Wilhelm Wilhelmsen Holding Q4 Update

Sorry for the delay in updating the excel sheet following Q4, which was released on the 15th, but here it is: wwhq4-2017.

I have the discount to NAV at 38,3% currently and the total NAV at 396 NOK. Nordea has the same NAV at 522 NOK… Not sure why we get such different numbers, as they don’t specify how they arrived at them but I suspect they value WMS more ”aggressively” than I do. I’d like to see a few more quarters of stable results before I revisit that valuation.

Either way, there seems to be plenty of room for the share price of Wilhelm Wilhelmsen Holding to grow just on the basis of the discount gap shrinking. On the business side there are promising signs as well. I expect mining related commodities to do well in the coming years and the group is well positioned to take advantage of that.

Q4 – Holding

As for the report, it was pretty much in line with expectations at the holding level. Wilhelmsen Maritime Services, WMS, improved both the topline and the EBIT-margin (after M&A costs) which is now at 10%, which is about where it should be longer term. Apart from that there was no big news.

Q4 – WWL

The daugther company WWL was hit by a 140 MUSD provision on top of the 300 MUSD that had already been set aside. This was a surprise to the downside that I had not seen coming and the market cap effect is -4%, which equates to 2% for Holding.

The operating results of the daugther company continued the postitive trend from Q3 and High & Heavy volumes have started to kick in, which is evident in the cargo mix when adjusting for seasonal effects. Volumes grew both quarter-on-quarter and year-on-year. The company has raised the expected synergies from the merger another 20 MUSD annually and they also benefit by 6 MUSD per year from the US tax cuts (which are absolutely madness if I am allowed to have an opinion on the subject!).

Coming up

I am currently digging into the energy space and I expect some of that research will find its way into this blog. So if this is an area that interests you please stay tuned for an update within the coming weeks 🙂

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