Summary
Good operations during the period - weaker NOK gives positive effect within finance items
Good operations during the period - weaker NOK gives positive effect within finance items
- Gross freight income is MNOK 574 in the quarter compared to MNOK 484 in the 3rd quarter 2007
- Net TC rate per day was NOK 37,678 in the 3rd quarter compared to NOK 39,671 in the 2nd quarter 2008 and NOK 34,398 in the 3rd quarter 2007
- EBITDA is MNOK 124 compared to MNOK 111 in the 3rd quarter 2007
- Net financial result in the quarter shows MNOK 37 compared to NOK -64 for the 3rd quarter 2007.
- Result before tax and minority is MNOK 115 in the quarter compared to MNOK 13 in the 3rd quarter 2007
Wilson ASA - Business idea
Wilson`s main activity is the chartering and operation of small dry bulk vessels between 1,500 and 10,000 dwt in the European short sea trade. Wilson is a premier player in this market. Per 12.11.2008 the Wilson system is operating 112 ships, whereof 78 are owning-wise controlled by the company.
Wilson`s strategy is to offer Norwegian and European industry competitive, reliable, flexible and long-term transportation services. By controlling large contract volumes and long-term contract portfolios Wilson may optimize vessel operations and secure stable and long term income levels.
Result 3rd quarter 2008
During the 3rd quarter 2008 the company achieved freight income on TC basis of MNOK 313 compared to
MNOK 272 in the 3rd quarter 2007. The increase is primarily due to higher average freight rates compared to the same period last year, but also an effect of increased activity from more ships in operation in the quarter than in the corresponding period last year.
The company`s running cost (excl. depreciations) in the quarter is MNOK 194 compared to MNOK 167 in the
3rd quarter 2007. Other operating cost ships and crewing cost show a total increase of MNOK 29 which is partly related to a higher activity level and partly to a general cost increase.
The operating result before depreciations (EBITDA) is MNOK 124 in the quarter compared to MNOK 111 in
the 3rd quarter 2007.
The net financial result shows MNOK 37 in the quarter compared to MNOK -64 in the same period in 2007. The item is positively affected by value changes in financial instruments with MNOK 76 which is an increase of MNOK 134 compared to the same period in 2007 when the item was MNOK -58. The value change arises from the mark-to-market principle for the company`s currency- and interest swap portfolio and is primarily related to the period`s unrealized USD forward contract profit. The quarterly result has at the same time been charged with MNOK 21 as net currency loss compared to net currency gain of MNOK 2 for the 3rd quarter 2007. The currency loss item is primarily a result of realization of historic forward currency USD forward contracts as well as value changes on EUR-
loans. MNOK 11 of this item is unrealized. Interest cost in the 3rd quarter 2008 is MNOK 21 compared to MNOK 14 in the 3rd quarter 2007.
The company`s result before minority and calculated tax is MNOK 115 in the 3rd quarter 2008 compared to MNOK 13 for the 3rd quarter 2007.
Market
In the quarter the company has had contract coverage of 66 % compared to 65 % in the 3rd quarter 2007. Spot earnings in the quarter has been relatively better during 2008 than in 2007, but is somewhat down compared to the 2nd quarter.
The activity level measured as the number of sailing days shows an increase of 3 % compared to the 2nd quarter. The increase comes as a result of more ships being operated.
Financing and capital structure
Interest bearing mortgage- and leasing debt in the balance per 30.09.2008 is totaling MNOK 1,134 compared to MNOK 1,110 per 30.06.2008. The increase is due to draw down on the credit facility and value changes on the EUR-loan in the period.
Booked equity per 30.09.2008 is MNOK 718 compared to MNOK 634 per 30.06.2008. Booked equity ratio is
thereby 31.3 % compared to 28.2 % per 30.06.
Bank and cash deposits per 30.09.2008 are MNOK 75, and additionally the company has an unused credit facility totaling MNOK 175.
Investments
During the quarter the company has entered into an agreement with the joint venture partner Eimskip to purchase Eimskip`s 50 % share of Euro Container Line for MNOK 40. This share position was transferred 9th October and Wilson is now the sole owner of Euro Container Line. Full financial effect will therefore be established in the 4th quarter.
On the 24th September the company furthermore entered an agreement to purchase the container ship MV Doris from Arno Shipping Ltd. for MEUR 7.275. The ship was taken over on the 20th October and has been given the name MV ECL Commander.
Order reserves
Wilson`s contract coverage is satisfactory and the order reserve per 30.09.2008 is ca NOK 1.8 billions. The order reserve is defined as the expected future shipment commitments under the current Contracts of Affreightment (COA) during the agreed contract period. The company has long lasting and good relations to the customers with close to 100 % success rate in contract renewals.
Prospects
The company has had a high activity level during this year`s first 3 quarters with good nominations under the contracts. The recent changes in the financial markets indicate some uncertainty for the prospects for the 4th quarter and into 2009. The current activity in the spot market has been considerably lower than in this year`s previous
quarters. The contracts market still shows good activity although somewhat below the previous quarters. It is therefore difficult to assess the outcome of the financial unrest for the company`s customers and their future nominations under the contracts.
Financial principles for the quarterly report
The quarterly report has been established on the basis of international accounting standards (IAS 34).
Board of Directores of Wilson ASA
Bergen, 12th November 2008
Wilson`s main activity is the chartering and operation of small dry bulk vessels between 1,500 and 10,000 dwt in the European short sea trade. Wilson is a premier player in this market. Per 12.11.2008 the Wilson system is operating 112 ships, whereof 78 are owning-wise controlled by the company.
Wilson`s strategy is to offer Norwegian and European industry competitive, reliable, flexible and long-term transportation services. By controlling large contract volumes and long-term contract portfolios Wilson may optimize vessel operations and secure stable and long term income levels.
Result 3rd quarter 2008
During the 3rd quarter 2008 the company achieved freight income on TC basis of MNOK 313 compared to
MNOK 272 in the 3rd quarter 2007. The increase is primarily due to higher average freight rates compared to the same period last year, but also an effect of increased activity from more ships in operation in the quarter than in the corresponding period last year.
The company`s running cost (excl. depreciations) in the quarter is MNOK 194 compared to MNOK 167 in the
3rd quarter 2007. Other operating cost ships and crewing cost show a total increase of MNOK 29 which is partly related to a higher activity level and partly to a general cost increase.
The operating result before depreciations (EBITDA) is MNOK 124 in the quarter compared to MNOK 111 in
the 3rd quarter 2007.
The net financial result shows MNOK 37 in the quarter compared to MNOK -64 in the same period in 2007. The item is positively affected by value changes in financial instruments with MNOK 76 which is an increase of MNOK 134 compared to the same period in 2007 when the item was MNOK -58. The value change arises from the mark-to-market principle for the company`s currency- and interest swap portfolio and is primarily related to the period`s unrealized USD forward contract profit. The quarterly result has at the same time been charged with MNOK 21 as net currency loss compared to net currency gain of MNOK 2 for the 3rd quarter 2007. The currency loss item is primarily a result of realization of historic forward currency USD forward contracts as well as value changes on EUR-
loans. MNOK 11 of this item is unrealized. Interest cost in the 3rd quarter 2008 is MNOK 21 compared to MNOK 14 in the 3rd quarter 2007.
The company`s result before minority and calculated tax is MNOK 115 in the 3rd quarter 2008 compared to MNOK 13 for the 3rd quarter 2007.
Market
In the quarter the company has had contract coverage of 66 % compared to 65 % in the 3rd quarter 2007. Spot earnings in the quarter has been relatively better during 2008 than in 2007, but is somewhat down compared to the 2nd quarter.
The activity level measured as the number of sailing days shows an increase of 3 % compared to the 2nd quarter. The increase comes as a result of more ships being operated.
Financing and capital structure
Interest bearing mortgage- and leasing debt in the balance per 30.09.2008 is totaling MNOK 1,134 compared to MNOK 1,110 per 30.06.2008. The increase is due to draw down on the credit facility and value changes on the EUR-loan in the period.
Booked equity per 30.09.2008 is MNOK 718 compared to MNOK 634 per 30.06.2008. Booked equity ratio is
thereby 31.3 % compared to 28.2 % per 30.06.
Bank and cash deposits per 30.09.2008 are MNOK 75, and additionally the company has an unused credit facility totaling MNOK 175.
Investments
During the quarter the company has entered into an agreement with the joint venture partner Eimskip to purchase Eimskip`s 50 % share of Euro Container Line for MNOK 40. This share position was transferred 9th October and Wilson is now the sole owner of Euro Container Line. Full financial effect will therefore be established in the 4th quarter.
On the 24th September the company furthermore entered an agreement to purchase the container ship MV Doris from Arno Shipping Ltd. for MEUR 7.275. The ship was taken over on the 20th October and has been given the name MV ECL Commander.
Order reserves
Wilson`s contract coverage is satisfactory and the order reserve per 30.09.2008 is ca NOK 1.8 billions. The order reserve is defined as the expected future shipment commitments under the current Contracts of Affreightment (COA) during the agreed contract period. The company has long lasting and good relations to the customers with close to 100 % success rate in contract renewals.
Prospects
The company has had a high activity level during this year`s first 3 quarters with good nominations under the contracts. The recent changes in the financial markets indicate some uncertainty for the prospects for the 4th quarter and into 2009. The current activity in the spot market has been considerably lower than in this year`s previous
quarters. The contracts market still shows good activity although somewhat below the previous quarters. It is therefore difficult to assess the outcome of the financial unrest for the company`s customers and their future nominations under the contracts.
Financial principles for the quarterly report
The quarterly report has been established on the basis of international accounting standards (IAS 34).
Board of Directores of Wilson ASA
Bergen, 12th November 2008
