company is bullish on the prospect of the market going forward.
“We expect a favourable balance in supply-demand for the foreseeable future, and while trade imbalances remain, we did see congestion ease during the second quarter,” Wijst said.
Fearnley Securities analyst Peder Nicolai Jarlsby said that adjusted Ebitda of $200m in the second quarter was well above expectations.
Shipping services contributed $163m of that figure, reflecting a strong increase in fuel surcharges, volumes and net freight per cubic metre.
The improvement reflected positive trends in the pure car/ truck carrier (PCTC) market.
However, Jarlsby said there remain questions over the extent to which the positive developments will persist throughout the year.
