Maritime Services New Energy Strategic Holdings and Investments
2024: Total income USD mill
2024: Profit before tax USD mill
2023: Total income USD mill
2023: Profit before tax USD mill
16
15
303
291
831
732
486
473
14
65
29
35
General accounting policies Wilh. Wilhelmsen Holding group
GENERAL INFORMATION
Wilh. Wilhelmsen Holding ASA (referred to as the parent company) is domiciled in Norway The consolidated accounts for fiscal year 2024 include the parent company and its subsidiaries (referred to collectively as the group) and the group\u2019s share of joint ventures and associated companies.
The annual accounts for the group and the parent company were issued by the board of directors on 19 March 2025.
BASIS OF PREPARATION
Compliance with IFRS
The consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS\u00ae) accounting standards, as adopted by the European Union. The separate financial statements for the parent company have been prepared and presented in accordance with simplified IFRS as approved by Ministry of Finance 7 February 2022. In the separate statements the exception from IFRS for recognition of dividends and group contributions is applied. Otherwise, the explanations of the accounting policy for the group also apply to the separate statements, and the notes to the consolidated financial statements will to a large degree also cover the separate statements.
Wilhelmsen also provides additional disclosures in accordance with requirements in the Norwegian Accounting Act related to remuneration to the board and the senior management.
The company is a public limited liability company, listed on the Oslo Stock Exchange.
Critical accounting estimates and assumptions
When preparing the financial statements, the group and the parent company must make assumptions and estimates. These estimates are based on the actual underlying business, its present and forecast profitability over time, and expectations about external factors such as interest rates, foreign exchange rates and oil prices, which are outside the group\u2019s and parent company\u2019s control. This presents a substantial risk that actual conditions will vary from the estimates.
Most statements of financial position items will be affected by uncertainty related to estimates and assumption to a certain degree. The items most affected, and where estimates and assumptions are assessed to have the greatest significance include:
\u2022\tDeferred tax asset (Note 9)
\u2022\tGoodwill (Note 7)
\u2022\tRight-of-use assets and lease liabilities (Note 8)
\u2022\tLoss allowance on accounts receivable (Note 13)
\u2022\tProvisions and other non-current liabilities (Note 12)
Accounting principles applied, estimates and assumptions used by management are presented in the respective notes.
The group does face risk as a result of climate change, and climate-related factors may impact estimates and assumptions going forward. Uncertainties and risks relate to both transition risk (market-related, technological, and changes in regulatory requirements), and to physical risk that may affect the group\u2019s assets, are integral parts of management\u2019s estimates and judgements across the group.
The group has, where assessed relevant, included climate related considerations when assessing critical accounting estimates and assumptions. The following items are assessed to be most affected by climate related considerations:
\u2022\tTangible assets and Goodwill (Note 7)
\u2022\tRight-of-use assets and lease liabilities (Note 8)
\u2022\tContingencies (Note 22)
\u2022\tFinancial risk (interest bearing debt, Note 18)
For consolidated accounts for fiscal year 2024, climate related considerations did not materially affect the group\u2019s estimates and assumptions.
Financial reporting principles
The financial reporting principles are described in the relevant notes in the consolidated financial statements and in the notes in the financial statements of the parent company.
The financial reporting principles described in the consolidated financial statements also apply to the financial statements of the parent company, unless otherwise stated.
Note 1 Combined items, income statement
USD mill | Note | 2024 | 2023 |
OPERATING REVENUE | |||
Ships Service | 2/3 | 507 | 477 |
Port Services | 2/3 | 160 | 155 |
Ship Management | 2/3 | 149 | 87 |
Energy Infrastructure | 2/3 | 299 | 283 |
Other services | 2/3 | 22 | 27 |
Total operating revenue | 19 | 1 136 | 1 027 |
OPERATING EXPENSES | |||
Office expenses | (14) | (14) | |
Communication and IT expenses | (41) | (36) | |
External services | (29) | (31) | |
Travel and meeting expenses | (14) | (12) | |
Marketing expenses | (3) | (3) | |
Lease expenses | 8 | (11) | (12) |
Other operating expenses | (54) | (46) | |
Total operating expenses | 19 | (166) | (153) |
Financial income | |||
Investment management | 10 | 15 | |
Interest income | 9 | 8 | |
Dividend from financial assets | 4 | 3 | |
Gain on sale of financial investments | 1 | ||
Other financial items | 1 | 2 | |
Net financial income | 25 | 29 | |
Financial expenses | |||
Interest expenses | (29) | (33) | |
Interest expenses lease liabilities | 8 | (7) | (5) |
Other financial expenses | (7) | (4) | |
Net financial expenses | (43) | (43) | |
Currency gain/(loss) | |||
Operating currency - net | 15 | (2) | |
Financial currency - net | (21) | (6) | |
Derivatives for hedging of cash flow risk - realised | (3) | (3) | |
Derivatives for hedging of cash flow risk - unrealised | (20) | 10 | |
Net currency gain/(loss) | (28) | (1) | |
Financial income/(expenses) | (46) | (15) | |
Spesification of financial income and expenses | |||
Net financial income | 25 | 29 | |
Net currency derivatives - income | 10 | ||
Financial income | 25 | 39 | |
Net financial expenses | (43) | (43) | |
Net currency - expenses | (6) | (8) | |
Net currency derivatives - expenses | (22) | (3) | |
Financial expenses | (71) | (54) |
See note 18 on financial risk and the section of the accounting policies concerning financial derivatives.
Note 2 Segment reporting
FINANCIAL REPORTING PRINCIPLES
The operating segments are reported in a manner consistent with the internal financial reporting provided to the chief operating decision-makers.
The chief operating decision-makers, who are responsible for allocating resources and assessing performance of the operating segments, have been identified as the board and group management team, consisting of the group chief executive officer (group CEO) and four executive managers.
SEGMENTS
The chief operating decision-makers monitor the business by combining entities with similar operational characteristics such as product, services, market and underlying asset base, into operating segments.
The Maritime Services segment offers marine products, ship agency services and logistics to the merchant fleet and ship management including manning for all major vessel types, through a worldwide network in 56 countries.
The New Energy segment includes NorSea Group and other New Energy activities. The activity is mainly related to the operation of supply bases for the offshore industry in Norway, as well as real estate development and operation of properties both on and off the supply bases. In addition to the activity in Norway, the segment offers its services in both Denmark and in the UK. The international activity consists of both operation of supply bases, maintenance of rigs and handling of logistics related to international pipeline projects and windmill parks. Other activities within the segment include digital solutions to the maritime industry.
The Strategic Holdings and Investments segment includes the parent company, Wilh. Wilhelmsen Holding ASA, Treasure ASA group, Wilh Wilhelmsen Invest Malta and other corporate group activities like operational management, legal, finance, portfolio management, communication and human relations which fail to meet the definition for other core activities.
The group\u2019s investments in Wallenius Wilhelmsen ASA (WAWI) is presented as part of Strategic Holdings and Investments as investments in associates.
Eliminations are between the group\u2019s three segments mentioned above.
The segment income statements are measured in the same way as in the financial statements.
The segment information provided to the chief operating decision-makers for the reportable segments for the year ended 31 December 2024 is as follows:
USD mill | Maritime Services | New Energy | Strategic Holdings and Investments | Eliminations | Total | |||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
INCOME STATEMENT | ||||||||||
Operating revenue | 830 | 732 | 302 | 290 | 16 | 16 | (12) | (11) | 1 136 | 1 027 |
Other gain/(loss) | 1 | 1 | 1 | 1 | 2 | 1 | ||||
Total income | 831 | 732 | 303 | 291 | 16 | 15 | (12) | (10) | 1 138 | 1 029 |
Cost of goods and change in inventory | (319) | (266) | (71) | (73) | (1) | (1) | (391) | (340) | ||
Employee benefits | (286) | (259) | (124) | (117) | (14) | (12) | (423) | (387) | ||
Operating expenses | (117) | (102) | (49) | (51) | (9) | (9) | 10 | 8 | (166) | (153) |
Operating profit/(loss) before depreciation, amortisation and impairment | 109 | 105 | 59 | 51 | (8) | (7) | (1) | (1) | 159 | 147 |
Depreciation and impairment | (39) | (28) | (31) | (28) | (5) | (4) | 1 | 1 | (74) | (59) |
Operating profit | 70 | 77 | 28 | 23 | (13) | (12) | 85 | 88 | ||
Share of profit from associates | 3 | 7 | 7 | 10 | 462 | 414 | 472 | 431 | ||
Change in fair value financial assets | 17 | 4 | 10 | 7 | 27 | 11 | ||||
Net financial income/(expenses) | (37) | (19) | (24) | (22) | 26 | 64 | (12) | (37) | (46) | (15) |
Profit before tax | 35 | 65 | 29 | 14 | 486 | 473 | (12) | (37) | 538 | 515 |
Tax income/(expense) | (12) | (20) | (2) | (2) | (8) | (5) | 3 | (20) | (27) | |
Profit for the period | 23 | 45 | 26 | 12 | 478 | 468 | (10) | (37) | 518 | 487 |
Non-controlling interests | (1) | (2) | (1) | (1) | (18) | (18) | (20) | (21) | ||
Profit to the equity holders of the company | 22 | 42 | 26 | 12 | 460 | 449 | (10) | (37) | 498 | 466 |
New Energy; one customer represents about 20% of the total revenue.
Maritime Services New Energy Strategic Holdings and Investments
2024: Total income USD mill
2024: Profit before tax USD mill
2023: Total income USD mill
2023: Profit before tax USD mill
16
15
303
291
831
732
486
473
14
65
29
35
Cont. note 2 Segment reporting
The amounts provided to the chief operating decision-makers with respect to total assets, liabilities and equity are measured in the same way as in the financial statements.
USD mill | Maritime Services | New Energy | Strategic Holdings and Investments | Eliminations | Total | |||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023* | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023* | |
Balance Sheet | ||||||||||
Assets | ||||||||||
Non current assets | ||||||||||
Deferred tax assets | 44 | 40 | 1 | 1 | 7 | 10 | 52 | 51 | ||
Goodwill and other intangible assets | 119 | 125 | 5 | 6 | 1 | 1 | 125 | 132 | ||
Properties and other tangible assets | 161 | 168 | 396 | 439 | 14 | 16 | 571 | 623 | ||
Right-of-use assets | 36 | 36 | 63 | 61 | 29 | 24 | (7) | (10) | 121 | 112 |
Investments in joint ventures and associates | 32 | 30 | 221 | 204 | 1 749 | 1 642 | 2 001 | 1 877 | ||
Financial assets to fair value | 5 | 86 | 82 | 86 | 87 | |||||
Other non current assets | 19 | 8 | 22 | 37 | (2) | (4) | 39 | 42 | ||
Total non current assets | 410 | 408 | 708 | 754 | 1 886 | 1 776 | (10) | (14) | 2 994 | 2 924 |
Current assets | ||||||||||
Inventories | 119 | 121 | 119 | 121 | ||||||
Current financial investments | 121 | 124 | 121 | 124 | ||||||
Other current assets | 278 | 261 | 85 | 76 | 111 | 17 | (106) | (11) | 368 | 342 |
Cash and cash equivalents | 115 | 144 | (48) | 21 | 88 | 59 | 155 | 224 | ||
Total current assets | 513 | 526 | 37 | 98 | 320 | 200 | (106) | (11) | 764 | 811 |
Total assets | 923 | 933 | 745 | 852 | 2 206 | 1 975 | (116) | (25) | 3 758 | 3 735 |
EQUITY AND LIABILITIES | ||||||||||
Equity | ||||||||||
Shareholders' equity | 172 | 177 | 368 | 382 | 2 039 | 1 772 | 2 580 | 2 332 | ||
Non-controlling interests | 2 | 2 | 4 | 6 | 109 | 148 | 115 | 155 | ||
Total equity | 174 | 179 | 373 | 388 | 2 148 | 1 921 | 2 695 | 2 488 | ||
Non current liabilities | ||||||||||
Pension liabilities | 14 | 15 | 1 | 1 | 6 | 7 | 21 | 23 | ||
Deferred tax liabilities | 12 | 11 | 12 | 12 | ||||||
Non current interest-bearing debt | 64 | 174 | 210 | 279 | 5 | 7 | (2) | (4) | 277 | 456 |
Non current lease liabilities | 27 | 28 | 61 | 61 | 26 | 22 | (7) | (9) | 108 | 101 |
Other non current liabilities | 5 | 6 | 3 | 5 | 8 | 11 | ||||
Total non current liabilities | 121 | 233 | 276 | 346 | 38 | 37 | (9) | (13) | 425 | 603 |
Current liabilities | ||||||||||
Current income tax | 9 | 8 | 1 | 3 | 1 | 12 | 10 | |||
Public duties payable | 9 | 10 | 7 | 7 | 1 | 1 | 17 | 18 | ||
Current interest-bearing debt | 105 | 23 | 27 | (105) | 23 | 27 | ||||
Current lease liabilities | 11 | 12 | 12 | 9 | 4 | 4 | (1) | (1) | 26 | 24 |
Other current liabilities | 493 | 492 | 54 | 73 | 13 | 13 | (1) | (11) | 559 | 567 |
Total current liabilities | 627 | 522 | 97 | 117 | 20 | 18 | (107) | (12) | 637 | 645 |
Total equity and liabilities | 923 | 933 | 745 | 852 | 2 206 | 1 975 | (116) | (25) | 3 758 | 3 735 |
Investments in tangible assets | 11 | 20 | 23 | 18 | 1 | 1 | 35 | 40 |
* The investment in Wallenius Wilhelmsen, accounted for as investment in associate, has been restated. See note 21 for more details.
31.12.2024: Shareholders\u2019 equity
31.12.2023: Shareholders\u2019 equity
Maritime Services
New Energy
Strategic Holdings and Investments
79%
76%
14%
16%
7%
8%
Cont. note 2 Segment reporting
The amounts provided to the chief operating decision-makers with respect to cash flows are measured in the same way as in the financial statements.
USD mill | Maritime Services | New Energy | Strategic Holdings and Investments | |||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Cash FLOW | ||||||
Profit before tax | 35 | 65 | 29 | 14 | 486 | 473 |
Change in fair value financial assets | (17) | (4) | (10) | (7) | ||
Share of (profit)/loss from joint ventures and associates | (3) | (7) | (7) | (10) | (462) | (414) |
Net financial (income)/expenses | 37 | 19 | 24 | 22 | (26) | (64) |
Depreciation, amortisation and impairment | 39 | 28 | 31 | 28 | 5 | 4 |
Change in other assets and liabilities | (62) | 1 | 26 | 5 | (5) | (13) |
Other (gain)/loss | (1) | (1) | (1) | (1) | ||
Net cash flow from operating activities | 46 | 105 | 85 | 55 | (12) | (21) |
Dividend received from joint ventures and associates | 6 | 7 | 3 | 11 | 305 | 169 |
Net sale/(investments) in fixed assets | (14) | (20) | (24) | (19) | (1) | (2) |
Net sale/(investments) in entities and segments | (7) | (10) | (35) | 2 | (30) | |
Net changes in other investments | (28) | 2 | 2 | 3 | (5) | |
Net cash flow from investing activities | (44) | (21) | (53) | (3) | 274 | 162 |
Net change of debt | (126) | (29) | (61) | (20) | (5) | (34) |
Net change in other financial items | (17) | (15) | (20) | (19) | (1) | (5) |
Dividend to shareholders and loan/dividend between segments | 112 | (27) | (20) | (227) | (67) | |
Net cash flow from financing activities | (31) | (70) | (101) | (39) | (233) | (107) |
Net change in cash and cash equivalents | (29) | 13 | (69) | 12 | 29 | 34 |
Cash and cash equivalents at the beginning of the period | 144 | 131 | 21 | 9 | 59 | 25 |
Cash and cash equivalents at the end of period | 115 | 144 | (48) | 21 | 88 | 59 |
GEOGRAPHICAL AREAS
Total income
Area income is based on the geographical location of the company and include gains from sale of assets.
Total assets
Area assets are based on the geographical location of the assets. The group\u2019s investment in Hyundai Glovis is classified in the geographical segment Asia & Africa.
Investments in tangible assets
Area capital expenditure is based on the geographical location of the assets.
Total income and total assets attributed to Norway as the group
companies\u2019 country of domicile
USD mill
2024
2023
Total income attributed to Norway
339
313
Total assets attributed to Norway
2 205
2 544
2024 Total assets
2023 Total assets
2024 Investment in tangible assets
2023 Investment in tangible assets
Europe Americas Asia & Africa Oceania
2024 Total income
2023 Total income
56%
55%
3%
2%
2%
69%
85%
13%
1%
1%
68%
67%
1%
30%
2%
28%
28%
2%
2%
3%
31%
32%
10%
10%
Note 3 Revenue from contracts with customers
FINANCIAL REPORTING PRINCIPLES
Revenue derived from customer contracts are assessed using the five-step model,
where only customer contracts with a firm commitment is used as basis for revenue recognition.
USD mill | Maritime Services | New Energy | Strategic Holdings and Invest-ments | Group elimination | Total | |||||
Revenue segments | Ships Service | Port Services | Ship Manage-ment | Other/ elimination | Infra- structure | Technology& Decarbon-isation | Other/ elimination | 2024 | ||
Revenue from customers | 507 | 160 | 149 | 14 | 299 | 3 | 16 | (12) | 1 136 | |
Total | 507 | 160 | 149 | 14 | 299 | 3 | 16 | (12) | 1 136 | |
Timing of revenue recognition | ||||||||||
At a point in time | 507 | 10 | 3 | 16 | (12) | 525 | ||||
Over time | 160 | 149 | 4 | 299 | 611 | |||||
Total | 507 | 160 | 149 | 14 | 299 | 3 | 16 | (12) | 1 136 | |
2023 | ||||||||||
Revenue from customers | 477 | 155 | 87 | 14 | 283 | 2 | 5 | 16 | (11) | 1 027 |
Total | 477 | 155 | 87 | 14 | 283 | 2 | 5 | 16 | (11) | 1 027 |
Timing of revenue recognition | ||||||||||
At a point in time | 477 | 10 | 2 | 16 | (11) | 494 | ||||
Over time | 155 | 87 | 4 | 283 | 5 | 533 | ||||
Total | 477 | 155 | 87 | 14 | 283 | 2 | 5 | 16 | (11) | 1 027 |
MARITIME SERVICES
Ships service - Sale of goods
Wilhelmsen Ships Service offers a wide range of products to the maritime industry. The products are delivered to the customer at vessel or warehouse, which is also the point in time where control transfers to the customer and revenue is recognised net of any discounts. Some customers are entitled to retrospective volume discounts based on aggregate sales over a defined period. Revenue from these sales is recognised based on the price specified in the contract, net of the estimated volume discounts. Accumulated experience is used to estimate and provide for the discounts, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. A refund liability (included in other current liabilities) is recongised for expected volume discounts payable to customers in relations to sales made until the end of the reporting period. The contracts typically have payment terms of 30 days after delivery, and no significant financing component is identified.
Port services - Sale of services
Wilhelmsen Port Services offers ships agency and port services coverering2 200 port locations world wide. The agents facilitate efficent port calls for vessels, by procuring goods and services on behalf of the customers and assisting with required permits and custom declaration associated with the port call. Prior to the port call, the customer is required to make available funds for the expected disbursements (prefunding). Following the completion of the services, Wilhelmsen Port Services prepares a final disbursement account to the customer documenting all disbursement for the port call. Wilhelmsen Port Services is only acting as an agent, and control of goods and services transfers directly from the relevant suppliers to the customer. Wilhelmsen Port Services does not have inventory risk or the discretion on establishing prices. For the services rendered, Wilhelmsen Port Services is entitled to a fee that consist of a payment based on services delivered to customer.
Technical / crewing management
Wilhelmsen Ship Management offers technical management and crew management for all vessel segments. The contract durations follow industry standards, and will usually include an annual compensation payable in monthly arrears, in addition the ship owner is charged a monthly fee per crew onboard the vessel. The ship owner simultaniously receives and consumes the benefits provided by the entity, and hence revenue is recognised over time. Since Wilhelmsen Ship Management has the right to invoice the services delivered at the end of each month, this is also the basis for revenue recognition. The invoices are payable 30 days after the end of each month.
Other revenue in the Maritime Services segment
These revenues mainly consist of sale of ropes to non-maritime customers and chemicals for the consumer markets. Most of the sales are to wholesale customers.
Revenue is recognised net of any discounts at delivery. Time and place of delivery, and transfer of control, depend on agreed delivery terms but usually when the customer receives the goods.
Maritime Services also has an insurance agency business where Maritime Services is acting as an agent, and is entitled to a defined commission of the insurance premium. The comission is per year and recognised on a straight line basis through the year.
NEW ENERGY
Infrastructure
The New Energy segment, including NorSea Group operates supply bases and provides integrated logistics solution to the offshore industry. Revenues from external customers come from sale of services to the offshore industry (Operations), from the rental of properties (Property) and from the sale of services to other industries (Other). The duration of the operations contracts varies from three to 10 years. The pricing of the contracts is mainly based on delivered quantity via supply bases. NorSea group is a lessor for parts of the properties located on or near the bases. This is typically warehouses and some office facilities. This is ordinary operational lease contracts with a typical duration of two to seven years. For contracts with a duration of more than one year the rent is adjusted annually based on commonly used indexes. Lease revenue is usually recognised on a straight-line basis over the lease term.
Technology & decarbonisation
New Energy provides a range of technology and digital solutions to the maritime industry. Revenue is recognised net of any discounts at delivery. Revenue is recognised based on time and place of delivery, and transfer of control, or services rendered, and depend on agreed delivery terms but usually when the customer receives the goods and services.
STRATEGIC HOLDINGS AND INVESTMENTS
The operating revenue is related to office rent and facility services to external customers as well as to other segments.
INFORMATION ABOUT TRANSACTION PRICE ALLOCATED TO UNSATISFIED PERFORMANCE OBLIGATIONS
In general, the contracts with customers are of a short-term nature, except for the framework agreements described under New Energy Infrastructure and Ship Management. For infrastructure, the framework agreements can be for a period of up to 10 years, but do not define any minimum volume. For Ship Management contracts, the customer can terminate the contract without cause on a three months basis. Because of this there is no significant unsatisfied performance obligations as of
year end.
Note 4 Investments in joint ventures and associates
FINANCIAL REPORTING PRINCIPLES
Interests in joint ventures and associates are accounted for using the equity method after initially being recognised at cost in the consolidated balance sheet.
Equity method:
Under the equity method of accounting, the investments are initially recognised at cost and adjusted subsequently to recognise the group\u2019s share of the post-acquisition profits after tax of the investee in income statement, and the group\u2019s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment. Sale and dilution of the share of associate companies is recognised in the income statement when the transactions occur for the group.
Where the group\u2019s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.
The carrying amount of equity-accounted investments is tested for impairment when impairment indicators are present.
When the group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a joint venture or an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate.
INVESTMENTS IN JOINT VENTURES | |||
Business office country | 2024 | 2023 | |
Voting share/ownership | |||
New Energy | |||
Coast Center Base AS | Norway | 50.0% | 50.0% |
KS Coast Center Base | Norway | 50.0% | 50.0% |
CCB Energy Holding AS | Norway | 50.0% | 50.0% |
Elevon AS | Norway | 50.0% | |
S\u00f8rSea AS | Norway | 50.0% | 50.0% |
Polar Lift AS | Norway | 50.0% | 50.0% |
Sirev\u00e5g Laks AS | Norway | 50.0% | |
Massterly AS | Norway | 50.0% | 50.0% |
Topeka MPC Maritime AS | Norway | 50.0% | 50.0% |
Maritime Services | |||
Wilhelmsen Ahrenkiel group | Germany | 50.0% | 50.0% |
Coast Center Base AS is a joint venture between NorSea Group and Bernh. Larsen Holding AS and was established in 1998. It delivers services related to logistics, quay, project and maintenance to the offshore industry in addition to maritime industry.
KS Coast Center Base is a joint venture between NorSea Group and Bernh. Larsen Holding AS and was established in 1973. It is mainly a property company owning infrastructure rented out to Coast Center Base AS.
CCB Energy Holding AS is a joint venture between NorSea Group and Bernh. Larsen Holding AS and was established in 2020. It owns shares in companies involved in production of hydrogen and climate neutral solutions.
Wilhelmsen Ahrenkiel Ship Management group is a ship manager of container vessels, tanker, bulk carriers, multi-purpose and heavy-lift vessels. The joint venture is owned by MPC Capital AC and Wilhelmsen Ship Management group.
The group increased the ownership in Elevon AS to 100% in 2024.
All companies are private companies and there are no quoted market price available for the shares.
There are no other contingent liabilities relating to the group\u2019s interest in the joint ventures.
Cont. note 4Investments in joint ventures and associates
USD mill | 2024 | 2023 |
Summarised financial information - according to the group's ownership | ||
Share of total income | 130 | 80 |
Share of operating expenses | (98) | (65) |
Share of depreciation | (21) | (5) |
Share of net financial items | (2) | (1) |
Share of tax expense | (2) | (1) |
Share of profit from joint ventures | 6 | 7 |
Share of equity (equity method) | ||
Book value | 43 | 41 |
Excess value (land and goodwill) | 53 | 59 |
Investments in joint ventures | 97 | 100 |
USD mill | 2024 | 2023 |
Joint ventures' assets, equity and liabilities (group's share of investments) | ||
Share of non current assets | 77 | 85 |
Share of cash and cash equivalents | 29 | 37 |
Share of current assets | 8 | 4 |
Total share of assets | 114 | 126 |
Share of equity at 01.01 | 41 | 43 |
Share of profit for the period | 5 | 7 |
Dividend | (4) | (10) |
Acquisitions | 7 | 1 |
Other comprehensive income | (6) | (1) |
Share of equity at 31.12 | 43 | 41 |
Share of non current liabilities | 45 | 53 |
Share of current liabilities | 26 | 33 |
Total share of liabilities | 71 | 85 |
Total share of equity and liabilities | 114 | 126 |
Cont. note 4Investments in joint ventures and associates
Set out below are the summarised financial information on a 100% basis for Coast Center Base (CCB), which in the opinion of the directors is a material joint venture to the group. Joint ventures not considered to be material, are defined under \u201cother\u201d (on a 100% basis).
USD mill | CCB | Other | ||
2024 | 2023 | 2024 | 2023 | |
SUMMARISED STATEMENT OF COMPREHENSIVE INCOME | ||||
Total income | 216 | 140 | 42 | 23 |
Operating expenses | (189) | (123) | (51) | (23) |
Net operating profit | 28 | 16 | (10) | |
Financial income/(expenses) | (3) | (3) | 3 | 4 |
Profit before tax | 24 | 13 | (7) | 3 |
Tax income/(expense) | (5) | (2) | ||
Profit after non-controlling interests | 19 | 11 | (7) | 3 |
Other comprehensive income | (12) | (2) | ||
Total comprehensive income | 19 | 11 | (19) | 1 |
The group's share of dividend from joint ventures | 4 | 9 | 1 |
USD mill | CCB | Other | ||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
SUMMARISED BALANCE SHEET | ||||
Non current assets | 133 | 159 | 22 | 10 |
Cash and cash equivalents | 7 | 2 | (13) | |
Other current assets | 55 | 72 | 9 | 6 |
Total assets | 196 | 231 | 33 | 3 |
Non current liabilities | 86 | 102 | (14) | (13) |
Current liabilities | 39 | 61 | 30 | 3 |
Total liabilities | 126 | 163 | 16 | (10) |
Net assets | 70 | 68 | 17 | 13 |
The information above reflects 100% of the amounts presented in the financial statements of the joint ventures, adjusted for any differences in accounting policies between the group and the joint ventures.
USD mill | CCB | Other | ||
2024 | 2023 | 2024 | 2023 | |
RECONCILIATION OF SUMMARISED FINANCIAL INFORMATION | ||||
Net assets at 01.01 | 68 | 77 | 13 | 9 |
Acquisition net assets | 14 | 3 | ||
Profit/(loss) for the period | 19 | 11 | (7) | 3 |
Other comprehensive income | (10) | (2) | (3) | 1 |
Dividend to shareholders | (8) | (19) | (2) | |
Net assets at 31.12 | 70 | 68 | 17 | 13 |
The group's share | 35 | 34 | 8 | 6 |
Land and goodwill / excess value | 46 | 51 | 8 | 8 |
Carrying value at 31.12 | 80 | 85 | 16 | 14 |
Cont. note 4Investments in joint ventures and associates
INVESTMENTS IN ASSOCIATED COMPANIES | |||
Country | 2024 | 2023 | |
Profit share* | |||
Strategic Holdings and Investments | |||
Wallenius Wilhelmsen ASA (WAWI) | Norway | 37.9% | 37.9% |
Hyundai Glovis Co., Ltd. (Hyundai Glovis) | Republic of Korea | 11.0% | 11.0% |
Maritime Services | |||
Diana Wilhelmsen Management Limited | Cyprus | 50.0% | 50.0% |
Barber Ship Management Germany GmbH & Co. KG | Germany | 50.0% | 80.0% |
WASM Steamship Acquisition GMBH & CO. KG | Germany | 50.0% | 50.0% |
ZEABORN Navigation GmbH & Co. KG | Germany | 50.0% | |
Barklav (Hong Kong) Limited | Hong Kong | 50.0% | 50.0% |
BWW LPG Limited | Hong Kong | 49.0% | |
Hecla Emissions Management AS | Norway | 50.0% | 50.0% |
Wilhelmsen-Smith Bell Manning, Inc | Philippines | 50.0% | 50.0% |
WilhMar Manning Philippines Inc. | Philippines | 24.9% | 24.9% |
Denholm Port Services Limited | United Kingdom | 40.0% | 40.0% |
Triangle Shipping Agencies LLC | United Arab Emirates | 50.0% | 50.0% |
Barwil Abu Dhabi Ruweis LLC | United Arab Emirates | 51.0% | 50.0% |
Wilhelmsen WPS Dubai Port Services LLC | United Arab Emirates | 50.0% | 50.0% |
Wilhelmsen Port Services LLC - Fujairah | United Arab Emirates | 42.5% | 42.5% |
Almoayed Wilhelmsen Port Services (Ltd) W.L.L | Bahrain | 50.0% | 50.0% |
Wilhelmsen Huayang Port Services (Shanghai) Co. Ltd. | China | 49.0% | 50.0% |
Wilhelmsen Huayang Port Services (Beijing) Co., Ltd | China | 50.0% | 50.0% |
Barwil Arabia Shipping Agencies SAE | Egypt | 50.0% | 50.0% |
Wilhelmsen Port Services Georgia LLC | Georgia | 50.0% | 50.0% |
Wilhelmsen Hyopwoon Port Services Ltd | Republic of Korea | 50.0% | 50.0% |
Alghanim Wilhelmsen Shipping Co.W.L.L | Kuwait | 49.0% | 49.0% |
Diize B.V. | Netherlands | 50.0% | 50.0% |
Wilhelmsen-Smith Bell Shipping, Inc. | Philippines | 49.0% | 49.0% |
Wilhelmsen-Smith Bell (Subic), Inc. | Philippines | 50.0% | 50.0% |
Wilhelmsen Ships Service (Private) Limited | Pakistan | 50.0% | |
Perez Torres Portugal Lda | Portugal | 50.0% | 50.0% |
Binzagr Barwil Marine Transport Co. Ltd. | Saudi Arabia | 50.0% | 50.0% |
Pelagus 3D Pte Ltd | Singapore | 50.0% | 50.0% |
Wilhelmsen Sunnytrans Co., Ltd | Vietnam | 50.0% | 50.0% |
Krew-Barwil (Pty) Ltd. | South Africa | 49.0% | 49.0% |
New Energy | |||
Konciv AS | Norway | 38.2% | 43.1% |
Hammerfest N\u00e6ringsinvest AS | Norway | 32.3% | 32.2% |
Strandparken Holding AS | Norway | 33.1% | 33.1% |
Dusavik Utvikling AS | Norway | 33.5% | 33.5% |
Risavika Eiendom AS | Norway | 42.0% | 42.0% |
Love Milj\u00f8base AS | Norway | 33.3% | 33.3% |
CCB Subsea AS | Norway | 42.5% | 42.5% |
Polar Algae AS | Norway | 52.0% | |
WindWorks Jelsa AS | Norway | 38.5% | 38.5% |
Energy Innovation Holding AS | Norway | 50.0% | 50.0% |
AM North AS | Norway | 33.3% | 33.3% |
RTN AS | Norway | 50.0% | 50.0% |
Eld\u00f8yane N\u00e6ringspark AS | Norway | 50.0% | 50.0% |
Nordlys.Studio AS | Norway | 46.0% | |
Topeka Hagland Greenbulk AS | Norway | 50.0% | 50.0% |
Reach Subsea ASA | Norway | 18.4% | 19.2% |
Edda Wind ASA | Norway | 31.0% | 25.4% |
*For an overview of legal ownership, refer to the group structure.
Cont. note 4Investments in joint ventures and associates
USD mill | 2024 | 2023* |
Share of profit/(loss) from associates | ||
WAWI | 372 | 324 |
Hyundai Glovis | 90 | 89 |
Associates Maritime Services | 6 | 5 |
Reach Subsea | 3 | 5 |
Edda Wind | (3) | 1 |
Other associates New Energy | (2) | (1) |
Share of profit/(loss) from associates | 466 | 423 |
Book value of material associates | ||
WAWI * | 1 077 | 967 |
Hyundai Glovis | 672 | 675 |
Reach Subsea | 23 | 23 |
Edda Wind | 106 | 84 |
Specification of share of equity and profit/loss | ||
Share of equity at 01.01 | 1 777 | 1 489 |
Share of profit for the year | 466 | 424 |
Capital increase/acquisition of associates in Maritime Services | 4 | 4 |
Capital increase/acquisition of associates in New Energy | 38 | 35 |
Disposal of associates in Maritime Services | (3) | |
Disposal of associates in New Energy | (4) | |
Dividend | (307) | (160) |
Other comprehensive income | (67) | (14) |
Share of equity at 31.12 | 1 905 | 1 777 |
* The investment in Wallenius Wilhelmsen, accounted for as investment in associate, has been restated. See note 21 for more details.
There are no contingent liabilities relating to the group\u2019s interest in the associates.
The group holds a 37.9% share in listed company Wallenius Wilhelmsen (WAWI), headquartered at Lysaker, Norway. WAWI is a market leader in RoRo shipping and vechile logistics, managing the distrubution of cars, trucks, rolling equipment and breakbulk to customers all over the world. WAWI controls more than 125 vessels and servicing 15 trade routes to six continents, together with a global inland distribution network, 66 processing centres, and eight marine terminals.
The group holds a 11.0% share in Hyundai Glovis, a logistics company headquartered in Seoul, Republic of Korea, listed on the Korean Stock Exchange. Hyundai Glovis\u2019 principal activity is logistics and distribution services. The company provides overseas logistics services, including vehicle export logistics, air freight forwarding, ocean freight forwarding and international express service. Hyundai Glovis also has a growing shipping segment with its own fleet of car carriers and bulk carriers.
The group holds a 18.4% ownership in the listed company Reach Subsea ASA. During the year the group sold 9.9 million shares for a consideration of USD 7 million, subsequently the group exercised 9.9 million warrants with strike price of NOK 3.28 per share, with the consideration amounting to USD 3 million. The group holds additional 44.7 million warrants in Reach Subsea with a strike price of NOK 3.28, with
the fair value of the warrants amounting to USD 15.7 million at 31 December 2024. The warrants are presented as current financial derivatives in the groups balance sheet and can be exercised at any time up until expiry on 15 March 2025. Reach Subsea group offers subsea services as subcontractor and/or directly to end clients. The core business of the group is based on modern, high spec work ROVs operated by highly qualified offshore personnel, and supported by competent onshore engineering resources.
The group holds a 31.0% ownership in the listed company Edda Wind ASA. During the year the group did a capital raise of USD 12 million and acquired additional shares of USD 14 million. Edda Wind owns and operates service vessels supporting the maintenance work conducted during the commissioning and operation of offshore wind parks.
Set out below are the summarised financial information for, on a 100% basis, for WAWI and Hyundai Glovis, which, in the opinion of the directors, are the material associates to the group.
Associates not considered to be material are defined under \u201dother\u201d (on a 100% basis).
Cont. note 4Investments in joint ventures and associates
USD mill | WAWI | Hyundai Glovis | Other | |||
2024 | 2023* | 2024 | 2023 | 2024 | 2023 | |
SUMMARISED STATEMENTOF COMPREHENSIVE INCOME | ||||||
Total income | 5 308 | 5 149 | 20 797 | 19 634 | 392 | 302 |
Operating expenses | (4 019) | (3 924) | (19 513) | (18 364) | (343) | (252) |
Net operating profit | 1 289 | 1 225 | 1 283 | 1 270 | 49 | 50 |
Financial income/(expenses) | (151) | (183) | (145) | (166) | (23) | (3) |
Profit before tax | 1 138 | 1 042 | 1 138 | 1 104 | 26 | 47 |
Tax income/(expense) | (73) | (68) | (319) | (293) | (6) | (8) |
Profit for the period | 1 065 | 974 | 819 | 811 | 21 | 39 |
Non-controlling interests | (93) | (121) | (5) | (2) | ||
Profit after non-controlling interests | 972 | 853 | 814 | 809 | 21 | 39 |
Other comprehensive income | (17) | (1) | 112 | 11 | (35) | |
Total comprehensive income (shareholder's equity) | 955 | 852 | 926 | 820 | (14) | 39 |
The groups\u2019 share of dividend from associates | 280 | 136 | 19 | 19 | 7 | 5 |
USD mill | WAWI | Hyundai Glovis | Other | |||
31.12.2024 | 31.12.2023* | 31.12.2024 | 31.12.2024 | 31.12.2024 | 31.12.2023 | |
SUMMARISED BALANCE SHEET | ||||||
Non current assets | 5 750 | 5 853 | 4 738 | 4 596 | 945 | 743 |
Other current assets | 1 257 | 985 | 4 465 | 4 806 | 149 | 123 |
Cash and cash equivalents | 1 393 | 1 705 | 2 221 | 1 966 | 64 | 136 |
Total assets | 8 400 | 8 543 | 11 424 | 11 368 | 1 158 | 1 003 |
Non current liabilities | 2 728 | 3 163 | 1 850 | 1 909 | 395 | 423 |
Current liabilities | 2 351 | 2 301 | 3 601 | 3 460 | 257 | 199 |
Non-controlling interests | 9 | 29 | 11 | 11 | ||
Total liabilities | 5 087 | 5 493 | 5 462 | 5 381 | 652 | 623 |
Net assets | 3 313 | 3 051 | 5 962 | 5 987 | 506 | 380 |
* Wallenius Wilhelmsen has restated their financial statements for 2023. Figures have been updated accordingly.
The information above reflects the 100% amount presented in the financial statements of the associates, adjusted for differences in accounting policies between the group and the associates.
Cont. note 4Investments in joint ventures and associates
USD mill | WAWI | Hyundai Glovis | Other | |||
2024 | 2023* | 2024 | 2023 | 2024 | 2023 | |
RECONCILIATION OF SUMMARISED FINANCIAL INFORMATION | ||||||
Net asset at 01.01 | 3 051 | 2 826 | 5 987 | 5 472 | 380 | 290 |
Profit for the period | 972 | 853 | 819 | 809 | 21 | 39 |
Net assets of acquired associates/capital increase | 64 | 132 | ||||
Convertion KRW to USD and EUR to USD | (784) | (143) | (35) | (59) | ||
Other comprehensive income | (17) | (273) | 112 | 11 | (3) | |
Disposal | (12) | |||||
Transactions with non-controlling interests | 47 | 4 | 2 | (4) | ||
Dividend | (739) | (359) | (172) | (164) | (16) | (18) |
Net assets at 31.12 | 3 313 | 3 051 | 5 962 | 5 987 | 399 | 380 |
The group\u2019s | 1 255 | 1 155 | 656 | 659 | 172 | 135 |
Goodwill and other intangible assets | 16 | 17 | 2 | 8 | ||
Classification NCI | (137) | (145) | ||||
Currency | (18) | (9) | ||||
Fair value adjustment vessels and goodwill ** | (40) | (43) | ||||
Carrying value at 31.12 | 1 077 | 967 | 672 | 675 | 156 | 135 |
* Wallenius Wilhelmsen has restated their financial statements for 2023. Figures have been updated accordingly.
** The share price and market value of Wallenius Wilhelmsen ASA (WAWI) at the merger (April 2017) was lower than book value of equity in WAWI.
The group market value of the investment in Wallenius Wilhelmsen ASA at 31 December 2024 was USD 1 320 million (2023: USD 1 408 million).
WAWI is a separately listed company on Oslo B\u00f8rs. The market capitalisation of its shares at year end is 22% higher (2023: 46% higher) than the carrying amount of the investment, as accounted for under the equity method. The group has not identified any impairment indicators for the investment.
The group market value of the investment in Hyundai Glovis at 31 December 2024 was USD 663 million (2023: USD 610 million). The shares have historically traded at or below a market capitalisation to book value of equity ratio of 1 without this indicating a significant decline of the asset\u2019s value. Value in use calculations prepared by management of Hyundai Glovis indicate that the recoverable amount is higher than the Hyundai Glovis\u2019 carrying amount for key assets. The higher underlying value of the share is supported by external market analysts. Based on this, the recoverable amount attributable to the shares in Hyundai Glovis is assessed to be higher than the group\u2019s carrying amount.
The group market value of the investment in Edda Wind ASA at 31 December 2024 was USD 106 million (2023: USD 84 million). Edda Wind is a separately listed company on Oslo B\u00f8rs. The market capitalisation of its shares at year end are 37% lower (2023: 16% lower) than the carrying amount of the investment, as accounted for under the equity method. The market price is an objective indicator of impairment. In spite of this, the value in use calculation based on projections prepared by management of Edda Wind, indicates that the recoverable amount is higher than Edda Winds carrying amounts for the key assets of Edda Wind. This impairment test has been assessed by the management in the Wilhelmsen group, and adjusted for factors related to the financing of Edda Wind in order to assess a reasonable value in use for the investment in the shares of Edda Wind. Based on this assessment, the recoverable amount attributable to the shares is higher than the carrying amount. The recoverable amount is particularly sensitive to utilisation and/or charter rates, and interest rate levels for the financing within Edda Wind.
USD mill | 2024 | 2023* |
RECONCILIATION OF THE GROUP\u2019S INCOME STATEMENT AND BALANCE SHEET | ||
Share of profit from joint ventures | 6 | 7 |
Share of profit from associates | 466 | 423 |
Share of profit from joint ventures and associates | 472 | 431 |
Share of equity from joint ventures including net excess value | 97 | 100 |
Share of equity from associates including net excess value | 1 905 | 1 777 |
Share of equity from joint ventures and associates including net excess value | 2 001 | 1 877 |
* Wallenius Wilhelmsen has restated their financial statements for 2023. Figures have been updated accordingly.
The group\u2019s share of profit, after tax from joint ventures and associates is recognised in the income statement. All joint ventures and associates are equity consolidated.
Note 5 Principal subsidiaries
Business office country | Nature of business | Proportion of ordinary shares directly held by parent (%) | Proportion of ordinary shares held by the group (%) | |
Maritime Services | ||||
Wilhelmsen Maritime Services AS | Norway | Maritime services | 100.00% | 100.00% |
Wilhelmsen Ships Service AS | Norway | Maritime products and services | 100.00% | |
Wilhelmsen Port Services AS | Norway | Port services | 100.00% | |
Wilhelmsen Ship Management Holding AS | Norway | Ship management | 100.00% | |
Wilhelmsen Chemical AS | Norway | Manufacturing | 100.00% | |
Wilhelmsen Global Business Services AS | Norway | Shared services | 100.00% | |
New Energy | ||||
Wilhelmsen New Energy AS | Norway | New energy investments | 100.00% | 100.00% |
NorSea Group AS | Norway | Infrastructure and supply services | 99.37% | |
Strategic Holdings and Investments | ||||
Treasure ASA | Norway | Investment | 84.16% | 84.16% |
Wilh. Wilhelmsen Holding Invest Malta Ltd | Malta | Investment | 100.00% | 100.00% |
The group\u2019s principal subsidiaries at 31 December 2024 are set out above. Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly by the group, and the proportion of ownership interests held equals the voting rights held by the group. The country of incorporation or registration is also their principal place of headquarter of subgroups.
During 2024, the group acquired Zeaborn Ship Management. The acquisition was done in partnership between Wilhelmsen Ship Management, a fully owned subsidiary of Wilh. Wilhelmsen Holding ASA, and MPC Capital. Zeaborn was integrated partially under the Maritime Services segment and partially in the join venture Wilhelmsen Ahrenkiel group.
During 2023, the group acquired the subsidiary Navadan A/S through business combination, reported under the Maritime Services segment. The investment cost, net after cash in new subsidiaries was USD 11 million.
Note 6 Employee benefits
FINANCIAL REPORTING PRINCIPLES
Employee benefits include wages, salaries, social security contributions, sick leave, parental leave and other employee benefits. The benefits are recognised in the period in which the associated services are rendered by the employees.
For cash\u2013settled payments/bonus plans and other cash-settled payments, a liability equal to the portion of services received is recognised at fair value determined at each balance sheet date.
USD mill | Note | 2024 | 2023 |
Payroll | (303) | (278) | |
Payroll tax | (41) | (36) | |
Pension cost | 11 | (25) | (23) |
Welfare and other personnel expenses | (54) | (50) | |
Total employee benefits | (423) | (387) | |
2024 | 2023 | ||
Number of employees: | |||
Group companies in Norway | 1 405 | 1 217 | |
Group companies abroad | 4 361 | 4 099 | |
Total employees | 5 766 | 5 316 | |
Average number of employees | 5 541 | 5 174 | |
Seagoing personnel Ship Management | 12 231 | 11 340 | |
EXPENSED AUDIT FEE | |||
USD mill | 2024 | 2023 | |
Statutory audit | (2) | (2) | |
Tax advisory fee | (1) | (1) | |
Total expensed audit fee | (4) | (3) |
The fees above cover the group expenses to all external auditors and tax advisors.
Note 7 Tangible and intangible assets
FINANCIAL REPORTING PRINCIPLES
Tangible assets
The group uses the cost method for property, plant and equipment.
Tangible assets are depreciated over the following expected useful lives:
Properties: | 10-50 years |
Other tangible assets: | 3-10 years |
TANGIBLE ASSETS | |||
USD mill | Properties | Other tangible assets | Total tangible assets |
2024 | |||
Cost at 01.01 | 730 | 243 | 973 |
Acquisition | 19 | 16 | 35 |
Reclass/disposal | (14) | (6) | (20) |
Currency translation differences | (73) | (14) | (87) |
Cost at 31.12 | 662 | 239 | 900 |
Accumulated depreciation and impairment at 01.01 | (258) | (92) | (350) |
Depreciation | (17) | (12) | (29) |
Reclass/disposal | 12 | 6 | 18 |
Currency translation differences | 24 | 8 | 32 |
Accumulated depreciation and impairment at 31.12 | (239) | (91) | (330) |
Carrying amounts at 31.12 | 423 | 148 | 571 |
2023 | |||
Cost at 01.01 | 692 | 226 | 918 |
Acquisition | 16 | 23 | 40 |
Business combinations | 3 | 3 | |
Reclass/disposal | 33 | (7) | 26 |
Currency translation differences | (14) | 1 | (13) |
Cost at 31.12 | 730 | 243 | 973 |
Accumulated depreciation and impairment at 01.01 | (206) | (89) | (295) |
Depreciation | (18) | (11) | (29) |
Reclass/disposal | (36) | 7 | (29) |
Impairment | (1) | (1) | |
Currency translation differences | 3 | 1 | 4 |
Accumulated depreciation and impairment at 31.12 | (258) | (92) | (350) |
Carrying amounts at 31.12 | 472 | 151 | 623 |
Economic lifetime | 10-50 years | 3-10 years | |
Depreciation schedule | Linear | Linear |
Climate related considerations
Physical climate risk such as changes to weather patterns and severity of rain, flooding, wind and other climate related events are taken into consideration when assessing the useful life of assets.
The group has not identified material assets to have significantly shorter life due to climate related risks.
Cont. note 7 Tangible and intangible assets
FINANCIAL REPORTING PRINCIPLES
Intangible assets
The group uses the cost method for intangible assets. Amortisation of intangible fixed assets is based on the following expected useful lives:
Goodwill: | Indefinite life |
Software: | 3-5 years |
Other intangible assets: | 5-10 years |
INTANGIBLE ASSETS | ||||
USD mill | Goodwill | Software | Other intangible assets | Total intangible assets |
2024 | ||||
Cost at 01.01 | 126 | 35 | 46 | 207 |
Acquisition | 5 | 5 | ||
Business combinations | 5 | 13 | 18 | |
Reclass/disposal | (3) | (7) | (10) | |
Currency translation differences | (10) | (4) | (5) | (18) |
Cost at 31.12 | 118 | 37 | 47 | 202 |
Accumulated amortisation and impairment at 01.01 | (22) | (28) | (26) | (75) |
Amortisation/impairment | (7) | (3) | (8) | (18) |
Reclass/disposal | 1 | 7 | 8 | |
Currency translation differences | 2 | 3 | 3 | 7 |
Accumulated amortisation and impairment at 31.12 | (26) | (28) | (24) | (77) |
Carrying amounts at 31.12 | 92 | 9 | 23 | 125 |
In 2024 the group recognised goodwill of USD 5 million and customer contracts of USD 13 million from the acquisition of Zeaborn Ship Management. | ||||
2023 | ||||
Cost at 01.01 | 112 | 37 | 52 | 201 |
Acquisition | 3 | 3 | ||
Business combinations | 17 | (8) | 10 | |
Reclass/disposal | (1) | (4) | 2 | (3) |
Currency translation differences | (2) | (1) | (3) | |
Cost at 31.12 | 126 | 35 | 46 | 207 |
Accumulated amortisation and impairment at 01.01 | (24) | (29) | (19) | (73) |
Amortisation/impairment | (4) | (3) | (8) | |
Reclass/disposal | 3 | 5 | (4) | 4 |
Currency translation differences | 1 | |||
Accumulated amortisation and impairment at 31.12 | (22) | (28) | (26) | (75) |
Carrying amounts at 31.12 | 104 | 7 | 20 | 132 |
In 2023 the group recognised goodwill of USD 17 million. USD 9 million was recognised from the acquisition of Navadan and USD 8 million was reclassified from other intangible asset to goodwill related to the acquisition of Vopak in December 2022.
Cont. note 7 Tangible and intangible assets
FINANCIAL REPORTING PRINCIPLES
Impairment of goodwill and other non-financial assets
At each reporting date, the group reviews the carrying amounts of its goodwill, tangible assets, intangible assets and right-of-use assets to determine whether there is any indication of impairment.
If any indication of impairment exists, or when annual impairment testing for an asset is required (goodwill), the asset\u2019s recoverable amount is estimated. Where the asset does not generate cash flows that are independent from other assets, the group estimates the recoverable amount of the cash-generating unit (CGU) to which the asset belongs. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
The recoverable amount is the highest of the fair value less costs of disposal and value in use. In assessing value in use, the net present value (NPV) of future estimated cash flows from the employment of the asset is determined. The discount rate applied is the weighted average cost of capital (WACC) reflecting the required rate of return of the asset or CGU. If the recoverable amount is estimated to be less
than the carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. Impairment losses are recognised in the income statement.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, limited to the carrying amount that would have been determined had no impairment loss been recognised in prior years. An impairment loss for goodwill is not subsequently reversed.
Goodwill acquired through business combinations has for the purpose of impairment testing been allocated to the relevant CGU or group of CGUs expected to benefit from the business combination. CGUs or groups of CGUs to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the CGU or group of CGUs may be impaired. If the recoverable amount of the CGU or group of CGUs to which goodwill has been allocated is less than the carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill and then to the other assets, pro-rata on the basis of the carrying amount of each asset in the CGU or group of CGUs.
Impairment testing of goodwill and other intangible assets
Goodwill
Goodwill is mainly related to the Maritime Services segment (USD 90 million). The goodwill figures are originally calculated in NOK, EUR, DKK and USD (2023: NOK, EUR, DKK and USD). Goodwill is tested for impairment annually.
For the purpose of impairment testing, goodwill is allocated to the respective cash generating units within the various business areas.
As of 31 December 2024, management has performed impairment testing for the group\u2019s recognised goodwill. Based on the tests performed, an impairment of USD 7 million was recognised in 2024 (2023: nil) for goodwill related to business combinations in business units within the Maritime Services segment. The impairment was attributed to changes in market conditions and corresponding changes in the unit\u2019s business model, where the goodwill related to the unit was fully impaired.
When performing the goodwill impairment test, the recoverable amount is based on value in use calculations. In calculating the value in use, the group considers relevant
key assumptions. Risk factors related to climate and environmental changes as well as regulatory changes responding to such changes are included in the assessment of the recoverable amount. Such factors are assessed in the same way as other uncertain input factors, impacting cash flow estimates used for the tests.
Recoverable amount has been estimated by using an Enterprise value/EBITDA multiple (see note 23 for definition of the terms). The forecasted EBITDA is based on historical levels for EBITDA in each CGU. The multiples are estimated to be in the range of 6 - 9, which management believes is a fair estimate of market multiples for the relevant CGU\u2019s.
Cash flows were projected based on actual operating results and next year\u2019s forecast. Cash flows based on a five-year strategy plan period with terminal value (terminal growth rate 1%) were extrapolated using the following key assumptions:
2024 | 2023 | |
USD/NOK | 11.35 | 10.13 |
Multiple | 7.5 | 7.5 |
Growth rate | 1-4% | 1-4% |
Increase in material cost | 4-7% | 4-7% |
Increase in pay and other remuneration | 3-5% | 3-5% |
Increase in other expenses | 3-5% | 3-5% |
The values assigned to the key assumptions represent management\u2019s assessment of future trends in the maritime industry and are based on both external sources and internal sources.
For CGUs where the estimated recoverable amount indicate that the unit may be impaired, additional value in use calculations are performed using discounted future expected cash flow taking into consideration possible variations and scenarios using weighted average expected cash flows. The group applied a discount rate based on a weighted average cost of captial (WACC) for the CGU. The discount rate used for 2024 is 10%.
Other intangible assets
The group recognised a USD 4 million impairment loss related to discontinuation of a brand name.
No reasonable change in any of the key assumptions on which management has based its determination of the recoverable amount would cause the carrying amount to exceed its recoverable amount and indicate additional impairment indicators as of 31 December 2024.
Note 8 Right-of-use assets and lease liabilities
FINANCIAL REPORTING PRINCIPLES
Identifying a lease
At the inception of a contract, the group assesses whether the contract is, or contains a lease. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
For lease contracts containing a non-lease component, the non-lease component is separated and expensed in the income statement based on the relative stand-alone price. If an observable stand-alone price is not readily available, the group estimates this price by the use of observable information.
Recognition of leases and exemptions:
At the lease commencement date, the group recognises a lease liability and corresponding right-of-use asset for all lease agreements in which it is the lessee, except for the following exemptions applied:
\u2022\tShort-term leases (defined as 12 months or less)
\u2022\tLow value assets
For these leases, the group recognises the lease payments as other operating expenses in the income statement when they incur.
Measuring the lease liability:
The lease liability is initially measured at the present value of the lease payments for the right to use the underlying asset during the lease term not paid at the commencement date. The lease term represents the noncancellable period of the lease, plus any period covered by an extension option period if the group expects to exercise this option.
The group does not include variable lease payments in the lease liability arising from contracted index regulations subject to future events. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications, or to reflect adjustments in lease payments due to an adjustment in an index or rate.
Measuring the right-of-use asset
The right-of-use asset is initially measured at cost.
Subsequent measurements of right-of-use assets follow the same principles as for other non-financial assets, except that the right-of-use asset is depreciated from the commencement date to the earlier of the lease term and the remaining useful life.
Cont. note 8 Right-of-use assets and lease liabilities
RIGHT-OF-USE ASSETS
The group leases several assets such as buildings, land, machinery, equipment and vehicles. The group\u2019s right-of-use assets are categorised and presented in the table below:
USD mill | Properties and land | Machinery, equipment and vehicles | Total |
2024 | |||
Cost at 01.01 | 160 | 19 | 179 |
Additions including remeasurements | 40 | 13 | 53 |
Reclass/disposal | (19) | (2) | (21) |
Change of estimates | (1) | (1) | |
Currency exchange differences | (14) | (2) | (16) |
Cost at 31.12 | 167 | 28 | 194 |
Accumulated depreciation and impairment at 01.01 | (60) | (7) | (66) |
Depreciation | (22) | (4) | (27) |
Reclass/disposal | 12 | 1 | 13 |
Currency exchange differences | 5 | 1 | 6 |
Accumulated depreciation and impairment at 31.12 | (65) | (9) | (74) |
Carrying amounts at 31.12 | 102 | 19 | 121 |
USD mill | Properties and land | Machinery, equipment and vehicles | Total |
2023 | |||
Cost at 01.01 | 134 | 15 | 149 |
Additions including remeasurements | 28 | 8 | 36 |
Reclass/disposal | (7) | (4) | (12) |
Change of estimates | 5 | 5 | |
Cost at 31.12 | 160 | 19 | 179 |
Accumulated depreciation and impairment at 01.01 | (40) | (6) | (47) |
Depreciation | (18) | (3) | (21) |
Reclass/disposal | 3 | 3 | 6 |
Change of estimates | (5) | (5) | |
Accumulated depreciation and impairment at 31.12 | (60) | (7) | (66) |
Carrying amounts at 31.12 | 100 | 12 | 112 |
Lower of remaining lease term or economic life | 5-12 years | 3-8 years | |
Depreciation method | Linear | Linear |
Climate related considerations
Physical climate risk such as changes to weather patterns and severity of rain, flooding, wind and other climate related events are taken into consideration when assessing the remaining lease term and termination options related to right-of-use
assets. The group has not identified material right-of-use assets where reduction in lease term or termination is deemed relevant due to climate related risks.
Cont. note 8 Right-of-use assets and lease liabilities
Lease liabilities | ||
USD mill | 2024 | 2023 |
Undiscounted lease liabilities and maturity of cash outflows | ||
Less than 1 year | (31) | (30) |
1-2 years | (27) | (24) |
2-3 years | (17) | (20) |
3-4 years | (15) | (13) |
4-5 years | (12) | (11) |
More than 5 years | (75) | (81) |
Total undiscounted lease liabilities at 31.12 | (176) | (179) |
USD mill | 2024 | 2023 |
Summary of the lease liabilities in the financial statements | ||
Total lease liabilities at 01.01 | 125 | 116 |
Lease liabilities recognised in the year | 53 | 36 |
Lease liabilities derecognised in the year | (8) | (5) |
Cash payments for the principal portion of the lease liability | (34) | (28) |
Interest expense on lease liabilities | 7 | 5 |
Change of estimates | 2 | |
Currency exchange differences | (11) | 1 |
Total lease liabilities at 31.12 | 134 | 125 |
Current lease liabilities | 26 | 24 |
Non-current lease liabilities | 108 | 101 |
Total lease liabilities at 31.12 | 134 | 125 |
The leases do not contain any restrictions on the group\u2019s dividend policy or financing.
The group does not have significant residual value guarantees related to its leases to disclose.
USD mill | 2024 | 2023 |
Summary of other lease expenses recognised in income statement | ||
Variable lease payments expensed in the period | (7) | (8) |
Operating expenses related to short-term leases (including short-term low value assets) | (2) | (2) |
Operating expenses related to low value assets (excluding short-term leases included above) | (2) | (2) |
Total lease expenses included in other operating expenses | (11) | (12) |
Practical expedients applied
The group leases personal computers, IT equipment and machinery with contract terms of one to three years. The group has elected to apply the practical expedient of low value assets and does not recognise lease liabilities or right-of-use assets. The leases are instead expensed when they incur. The group has also applied the practical expedient to not recognise lease liabilities and right-of-use assets for short-term leases, presented in the table above.
The group does not have material lease commitments, not yet commenced and therefore not included in the leases liabilities as of 31 December 2024 (2023: nil).
Extension options
The group\u2019s leases of buildings and land have lease terms that varies from five years to 99 years, and several agreements involve a right of renewal which may
be exercised during the last period of the lease terms. The group assesses at the commencement whether it is reasonably certain to exercise the renewal right.
Purchase options
The group leases machinery, equipment and vehicles with lease terms of three to five years. Some of these contracts includes a right to purchase the assets at the end of the contract term. The group assesses at the commencement whether it is reasonably certain to exercise the purchase right. All the options are based on market value.
Subleases
The group has subleased an immaterial part of its redundant office buildings, classified as an operating lease.
Note 9 Tax
FINANCIAL REPORTING PRINCIPLES
Income tax in the income statement consists of current tax, effect of changes in deferred tax/deferred tax assets, withholding tax and Pillar II tax incurred in the period. Income tax is recognised in the income statement unless it relates to items recognised directly in equity or other comprehensive income.
Current tax:
Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantially enacted at the reporting date that will be paid during the next 12 months. Current tax also includes any adjustment of taxes from previous years and taxes on dividends recognised in the period.
Deferred tax / deferred tax asset:
Deferred tax is calculated using the liability method on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available, and that the temporary differences can be deducted from this profit.
Withholding tax:
Withholding tax and any related tax credits are generally recognised in the period they are incurred.
OECD Pillar II model rules
The Pillar II model rules, issued by OECD as part of their BEPS project, came into effect from 1 January 2024. On 20 December 2023, the Norwegian parliament approved the legislation, defining the framework for Norwegian ultimate parent entities. Effective from 23 May 2023, the International Accounting Standard Board (the IASB) issued an amendment to IAS 12, with the amendment including a mandatory temporary exemption to the accounting for deferred tax arising from the jurisdictional implementation of the Pillar II model rules. The group has implemented the mandatory temporary exemption, effective from 1 January 2023.
The group has assessed the implications of the new legislation, with the resulting estimated financial effect being recognised as part of the groups income tax.
Ordinary taxation
The ordinary rate of corporation tax in Norway is 22% of net profit for 2024 (2023: 22%). Norwegian limited liability companies are encompassed by the participation exemption method for share income. Thus, share dividends and gains are tax free for the receiving company. Corresponding losses on shares are not deductible. The participation exemption method does not apply to share income from companies domiciled in what is considered low tax countries and that are located outside the European Economic Area (EEA), and on share income from companies domiciled outside the EEA in which the company owns less than 10% of the shares.
\u00a0
For group companies located in the same country and within the same tax regime, taxable profits in one company can be offset against tax losses and tax loss carry forwards in other group companies.
Deferred tax/deferred tax asset has been calculated on temporary differences to the extent that it is likely that these can be utilised in each country and for Norwegian entities the group has applied a rate of 22% (2023: 22%).
\u00a0
The effective tax rate for the group will, from period to period, change dependent on the group gains and losses from investments inside the exemption method.
\u00a0
Foreign taxes
Companies domiciled outside Norway will be subject to local taxation. When dividends are paid, local withholding taxes may be applicable. This generally applies to dividends paid by companies domiciled outside the EEA.
Pillar II
The group is present in jurisdicitons around the globe, with most jurisdictions having a corporate income tax above 15%. In jurisdictions with corporate income tax below 15%, the majority of entities are CFC taxed in Norway (NOKUS). When assessing
the Pillar II exposure, the group has applied the temporary safe harbour rules as defined by the Pillar II framework. The main expoure for the group is related to realised and unrealised fair value gain/loss from financial investments, where the group holds less than 10% of the shares, which is taxable/deductible under Pillar II regulation (exemption method under local regulation). The exposure to such realised and unrealised gains are primarily in Norway and Malta. The realised and unrealised fair value gain/loss may vary from year to year based on market development and may hence give rise to both additional taxable profit and deductible loss under the Pillar II regulation.
USD mill | 2024 | 2023 |
Distribution of tax expenses for the year | ||
Corporate income tax | (19) | (18) |
Pillar II tax | (2) | |
Withholding tax | (5) | (5) |
Change in deferred tax | 6 | (4) |
Total tax income/(expense) | (20) | (27) |
Reconciliation of actual tax expense against expected tax expense in accordance with the Norwegian income tax rate of 22% | ||
Profit before tax | 538 | 515 |
22% tax | (118) | (113) |
Tax effect from: | ||
Permanent differences | (5) | (11) |
Non-taxable income/ change in market value | 8 | 7 |
Share of profit from joint ventures and associates | 104 | 95 |
Withholding tax and payable tax previous year | (5) | (5) |
Pillar II tax | (2) | |
Calculated tax income/(expense) for the group | (20) | (27) |
Effective tax rate for the group | 3.7% | 5.3% |
Cont. note 9 Tax
USD mill | 2024 | 2023 |
Net deferred tax assets | ||
Net deferred tax assets at 01.01 | 40 | 44 |
Charged through income statement | 6 | (4) |
Charged directly to equity | (1) | (1) |
Currency translation differences | (4) | (2) |
Acquistion / disposal | (2) | 2 |
Net deferred tax assets at 31.12 | 40 | 40 |
Deferred tax assets in balance sheet | 52 | 51 |
Deferred tax liabilities in balance sheet | (12) | (12) |
Net deferred tax assets at 31.12 | 40 | 40 |
The movement in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:
USD mill | 31.12.2024 | 31.12.2023 |
Tax effect of tempory differences | ||
Fixed assets | (12) | (12) |
Other non current assets and liabilities | 3 | 4 |
Current assets and liabilities | 7 | |
Tax losses carried forward | 42 | 51 |
Other | (3) | |
Net deferred tax assets at 31.12. | 40 | 40 |
The majority of tax loss carry forward is related to entities in Norway and the United States, without expiration of the tax loss carry forward.
Temporary differences related to joint ventures and associates are USD nil for the group, since all the units are regarded as located within the area in which the exemption method applies, and there are currently no plans to dispose of any of these companies.
The Maritime Services segment will have shares in subsidiaries not subject to the exemption method which could give rise to a tax charge in the event of a sale, where no provision has been made for deferred tax associated with a possible sale or dividend. There are currently no plans to dispose of such companies.
Note 10 Earnings per share
FINANCIAL REPORTING PRINCIPLES
The calculation of basic and diluted earnings per share is based on the income attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding. Own shares are not included in the weighted average number
of ordinary shares. Weighted average number of diluted and ordinary shares is the same, as the company currently does not have any dilutive instruments.
Earnings per share
Earnings per share taking into consideration the number of outstanding shares in the period. At 31 December 2024 the company owns1 688 812 own shares (386 300 for 31 December 2023).
Total outstanding ordinary shares as of 31 December 2024 are 33 049 747 A-shares and 9 841 441 B-shares.
Earnings per share is calculated based on an average of 43 429 322 shares for 2024 and 44 283 425 shares for 2023.
See note 11 in the parent accounts for an overview of the largest shareholders at 31 December 2024.
Note 11 Pension
Description of the pension scheme
The group\u2019s defined contribution pension schemes for Norwegian employees are with financial institutions providing solutions based on investment funds.
Subsidiaries outside Norway have separate schemes for their employees in accordance with local rules, and the pension schemes are for the material part defined contribution plans.
The group has a supplementary pension plan, a contribution plan for all Norwegian employees with salaries exceeding 12 times the Norwegian National Insurance base amount (G). However, the group still has obligations for some employees related to salaries exceeding 12G mainly financed from operations.
In addition, the group has agreements on early retirement. These obligations are mainly financed from operations.
The group has obligation towards one employee in the group\u2019s senior executive management. The obligation is mainly covered through group annuity policies in Storebrand.
Pension costs and obligations include payroll taxes. No provision has been made for payroll tax in pension plans where the plan assets exceed the plan obligations.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.
Cont. note 11 Pension
Funded | Unfunded | |||
2024 | 2023 | 2024 | 2023 | |
Number of people covered by pension schemes at 31.12 | ||||
In employment | 3 | 4 | 6 | 5 |
On retirement (inclusive disability pensions) | 131 | 138 | 24 | 23 |
Total number of people covered by pension schemes | 134 | 142 | 30 | 28 |
Expenses | Commitments | |||
2024 | 2023 | 31.12.2024 | 31.12.2023 | |
Financial assumptions for the pension calculations: | ||||
Discount rate | 3.70% | 3.60% | 3.90% | 3.70% |
Anticipated pay regulation | 3.50% | 3.50% | 3.25% | 3.50% |
Anticipated increase in National Insurance base amount (G) | 3.50% | 3.50% | 3.25% | 3.50% |
Anticipated regulation of pensions | 2.40% | 1.70% | 1.90% | 2.40% |
USD mill | 2024 | 2023 |
Pension expenses | ||
Service cost/net interest cost | (1) | |
Cost of contribution plan | (24) | (22) |
Pension expenses | (25) | (23) |
Total remeasurements included in OCI | 1 | (1) |
USD mill | 31.12.2024 | 31.12.2023 |
Pension obligations | ||
Defined benefit obligation at end of prior year | 37 | 37 |
Effect of changes in foreign exchange rates | (2) | (2) |
Service cost | 1 | |
Interest expense | 1 | 1 |
Remeasurements - change in assumptions | (1) | 1 |
Pension obligations at 31.12 | 36 | 37 |
Fair value of plan assets | ||
Fair value of plan assets at end of prior year | 14 | 15 |
Interest income | 1 | |
Benefit payments from plan | (1) | |
Return on plan assets (excluding interest income) | (1) | |
Gross pension assets at 31.12 | 15 | 14 |
Defined benefit obligation | 36 | 37 |
Fair value of plan assets | 15 | 14 |
Net liability at 31.12 | 21 | 23 |
Note 12 Combined items, balance sheet
FINANCIAL REPORTING PRINCIPLES
Loans and receivables at amortised cost
Loans and receivables are non-derivative financial assets with fixed or determinable payments, which are not traded in an active market.
Loans and receivables are recognised initially at their fair value plus transaction costs.
Accounts payable and other payables
Accounts payable and other payables are recognised at the original invoiced amount, where the invoiced amount is considered to be approximately equal to the value derived if the amortised cost method would have been applied.
USD mill | Note | 2024 | 2023 |
OTHER NON CURRENT ASSETS | |||
Non current equity investments | 18 | 19 | 12 |
Non current loans to associates and joint ventures | 18 | 10 | 20 |
Non current loans to others | 18 | 1 | 3 |
Non current financial derivatives | 18 | 3 | 2 |
Other non current assets | 18 | 5 | 5 |
Total other non current assets | 39 | 42 | |
OTHER CURRENT ASSETS | |||
Account receivables | 255 | 240 | |
Prepaid expenses | 50 | 52 | |
Accrued revenue | 8 | 13 | |
Financial derivatives | 18 | 17 | |
Other current assets | 17/18 | 38 | 36 |
Total other current assets | 368 | 342 | |
OTHER CURRENT LIABILITIES | |||
Account payables | 267 | 303 | |
Accrued employee benefits | 38 | 35 | |
Other accrued expenses | 50 | 55 | |
Financial derivatives | 18 | 20 | |
Other current liabilities | 62 | 59 | |
Cylinder deposit * | 7 | 123 | 115 |
Total other current liabilities | 559 | 567 |
* Wilhelmsen Maritime Services has cylinders recognised as other tangible asset in the balance sheet, see note 7. The cylinders are valued at USD 110 million (2023: USD 111 million). These cylinders are partly in the group\u2019s own possession and partly on board customers vessels. Most customers have paid a deposit for the cylinders they have onboard their vessels.
Provisions in other current liabilities, including cylinder deposit liability, does include some degree of uncertainty due to the nature of the provisions. Provisions are calculated and recognised based on available information and assumptions at the
time when the provision is made, and will be updated if needed when new information becomes available.
Note 13 Receivables
FINANCIAL REPORTING PRINCIPLES
Account receivables and other receivables are recognised at the original invoiced amount, where the invoiced amount is considered to be approximately equal to the value derived if the amortised cost method would have been applied.
The group measure expected credit losses at lifetime expected loss allowance for all trade receivables and contract assets, including receivables from lease contracts.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk charateristics and the days past due.
The expected loss rates are based on the payment profiles of sales over a period of 36 months before the reporting period and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The group has identified the gross domestic product and the unemployment rate of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors.
USD mill | Current | Less than 90 days past due | Between 90 and 180 days past due | More than 180 days past due |
At 31.12.2024 | ||||
Expected loss rate | 0% | 5% | 9% | 27% |
Gross carrying amount - trade receivables | 234 | 9 | 8 | 7 |
Loss allowance * | (1) | (1) | (2) | |
At 31.12.2023 | ||||
Expected loss rate | 0% | 6% | 13% | 49% |
Gross carrying amount - trade receivables | 222 | 8 | 11 | 3 |
Loss allowance * | (1) | (1) | (1) |
* Loss allowance is rounded to nil for current trade receivables..
ACCOUNT RECEIVABLES
At 31 December 2024, USD 22 million (2023: USD 18 million) in account receivables had fallen due but not been subject to impairment. These receivables are related to a number of separate customers. Historically, the percentage of bad debts has been low and the group expects the customers to settle outstanding receivables.
USD mill | 2024 | 2023 |
Movements in group provision for impairment of account receivables are as follows | ||
Balance at 01.01 | 3 | 4 |
Balance at 31.12 | 3 | 3 |
Account receivables per segment | ||
Maritime Services | 195 | 177 |
New Energy | 59 | 63 |
Strategic Holdings and Investments | 1 | |
Total account receivables | 255 | 240 |
See note 18 on credit risk.
74%
26%
0%
2024 Account receivables
2023 Account receivables
Maritime Services
New Energy
Strategic Holdings and Investments
76%
23%
0%
Note 14 Non-current financial assets to fair value
FINANCIAL REPORTING PRINCIPLES
Management determines the classification of financial assets at their initial recognition, with financial assets held for trading carried at fair value.
USD mill | 2024 | 2023 |
Financial assets to fair value | ||
Financial assets to fair value at 01.01 | 87 | 75 |
Acquisition | 3 | 1 |
Reclassified | (5) | |
Currency translation adjustment through other comprehensive income | (9) | |
Change in fair value through income statement* | 11 | 11 |
Total financial assets to fair value at 31.12 | 86 | 87 |
* In the income statement, change in fair value through income statement includes the change in fair value related to the warrants towards Reach Subsea ASA (part of other current assets in the balance sheet). The fair value gain related to the warrants amounts to USD 16 million for 2024.
USD mill | 2024 | 2023 |
Financial assets to fair value | ||
Qube Holdings Limited | 61 | 55 |
Australian PE funds | 17 | 19 |
Other | 8 | 12 |
Total financial assets to fair value at 31.12 | 86 | 87 |
Financial assets to fair value are held in subsidiaries with different reporting currency and thereby creating translation adjustments.
Qube Holdings Limited is Australia\u2019s largest integrated provider of import and export logistics services, and listed on the Australian Securities Exchange (ASX). As per 31 December 2024 the group held 25 million shares, 1.4% of total (2023: 25 million
shares, 1.4% of total). The shares in Qube Holdings Limited serve as collateral for a credit facility. See note 17.
Note 15 Inventories
FINANCIAL REPORTING PRINCIPLES
Inventories of purchased goods and work in progress are valued at cost in accordance with the weighted average cost method.
USD mill | 2024 | 2023 |
Inventories | ||
Raw materials | 7 | 9 |
Goods/projects in process | 1 | 2 |
Finished goods/products for onward sale | 111 | 110 |
Total inventories at 31.12 | 119 | 121 |
Obsolescence allowance, deducted above | 4 | 3 |
Note 16 Current financial investments
FINANCIAL REPORTING PRINCIPLES
Current financial investments consists of financial assets held for trading. Derivatives are also placed in this category unless designated as hedges.
USD mill | 2024 | 2023 |
Market value current financial investments | ||
Equities | 84 | 88 |
Bonds | 36 | 36 |
Financial derivatives | 1 | |
Total current financial investments at 31.12 | 121 | 124 |
The fair value of all equity securities, bonds and other financial assets is based on their closing prices in an active market.
USD mill | 2024 | 2023 |
Net unrealised gain at 31.12 | 2 | 13 |
The parent company\u2019s portfolio of equities and bonds of USD 121 million is held as collateral within a securities\u2019 finance facility. See note 17. The portfolio\u2019s strategy and mandate is set by the parent company\u2019s Board of Directors and consists of a benchmark of 50%/50% share of investment grade bonds and Nordic equities, with
a trading mandate within certain set limits with regards to equity/bond allocation, portfolio weight, and currency exposure. Reporting is provided monthly to group CEO/CFO and quarterly to parent company\u2019s Board of Directors.
Note 17 Interest-bearing debt and undrawn credit facilities
FINANCIAL REPORTING PRINCIPLES
Loans are recognised at fair value when the proceeds are received, net of transaction costs. In subsequent periods, loans are stated at amortised cost using the effective interest method.
USD mill | Note | 2024 | 2023 |
Interest-bearing debt | |||
Bank and mortgages loan | 300 | 483 | |
Lease liabilities | 134 | 125 | |
Total interest-bearing debt at 31.12 | 18 | 434 | 608 |
The groups bank and mortages loan facilities are held in the Maritime Services segment and the New Energy segment, amounting to USD 65 million and USD 235 million per 31 December 2024. The loan facilitiy in the Maritime Services segment matures in 2027. The New Energy debt comprise two loan facilities, where the primiary facility, amounting to USD 204 million per 31 December 2024, matures in 2027.
Loan agreements entered into by the group contain financial covenants relating to liquidity, leverage and value-adjusted equity. The group was in compliance with all covenants at 31 December 2024.
USD mill | Note | 2024 | 2023 |
Book value of collateral, mortgaged and leased assets: | |||
Financial assets to fair value and current financial investments | 14/16 | 186 | 211 |
Assets in the New Energy segment | 746 | 834 | |
Total book value of collateral, mortgaged and leased assets at 31.12 | 932 | 1 045 |
The parent company\u2019s portfolio of financial investments is held as collateral within a securities\u2019 finance facility.
USD mill | Note | 2024 | 2023 |
Repayment schedule for interest-bearing debt | |||
Due in year 1 | 49 | 51 | |
Due in year 2 | 36 | 19 | |
Due in year 3 | 259 | 28 | |
Due in year 4 | 13 | 435 | |
Due in year 5 and later | 77 | 76 | |
Total interest-bearing debt at 31.12 | 18 | 434 | 608 |
The overview above shows the actual maturity structure, with the amount due in year one as the first year\u2019s instalment classified under other current liabilities.
Cont. note 17 Interest-bearing debt and undrawn credit facilities
USD mill | Note | 2024 | 2023 |
The group net interest-bearing debt | |||
Non current interest-bearing debt | 277 | 456 | |
Non current lease liabilities | 108 | 101 | |
Current interest-bearing debt | 23 | 27 | |
Current lease liabilities | 26 | 24 | |
Total interest-bearing debt at 31.12 | 434 | 608 | |
Cash and cash equivalents | 155 | 224 | |
Current financial investments | 16 | 121 | 124 |
Net interest-bearing debt at 31.12 | 157 | 260 |
USD mill | 2024 | 2023 |
Guarantee commitments | ||
Guarantees for group companies | 2 | 15 |
Bank guarantees | 29 | 20 |
Payroll tax guarantees | 7 | 5 |
Total guarantee commitments at 31.12 | 38 | 40 |
The carrying amounts of the group\u2019s bank loans are denominated in the following currencies | ||
USD | 95 | 175 |
NOK | 193 | 294 |
DKK | 13 | 14 |
Total | 300 | 483 |
See otherwise note 18 for information on financial derivatives (currency hedges) relating to interest-bearing debt.
USD mill | 2024 | 2023 |
Net debt | ||
Cash and cash equivalents | 155 | 224 |
Liquid investments * | 121 | 124 |
Borrowings - repayable within one year | (49) | (51) |
Borrowings - repayable after one year | (385) | (557) |
Net debt at 31.12 | (157) | (260) |
Cash and cash equivalents and liquid investments | 276 | 349 |
Gross debt - variable interest rates ** | (434) | (608) |
Net debt at 31.12 | (157) | (260) |
*\tLiquid investments are investment grade bonds and liquid equities traded in active markets. These assets are held at fair value recognised through the income statement.
** Interest-bearing debt is exposed to movements in floating interest rates in USD and NOK. Material parts of the interest rate risk in the NOK-denominated debt is hedged within the New Energy segment.
Cont. note 17 Interest-bearing debt and undrawn credit facilities
USD mill | Liabilities from financing activities | ||||
Finance leases due within 1 year | Finance leases due after 1 year | Borrowings due within 1 year | Borrowings due after 1 year | Total financing activities | |
Total interest-bearing debt at 01.01.2024 | 24 | 101 | 27 | 456 | 608 |
Reclass | 3 | (3) | (1) | 1 | |
Cash flows | (33) | (9) | (161) | (203) | |
Foreign exchange adjustments | (2) | (9) | (31) | (43) | |
Other non-cash movements | 34 | 19 | 6 | 12 | 71 |
Total interest-bearing debt at 31.12.2024 | 26 | 108 | 23 | 277 | 434 |
Total interest-bearing debt at 01.01.2023 | 23 | 93 | 65 | 473 | 654 |
Reclass | 19 | (19) | (2) | 2 | |
Cash flows | (27) | (41) | (31) | (99) | |
Business combinations | 2 | 2 | |||
Foreign exchange adjustments | 1 | (2) | (8) | (10) | |
Other non-cash movements | 10 | 26 | 7 | 19 | 62 |
Total interest-bearing debt at 31.12.2023 | 24 | 101 | 27 | 456 | 608 |
Cash and cash equivalents, undrawn credit facilities
The group has cash pool arrangements within each segment. Each cash pool arrangement is considered as one financial instrument and the net balance against the bank is presented as cash and cash equivalents. Wilh. Wilhelmsen Holding ASA (Strategic Holdings and Investments segment) owns and operates a multicurrency cash pool with a header-account in NOK, comprising of subsidiaries registered in
Norway. Wilhelmsen Maritime Services AS (Maritime Services segment) owns and operates a multicurrency cash pool with a header-account in USD, comprising of subsidiaries in Europe, Asia-Pacific and North America. NorSea Group AS (part of the New Energy segment) owns and operates a multicurrency cash pool with a header-account in NOK, comprising of subsidiaries in Norway, Denmark, Germany and the United Kingdom.
USD mill | 2024 | 2023 |
Committed undrawn credit facilities | 456 | 321 |
Committed undrawn credit facilities are key part of the liquidity reserve.
USD mill | 2024 | 2023 |
Cash and cash equivalents | ||
Banks | 155 | 224 |
Note 18 Financial risk
FINANCIAL REPORTING PRINCIPLES
The group uses derivatives to address financial risk. Derivatives are included in current assets or current liabilities, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets or other non-current liabilities as they form part of the group\u2019s long-term economic hedging strategy and are not classified as held for trading.
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Derivatives are recognised at fair value on the date a derivative contract is entered into and are revalued on a continuous basis at their fair value.
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Derivatives which do not qualify for hedge accounting
Most derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instruments which do not qualify for hedge accounting are presented in the income statement as financial income/expense.
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Derivatives which do qualify for hedge accounting
The group designates certain derivatives as hedges of highly probable forecast transactions (cash flow hedges).
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At the date of the hedging transaction, the group documents the relationship between hedging instruments and hedged items, as well as the objective of its risk management and the strategy underlying the various hedge transactions. The
group also documents the extent to which the applied derivatives are effective in offsetting changes in fair value or cash flow associated with the hedge items. Such assessments are documented both initially and on an ongoing basis.
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The fair value of derivatives used for hedging is shown below. Changes in the valuation of qualified hedges are recognised directly in other comprehensive income until the hedged transactions are realised.
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The fair value of financial derivatives traded in active markets is based on quoted market prices at the balance sheet date. The fair value of financial derivatives not traded in an active market is determined using valuation methodology, such as the discounted value of future cash flows. Independent experts verify the value determination for instruments which are considered material.\u00a0
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The group has exposure to the following financial risks from its operations:
\u2022 Market risk
\u25e6 Foreign exchange rate risk
\u25e6 Interest rate risk
\u25e6 Equity market risk
\u2022 Credit risk
\u2022 Liquidity risk
MARKET RISK
The group operates worldwide selling products and services to the maritime and offshore industry. The group also holds strategic investments in the maritime sector as well as financial investments primarily in the Nordic equity and bond market.\u00a0The group is exposed to market risks including foreign exchange rates, interest rates and equity market prices.
The group has established hedging strategies to mitigate risks on material exposures originating from movements in currencies and interest rates. This is compliant with the financial strategy approved by the board of directors.
To mitigate risk, the group holds financial instruments for the following purposes:
Financing: to raise finance for the group\u2019s operations or, in the case of short-term deposits, to invest surplus funds. The types of instruments used include bank debt, cash and short-term deposits.
Operational: the group\u2019s activities generate financial instruments, including cash, trade receivables, trade payables and finance advances.
Risk management: to reduce risks arising from the financial instruments described above, including foreign exchange contracts, interest rate swaps and cross-currency interest rate swaps.
Changes in the market value of foreign exchange financial derivatives are recognised through the income statement. New Energy segment applies hedge accounting for interest rate hedges where derivatives are recognised in other comprehensive income.
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Associates hedge their own exposures. The group records the effects of realised and unrealised changes in financial derivatives held in these entities in accordance with the equity method under \u201cshare of profit from joint ventures and associates\u201d. The material associates are Wallenius Wilhelmsen ASA group and Hyundai Glovis group in
Strategic Holdings and Investments segment and the joint venture investment Coast Center Base group in New Energy segment.
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Foreign exchange rate risk
The group is exposed to currency risk on revenues and costs in non-functional currencies (transaction risk), and balance sheet items denominated in non-functional currencies (translation risk).
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The group\u2019s largest foreign exchange exposures are NOK, EUR, SGD, AUD and KRW - all against USD.
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TRANSACTION RISK HEDGING (CASH FLOW)
The group\u2019s operating segments are responsible for hedging their own material transaction risk. Within Maritime Services, USD/NOK, EUR/USD and USD/SGD exposures are subject to a systematic three-year rolling hedge program, utilizing a portfolio of currency options and currency forwards. The group target current hedge ratio to be within the interval of 30-70% of future opex. USD/MYR is hedged using currency forwards with maturities up to 12 months. Remaining exposures are non-material and not hedged.
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TRANSLATION RISK HEDGING (BALANCE SHEET)
The group\u2019s policy for mitigating translation risk is to match the denomination currency of assets and liabilities to as large extent as possible.
FX SENSITIVITES (TRANSLATION RISK)
The group monitors the net exposure and calculates sensitivities on a regular basis, based on average market volatility per currency cross. Sensitivities showing a potential accounting effect below USD 5 million on group level are considered non-material.
The sensitivity analysis below shows the impact that a reasonably possible change in foreign exchange rates over a financial year would have on profit after tax and equity, based solely on the group\u2019s foreign exchange risk exposures existing at the balance sheet date. The group has used the observed range of actual historical rates for the preceding one-year period, in determining reasonably possible exchange movements to be used for the current year\u2019s sensitivity analysis.
Cont. note 18 Financial risk
USD mill | |||||
Sensitivities of foreign exchange rates risk | |||||
Change in exchange rates | (10%) | (5%) | 0% | 5% | 10% |
USD/NOK | 10.22 | 10.78 | 11.35 | 11.92 | 12.49 |
Income statement effect | 4 | 2 | (2) | (3) | |
Equity effect | 54 | 25 | (23) | (44) | |
EUR/USD | 0.93 | 0.99 | 1.04 | 1.09 | 1.14 |
Income statement effect | 8 | 4 | (4) | (8) | |
Equity effect | (3) | (2) | 2 | 3 | |
USD/SGD | 1.23 | 1.29 | 1.36 | 1.43 | 1.50 |
Income statement effect | (3) | (1) | 1 | 2 | |
Equity effect | 12 | 6 | (5) | (10) | |
USD/AUD | 1.45 | 1.53 | 1.61 | 1.69 | 1.78 |
Income statement effect | |||||
Equity effect | 9 | 4 | (4) | (8) | |
USD/KRW | 1 327.43 | 1 401.18 | 1 474.93 | 1 548.67 | 1 622.42 |
Income statement effect | |||||
Equity effect | 73 | 35 | (31) | (60) |
(Tax rate used is 22% that equals the Norwegian tax rate)
USD mill | Note | 2024 | 2023 |
Currency through income statement | |||
Included in other financial income/(expenses) | |||
Operating currency, net | 15 | (2) | |
Financial currency, net | (21) | (6) | |
Currency derivatives, realised | (3) | (3) | |
Currency derivatives, unrealised | (20) | 10 | |
Net currency items in other financial income/(expenses) | 1 | (28) | (1) |
Through other comprehensive income | |||
Currency translation differences through OCI | (228) | (15) | |
Total net currency effects | (257) | (16) |
For Maritime Services, New Energy and Strategic Holdings and Investments, material translation risks are booked to other comprehensive income due to the functional currency for most of the entities being different from the reporting currency USD.
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The group\u2019s segments perform sensitivity analyses on the unhedged part of the transaction risk on a regular basis.
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The portfolio of derivatives used to hedge the group\u2019s transaction risk (described above), exhibit the following income statement sensitivity:
USD mill | |||||
Sensitivity | (10%) | (5%) | 0% | 5% | 10% |
Income statement sensitivities of economic hedge program | |||||
Transaction risk | |||||
USD/NOK spot rate | 10.22 | 10.78 | 11.35 | 11.92 | 12.49 |
Income statement effect | 15 | 8 | (8) | (15) | |
EUR/USD spot rate | 0.93 | 0.99 | 1.04 | 1.09 | 1.14 |
Income statement effect | 8 | 4 | (4) | (8) | |
USD/SGD spot rate | 1.23 | 1.29 | 1.36 | 1.43 | 1.50 |
Income statement effect | 4 | 2 | (2) | (4) |
(Tax rate used is 22% that equals the Norwegian tax rate)
Cont. note 18 Financial risk
INTEREST RATE RISK
Interest rate risk is identified as the effect on the group\u2019s future cash flows or fair value of financial instruments when interest rates change. Changes in interest rates expose the group to changes in the fair value of borrowings subject to fixed interest rates (fair value risk), and changes in future interest payments on borrowings subject to floating interest rates (cash flow risk).
The group\u2019s strategy is to hedge material parts of the interest-bearing debt against rising interest rates. As the capital intensity varies across the group\u2019s business segments, which have their own policies on hedging of interest rate risk, hedge ratios vary. The main source of exposure to interest rate risk arises from the risk associated with fair value interest rates.\u00a0 \u00a0
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Within Strategic Holdings and Investments and Maritime Services respectively, no interest rate hedging is implemented due to low net interest-bearing debt (NIBD), whereas New Energy has hedged about 50% of its interest-bearing debt (Interest bearing debt of USD 235 million, with hedged amout totalling USD 113 million) as of 31 December 2024.\u00a0
The group has financial liabilities that are exposed to NIBOR and USD Term SOFR reference rates. The group has interest-bearing liabilities of USD 65 million that have a USD Term SOFR reference rate. Other interest-bearing debt is primarily linked to NIBOR and NOWA. No date has been set for the transition of NIBOR, however the group is monitoring the development of the IBOR reform.
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The risk exposure related to financial instruments as a consequence of the transition is considered to be low. The IBOR reform will not change the risk management strategy.
Sustainability-linked loans
In 2023, the group amended the loan agreements in the Maritime Services and New Energy segment, including sustainability-linked KPIs in the agreements. Based on the annual fulfilment of the KPI targets, the interest rate on the loans may be adjusted up to maximum of +/- 5 basis points.
USD mill | 2024 | 2023 |
Maturity schedule interest rate hedges (nominal amounts) | ||
Due in year 1 | 23 | |
Due in year 2 | ||
Due in year 3 | 62 | |
Due in year 4 | 18 | 39 |
Due in year 5 and later | 34 | 58 |
Total interest rate hedges at 31.12 | 113 | 120 |
The average remaining term of the existing total debt portfolio is three years. The hedges have an average remaining term of four years.\u00a0
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Interest rate sensitivity
The group\u2019s interest rate risk originates from differences in duration between assets and liabilities. On the asset side, bank deposits and investments in interest-bearing
instruments are subject to risk from changes in the general level of interest rates, primarily in USD and NOK.
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The group uses the weighted average duration of interest-bearing liabilities, and financial interest rate derivatives to compute the group\u2019s sensitivity towards changes in interest rates.
USD mill | 2024 | 2023 | |
Assets | Liabilities | Assets | Liabilities |
Interest rate derivatives | |||
New Energy | 3 | 2 | |
Total interest rate derivatives at 31.12 | 3 | 2 | |
Currency derivatives | |||
Maritime Services | 20 | ||
Strategic Holdings and Investments | 1 | ||
Total currency derivatives at 31.12 | 2 | 20 | |
Other derivatives | |||
New Energy* | 16 | ||
Total other derivatives at 31.12 | 16 | ||
Total market value of financial derivatives at 31.12 | 21 | 20 | 2 |
Book value equals market value
*Other derivatives in New Energy comprise the warrant towards Reach Subsea ASA, see note 4 for more information
Cont. note 18 Financial risk
The following sensitivity analysis shows the impact that a reasonably possible change in interest rates over a financial year would have on profit after tax and equity. The impact is determined by assessing the effect of a reasonably possible change in interest rates would have had on interest income and expense and the impact on
financial instrument fair values existing at the balance sheet date. The analysis is performed assuming a parallel shift in the relevant interest rate curves of 1%- and 2%-points.
USD mill | |||||
Fair value sensitivities of interest rate risk | |||||
Change in interest rates' level | (2%) | (1%) | 0% | 1% | 2% |
Income statement effect | (0) | (0) | 0 | 0 | |
Equity effect | (6) | (3) | 3 | 6 |
(Tax rate used is 22% that equals the Norwegian tax rate)
EQUITY MARKET RISK
The group holds several assets listed on equity markets as well as a defined portfolio of financial assets for a proportion of the group\u2019s short-term liquidity.\u00a0The investment portfolio is divided between stocks and bonds, holding positions in various sectors. All investments are concentrated within the Nordic countries and are diversified
across more than 30 different companies. The bond positions exclusively fall within the Investment Grade space.
Below table summarises the equity market sensitivity towards the market value of all listed equities held as current financial investments, see note 16.
Income statement sensitivities of equity market risk | |||||
USD mill | |||||
Change in equity prices | |||||
Change in market value | (20%) | (10%) | 0% | 10% | 20% |
Income statement effect | (24) | (12) | 12 | 24 |
(Tax rate used is 22% that equals the Norwegian tax rate)
CREDIT RISK
Credit risk is the risk of financial loss to the group if a customer or counterparty to a financial derivative fails to meet its contractual obligations. The group\u2019s credit risk originates primarily from the account receivables, financial derivatives used to hedge interest rate risk or foreign exchange risk, as well as investments, including bank deposits.
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TRADE RECEIVABLES
The group\u2019s exposure to credit risk on its receivables varies across segments and subsidiaries.
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Within Maritime Services and New Energy, the global customer base provides diversification with respect to credit risk on receivables. The segments monitor and manage their respective credit risk on a regular basis. Reference is made to note 13.\u00a0
BANK DEPOSITS AND FINANCIAL DERIVATIVES
The group maintains cash management operations and trades financial derivatives
with a selection of financially solid banks (as determined by their official credit ratings), limiting the corresponding credit risk.
OTHER CREDIT EXPOSURES
No material loans or receivables were past due or impaired at 31 December 2024 (analogous for 2023).
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Guarantees
The group\u2019s policy is that no financial guarantees are provided by the parent company. However, financial guarantees are provided within Maritime Services and New Energy. See note 17 for further details.
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Credit risk exposure
The carrying amount of financial assets represents the maximum credit exposure.
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The maximum exposure to credit risk at the reporting date was as per below table:
USD mill | Note | 2024 | 2023 |
Exposure to credit risk | |||
Financial derivatives (interest) | 12 | 3 | 2 |
Account receivables | 12 | 255 | 240 |
Bonds | 16 | 36 | 36 |
Cash and bank deposits | 17 | 155 | 224 |
Total exposure to credit risk at 31.12 | 450 | 503 |
Cont. note 18 Financial risk
LIQUIDITY RISK
The group\u2019s approach to managing liquidity is to ensure that the group meets its liabilities, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the group\u2019s reputation.
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The group\u2019s liquidity risk is low in that it holds significant liquid assets in addition to credit facilities with the banks. \u00a0
At 31 December 2024, the group had in excess of USD 337 million (2023: USD 404 million) in cash, investment grade bonds and listed equities (cash and cash equivalents, current financial investments and investment in Qube Holdings Limited), in addition to USD 456 million (2023: USD 321 million) in committed undrawn credit facilities.
USD mill | Less than 1 year | Between 1 and 2 years | Between 2 and 5 years | Later than 5 years |
Undiscounted cash flows financial liabilities 2024 | ||||
Mortgages | 23 | 13 | 183 | 13 |
Finance lease liabilities | 26 | 22 | 25 | 61 |
Bank loan | 1 | 64 | 2 | |
Financial derivatives | 20 | |||
Interest due | 30 | 25 | 29 | 31 |
Total undiscounted cash flow financial liabilities at 31.12 | 98 | 61 | 301 | 108 |
Current liabilities (excluding next year's instalment on interest-bearing debt) | 451 | |||
Total gross undiscounted cash flows financial liabilities at 31.12 | 550 | 61 | 301 | 108 |
Undiscounted cash flows financial liabilities 2023 | ||||
Mortgages | 14 | 13 | 265 | 14 |
Finance lease liabilities | 24 | 18 | 24 | 59 |
Bank loan | 174 | 3 | ||
Interest due | 36 | 35 | 67 | 33 |
Total undiscounted cash flow financial liabilities at 31.12 | 73 | 67 | 529 | 109 |
Current liabilities (excluding next year's instalment on interest-bearing debt) | 477 | |||
Total gross undiscounted cash flows financial liabilities at 31.12 | 550 | 67 | 529 | 109 |
Cont. note 18 Financial risk
COVENANTS
The group\u2019s bank and lease financing are subject to financial or non-financial covenant clauses related to one or several of the following:
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Limitation on the ability to pledge assets
Change of control
Minimum liquidity
NIBD / EBITDA or equivalent Debt-Service Coverage-Ratios
Loan-to-Value
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As of the balance sheet date, the group is not in breach of any financial or non-financial covenants. Covenants are related to the consolidated accounts of Wilhelmsen Maritime Services AS and NorSea Group AS.
CAPITAL RISK MANAGEMENT
The group\u2019s overall policy is to maintain a strong capital base to maintain investor, creditor and market confidence and to sustain future business development. The board of directors monitors various return metrics, where Return on Equity and dividend levels are predominant.
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The group seeks to maintain a balance between the potential higher returns stemming from higher levels of financial gearing and the advantages of a strong balance sheet. The financial strategy and setting of thresholds for capital structure, return requirements and risk are revised by the board of directors.
FAIR VALUE ESTIMATION
The fair value of financial instruments traded in an active market is based on quoted market prices at the balance sheet date. The fair value of financial instruments not traded in an active market (over-the-counter contracts) is based on third party quotes. These quotes use observable market rates for price discovery. Specific valuation techniques used by financial counterparties (banks) to value financial derivatives include:
\u00a0
Quoted market prices or dealer quotes for similar derivatives.
The fair value of interest rate swaps is calculated as the net present value of the estimated future cash flows based on observable yield curves.
The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the resulting value discounted back to net present value.
The fair value of foreign exchange option contracts is determined using observable forward exchange rates, volatility, yield curves and time-to-maturity parameters at the balance sheet date, resulting in an option premium. Options are typically valued by applying the Black-Scholes model.
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The carrying value less impairment provision of receivables and payables are assumed to approximate their fair values. The group estimates the fair value of financial liabilities for disclosure purposes by discounting the future contractual cash flows at current market interest rates available to the group for similar financial derivatives.
USD mill | Note | Fair value | Book value |
Interest-bearing debt | |||
Mortgages | 234 | 233 | |
Finance lease liabilities | 134 | 134 | |
Bank loan | 68 | 67 | |
Total interest-bearing debt at 31.12.2024 | 17 | 436 | 434 |
Mortgages | 306 | 306 | |
Finance lease liabilities | 125 | 125 | |
Bank loan | 178 | 177 | |
Total interest-bearing debt at 31.12.2023 | 17 | 610 | 608 |
Cont. note 18 Financial risk
USD mill | Level 1 | Level 2 | Level 3 | Total |
Financial assets to fair value | ||||
Equities | 84 | 84 | ||
Bonds | 36 | 36 | ||
Financial derivatives | 21 | 21 | ||
Financial assets to fair value | 61 | 8 | 17 | 86 |
Total financial assets at 31.12.2024 | 181 | 29 | 17 | 227 |
Financial liabilities to fair value | ||||
Financial derivatives | (20) | (20) | ||
Total financial liabilities at 31.12.2024 | (20) | (20) | ||
Financial assets to fair value | ||||
Equities | 88 | 88 | ||
Bonds | 36 | 36 | ||
Financial derivatives | 2 | 2 | ||
Financial assets to fair value | 55 | 8 | 24 | 87 |
Total financial assets at 31.12.2023 | 179 | 10 | 24 | 213 |
Financial liabilities to fair value | ||||
Financial derivatives | ||||
Total financial liabilities at 31.12.2023 |
USD mill | 2024 | 2023 |
Changes in level 3 instruments | ||
Opening balance at 01.01 | 24 | 22 |
Gain/(loss) recognised through income statement | (8) | 2 |
Closing balance at 31.12 | 17 | 24 |
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm\u2019s length basis.
The quoted market price used for financial assets held by the group is the current close price. These instruments are included in level 1. Instruments included in level 1 at the end of 2024 are liquid investment grade bonds and listed equities (analogous for 2023).
The fair value of financial instruments not traded in an active market (over-the-counter contracts) are based on third party quotes (Mark-to-Market). These quotes use observable market rates for price discovery. The different techniques typically applied by financial counterparties (banks) were described above. These instruments - FX and IR derivatives - are included in level 2.
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If one or more of the significant inputs is not based on observable market data, the derivatives is in level 3.
Cont. note 18 Financial risk
Financial instruments by category | ||||
USD mill | Note | Financial assets at amortised cost | Fair value through the income statement | Total |
Assets | ||||
Other non current assets | 12 | 19 | 19 | 39 |
Financial assets to fair value | 14 | 86 | 86 | |
Current financial investments | 16 | 120 | 120 | |
Current financial derivatives | 12 | 21 | 21 | |
Other current assets | 12 | 293 | 293 | |
Cash and cash equivalent | 155 | 155 | ||
Assets at 31.12.2024 | 467 | 246 | 713 |
Liabilities at fair value through the income statement | Other financial liabilities at amortised cost | Total | |
Liabilities | |||
Non current interest-bearing liabilities | 17 | 385 | 385 |
Current interest-bearing liabilities | 17 | 49 | 49 |
Current financial derivatives | 12 | 20 | 20 |
Other non current liabilities | 12 | 8 | 8 |
Other current liabilities | 12 | 451 | 451 |
Liabilities at 31.12.2024 | 28 | 885 | 913 |
USD mill | Note | Financial assets at amortised cost | Fair value through the income statement | Total |
Assets | ||||
Other non current assets | 12 | 30 | 12 | 42 |
Financial assets to fair value | 14 | 87 | 87 | |
Current financial investments | 16 | 124 | 124 | |
Current financial derivatives | 12 | 2 | 2 | |
Other current assets | 12 | 276 | 276 | |
Cash and cash equivalent | 224 | 224 | ||
Assets at 31.12.2023 | 531 | 225 | 756 |
Liabilities at fair value through the income statement | Other financial liabilities at amortised cost | Total | |
Liabilities | |||
Non current interest-bearing liabilities | 17 | 557 | 557 |
Current interest-bearing liabilities | 17 | 51 | 51 |
Other non current liabilities | 12 | 11 | 11 |
Other current liabilities | 12 | 477 | 477 |
Liabilities at 31.12.2023 | 11 | 1 085 | 1 096 |
Note 19 Related party transactions
FINANCIAL REPORTING PRINCIPLES
Transactions with related parties include shared services and other services provided by the group. Shared Services are priced in accordance with the principles set out in the OECD Transfer Pricing Guidelines and are delivered according to agreements that are renewed annually.
The services are:
Ship management including crewing, technical and management service.
Agency services.
Freight and liner services.
Marine products.
Shared services.
The ultimate owner of the group is Tallyman ASwhich controls about 61% of voting shares of the group. Tallyman AS is controlled by Thomas Wilhelmsen.
Detailed remuneration discloures are provided in the remuneration report.
Business office, country | Ownership | |
Material related parties in the group are: | ||
Wallenius Wilhelmsen ASA | Norway | 37.9% |
Coast Center Base AS / KS | Norway | 50.0% |
Wilhelmsen Ahrenkiel Ship Management group | Germany | 50.0% |
USD thousand | 2024 | 2023 |
KEY MANAGEMENT PERSONNEL COMPENSATION | ||
Base salary | 1 963 | 2 086 |
Bonus | 2 201 | 1 436 |
Pension | 556 | 513 |
Other benefits | 381 | 341 |
Total | 5 100 | 4 376 |
Detailed remuneration discloures are provided in the remuneration report.
USD mill | 2024 | 2023 |
OPERATING REVENUE FROM RELATED PARTY | ||
Sale of goods and services to joint ventures and associates: | ||
WAWI group | 23 | 22 |
Maritime Services | 9 | 7 |
New Energy | 1 | 1 |
Operating revenue from related party | 33 | 31 |
OPERATING EXPENSES TO RELATED PARTY | ||
Purchase of goods and services from joint ventures and associates: | ||
Maritime Services | (3) | (1) |
New Energy | (26) | (28) |
Operating expenses to related party | (29) | (29) |
ACCOUNT RECEIVABLES FROM RELATED PARTY | ||
Maritime Services | 5 | 4 |
Account receivables from related party at 31.12 | 5 | 4 |
ACCOUNT PAYABLES TO RELATED PARTY | ||
Maritime Services | (3) | (4) |
New Energy | (5) | (3) |
Account payables to related party at 31.12 | (8) | (7) |
NON CURRENT ASSETS TO RELATED PARTY | ||
New Energy | 1 | |
Non current assets to related party at 31.12 | 1 |
Note 20 Subsidiaries with material non-controlling interests
Business office, country | 2024 | |
Voting/control share | ||
Treasure ASA | Norway | 84.16% |
Set out below is the summarised financial information for the subsidiary that has non-controlling interests (NCI) material to the group. The amounts disclosed are 100% and before inter-company eliminations.
USD mill | Treasure ASA | |
2024 | 2023 | |
Summarised balance sheet | ||
Non current assets | 672 | 675 |
Current assets | 1 | 4 |
Total assets at 31.12 | 673 | 680 |
Non current liabilities | ||
Current liabilities | 1 | |
Total liabilities at 31.12 | 1 | |
Net assets at 31.12 | 672 | 679 |
Accumulated non-controlling interests (NCI) | 106 | 145 |
Summarised income statement/OCI | ||
Total income | ||
Profit for the year | 87 | 84 |
Other comprehensive income | (75) | (16) |
Total comprehensive income | 12 | 68 |
Profit allocated to NCIs | 3 | 15 |
Dividends paid to NCIs | 4 | 4 |
Summarised cash flows | ||
Net cash flow provided by/(used in) operating activities | 15 | 13 |
Net cash flow provided by/(used in) financing activities | (19) | (19) |
Net increase/(decrease) in cash and cash equivalents | (4) | (5) |
USD mill | 2024 | 2023 |
Total allocation to NCIs | ||
Profit for the period to material NCIs | 18 | 18 |
Profit for the period to other immaterial NCIs | 2 | 3 |
Profit for the period to NCIs | 20 | 21 |
Note 21 Investment in joint ventures and associates - restated financial figures
Background
On 7 June 2024, Wallenius Wilhelmsen issued a stock exchange notice informing the market of a required restatement of historical figures due to change in accounting treatment related to the EUKOR put and call option (put option going forward). It has been concluded that the put option liability must be recognised in full and the non-current asset recognised related to the call option must be removed. The combined effect shall be recognised in equity.
Impact of change on the groups consolidated financial statemenets
In the group\u2019s consolidated financial statements, the investment in Wallenius Wilhelmsen is accounted for as an investment in associate, applying the equity method for measurement.
In the Wallenius Wilhelmsen consolidated financial statements, the put option has been recognised by derecognising the non-controlling interest, with excess value, exceeding the carrying value of the non-controlling interest, being recognised as a reduction in the equity attributable to the owners of the parent.
IAS 28 - Investments in Associates and Joint Ventures, does not give any specific guidance on how to account for other equity movements than total comprehensive income and transactions with shareholders. Wilhelmsen has therefore developed an accounting policy for the equity movements in Wallenuis Wilhelmsen caused by the NCI put, where equity movements in the investee are presented as equity movements also in the consolidated financial statements of the company.
Since the risk and rewards associated with the shares in EUKOR primarly resides with the non-controlling interest, management has concluded that the put option should be recognised in full towards the equity attributable to the owners of Wallenius Wilhelmsen. By electing this principle, the group assumes its full relative share of the redemption liability reported by Wallenius Wilhelmsen, as a reduction in the carrying value of the shares in Wallenius Wilhelmsen with a corresponding adjustment in equity. The proportionate share of changes in the liability is recognised directly in equity in Wilh. Wilhelmsen, as other equity movements.
Presentation of restated comparable amounts
Applying IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, the group has presented in this note the restated comparable amounts for each period presented as if the put option had beed recognised in Wallenius Wilhelmsens consolidated financial statements for each period, starting from the reporting period ending December 31, 2022. The related income statement effect is immaterial for group reporting.
RESTATED FINANCIAL FIGURES FOR THE PERIOD ENDING 31 DECEMBER 2023 | ||
Consolidated balance sheet | ||
USD mill | ||
31.12.2023 | 31.12.2023 | |
as reported | restated | |
Investments in joint ventures and associates | 2 247 | 1 877 |
Total non current assets | 3 294 | 2 924 |
Total assets | 4 105 | 3 735 |
Attributable to equity holders of the parent | 2 702 | 2 332 |
Non-controlling interests | 155 | 155 |
Total equity | 2 857 | 2 488 |
Total equity and liabilities | 4 105 | 3 735 |
RESTATED FINANCIAL FIGURES FOR THE PERIOD ENDING 31 DECEMBER 2022 | ||
Consolidated balance sheet | ||
USD mill | ||
31.12.2022 | 01.01.2023 | |
as reported | restated | |
Investments in joint ventures and associates | 1 962 | 1 717 |
Total non current assets | 2 981 | 2 735 |
Total assets | 3 711 | 3 465 |
Attributable to equity holders of the parent | 2 278 | 2 032 |
Non-controlling interests | 160 | 160 |
Total equity | 2 438 | 2 192 |
Total equity and liabilities | 3 711 | 3 465 |
RESTATED FINANCIAL FIGURES FOR THE PERIOD ENDING 31 DECEMBER 2022 | |||||
Consolidated equity | |||||
USD mill | |||||
Share capital | Own shares | Retained earnings | Total | Non-controlling interests | Total equity |
Balance at 31.12.2022 as reported | 118 | 2 160 | 2 278 | 160 | 2 438 |
Effect of restatement of put liability | (246) | (246) | (246) | ||
Balance at 01.01.2023 restated | 118 | 1 914 | 2 032 | 160 | 2 192 |
Note 22 Contingencies
The size and global activities of the group dictate that companies in the group will be involved from time to time in disputes and legal actions.
The group is not aware of any financial risk associated with disputes and legal actions which are not largely covered through insurance arrangements. Nevertheless, any such disputes/actions which might exist are of such a nature that they will not significantly affect the group\u2019s financial position.
Fraud risk, with examples such as risk of cyber-based fraud attempts, are continuously being assed by the group, with mitigating actions being conducted
to prevent such attempts. While the potential financial effect from fraud may be significant in the most severe cases, the group assesses the risk of fraud attempts being successful to be low, with the group not being aware of any ongoing cases.
Risk factors related to climate and environmental changes as well as regulatory changes responding to such changes are taken into consideration when assessing the risk of events occurring that could significantly affect the group\u2019s financial position. The group has not identified any material exposure that could significantly affect the group\u2019s financial position.
Note 23 Alternative performance measures
Alternative performance measures
This section describes non-GAAP financial alternative performance measures (APM) that may be used in the quarterly and annual reports and related presentations.
The following measures are not defined nor specified in the applicable financial reporting framework of IFRS. They may be considered as non-GAAP financial measures that may include or exclude amounts that are calculated and presented according to the IFRS. These APMs are intended to enhance comparability of the results, balance sheet and cash flows from period to period and it is the group\u2019s experience that these are frequently used by investors, analysts and other parties. Internally, these APMs are used by the management to measure performance on a regular basis. The APMs should not be considered as a substitute for measures of performance in accordance with IFRS.
EBITDAis defined as Total income (Operating revenue and gain/(loss) on sale of assets) adjusted for Operating expenses. EBITDA is used as an additional measure of operational profitability, excluding the impact from financial items, taxes, depreciation and amortisation.
EBITDA adjusted is defined as EBITDA excluding certain income and/or cost items which are not regarded as part of the underlying operational performance for the period. The group does not report EBITDA adjusted on a regular basis, but may use it on a case by case basis to better explain operational performance.
EBITDA marginis defined as EBITDA as a % of of Total income.
EBITDA margin adjustedis defined as EBITDA adjusted as a % of Total income, with Total income also adjusted for the same income elements as those which have been adjusted for in EBITDA adjusted.
EBITis defined as Total income (Operating revenue and gain/(loss) on sale of assets) less Operating expenses, Other gain/loss and depreciation and amortisation. EBIT is used as a measure of operational profitability excluding the effects of how the operations were financed, taxed and excluding foreign exchange gains & losses.
EBIT adjusted, EBIT margin and EBIT margin adjusted will, if used, be prepared in the same manner as described under EBITDA.
Net interest-bearing debt (NIBD)is defined as total interest bearing debt (Non-current interest-bearing debt and Current interest-bearing debt) less Cash and cash equivalenets and Current financial investments.
Equity ratiois defined as Total equity as a percent of Total assets.
Enterprise Value (EV) is defined as the market capitalisation of a company plus NIBD.
EV/EBITDA is derfined as Enterprise Value (EV) divided by EBITDA.
Note 24 General accounting policies
SUMMARY OF MATERIAL ACCOUNTING POLICIES
This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements to the extent they are not disclosed separately in the other notes in the consolidated financial statements or in the notes of the financial statements of the parent company. Accounting policies have been consistently applied to all the years presented, unless otherwise stated.
\u00a0
\u00a0
New and amended standards adopted by the group
New or amended standards and interpretations issued during the current period, effective from 1 January 2024, are not expected to have material impact on the entity in the current or future periods.
New standards and interpretations not yet adopted
IFRS 18 Presentation and Disclosure in Financial Statements was issued on 9 April 2024. IFRS 18 is not mandatory for 31 December 2024 reporting period and has
not been early adopted by the group. The group is in process of assessing the impact of IFRS 18 on the groups reporting.
Other new or amended accounting standards and interpretations have been published that are not mandatory for 31 December 2024 reporting periods and has not been early adopted by the group. These standards are not expected to have a material impact on the entity in the current or future reporting periods.\u00a0
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). The exceptions are investments activity in Malta, where Australian dollar (AUD) is the functional currency and the parent company Wilhelmsen Maritime Services (WMS AS) has US dollar (USD). The consolidated financial statements are presented in USD, rounded off to the nearest whole million.
The presentation currency of the separate statements of the parent is NOK which is also its functional currency. The accounts are rounded off to the nearest whole thousand.
Translations and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses are presented on a net basis in the income statement, within finance income/expenses.
Business combination
The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired.
Note 25 Events after the balance sheet date
In February 2025, Wilh. Wilhelmsen Holding ASA bought back 443.253 A-shares atNOK 395 per share and 167.808 B-shares at NOK 377 per share. Following the buyback, Wilh. Wilhelmsen Holding ASA holds 1.393.506 A-shares and 906.367 B-shares.
On 5 March 2025, the group exercised its remaining warrants towards Reach Subsea ASA. 44.7 million warrants were exercised at a strike price of NOK 3.28 with the total consideration amounting to USD 13 million (NOK 147 million). The fair value of the
warrants, held as a current financial derivative in the group\u2019s balance sheet, has been reclassified to the cost price of the shares in Reach Subsea ASA. After the exercise, the group holds 29.6% of the shares in Reach Subsea ASA.
No other material events occurred between the balance sheet date and the date when the accounts were presented which provide new information about conditions prevailing on the balance sheet date.
GENERAL INFORMATION
Wilh. Wilhelmsen Holding ASA (referred to as the parent company) is domiciled in Norway The consolidated accounts for fiscal year 2024 include the parent company and its subsidiaries (referred to collectively as the group) and the group\u2019s share of joint ventures and associated companies.
The annual accounts for the group and the parent company were issued by the board of directors on 19 March 2025.
BASIS OF PREPARATION
Compliance with IFRS
The consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS\u00ae) accounting standards, as adopted by the European Union. The separate financial statements for the parent company have been prepared and presented in accordance with simplified IFRS as approved by Ministry of Finance 7 February 2022. In the separate statements the exception from IFRS for recognition of dividends and group contributions is applied. Otherwise, the explanations of the accounting policy for the group also apply to the separate statements, and the notes to the consolidated financial statements will to a large degree also cover the separate statements.
Wilhelmsen also provides additional disclosures in accordance with requirements in the Norwegian Accounting Act related to remuneration to the board and the senior management.
The company is a public limited liability company, listed on the Oslo Stock Exchange.
Critical accounting estimates and assumptions
When preparing the financial statements, the group and the parent company must make assumptions and estimates. These estimates are based on the actual underlying business, its present and forecast profitability over time, and expectations about external factors such as interest rates, foreign exchange rates and oil prices, which are outside the group\u2019s and parent company\u2019s control. This presents a substantial risk that actual conditions will vary from the estimates.
Most statements of financial position items will be affected by uncertainty related to estimates and assumption to a certain degree. The items most affected, and where estimates and assumptions are assessed to have the greatest significance include:
\u2022\tDeferred tax asset (Note 9)
\u2022\tGoodwill (Note 7)
\u2022\tRight-of-use assets and lease liabilities (Note 8)
\u2022\tLoss allowance on accounts receivable (Note 13)
\u2022\tProvisions and other non-current liabilities (Note 12)
Accounting principles applied, estimates and assumptions used by management are presented in the respective notes.
The group does face risk as a result of climate change, and climate-related factors may impact estimates and assumptions going forward. Uncertainties and risks relate to both transition risk (market-related, technological, and changes in regulatory requirements), and to physical risk that may affect the group\u2019s assets, are integral parts of management\u2019s estimates and judgements across the group.
The group has, where assessed relevant, included climate related considerations when assessing critical accounting estimates and assumptions. The following items are assessed to be most affected by climate related considerations:
\u2022\tTangible assets and Goodwill (Note 7)
\u2022\tRight-of-use assets and lease liabilities (Note 8)
\u2022\tContingencies (Note 22)
\u2022\tFinancial risk (interest bearing debt, Note 18)
For consolidated accounts for fiscal year 2024, climate related considerations did not materially affect the group\u2019s estimates and assumptions.
Financial reporting principles
The financial reporting principles are described in the relevant notes in the consolidated financial statements and in the notes in the financial statements of the parent company.
The financial reporting principles described in the consolidated financial statements also apply to the financial statements of the parent company, unless otherwise stated.
Note 24 General accounting policies
SUMMARY OF MATERIAL ACCOUNTING POLICIES
This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements to the extent they are not disclosed separately in the other notes in the consolidated financial statements or in the notes of the financial statements of the parent company. Accounting policies have been consistently applied to all the years presented, unless otherwise stated.
\u00a0
\u00a0
New and amended standards adopted by the group
New or amended standards and interpretations issued during the current period, effective from 1 January 2024, are not expected to have material impact on the entity in the current or future periods.
New standards and interpretations not yet adopted
IFRS 18 Presentation and Disclosure in Financial Statements was issued on 9 April 2024. IFRS 18 is not mandatory for 31 December 2024 reporting period and has
not been early adopted by the group. The group is in process of assessing the impact of IFRS 18 on the groups reporting.
Other new or amended accounting standards and interpretations have been published that are not mandatory for 31 December 2024 reporting periods and has not been early adopted by the group. These standards are not expected to have a material impact on the entity in the current or future reporting periods.\u00a0
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). The exceptions are investments activity in Malta, where Australian dollar (AUD) is the functional currency and the parent company Wilhelmsen Maritime Services (WMS AS) has US dollar (USD). The consolidated financial statements are presented in USD, rounded off to the nearest whole million.
The presentation currency of the separate statements of the parent is NOK which is also its functional currency. The accounts are rounded off to the nearest whole thousand.
Translations and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses are presented on a net basis in the income statement, within finance income/expenses.
Business combination
The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired.
Compliance with IFRS
The consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS\u00ae) accounting standards, as adopted by the European Union. The separate financial statements for the parent company have been prepared and presented in accordance with simplified IFRS as approved by Ministry of Finance 7 February 2022. In the separate statements the exception from IFRS for recognition of dividends and group contributions is applied. Otherwise, the explanations of the accounting policy for the group also apply to the separate statements, and the notes to the consolidated financial statements will to a large degree also cover the separate statements.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:54930050TPKOLSE1ZZ71", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__7": { "value": "OPERATING REVENUE
Ships Service
2/3
507
477
Port Services
2/3
160
155
Ship Management
2/3
149
87
Energy Infrastructure
2/3
299
283
Other services
2/3
22
27
Total operating revenue
19
1 136
1 027
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:54930050TPKOLSE1ZZ71", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__8": { "value": "OPERATING EXPENSES
Office expenses
(14)
(14)
Communication and IT expenses
(41)
(36)
External services
(29)
(31)
Travel and meeting expenses
(14)
(12)
Marketing expenses
(3)
(3)
Lease expenses
8
(11)
(12)
Other operating expenses
(54)
(46)
Total operating expenses
19
(166)
(153)
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:54930050TPKOLSE1ZZ71", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__9": { "value": "Financial income
Investment management
10
15
Interest income
9
8
Dividend from financial assets
4
3
Gain on sale of financial investments
1
Other financial items
1
2
Net financial income
25
29
Financial expenses
Interest expenses
(29)
(33)
Interest expenses lease liabilities
8
(7)
(5)
Other financial expenses
(7)
(4)
Net financial expenses
(43)
(43)
Currency gain/(loss)
Operating currency - net
15
(2)
Financial currency - net
(21)
(6)
Derivatives for hedging of cash flow risk - realised
(3)
(3)
Derivatives for hedging of cash flow risk - unrealised
(20)
10
Net currency gain/(loss)
(28)
(1)
Financial income/(expenses)
(46)
(15)
Spesification of financial income and expenses
Net financial income
25
29
Net currency derivatives - income
10
Financial income
25
39
Net financial expenses
(43)
(43)
Net currency - expenses
(6)
(8)
Net currency derivatives - expenses
(22)
(3)
Financial expenses
(71)
(54)
See note 18 on financial risk and the section of the accounting policies concerning financial derivatives.
Note 2 Segment reporting
FINANCIAL REPORTING PRINCIPLES
The operating segments are reported in a manner consistent with the internal financial reporting provided to the chief operating decision-makers.
The chief operating decision-makers, who are responsible for allocating resources and assessing performance of the operating segments, have been identified as the board and group management team, consisting of the group chief executive officer (group CEO) and four executive managers.
SEGMENTS
The chief operating decision-makers monitor the business by combining entities with similar operational characteristics such as product, services, market and underlying asset base, into operating segments.
The Maritime Services segment offers marine products, ship agency services and logistics to the merchant fleet and ship management including manning for all major vessel types, through a worldwide network in 56 countries.
The New Energy segment includes NorSea Group and other New Energy activities. The activity is mainly related to the operation of supply bases for the offshore industry in Norway, as well as real estate development and operation of properties both on and off the supply bases. In addition to the activity in Norway, the segment offers its services in both Denmark and in the UK. The international activity consists of both operation of supply bases, maintenance of rigs and handling of logistics related to international pipeline projects and windmill parks. Other activities within the segment include digital solutions to the maritime industry.
The Strategic Holdings and Investments segment includes the parent company, Wilh. Wilhelmsen Holding ASA, Treasure ASA group, Wilh Wilhelmsen Invest Malta and other corporate group activities like operational management, legal, finance, portfolio management, communication and human relations which fail to meet the definition for other core activities.
The group\u2019s investments in Wallenius Wilhelmsen ASA (WAWI) is presented as part of Strategic Holdings and Investments as investments in associates.
Eliminations are between the group\u2019s three segments mentioned above.
The segment income statements are measured in the same way as in the financial statements.
The segment information provided to the chief operating decision-makers for the reportable segments for the year ended 31 December 2024 is as follows:
USD mill | Maritime Services | New Energy | Strategic Holdings and Investments | Eliminations | Total | |||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
INCOME STATEMENT | ||||||||||
Operating revenue | 830 | 732 | 302 | 290 | 16 | 16 | (12) | (11) | 1 136 | 1 027 |
Other gain/(loss) | 1 | 1 | 1 | 1 | 2 | 1 | ||||
Total income | 831 | 732 | 303 | 291 | 16 | 15 | (12) | (10) | 1 138 | 1 029 |
Cost of goods and change in inventory | (319) | (266) | (71) | (73) | (1) | (1) | (391) | (340) | ||
Employee benefits | (286) | (259) | (124) | (117) | (14) | (12) | (423) | (387) | ||
Operating expenses | (117) | (102) | (49) | (51) | (9) | (9) | 10 | 8 | (166) | (153) |
Operating profit/(loss) before depreciation, amortisation and impairment | 109 | 105 | 59 | 51 | (8) | (7) | (1) | (1) | 159 | 147 |
Depreciation and impairment | (39) | (28) | (31) | (28) | (5) | (4) | 1 | 1 | (74) | (59) |
Operating profit | 70 | 77 | 28 | 23 | (13) | (12) | 85 | 88 | ||
Share of profit from associates | 3 | 7 | 7 | 10 | 462 | 414 | 472 | 431 | ||
Change in fair value financial assets | 17 | 4 | 10 | 7 | 27 | 11 | ||||
Net financial income/(expenses) | (37) | (19) | (24) | (22) | 26 | 64 | (12) | (37) | (46) | (15) |
Profit before tax | 35 | 65 | 29 | 14 | 486 | 473 | (12) | (37) | 538 | 515 |
Tax income/(expense) | (12) | (20) | (2) | (2) | (8) | (5) | 3 | (20) | (27) | |
Profit for the period | 23 | 45 | 26 | 12 | 478 | 468 | (10) | (37) | 518 | 487 |
Non-controlling interests | (1) | (2) | (1) | (1) | (18) | (18) | (20) | (21) | ||
Profit to the equity holders of the company | 22 | 42 | 26 | 12 | 460 | 449 | (10) | (37) | 498 | 466 |
New Energy; one customer represents about 20% of the total revenue.
Maritime Services New Energy Strategic Holdings and Investments
2024: Total income USD mill
2024: Profit before tax USD mill
2023: Total income USD mill
2023: Profit before tax USD mill
16
15
303
291
831
732
486
473
14
65
29
35
Cont. note 2 Segment reporting
The amounts provided to the chief operating decision-makers with respect to total assets, liabilities and equity are measured in the same way as in the financial statements.
USD mill | Maritime Services | New Energy | Strategic Holdings and Investments | Eliminations | Total | |||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023* | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023* | |
Balance Sheet | ||||||||||
Assets | ||||||||||
Non current assets | ||||||||||
Deferred tax assets | 44 | 40 | 1 | 1 | 7 | 10 | 52 | 51 | ||
Goodwill and other intangible assets | 119 | 125 | 5 | 6 | 1 | 1 | 125 | 132 | ||
Properties and other tangible assets | 161 | 168 | 396 | 439 | 14 | 16 | 571 | 623 | ||
Right-of-use assets | 36 | 36 | 63 | 61 | 29 | 24 | (7) | (10) | 121 | 112 |
Investments in joint ventures and associates | 32 | 30 | 221 | 204 | 1 749 | 1 642 | 2 001 | 1 877 | ||
Financial assets to fair value | 5 | 86 | 82 | 86 | 87 | |||||
Other non current assets | 19 | 8 | 22 | 37 | (2) | (4) | 39 | 42 | ||
Total non current assets | 410 | 408 | 708 | 754 | 1 886 | 1 776 | (10) | (14) | 2 994 | 2 924 |
Current assets | ||||||||||
Inventories | 119 | 121 | 119 | 121 | ||||||
Current financial investments | 121 | 124 | 121 | 124 | ||||||
Other current assets | 278 | 261 | 85 | 76 | 111 | 17 | (106) | (11) | 368 | 342 |
Cash and cash equivalents | 115 | 144 | (48) | 21 | 88 | 59 | 155 | 224 | ||
Total current assets | 513 | 526 | 37 | 98 | 320 | 200 | (106) | (11) | 764 | 811 |
Total assets | 923 | 933 | 745 | 852 | 2 206 | 1 975 | (116) | (25) | 3 758 | 3 735 |
EQUITY AND LIABILITIES | ||||||||||
Equity | ||||||||||
Shareholders' equity | 172 | 177 | 368 | 382 | 2 039 | 1 772 | 2 580 | 2 332 | ||
Non-controlling interests | 2 | 2 | 4 | 6 | 109 | 148 | 115 | 155 | ||
Total equity | 174 | 179 | 373 | 388 | 2 148 | 1 921 | 2 695 | 2 488 | ||
Non current liabilities | ||||||||||
Pension liabilities | 14 | 15 | 1 | 1 | 6 | 7 | 21 | 23 | ||
Deferred tax liabilities | 12 | 11 | 12 | 12 | ||||||
Non current interest-bearing debt | 64 | 174 | 210 | 279 | 5 | 7 | (2) | (4) | 277 | 456 |
Non current lease liabilities | 27 | 28 | 61 | 61 | 26 | 22 | (7) | (9) | 108 | 101 |
Other non current liabilities | 5 | 6 | 3 | 5 | 8 | 11 | ||||
Total non current liabilities | 121 | 233 | 276 | 346 | 38 | 37 | (9) | (13) | 425 | 603 |
Current liabilities | ||||||||||
Current income tax | 9 | 8 | 1 | 3 | 1 | 12 | 10 | |||
Public duties payable | 9 | 10 | 7 | 7 | 1 | 1 | 17 | 18 | ||
Current interest-bearing debt | 105 | 23 | 27 | (105) | 23 | 27 | ||||
Current lease liabilities | 11 | 12 | 12 | 9 | 4 | 4 | (1) | (1) | 26 | 24 |
Other current liabilities | 493 | 492 | 54 | 73 | 13 | 13 | (1) | (11) | 559 | 567 |
Total current liabilities | 627 | 522 | 97 | 117 | 20 | 18 | (107) | (12) | 637 | 645 |
Total equity and liabilities | 923 | 933 | 745 | 852 | 2 206 | 1 975 | (116) | (25) | 3 758 | 3 735 |
Investments in tangible assets | 11 | 20 | 23 | 18 | 1 | 1 | 35 | 40 |
* The investment in Wallenius Wilhelmsen, accounted for as investment in associate, has been restated. See note 21 for more details.
31.12.2024: Shareholders\u2019 equity
31.12.2023: Shareholders\u2019 equity
Maritime Services
New Energy
Strategic Holdings and Investments
79%
76%
14%
16%
7%
8%
Cont. note 2 Segment reporting
The amounts provided to the chief operating decision-makers with respect to cash flows are measured in the same way as in the financial statements.
USD mill | Maritime Services | New Energy | Strategic Holdings and Investments | |||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Cash FLOW | ||||||
Profit before tax | 35 | 65 | 29 | 14 | 486 | 473 |
Change in fair value financial assets | (17) | (4) | (10) | (7) | ||
Share of (profit)/loss from joint ventures and associates | (3) | (7) | (7) | (10) | (462) | (414) |
Net financial (income)/expenses | 37 | 19 | 24 | 22 | (26) | (64) |
Depreciation, amortisation and impairment | 39 | 28 | 31 | 28 | 5 | 4 |
Change in other assets and liabilities | (62) | 1 | 26 | 5 | (5) | (13) |
Other (gain)/loss | (1) | (1) | (1) | (1) | ||
Net cash flow from operating activities | 46 | 105 | 85 | 55 | (12) | (21) |
Dividend received from joint ventures and associates | 6 | 7 | 3 | 11 | 305 | 169 |
Net sale/(investments) in fixed assets | (14) | (20) | (24) | (19) | (1) | (2) |
Net sale/(investments) in entities and segments | (7) | (10) | (35) | 2 | (30) | |
Net changes in other investments | (28) | 2 | 2 | 3 | (5) | |
Net cash flow from investing activities | (44) | (21) | (53) | (3) | 274 | 162 |
Net change of debt | (126) | (29) | (61) | (20) | (5) | (34) |
Net change in other financial items | (17) | (15) | (20) | (19) | (1) | (5) |
Dividend to shareholders and loan/dividend between segments | 112 | (27) | (20) | (227) | (67) | |
Net cash flow from financing activities | (31) | (70) | (101) | (39) | (233) | (107) |
Net change in cash and cash equivalents | (29) | 13 | (69) | 12 | 29 | 34 |
Cash and cash equivalents at the beginning of the period | 144 | 131 | 21 | 9 | 59 | 25 |
Cash and cash equivalents at the end of period | 115 | 144 | (48) | 21 | 88 | 59 |
GEOGRAPHICAL AREAS
Total income
Area income is based on the geographical location of the company and include gains from sale of assets.
Total assets
Area assets are based on the geographical location of the assets. The group\u2019s investment in Hyundai Glovis is classified in the geographical segment Asia & Africa.
Investments in tangible assets
Area capital expenditure is based on the geographical location of the assets.
Total income and total assets attributed to Norway as the group
companies\u2019 country of domicile
USD mill
2024
2023
Total income attributed to Norway
339
313
Total assets attributed to Norway
2 205
2 544
2024 Total assets
2023 Total assets
2024 Investment in tangible assets
2023 Investment in tangible assets
Europe Americas Asia & Africa Oceania
2024 Total income
2023 Total income
56%
55%
3%
2%
2%
69%
85%
13%
1%
1%
68%
67%
1%
30%
2%
28%
28%
2%
2%
3%
31%
32%
10%
10%
FINANCIAL REPORTING PRINCIPLES
The operating segments are reported in a manner consistent with the internal financial reporting provided to the chief operating decision-makers.
The chief operating decision-makers, who are responsible for allocating resources and assessing performance of the operating segments, have been identified as the board and group management team, consisting of the group chief executive officer (group CEO) and four executive managers.
Note 3 Revenue from contracts with customers
FINANCIAL REPORTING PRINCIPLES
Revenue derived from customer contracts are assessed using the five-step model,
where only customer contracts with a firm commitment is used as basis for revenue recognition.
USD mill | Maritime Services | New Energy | Strategic Holdings and Invest-ments | Group elimination | Total | |||||
Revenue segments | Ships Service | Port Services | Ship Manage-ment | Other/ elimination | Infra- structure | Technology& Decarbon-isation | Other/ elimination | 2024 | ||
Revenue from customers | 507 | 160 | 149 | 14 | 299 | 3 | 16 | (12) | 1 136 | |
Total | 507 | 160 | 149 | 14 | 299 | 3 | 16 | (12) | 1 136 | |
Timing of revenue recognition | ||||||||||
At a point in time | 507 | 10 | 3 | 16 | (12) | 525 | ||||
Over time | 160 | 149 | 4 | 299 | 611 | |||||
Total | 507 | 160 | 149 | 14 | 299 | 3 | 16 | (12) | 1 136 | |
2023 | ||||||||||
Revenue from customers | 477 | 155 | 87 | 14 | 283 | 2 | 5 | 16 | (11) | 1 027 |
Total | 477 | 155 | 87 | 14 | 283 | 2 | 5 | 16 | (11) | 1 027 |
Timing of revenue recognition | ||||||||||
At a point in time | 477 | 10 | 2 | 16 | (11) | 494 | ||||
Over time | 155 | 87 | 4 | 283 | 5 | 533 | ||||
Total | 477 | 155 | 87 | 14 | 283 | 2 | 5 | 16 | (11) | 1 027 |
MARITIME SERVICES
Ships service - Sale of goods
Wilhelmsen Ships Service offers a wide range of products to the maritime industry. The products are delivered to the customer at vessel or warehouse, which is also the point in time where control transfers to the customer and revenue is recognised net of any discounts. Some customers are entitled to retrospective volume discounts based on aggregate sales over a defined period. Revenue from these sales is recognised based on the price specified in the contract, net of the estimated volume discounts. Accumulated experience is used to estimate and provide for the discounts, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. A refund liability (included in other current liabilities) is recongised for expected volume discounts payable to customers in relations to sales made until the end of the reporting period. The contracts typically have payment terms of 30 days after delivery, and no significant financing component is identified.
Port services - Sale of services
Wilhelmsen Port Services offers ships agency and port services coverering2 200 port locations world wide. The agents facilitate efficent port calls for vessels, by procuring goods and services on behalf of the customers and assisting with required permits and custom declaration associated with the port call. Prior to the port call, the customer is required to make available funds for the expected disbursements (prefunding). Following the completion of the services, Wilhelmsen Port Services prepares a final disbursement account to the customer documenting all disbursement for the port call. Wilhelmsen Port Services is only acting as an agent, and control of goods and services transfers directly from the relevant suppliers to the customer. Wilhelmsen Port Services does not have inventory risk or the discretion on establishing prices. For the services rendered, Wilhelmsen Port Services is entitled to a fee that consist of a payment based on services delivered to customer.
Technical / crewing management
Wilhelmsen Ship Management offers technical management and crew management for all vessel segments. The contract durations follow industry standards, and will usually include an annual compensation payable in monthly arrears, in addition the ship owner is charged a monthly fee per crew onboard the vessel. The ship owner simultaniously receives and consumes the benefits provided by the entity, and hence revenue is recognised over time. Since Wilhelmsen Ship Management has the right to invoice the services delivered at the end of each month, this is also the basis for revenue recognition. The invoices are payable 30 days after the end of each month.
Other revenue in the Maritime Services segment
These revenues mainly consist of sale of ropes to non-maritime customers and chemicals for the consumer markets. Most of the sales are to wholesale customers.
Revenue is recognised net of any discounts at delivery. Time and place of delivery, and transfer of control, depend on agreed delivery terms but usually when the customer receives the goods.
Maritime Services also has an insurance agency business where Maritime Services is acting as an agent, and is entitled to a defined commission of the insurance premium. The comission is per year and recognised on a straight line basis through the year.
NEW ENERGY
Infrastructure
The New Energy segment, including NorSea Group operates supply bases and provides integrated logistics solution to the offshore industry. Revenues from external customers come from sale of services to the offshore industry (Operations), from the rental of properties (Property) and from the sale of services to other industries (Other). The duration of the operations contracts varies from three to 10 years. The pricing of the contracts is mainly based on delivered quantity via supply bases. NorSea group is a lessor for parts of the properties located on or near the bases. This is typically warehouses and some office facilities. This is ordinary operational lease contracts with a typical duration of two to seven years. For contracts with a duration of more than one year the rent is adjusted annually based on commonly used indexes. Lease revenue is usually recognised on a straight-line basis over the lease term.
Technology & decarbonisation
New Energy provides a range of technology and digital solutions to the maritime industry. Revenue is recognised net of any discounts at delivery. Revenue is recognised based on time and place of delivery, and transfer of control, or services rendered, and depend on agreed delivery terms but usually when the customer receives the goods and services.
STRATEGIC HOLDINGS AND INVESTMENTS
The operating revenue is related to office rent and facility services to external customers as well as to other segments.
INFORMATION ABOUT TRANSACTION PRICE ALLOCATED TO UNSATISFIED PERFORMANCE OBLIGATIONS
In general, the contracts with customers are of a short-term nature, except for the framework agreements described under New Energy Infrastructure and Ship Management. For infrastructure, the framework agreements can be for a period of up to 10 years, but do not define any minimum volume. For Ship Management contracts, the customer can terminate the contract without cause on a three months basis. Because of this there is no significant unsatisfied performance obligations as of
year end.
FINANCIAL REPORTING PRINCIPLES
Revenue derived from customer contracts are assessed using the five-step model,
where only customer contracts with a firm commitment is used as basis for revenue recognition.
FINANCIAL REPORTING PRINCIPLES
Interests in joint ventures and associates are accounted for using the equity method after initially being recognised at cost in the consolidated balance sheet.
Equity method:
Under the equity method of accounting, the investments are initially recognised at cost and adjusted subsequently to recognise the group\u2019s share of the post-acquisition profits after tax of the investee in income statement, and the group\u2019s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment. Sale and dilution of the share of associate companies is recognised in the income statement when the transactions occur for the group.
Where the group\u2019s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.
The carrying amount of equity-accounted investments is tested for impairment when impairment indicators are present.
When the group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a joint venture or an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate.
New Energy
Coast Center Base AS
Norway
50.0%
50.0%
KS Coast Center Base
Norway
50.0%
50.0%
CCB Energy Holding AS
Norway
50.0%
50.0%
Elevon AS
Norway
50.0%
S\u00f8rSea AS
Norway
50.0%
50.0%
Polar Lift AS
Norway
50.0%
50.0%
Sirev\u00e5g Laks AS
Norway
50.0%
Massterly AS
Norway
50.0%
50.0%
Topeka MPC Maritime AS
Norway
50.0%
50.0%
Maritime Services
Wilhelmsen Ahrenkiel group
Germany
50.0%
50.0%
Coast Center Base AS is a joint venture between NorSea Group and Bernh. Larsen Holding AS and was established in 1998. It delivers services related to logistics, quay, project and maintenance to the offshore industry in addition to maritime industry.
KS Coast Center Base is a joint venture between NorSea Group and Bernh. Larsen Holding AS and was established in 1973. It is mainly a property company owning infrastructure rented out to Coast Center Base AS.
CCB Energy Holding AS is a joint venture between NorSea Group and Bernh. Larsen Holding AS and was established in 2020. It owns shares in companies involved in production of hydrogen and climate neutral solutions.
Wilhelmsen Ahrenkiel Ship Management group is a ship manager of container vessels, tanker, bulk carriers, multi-purpose and heavy-lift vessels. The joint venture is owned by MPC Capital AC and Wilhelmsen Ship Management group.
The group increased the ownership in Elevon AS to 100% in 2024.
All companies are private companies and there are no quoted market price available for the shares.
There are no other contingent liabilities relating to the group\u2019s interest in the joint ventures.
Cont. note 4Investments in joint ventures and associates
USD mill | 2024 | 2023 |
Summarised financial information - according to the group's ownership | ||
Share of total income | 130 | 80 |
Share of operating expenses | (98) | (65) |
Share of depreciation | (21) | (5) |
Share of net financial items | (2) | (1) |
Share of tax expense | (2) | (1) |
Share of profit from joint ventures | 6 | 7 |
Share of equity (equity method) | ||
Book value | 43 | 41 |
Excess value (land and goodwill) | 53 | 59 |
Investments in joint ventures | 97 | 100 |
USD mill | 2024 | 2023 |
Joint ventures' assets, equity and liabilities (group's share of investments) | ||
Share of non current assets | 77 | 85 |
Share of cash and cash equivalents | 29 | 37 |
Share of current assets | 8 | 4 |
Total share of assets | 114 | 126 |
Share of equity at 01.01 | 41 | 43 |
Share of profit for the period | 5 | 7 |
Dividend | (4) | (10) |
Acquisitions | 7 | 1 |
Other comprehensive income | (6) | (1) |
Share of equity at 31.12 | 43 | 41 |
Share of non current liabilities | 45 | 53 |
Share of current liabilities | 26 | 33 |
Total share of liabilities | 71 | 85 |
Total share of equity and liabilities | 114 | 126 |
Cont. note 4Investments in joint ventures and associates
Set out below are the summarised financial information on a 100% basis for Coast Center Base (CCB), which in the opinion of the directors is a material joint venture to the group. Joint ventures not considered to be material, are defined under \u201cother\u201d (on a 100% basis).
USD mill | CCB | Other | ||
2024 | 2023 | 2024 | 2023 | |
SUMMARISED STATEMENT OF COMPREHENSIVE INCOME | ||||
Total income | 216 | 140 | 42 | 23 |
Operating expenses | (189) | (123) | (51) | (23) |
Net operating profit | 28 | 16 | (10) | |
Financial income/(expenses) | (3) | (3) | 3 | 4 |
Profit before tax | 24 | 13 | (7) | 3 |
Tax income/(expense) | (5) | (2) | ||
Profit after non-controlling interests | 19 | 11 | (7) | 3 |
Other comprehensive income | (12) | (2) | ||
Total comprehensive income | 19 | 11 | (19) | 1 |
The group's share of dividend from joint ventures | 4 | 9 | 1 |
USD mill | CCB | Other | ||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
SUMMARISED BALANCE SHEET | ||||
Non current assets | 133 | 159 | 22 | 10 |
Cash and cash equivalents | 7 | 2 | (13) | |
Other current assets | 55 | 72 | 9 | 6 |
Total assets | 196 | 231 | 33 | 3 |
Non current liabilities | 86 | 102 | (14) | (13) |
Current liabilities | 39 | 61 | 30 | 3 |
Total liabilities | 126 | 163 | 16 | (10) |
Net assets | 70 | 68 | 17 | 13 |
The information above reflects 100% of the amounts presented in the financial statements of the joint ventures, adjusted for any differences in accounting policies between the group and the joint ventures.
USD mill | CCB | Other | ||
2024 | 2023 | 2024 | 2023 | |
RECONCILIATION OF SUMMARISED FINANCIAL INFORMATION | ||||
Net assets at 01.01 | 68 | 77 | 13 | 9 |
Acquisition net assets | 14 | 3 | ||
Profit/(loss) for the period | 19 | 11 | (7) | 3 |
Other comprehensive income | (10) | (2) | (3) | 1 |
Dividend to shareholders | (8) | (19) | (2) | |
Net assets at 31.12 | 70 | 68 | 17 | 13 |
The group's share | 35 | 34 | 8 | 6 |
Land and goodwill / excess value | 46 | 51 | 8 | 8 |
Carrying value at 31.12 | 80 | 85 | 16 | 14 |
Cont. note 4Investments in joint ventures and associates
INVESTMENTS IN ASSOCIATED COMPANIES | |||
Country | 2024 | 2023 | |
Profit share* | |||
Strategic Holdings and Investments | |||
Wallenius Wilhelmsen ASA (WAWI) | Norway | 37.9% | 37.9% |
Hyundai Glovis Co., Ltd. (Hyundai Glovis) | Republic of Korea | 11.0% | 11.0% |
Maritime Services | |||
Diana Wilhelmsen Management Limited | Cyprus | 50.0% | 50.0% |
Barber Ship Management Germany GmbH & Co. KG | Germany | 50.0% | 80.0% |
WASM Steamship Acquisition GMBH & CO. KG | Germany | 50.0% | 50.0% |
ZEABORN Navigation GmbH & Co. KG | Germany | 50.0% | |
Barklav (Hong Kong) Limited | Hong Kong | 50.0% | 50.0% |
BWW LPG Limited | Hong Kong | 49.0% | |
Hecla Emissions Management AS | Norway | 50.0% | 50.0% |
Wilhelmsen-Smith Bell Manning, Inc | Philippines | 50.0% | 50.0% |
WilhMar Manning Philippines Inc. | Philippines | 24.9% | 24.9% |
Denholm Port Services Limited | United Kingdom | 40.0% | 40.0% |
Triangle Shipping Agencies LLC | United Arab Emirates | 50.0% | 50.0% |
Barwil Abu Dhabi Ruweis LLC | United Arab Emirates | 51.0% | 50.0% |
Wilhelmsen WPS Dubai Port Services LLC | United Arab Emirates | 50.0% | 50.0% |
Wilhelmsen Port Services LLC - Fujairah | United Arab Emirates | 42.5% | 42.5% |
Almoayed Wilhelmsen Port Services (Ltd) W.L.L | Bahrain | 50.0% | 50.0% |
Wilhelmsen Huayang Port Services (Shanghai) Co. Ltd. | China | 49.0% | 50.0% |
Wilhelmsen Huayang Port Services (Beijing) Co., Ltd | China | 50.0% | 50.0% |
Barwil Arabia Shipping Agencies SAE | Egypt | 50.0% | 50.0% |
Wilhelmsen Port Services Georgia LLC | Georgia | 50.0% | 50.0% |
Wilhelmsen Hyopwoon Port Services Ltd | Republic of Korea | 50.0% | 50.0% |
Alghanim Wilhelmsen Shipping Co.W.L.L | Kuwait | 49.0% | 49.0% |
Diize B.V. | Netherlands | 50.0% | 50.0% |
Wilhelmsen-Smith Bell Shipping, Inc. | Philippines | 49.0% | 49.0% |
Wilhelmsen-Smith Bell (Subic), Inc. | Philippines | 50.0% | 50.0% |
Wilhelmsen Ships Service (Private) Limited | Pakistan | 50.0% | |
Perez Torres Portugal Lda | Portugal | 50.0% | 50.0% |
Binzagr Barwil Marine Transport Co. Ltd. | Saudi Arabia | 50.0% | 50.0% |
Pelagus 3D Pte Ltd | Singapore | 50.0% | 50.0% |
Wilhelmsen Sunnytrans Co., Ltd | Vietnam | 50.0% | 50.0% |
Krew-Barwil (Pty) Ltd. | South Africa | 49.0% | 49.0% |
New Energy | |||
Konciv AS | Norway | 38.2% | 43.1% |
Hammerfest N\u00e6ringsinvest AS | Norway | 32.3% | 32.2% |
Strandparken Holding AS | Norway | 33.1% | 33.1% |
Dusavik Utvikling AS | Norway | 33.5% | 33.5% |
Risavika Eiendom AS | Norway | 42.0% | 42.0% |
Love Milj\u00f8base AS | Norway | 33.3% | 33.3% |
CCB Subsea AS | Norway | 42.5% | 42.5% |
Polar Algae AS | Norway | 52.0% | |
WindWorks Jelsa AS | Norway | 38.5% | 38.5% |
Energy Innovation Holding AS | Norway | 50.0% | 50.0% |
AM North AS | Norway | 33.3% | 33.3% |
RTN AS | Norway | 50.0% | 50.0% |
Eld\u00f8yane N\u00e6ringspark AS | Norway | 50.0% | 50.0% |
Nordlys.Studio AS | Norway | 46.0% | |
Topeka Hagland Greenbulk AS | Norway | 50.0% | 50.0% |
Reach Subsea ASA | Norway | 18.4% | 19.2% |
Edda Wind ASA | Norway | 31.0% | 25.4% |
*For an overview of legal ownership, refer to the group structure.
Cont. note 4Investments in joint ventures and associates
USD mill | 2024 | 2023* |
Share of profit/(loss) from associates | ||
WAWI | 372 | 324 |
Hyundai Glovis | 90 | 89 |
Associates Maritime Services | 6 | 5 |
Reach Subsea | 3 | 5 |
Edda Wind | (3) | 1 |
Other associates New Energy | (2) | (1) |
Share of profit/(loss) from associates | 466 | 423 |
Book value of material associates | ||
WAWI * | 1 077 | 967 |
Hyundai Glovis | 672 | 675 |
Reach Subsea | 23 | 23 |
Edda Wind | 106 | 84 |
Specification of share of equity and profit/loss | ||
Share of equity at 01.01 | 1 777 | 1 489 |
Share of profit for the year | 466 | 424 |
Capital increase/acquisition of associates in Maritime Services | 4 | 4 |
Capital increase/acquisition of associates in New Energy | 38 | 35 |
Disposal of associates in Maritime Services | (3) | |
Disposal of associates in New Energy | (4) | |
Dividend | (307) | (160) |
Other comprehensive income | (67) | (14) |
Share of equity at 31.12 | 1 905 | 1 777 |
* The investment in Wallenius Wilhelmsen, accounted for as investment in associate, has been restated. See note 21 for more details.
There are no contingent liabilities relating to the group\u2019s interest in the associates.
The group holds a 37.9% share in listed company Wallenius Wilhelmsen (WAWI), headquartered at Lysaker, Norway. WAWI is a market leader in RoRo shipping and vechile logistics, managing the distrubution of cars, trucks, rolling equipment and breakbulk to customers all over the world. WAWI controls more than 125 vessels and servicing 15 trade routes to six continents, together with a global inland distribution network, 66 processing centres, and eight marine terminals.
The group holds a 11.0% share in Hyundai Glovis, a logistics company headquartered in Seoul, Republic of Korea, listed on the Korean Stock Exchange. Hyundai Glovis\u2019 principal activity is logistics and distribution services. The company provides overseas logistics services, including vehicle export logistics, air freight forwarding, ocean freight forwarding and international express service. Hyundai Glovis also has a growing shipping segment with its own fleet of car carriers and bulk carriers.
The group holds a 18.4% ownership in the listed company Reach Subsea ASA. During the year the group sold 9.9 million shares for a consideration of USD 7 million, subsequently the group exercised 9.9 million warrants with strike price of NOK 3.28 per share, with the consideration amounting to USD 3 million. The group holds additional 44.7 million warrants in Reach Subsea with a strike price of NOK 3.28, with
the fair value of the warrants amounting to USD 15.7 million at 31 December 2024. The warrants are presented as current financial derivatives in the groups balance sheet and can be exercised at any time up until expiry on 15 March 2025. Reach Subsea group offers subsea services as subcontractor and/or directly to end clients. The core business of the group is based on modern, high spec work ROVs operated by highly qualified offshore personnel, and supported by competent onshore engineering resources.
The group holds a 31.0% ownership in the listed company Edda Wind ASA. During the year the group did a capital raise of USD 12 million and acquired additional shares of USD 14 million. Edda Wind owns and operates service vessels supporting the maintenance work conducted during the commissioning and operation of offshore wind parks.
Set out below are the summarised financial information for, on a 100% basis, for WAWI and Hyundai Glovis, which, in the opinion of the directors, are the material associates to the group.
Associates not considered to be material are defined under \u201dother\u201d (on a 100% basis).
Cont. note 4Investments in joint ventures and associates
USD mill | WAWI | Hyundai Glovis | Other | |||
2024 | 2023* | 2024 | 2023 | 2024 | 2023 | |
SUMMARISED STATEMENTOF COMPREHENSIVE INCOME | ||||||
Total income | 5 308 | 5 149 | 20 797 | 19 634 | 392 | 302 |
Operating expenses | (4 019) | (3 924) | (19 513) | (18 364) | (343) | (252) |
Net operating profit | 1 289 | 1 225 | 1 283 | 1 270 | 49 | 50 |
Financial income/(expenses) | (151) | (183) | (145) | (166) | (23) | (3) |
Profit before tax | 1 138 | 1 042 | 1 138 | 1 104 | 26 | 47 |
Tax income/(expense) | (73) | (68) | (319) | (293) | (6) | (8) |
Profit for the period | 1 065 | 974 | 819 | 811 | 21 | 39 |
Non-controlling interests | (93) | (121) | (5) | (2) | ||
Profit after non-controlling interests | 972 | 853 | 814 | 809 | 21 | 39 |
Other comprehensive income | (17) | (1) | 112 | 11 | (35) | |
Total comprehensive income (shareholder's equity) | 955 | 852 | 926 | 820 | (14) | 39 |
The groups\u2019 share of dividend from associates | 280 | 136 | 19 | 19 | 7 | 5 |
USD mill | WAWI | Hyundai Glovis | Other | |||
31.12.2024 | 31.12.2023* | 31.12.2024 | 31.12.2024 | 31.12.2024 | 31.12.2023 | |
SUMMARISED BALANCE SHEET | ||||||
Non current assets | 5 750 | 5 853 | 4 738 | 4 596 | 945 | 743 |
Other current assets | 1 257 | 985 | 4 465 | 4 806 | 149 | 123 |
Cash and cash equivalents | 1 393 | 1 705 | 2 221 | 1 966 | 64 | 136 |
Total assets | 8 400 | 8 543 | 11 424 | 11 368 | 1 158 | 1 003 |
Non current liabilities | 2 728 | 3 163 | 1 850 | 1 909 | 395 | 423 |
Current liabilities | 2 351 | 2 301 | 3 601 | 3 460 | 257 | 199 |
Non-controlling interests | 9 | 29 | 11 | 11 | ||
Total liabilities | 5 087 | 5 493 | 5 462 | 5 381 | 652 | 623 |
Net assets | 3 313 | 3 051 | 5 962 | 5 987 | 506 | 380 |
* Wallenius Wilhelmsen has restated their financial statements for 2023. Figures have been updated accordingly.
The information above reflects the 100% amount presented in the financial statements of the associates, adjusted for differences in accounting policies between the group and the associates.
Cont. note 4Investments in joint ventures and associates
USD mill | WAWI | Hyundai Glovis | Other | |||
2024 | 2023* | 2024 | 2023 | 2024 | 2023 | |
RECONCILIATION OF SUMMARISED FINANCIAL INFORMATION | ||||||
Net asset at 01.01 | 3 051 | 2 826 | 5 987 | 5 472 | 380 | 290 |
Profit for the period | 972 | 853 | 819 | 809 | 21 | 39 |
Net assets of acquired associates/capital increase | 64 | 132 | ||||
Convertion KRW to USD and EUR to USD | (784) | (143) | (35) | (59) | ||
Other comprehensive income | (17) | (273) | 112 | 11 | (3) | |
Disposal | (12) | |||||
Transactions with non-controlling interests | 47 | 4 | 2 | (4) | ||
Dividend | (739) | (359) | (172) | (164) | (16) | (18) |
Net assets at 31.12 | 3 313 | 3 051 | 5 962 | 5 987 | 399 | 380 |
The group\u2019s | 1 255 | 1 155 | 656 | 659 | 172 | 135 |
Goodwill and other intangible assets | 16 | 17 | 2 | 8 | ||
Classification NCI | (137) | (145) | ||||
Currency | (18) | (9) | ||||
Fair value adjustment vessels and goodwill ** | (40) | (43) | ||||
Carrying value at 31.12 | 1 077 | 967 | 672 | 675 | 156 | 135 |
* Wallenius Wilhelmsen has restated their financial statements for 2023. Figures have been updated accordingly.
** The share price and market value of Wallenius Wilhelmsen ASA (WAWI) at the merger (April 2017) was lower than book value of equity in WAWI.
The group market value of the investment in Wallenius Wilhelmsen ASA at 31 December 2024 was USD 1 320 million (2023: USD 1 408 million).
WAWI is a separately listed company on Oslo B\u00f8rs. The market capitalisation of its shares at year end is 22% higher (2023: 46% higher) than the carrying amount of the investment, as accounted for under the equity method. The group has not identified any impairment indicators for the investment.
The group market value of the investment in Hyundai Glovis at 31 December 2024 was USD 663 million (2023: USD 610 million). The shares have historically traded at or below a market capitalisation to book value of equity ratio of 1 without this indicating a significant decline of the asset\u2019s value. Value in use calculations prepared by management of Hyundai Glovis indicate that the recoverable amount is higher than the Hyundai Glovis\u2019 carrying amount for key assets. The higher underlying value of the share is supported by external market analysts. Based on this, the recoverable amount attributable to the shares in Hyundai Glovis is assessed to be higher than the group\u2019s carrying amount.
The group market value of the investment in Edda Wind ASA at 31 December 2024 was USD 106 million (2023: USD 84 million). Edda Wind is a separately listed company on Oslo B\u00f8rs. The market capitalisation of its shares at year end are 37% lower (2023: 16% lower) than the carrying amount of the investment, as accounted for under the equity method. The market price is an objective indicator of impairment. In spite of this, the value in use calculation based on projections prepared by management of Edda Wind, indicates that the recoverable amount is higher than Edda Winds carrying amounts for the key assets of Edda Wind. This impairment test has been assessed by the management in the Wilhelmsen group, and adjusted for factors related to the financing of Edda Wind in order to assess a reasonable value in use for the investment in the shares of Edda Wind. Based on this assessment, the recoverable amount attributable to the shares is higher than the carrying amount. The recoverable amount is particularly sensitive to utilisation and/or charter rates, and interest rate levels for the financing within Edda Wind.
USD mill | 2024 | 2023* |
RECONCILIATION OF THE GROUP\u2019S INCOME STATEMENT AND BALANCE SHEET | ||
Share of profit from joint ventures | 6 | 7 |
Share of profit from associates | 466 | 423 |
Share of profit from joint ventures and associates | 472 | 431 |
Share of equity from joint ventures including net excess value | 97 | 100 |
Share of equity from associates including net excess value | 1 905 | 1 777 |
Share of equity from joint ventures and associates including net excess value | 2 001 | 1 877 |
* Wallenius Wilhelmsen has restated their financial statements for 2023. Figures have been updated accordingly.
The group\u2019s share of profit, after tax from joint ventures and associates is recognised in the income statement. All joint ventures and associates are equity consolidated.
Note 5 Principal subsidiaries
Business office country | Nature of business | Proportion of ordinary shares directly held by parent (%) | Proportion of ordinary shares held by the group (%) | |
Maritime Services | ||||
Wilhelmsen Maritime Services AS | Norway | Maritime services | 100.00% | 100.00% |
Wilhelmsen Ships Service AS | Norway | Maritime products and services | 100.00% | |
Wilhelmsen Port Services AS | Norway | Port services | 100.00% | |
Wilhelmsen Ship Management Holding AS | Norway | Ship management | 100.00% | |
Wilhelmsen Chemical AS | Norway | Manufacturing | 100.00% | |
Wilhelmsen Global Business Services AS | Norway | Shared services | 100.00% | |
New Energy | ||||
Wilhelmsen New Energy AS | Norway | New energy investments | 100.00% | 100.00% |
NorSea Group AS | Norway | Infrastructure and supply services | 99.37% | |
Strategic Holdings and Investments | ||||
Treasure ASA | Norway | Investment | 84.16% | 84.16% |
Wilh. Wilhelmsen Holding Invest Malta Ltd | Malta | Investment | 100.00% | 100.00% |
The group\u2019s principal subsidiaries at 31 December 2024 are set out above. Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly by the group, and the proportion of ownership interests held equals the voting rights held by the group. The country of incorporation or registration is also their principal place of headquarter of subgroups.
During 2024, the group acquired Zeaborn Ship Management. The acquisition was done in partnership between Wilhelmsen Ship Management, a fully owned subsidiary of Wilh. Wilhelmsen Holding ASA, and MPC Capital. Zeaborn was integrated partially under the Maritime Services segment and partially in the join venture Wilhelmsen Ahrenkiel group.
During 2023, the group acquired the subsidiary Navadan A/S through business combination, reported under the Maritime Services segment. The investment cost, net after cash in new subsidiaries was USD 11 million.
Note 6 Employee benefits
FINANCIAL REPORTING PRINCIPLES
Employee benefits include wages, salaries, social security contributions, sick leave, parental leave and other employee benefits. The benefits are recognised in the period in which the associated services are rendered by the employees.
For cash\u2013settled payments/bonus plans and other cash-settled payments, a liability equal to the portion of services received is recognised at fair value determined at each balance sheet date.
USD mill | Note | 2024 | 2023 |
Payroll | (303) | (278) | |
Payroll tax | (41) | (36) | |
Pension cost | 11 | (25) | (23) |
Welfare and other personnel expenses | (54) | (50) | |
Total employee benefits | (423) | (387) | |
2024 | 2023 | ||
Number of employees: | |||
Group companies in Norway | 1 405 | 1 217 | |
Group companies abroad | 4 361 | 4 099 | |
Total employees | 5 766 | 5 316 | |
Average number of employees | 5 541 | 5 174 | |
Seagoing personnel Ship Management | 12 231 | 11 340 | |
EXPENSED AUDIT FEE | |||
USD mill | 2024 | 2023 | |
Statutory audit | (2) | (2) | |
Tax advisory fee | (1) | (1) | |
Total expensed audit fee | (4) | (3) |
The fees above cover the group expenses to all external auditors and tax advisors.
Note 11 Pension
Description of the pension scheme
The group\u2019s defined contribution pension schemes for Norwegian employees are with financial institutions providing solutions based on investment funds.
Subsidiaries outside Norway have separate schemes for their employees in accordance with local rules, and the pension schemes are for the material part defined contribution plans.
The group has a supplementary pension plan, a contribution plan for all Norwegian employees with salaries exceeding 12 times the Norwegian National Insurance base amount (G). However, the group still has obligations for some employees related to salaries exceeding 12G mainly financed from operations.
In addition, the group has agreements on early retirement. These obligations are mainly financed from operations.
The group has obligation towards one employee in the group\u2019s senior executive management. The obligation is mainly covered through group annuity policies in Storebrand.
Pension costs and obligations include payroll taxes. No provision has been made for payroll tax in pension plans where the plan assets exceed the plan obligations.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.
Cont. note 11 Pension
Funded | Unfunded | |||
2024 | 2023 | 2024 | 2023 | |
Number of people covered by pension schemes at 31.12 | ||||
In employment | 3 | 4 | 6 | 5 |
On retirement (inclusive disability pensions) | 131 | 138 | 24 | 23 |
Total number of people covered by pension schemes | 134 | 142 | 30 | 28 |
Expenses | Commitments | |||
2024 | 2023 | 31.12.2024 | 31.12.2023 | |
Financial assumptions for the pension calculations: | ||||
Discount rate | 3.70% | 3.60% | 3.90% | 3.70% |
Anticipated pay regulation | 3.50% | 3.50% | 3.25% | 3.50% |
Anticipated increase in National Insurance base amount (G) | 3.50% | 3.50% | 3.25% | 3.50% |
Anticipated regulation of pensions | 2.40% | 1.70% | 1.90% | 2.40% |
USD mill | 2024 | 2023 |
Pension expenses | ||
Service cost/net interest cost | (1) | |
Cost of contribution plan | (24) | (22) |
Pension expenses | (25) | (23) |
Total remeasurements included in OCI | 1 | (1) |
USD mill | 31.12.2024 | 31.12.2023 |
Pension obligations | ||
Defined benefit obligation at end of prior year | 37 | 37 |
Effect of changes in foreign exchange rates | (2) | (2) |
Service cost | 1 | |
Interest expense | 1 | 1 |
Remeasurements - change in assumptions | (1) | 1 |
Pension obligations at 31.12 | 36 | 37 |
Fair value of plan assets | ||
Fair value of plan assets at end of prior year | 14 | 15 |
Interest income | 1 | |
Benefit payments from plan | (1) | |
Return on plan assets (excluding interest income) | (1) | |
Gross pension assets at 31.12 | 15 | 14 |
Defined benefit obligation | 36 | 37 |
Fair value of plan assets | 15 | 14 |
Net liability at 31.12 | 21 | 23 |
FINANCIAL REPORTING PRINCIPLES
Employee benefits include wages, salaries, social security contributions, sick leave, parental leave and other employee benefits. The benefits are recognised in the period in which the associated services are rendered by the employees.
For cash\u2013settled payments/bonus plans and other cash-settled payments, a liability equal to the portion of services received is recognised at fair value determined at each balance sheet date.
Note 7 Tangible and intangible assets
FINANCIAL REPORTING PRINCIPLES
Tangible assets
The group uses the cost method for property, plant and equipment.
Tangible assets are depreciated over the following expected useful lives:
Properties: | 10-50 years |
Other tangible assets: | 3-10 years |
TANGIBLE ASSETS | |||
USD mill | Properties | Other tangible assets | Total tangible assets |
2024 | |||
Cost at 01.01 | 730 | 243 | 973 |
Acquisition | 19 | 16 | 35 |
Reclass/disposal | (14) | (6) | (20) |
Currency translation differences | (73) | (14) | (87) |
Cost at 31.12 | 662 | 239 | 900 |
Accumulated depreciation and impairment at 01.01 | (258) | (92) | (350) |
Depreciation | (17) | (12) | (29) |
Reclass/disposal | 12 | 6 | 18 |
Currency translation differences | 24 | 8 | 32 |
Accumulated depreciation and impairment at 31.12 | (239) | (91) | (330) |
Carrying amounts at 31.12 | 423 | 148 | 571 |
2023 | |||
Cost at 01.01 | 692 | 226 | 918 |
Acquisition | 16 | 23 | 40 |
Business combinations | 3 | 3 | |
Reclass/disposal | 33 | (7) | 26 |
Currency translation differences | (14) | 1 | (13) |
Cost at 31.12 | 730 | 243 | 973 |
Accumulated depreciation and impairment at 01.01 | (206) | (89) | (295) |
Depreciation | (18) | (11) | (29) |
Reclass/disposal | (36) | 7 | (29) |
Impairment | (1) | (1) | |
Currency translation differences | 3 | 1 | 4 |
Accumulated depreciation and impairment at 31.12 | (258) | (92) | (350) |
Carrying amounts at 31.12 | 472 | 151 | 623 |
Economic lifetime | 10-50 years | 3-10 years | |
Depreciation schedule | Linear | Linear |
Climate related considerations
Physical climate risk such as changes to weather patterns and severity of rain, flooding, wind and other climate related events are taken into consideration when assessing the useful life of assets.
The group has not identified material assets to have significantly shorter life due to climate related risks.
FINANCIAL REPORTING PRINCIPLES
Tangible assets
The group uses the cost method for property, plant and equipment.
Tangible assets are depreciated over the following expected useful lives:
Properties: | 10-50 years |
Other tangible assets: | 3-10 years |
Cont. note 7 Tangible and intangible assets
FINANCIAL REPORTING PRINCIPLES
Intangible assets
The group uses the cost method for intangible assets. Amortisation of intangible fixed assets is based on the following expected useful lives:
Goodwill: | Indefinite life |
Software: | 3-5 years |
Other intangible assets: | 5-10 years |
INTANGIBLE ASSETS | ||||
USD mill | Goodwill | Software | Other intangible assets | Total intangible assets |
2024 | ||||
Cost at 01.01 | 126 | 35 | 46 | 207 |
Acquisition | 5 | 5 | ||
Business combinations | 5 | 13 | 18 | |
Reclass/disposal | (3) | (7) | (10) | |
Currency translation differences | (10) | (4) | (5) | (18) |
Cost at 31.12 | 118 | 37 | 47 | 202 |
Accumulated amortisation and impairment at 01.01 | (22) | (28) | (26) | (75) |
Amortisation/impairment | (7) | (3) | (8) | (18) |
Reclass/disposal | 1 | 7 | 8 | |
Currency translation differences | 2 | 3 | 3 | 7 |
Accumulated amortisation and impairment at 31.12 | (26) | (28) | (24) | (77) |
Carrying amounts at 31.12 | 92 | 9 | 23 | 125 |
In 2024 the group recognised goodwill of USD 5 million and customer contracts of USD 13 million from the acquisition of Zeaborn Ship Management. | ||||
2023 | ||||
Cost at 01.01 | 112 | 37 | 52 | 201 |
Acquisition | 3 | 3 | ||
Business combinations | 17 | (8) | 10 | |
Reclass/disposal | (1) | (4) | 2 | (3) |
Currency translation differences | (2) | (1) | (3) | |
Cost at 31.12 | 126 | 35 | 46 | 207 |
Accumulated amortisation and impairment at 01.01 | (24) | (29) | (19) | (73) |
Amortisation/impairment | (4) | (3) | (8) | |
Reclass/disposal | 3 | 5 | (4) | 4 |
Currency translation differences | 1 | |||
Accumulated amortisation and impairment at 31.12 | (22) | (28) | (26) | (75) |
Carrying amounts at 31.12 | 104 | 7 | 20 | 132 |
In 2023 the group recognised goodwill of USD 17 million. USD 9 million was recognised from the acquisition of Navadan and USD 8 million was reclassified from other intangible asset to goodwill related to the acquisition of Vopak in December 2022.
Cont. note 7 Tangible and intangible assets
FINANCIAL REPORTING PRINCIPLES
Impairment of goodwill and other non-financial assets
At each reporting date, the group reviews the carrying amounts of its goodwill, tangible assets, intangible assets and right-of-use assets to determine whether there is any indication of impairment.
If any indication of impairment exists, or when annual impairment testing for an asset is required (goodwill), the asset\u2019s recoverable amount is estimated. Where the asset does not generate cash flows that are independent from other assets, the group estimates the recoverable amount of the cash-generating unit (CGU) to which the asset belongs. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
The recoverable amount is the highest of the fair value less costs of disposal and value in use. In assessing value in use, the net present value (NPV) of future estimated cash flows from the employment of the asset is determined. The discount rate applied is the weighted average cost of capital (WACC) reflecting the required rate of return of the asset or CGU. If the recoverable amount is estimated to be less
than the carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. Impairment losses are recognised in the income statement.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, limited to the carrying amount that would have been determined had no impairment loss been recognised in prior years. An impairment loss for goodwill is not subsequently reversed.
Goodwill acquired through business combinations has for the purpose of impairment testing been allocated to the relevant CGU or group of CGUs expected to benefit from the business combination. CGUs or groups of CGUs to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the CGU or group of CGUs may be impaired. If the recoverable amount of the CGU or group of CGUs to which goodwill has been allocated is less than the carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill and then to the other assets, pro-rata on the basis of the carrying amount of each asset in the CGU or group of CGUs.
Impairment testing of goodwill and other intangible assets
Goodwill
Goodwill is mainly related to the Maritime Services segment (USD 90 million). The goodwill figures are originally calculated in NOK, EUR, DKK and USD (2023: NOK, EUR, DKK and USD). Goodwill is tested for impairment annually.
For the purpose of impairment testing, goodwill is allocated to the respective cash generating units within the various business areas.
As of 31 December 2024, management has performed impairment testing for the group\u2019s recognised goodwill. Based on the tests performed, an impairment of USD 7 million was recognised in 2024 (2023: nil) for goodwill related to business combinations in business units within the Maritime Services segment. The impairment was attributed to changes in market conditions and corresponding changes in the unit\u2019s business model, where the goodwill related to the unit was fully impaired.
When performing the goodwill impairment test, the recoverable amount is based on value in use calculations. In calculating the value in use, the group considers relevant
key assumptions. Risk factors related to climate and environmental changes as well as regulatory changes responding to such changes are included in the assessment of the recoverable amount. Such factors are assessed in the same way as other uncertain input factors, impacting cash flow estimates used for the tests.
Recoverable amount has been estimated by using an Enterprise value/EBITDA multiple (see note 23 for definition of the terms). The forecasted EBITDA is based on historical levels for EBITDA in each CGU. The multiples are estimated to be in the range of 6 - 9, which management believes is a fair estimate of market multiples for the relevant CGU\u2019s.
Cash flows were projected based on actual operating results and next year\u2019s forecast. Cash flows based on a five-year strategy plan period with terminal value (terminal growth rate 1%) were extrapolated using the following key assumptions:
2024 | 2023 | |
USD/NOK | 11.35 | 10.13 |
Multiple | 7.5 | 7.5 |
Growth rate | 1-4% | 1-4% |
Increase in material cost | 4-7% | 4-7% |
Increase in pay and other remuneration | 3-5% | 3-5% |
Increase in other expenses | 3-5% | 3-5% |
The values assigned to the key assumptions represent management\u2019s assessment of future trends in the maritime industry and are based on both external sources and internal sources.
For CGUs where the estimated recoverable amount indicate that the unit may be impaired, additional value in use calculations are performed using discounted future expected cash flow taking into consideration possible variations and scenarios using weighted average expected cash flows. The group applied a discount rate based on a weighted average cost of captial (WACC) for the CGU. The discount rate used for 2024 is 10%.
Other intangible assets
The group recognised a USD 4 million impairment loss related to discontinuation of a brand name.
No reasonable change in any of the key assumptions on which management has based its determination of the recoverable amount would cause the carrying amount to exceed its recoverable amount and indicate additional impairment indicators as of 31 December 2024.
Cont. note 7 Tangible and intangible assets
FINANCIAL REPORTING PRINCIPLES
Intangible assets
The group uses the cost method for intangible assets. Amortisation of intangible fixed assets is based on the following expected useful lives:
Goodwill: | Indefinite life |
Software: | 3-5 years |
Other intangible assets: | 5-10 years |
Note 8 Right-of-use assets and lease liabilities
FINANCIAL REPORTING PRINCIPLES
Identifying a lease
At the inception of a contract, the group assesses whether the contract is, or contains a lease. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
For lease contracts containing a non-lease component, the non-lease component is separated and expensed in the income statement based on the relative stand-alone price. If an observable stand-alone price is not readily available, the group estimates this price by the use of observable information.
Recognition of leases and exemptions:
At the lease commencement date, the group recognises a lease liability and corresponding right-of-use asset for all lease agreements in which it is the lessee, except for the following exemptions applied:
\u2022\tShort-term leases (defined as 12 months or less)
\u2022\tLow value assets
For these leases, the group recognises the lease payments as other operating expenses in the income statement when they incur.
Measuring the lease liability:
The lease liability is initially measured at the present value of the lease payments for the right to use the underlying asset during the lease term not paid at the commencement date. The lease term represents the noncancellable period of the lease, plus any period covered by an extension option period if the group expects to exercise this option.
The group does not include variable lease payments in the lease liability arising from contracted index regulations subject to future events. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications, or to reflect adjustments in lease payments due to an adjustment in an index or rate.
Measuring the right-of-use asset
The right-of-use asset is initially measured at cost.
Subsequent measurements of right-of-use assets follow the same principles as for other non-financial assets, except that the right-of-use asset is depreciated from the commencement date to the earlier of the lease term and the remaining useful life.
Cont. note 8 Right-of-use assets and lease liabilities
RIGHT-OF-USE ASSETS
The group leases several assets such as buildings, land, machinery, equipment and vehicles. The group\u2019s right-of-use assets are categorised and presented in the table below:
USD mill | Properties and land | Machinery, equipment and vehicles | Total |
2024 | |||
Cost at 01.01 | 160 | 19 | 179 |
Additions including remeasurements | 40 | 13 | 53 |
Reclass/disposal | (19) | (2) | (21) |
Change of estimates | (1) | (1) | |
Currency exchange differences | (14) | (2) | (16) |
Cost at 31.12 | 167 | 28 | 194 |
Accumulated depreciation and impairment at 01.01 | (60) | (7) | (66) |
Depreciation | (22) | (4) | (27) |
Reclass/disposal | 12 | 1 | 13 |
Currency exchange differences | 5 | 1 | 6 |
Accumulated depreciation and impairment at 31.12 | (65) | (9) | (74) |
Carrying amounts at 31.12 | 102 | 19 | 121 |
USD mill | Properties and land | Machinery, equipment and vehicles | Total |
2023 | |||
Cost at 01.01 | 134 | 15 | 149 |
Additions including remeasurements | 28 | 8 | 36 |
Reclass/disposal | (7) | (4) | (12) |
Change of estimates | 5 | 5 | |
Cost at 31.12 | 160 | 19 | 179 |
Accumulated depreciation and impairment at 01.01 | (40) | (6) | (47) |
Depreciation | (18) | (3) | (21) |
Reclass/disposal | 3 | 3 | 6 |
Change of estimates | (5) | (5) | |
Accumulated depreciation and impairment at 31.12 | (60) | (7) | (66) |
Carrying amounts at 31.12 | 100 | 12 | 112 |
Lower of remaining lease term or economic life | 5-12 years | 3-8 years | |
Depreciation method | Linear | Linear |
Climate related considerations
Physical climate risk such as changes to weather patterns and severity of rain, flooding, wind and other climate related events are taken into consideration when assessing the remaining lease term and termination options related to right-of-use
assets. The group has not identified material right-of-use assets where reduction in lease term or termination is deemed relevant due to climate related risks.
Cont. note 8 Right-of-use assets and lease liabilities
Lease liabilities | ||
USD mill | 2024 | 2023 |
Undiscounted lease liabilities and maturity of cash outflows | ||
Less than 1 year | (31) | (30) |
1-2 years | (27) | (24) |
2-3 years | (17) | (20) |
3-4 years | (15) | (13) |
4-5 years | (12) | (11) |
More than 5 years | (75) | (81) |
Total undiscounted lease liabilities at 31.12 | (176) | (179) |
USD mill | 2024 | 2023 |
Summary of the lease liabilities in the financial statements | ||
Total lease liabilities at 01.01 | 125 | 116 |
Lease liabilities recognised in the year | 53 | 36 |
Lease liabilities derecognised in the year | (8) | (5) |
Cash payments for the principal portion of the lease liability | (34) | (28) |
Interest expense on lease liabilities | 7 | 5 |
Change of estimates | 2 | |
Currency exchange differences | (11) | 1 |
Total lease liabilities at 31.12 | 134 | 125 |
Current lease liabilities | 26 | 24 |
Non-current lease liabilities | 108 | 101 |
Total lease liabilities at 31.12 | 134 | 125 |
The leases do not contain any restrictions on the group\u2019s dividend policy or financing.
The group does not have significant residual value guarantees related to its leases to disclose.
USD mill | 2024 | 2023 |
Summary of other lease expenses recognised in income statement | ||
Variable lease payments expensed in the period | (7) | (8) |
Operating expenses related to short-term leases (including short-term low value assets) | (2) | (2) |
Operating expenses related to low value assets (excluding short-term leases included above) | (2) | (2) |
Total lease expenses included in other operating expenses | (11) | (12) |
Practical expedients applied
The group leases personal computers, IT equipment and machinery with contract terms of one to three years. The group has elected to apply the practical expedient of low value assets and does not recognise lease liabilities or right-of-use assets. The leases are instead expensed when they incur. The group has also applied the practical expedient to not recognise lease liabilities and right-of-use assets for short-term leases, presented in the table above.
The group does not have material lease commitments, not yet commenced and therefore not included in the leases liabilities as of 31 December 2024 (2023: nil).
Extension options
The group\u2019s leases of buildings and land have lease terms that varies from five years to 99 years, and several agreements involve a right of renewal which may
be exercised during the last period of the lease terms. The group assesses at the commencement whether it is reasonably certain to exercise the renewal right.
Purchase options
The group leases machinery, equipment and vehicles with lease terms of three to five years. Some of these contracts includes a right to purchase the assets at the end of the contract term. The group assesses at the commencement whether it is reasonably certain to exercise the purchase right. All the options are based on market value.
Subleases
The group has subleased an immaterial part of its redundant office buildings, classified as an operating lease.
FINANCIAL REPORTING PRINCIPLES
Identifying a lease
At the inception of a contract, the group assesses whether the contract is, or contains a lease. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
For lease contracts containing a non-lease component, the non-lease component is separated and expensed in the income statement based on the relative stand-alone price. If an observable stand-alone price is not readily available, the group estimates this price by the use of observable information.
Recognition of leases and exemptions:
At the lease commencement date, the group recognises a lease liability and corresponding right-of-use asset for all lease agreements in which it is the lessee, except for the following exemptions applied:
\u2022\tShort-term leases (defined as 12 months or less)
\u2022\tLow value assets
For these leases, the group recognises the lease payments as other operating expenses in the income statement when they incur.
Measuring the lease liability:
The lease liability is initially measured at the present value of the lease payments for the right to use the underlying asset during the lease term not paid at the commencement date. The lease term represents the noncancellable period of the lease, plus any period covered by an extension option period if the group expects to exercise this option.
The group does not include variable lease payments in the lease liability arising from contracted index regulations subject to future events. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications, or to reflect adjustments in lease payments due to an adjustment in an index or rate.
Measuring the right-of-use asset
The right-of-use asset is initially measured at cost.
Subsequent measurements of right-of-use assets follow the same principles as for other non-financial assets, except that the right-of-use asset is depreciated from the commencement date to the earlier of the lease term and the remaining useful life.
Note 9 Tax
FINANCIAL REPORTING PRINCIPLES
Income tax in the income statement consists of current tax, effect of changes in deferred tax/deferred tax assets, withholding tax and Pillar II tax incurred in the period. Income tax is recognised in the income statement unless it relates to items recognised directly in equity or other comprehensive income.
Current tax:
Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantially enacted at the reporting date that will be paid during the next 12 months. Current tax also includes any adjustment of taxes from previous years and taxes on dividends recognised in the period.
Deferred tax / deferred tax asset:
Deferred tax is calculated using the liability method on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available, and that the temporary differences can be deducted from this profit.
Withholding tax:
Withholding tax and any related tax credits are generally recognised in the period they are incurred.
OECD Pillar II model rules
The Pillar II model rules, issued by OECD as part of their BEPS project, came into effect from 1 January 2024. On 20 December 2023, the Norwegian parliament approved the legislation, defining the framework for Norwegian ultimate parent entities. Effective from 23 May 2023, the International Accounting Standard Board (the IASB) issued an amendment to IAS 12, with the amendment including a mandatory temporary exemption to the accounting for deferred tax arising from the jurisdictional implementation of the Pillar II model rules. The group has implemented the mandatory temporary exemption, effective from 1 January 2023.
The group has assessed the implications of the new legislation, with the resulting estimated financial effect being recognised as part of the groups income tax.
Ordinary taxation
The ordinary rate of corporation tax in Norway is 22% of net profit for 2024 (2023: 22%). Norwegian limited liability companies are encompassed by the participation exemption method for share income. Thus, share dividends and gains are tax free for the receiving company. Corresponding losses on shares are not deductible. The participation exemption method does not apply to share income from companies domiciled in what is considered low tax countries and that are located outside the European Economic Area (EEA), and on share income from companies domiciled outside the EEA in which the company owns less than 10% of the shares.
\u00a0
For group companies located in the same country and within the same tax regime, taxable profits in one company can be offset against tax losses and tax loss carry forwards in other group companies.
Deferred tax/deferred tax asset has been calculated on temporary differences to the extent that it is likely that these can be utilised in each country and for Norwegian entities the group has applied a rate of 22% (2023: 22%).
\u00a0
The effective tax rate for the group will, from period to period, change dependent on the group gains and losses from investments inside the exemption method.
\u00a0
Foreign taxes
Companies domiciled outside Norway will be subject to local taxation. When dividends are paid, local withholding taxes may be applicable. This generally applies to dividends paid by companies domiciled outside the EEA.
Pillar II
The group is present in jurisdicitons around the globe, with most jurisdictions having a corporate income tax above 15%. In jurisdictions with corporate income tax below 15%, the majority of entities are CFC taxed in Norway (NOKUS). When assessing
the Pillar II exposure, the group has applied the temporary safe harbour rules as defined by the Pillar II framework. The main expoure for the group is related to realised and unrealised fair value gain/loss from financial investments, where the group holds less than 10% of the shares, which is taxable/deductible under Pillar II regulation (exemption method under local regulation). The exposure to such realised and unrealised gains are primarily in Norway and Malta. The realised and unrealised fair value gain/loss may vary from year to year based on market development and may hence give rise to both additional taxable profit and deductible loss under the Pillar II regulation.
USD mill | 2024 | 2023 |
Distribution of tax expenses for the year | ||
Corporate income tax | (19) | (18) |
Pillar II tax | (2) | |
Withholding tax | (5) | (5) |
Change in deferred tax | 6 | (4) |
Total tax income/(expense) | (20) | (27) |
Reconciliation of actual tax expense against expected tax expense in accordance with the Norwegian income tax rate of 22% | ||
Profit before tax | 538 | 515 |
22% tax | (118) | (113) |
Tax effect from: | ||
Permanent differences | (5) | (11) |
Non-taxable income/ change in market value | 8 | 7 |
Share of profit from joint ventures and associates | 104 | 95 |
Withholding tax and payable tax previous year | (5) | (5) |
Pillar II tax | (2) | |
Calculated tax income/(expense) for the group | (20) | (27) |
Effective tax rate for the group | 3.7% | 5.3% |
Cont. note 9 Tax
USD mill | 2024 | 2023 |
Net deferred tax assets | ||
Net deferred tax assets at 01.01 | 40 | 44 |
Charged through income statement | 6 | (4) |
Charged directly to equity | (1) | (1) |
Currency translation differences | (4) | (2) |
Acquistion / disposal | (2) | 2 |
Net deferred tax assets at 31.12 | 40 | 40 |
Deferred tax assets in balance sheet | 52 | 51 |
Deferred tax liabilities in balance sheet | (12) | (12) |
Net deferred tax assets at 31.12 | 40 | 40 |
The movement in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:
USD mill | 31.12.2024 | 31.12.2023 |
Tax effect of tempory differences | ||
Fixed assets | (12) | (12) |
Other non current assets and liabilities | 3 | 4 |
Current assets and liabilities | 7 | |
Tax losses carried forward | 42 | 51 |
Other | (3) | |
Net deferred tax assets at 31.12. | 40 | 40 |
The majority of tax loss carry forward is related to entities in Norway and the United States, without expiration of the tax loss carry forward.
Temporary differences related to joint ventures and associates are USD nil for the group, since all the units are regarded as located within the area in which the exemption method applies, and there are currently no plans to dispose of any of these companies.
The Maritime Services segment will have shares in subsidiaries not subject to the exemption method which could give rise to a tax charge in the event of a sale, where no provision has been made for deferred tax associated with a possible sale or dividend. There are currently no plans to dispose of such companies.
FINANCIAL REPORTING PRINCIPLES
Income tax in the income statement consists of current tax, effect of changes in deferred tax/deferred tax assets, withholding tax and Pillar II tax incurred in the period. Income tax is recognised in the income statement unless it relates to items recognised directly in equity or other comprehensive income.
Current tax:
Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantially enacted at the reporting date that will be paid during the next 12 months. Current tax also includes any adjustment of taxes from previous years and taxes on dividends recognised in the period.
Deferred tax / deferred tax asset:
Deferred tax is calculated using the liability method on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available, and that the temporary differences can be deducted from this profit.
Withholding tax:
Withholding tax and any related tax credits are generally recognised in the period they are incurred.
OECD Pillar II model rules
The Pillar II model rules, issued by OECD as part of their BEPS project, came into effect from 1 January 2024. On 20 December 2023, the Norwegian parliament approved the legislation, defining the framework for Norwegian ultimate parent entities. Effective from 23 May 2023, the International Accounting Standard Board (the IASB) issued an amendment to IAS 12, with the amendment including a mandatory temporary exemption to the accounting for deferred tax arising from the jurisdictional implementation of the Pillar II model rules. The group has implemented the mandatory temporary exemption, effective from 1 January 2023.
The group has assessed the implications of the new legislation, with the resulting estimated financial effect being recognised as part of the groups income tax.
Note 10 Earnings per share
FINANCIAL REPORTING PRINCIPLES
The calculation of basic and diluted earnings per share is based on the income attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding. Own shares are not included in the weighted average number
of ordinary shares. Weighted average number of diluted and ordinary shares is the same, as the company currently does not have any dilutive instruments.
Earnings per share
Earnings per share taking into consideration the number of outstanding shares in the period. At 31 December 2024 the company owns1 688 812 own shares (386 300 for 31 December 2023).
Total outstanding ordinary shares as of 31 December 2024 are 33 049 747 A-shares and 9 841 441 B-shares.
Earnings per share is calculated based on an average of 43 429 322 shares for 2024 and 44 283 425 shares for 2023.
See note 11 in the parent accounts for an overview of the largest shareholders at 31 December 2024.
FINANCIAL REPORTING PRINCIPLES
The calculation of basic and diluted earnings per share is based on the income attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding. Own shares are not included in the weighted average number
of ordinary shares. Weighted average number of diluted and ordinary shares is the same, as the company currently does not have any dilutive instruments.
FINANCIAL REPORTING PRINCIPLES
Loans and receivables at amortised cost
Loans and receivables are non-derivative financial assets with fixed or determinable payments, which are not traded in an active market.
Loans and receivables are recognised initially at their fair value plus transaction costs.
Accounts payable and other payables
Accounts payable and other payables are recognised at the original invoiced amount, where the invoiced amount is considered to be approximately equal to the value derived if the amortised cost method would have been applied.
FINANCIAL REPORTING PRINCIPLES
Loans and receivables at amortised cost
Loans and receivables are non-derivative financial assets with fixed or determinable payments, which are not traded in an active market.
Loans and receivables are recognised initially at their fair value plus transaction costs.
Accounts payable and other payables
Accounts payable and other payables are recognised at the original invoiced amount, where the invoiced amount is considered to be approximately equal to the value derived if the amortised cost method would have been applied.
USD mill
Note
2024
2023
OTHER NON CURRENT ASSETS
Non current equity investments
18
19
12
Non current loans to associates and joint ventures
18
10
20
Non current loans to others
18
1
3
Non current financial derivatives
18
3
2
Other non current assets
18
5
5
Total other non current assets
39
42
OTHER CURRENT ASSETS
Account receivables
255
240
Prepaid expenses
50
52
Accrued revenue
8
13
Financial derivatives
18
17
Other current assets
17/18
38
36
Total other current assets
368
342
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:54930050TPKOLSE1ZZ71", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__32": { "value": "OTHER CURRENT LIABILITIES
Account payables
267
303
Accrued employee benefits
38
35
Other accrued expenses
50
55
Financial derivatives
18
20
Other current liabilities
62
59
Cylinder deposit *
7
123
115
Total other current liabilities
559
567
* Wilhelmsen Maritime Services has cylinders recognised as other tangible asset in the balance sheet, see note 7. The cylinders are valued at USD 110 million (2023: USD 111 million). These cylinders are partly in the group\u2019s own possession and partly on board customers vessels. Most customers have paid a deposit for the cylinders they have onboard their vessels.
Provisions in other current liabilities, including cylinder deposit liability, does include some degree of uncertainty due to the nature of the provisions. Provisions are calculated and recognised based on available information and assumptions at the
time when the provision is made, and will be updated if needed when new information becomes available.
FINANCIAL REPORTING PRINCIPLES
Account receivables and other receivables are recognised at the original invoiced amount, where the invoiced amount is considered to be approximately equal to the value derived if the amortised cost method would have been applied.
The group measure expected credit losses at lifetime expected loss allowance for all trade receivables and contract assets, including receivables from lease contracts.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk charateristics and the days past due.
The expected loss rates are based on the payment profiles of sales over a period of 36 months before the reporting period and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The group has identified the gross domestic product and the unemployment rate of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors.
USD mill | Current | Less than 90 days past due | Between 90 and 180 days past due | More than 180 days past due |
At 31.12.2024 | ||||
Expected loss rate | 0% | 5% | 9% | 27% |
Gross carrying amount - trade receivables | 234 | 9 | 8 | 7 |
Loss allowance * | (1) | (1) | (2) | |
At 31.12.2023 | ||||
Expected loss rate | 0% | 6% | 13% | 49% |
Gross carrying amount - trade receivables | 222 | 8 | 11 | 3 |
Loss allowance * | (1) | (1) | (1) |
* Loss allowance is rounded to nil for current trade receivables..
At 31 December 2024, USD 22 million (2023: USD 18 million) in account receivables had fallen due but not been subject to impairment. These receivables are related to a number of separate customers. Historically, the percentage of bad debts has been low and the group expects the customers to settle outstanding receivables.
USD mill | 2024 | 2023 |
Movements in group provision for impairment of account receivables are as follows | ||
Balance at 01.01 | 3 | 4 |
Balance at 31.12 | 3 | 3 |
Account receivables per segment | ||
Maritime Services | 195 | 177 |
New Energy | 59 | 63 |
Strategic Holdings and Investments | 1 | |
Total account receivables | 255 | 240 |
See note 18 on credit risk.
74%
26%
0%
2024 Account receivables
2023 Account receivables
Maritime Services
New Energy
Strategic Holdings and Investments
76%
23%
0%
Note 14 Non-current financial assets to fair value
FINANCIAL REPORTING PRINCIPLES
Management determines the classification of financial assets at their initial recognition, with financial assets held for trading carried at fair value.
USD mill | 2024 | 2023 |
Financial assets to fair value | ||
Financial assets to fair value at 01.01 | 87 | 75 |
Acquisition | 3 | 1 |
Reclassified | (5) | |
Currency translation adjustment through other comprehensive income | (9) | |
Change in fair value through income statement* | 11 | 11 |
Total financial assets to fair value at 31.12 | 86 | 87 |
* In the income statement, change in fair value through income statement includes the change in fair value related to the warrants towards Reach Subsea ASA (part of other current assets in the balance sheet). The fair value gain related to the warrants amounts to USD 16 million for 2024.
USD mill | 2024 | 2023 |
Financial assets to fair value | ||
Qube Holdings Limited | 61 | 55 |
Australian PE funds | 17 | 19 |
Other | 8 | 12 |
Total financial assets to fair value at 31.12 | 86 | 87 |
Financial assets to fair value are held in subsidiaries with different reporting currency and thereby creating translation adjustments.
Qube Holdings Limited is Australia\u2019s largest integrated provider of import and export logistics services, and listed on the Australian Securities Exchange (ASX). As per 31 December 2024 the group held 25 million shares, 1.4% of total (2023: 25 million
shares, 1.4% of total). The shares in Qube Holdings Limited serve as collateral for a credit facility. See note 17.
Financial assets to fair value
Equities
84
84
Bonds
36
36
Financial derivatives
21
21
Financial assets to fair value
61
8
17
86
Total financial assets at 31.12.2024
181
29
17
227
Financial liabilities to fair value
Financial derivatives
(20)
(20)
Total financial liabilities at 31.12.2024
(20)
(20)
Financial assets to fair value
Equities
88
88
Bonds
36
36
Financial derivatives
2
2
Financial assets to fair value
55
8
24
87
Total financial assets at 31.12.2023
179
10
24
213
Financial liabilities to fair value
Financial derivatives
Total financial liabilities at 31.12.2023
USD mill | 2024 | 2023 |
Changes in level 3 instruments | ||
Opening balance at 01.01 | 24 | 22 |
Gain/(loss) recognised through income statement | (8) | 2 |
Closing balance at 31.12 | 17 | 24 |
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm\u2019s length basis.
The quoted market price used for financial assets held by the group is the current close price. These instruments are included in level 1. Instruments included in level 1 at the end of 2024 are liquid investment grade bonds and listed equities (analogous for 2023).
The fair value of financial instruments not traded in an active market (over-the-counter contracts) are based on third party quotes (Mark-to-Market). These quotes use observable market rates for price discovery. The different techniques typically applied by financial counterparties (banks) were described above. These instruments - FX and IR derivatives - are included in level 2.
\u00a0
If one or more of the significant inputs is not based on observable market data, the derivatives is in level 3.
FINANCIAL REPORTING PRINCIPLES
Management determines the classification of financial assets at their initial recognition, with financial assets held for trading carried at fair value.
Note 15 Inventories
FINANCIAL REPORTING PRINCIPLES
Inventories of purchased goods and work in progress are valued at cost in accordance with the weighted average cost method.
USD mill | 2024 | 2023 |
Inventories | ||
Raw materials | 7 | 9 |
Goods/projects in process | 1 | 2 |
Finished goods/products for onward sale | 111 | 110 |
Total inventories at 31.12 | 119 | 121 |
Obsolescence allowance, deducted above | 4 | 3 |
FINANCIAL REPORTING PRINCIPLES
Inventories of purchased goods and work in progress are valued at cost in accordance with the weighted average cost method.
Note 16 Current financial investments
FINANCIAL REPORTING PRINCIPLES
Current financial investments consists of financial assets held for trading. Derivatives are also placed in this category unless designated as hedges.
USD mill | 2024 | 2023 |
Market value current financial investments | ||
Equities | 84 | 88 |
Bonds | 36 | 36 |
Financial derivatives | 1 | |
Total current financial investments at 31.12 | 121 | 124 |
The fair value of all equity securities, bonds and other financial assets is based on their closing prices in an active market.
USD mill | 2024 | 2023 |
Net unrealised gain at 31.12 | 2 | 13 |
The parent company\u2019s portfolio of equities and bonds of USD 121 million is held as collateral within a securities\u2019 finance facility. See note 17. The portfolio\u2019s strategy and mandate is set by the parent company\u2019s Board of Directors and consists of a benchmark of 50%/50% share of investment grade bonds and Nordic equities, with
a trading mandate within certain set limits with regards to equity/bond allocation, portfolio weight, and currency exposure. Reporting is provided monthly to group CEO/CFO and quarterly to parent company\u2019s Board of Directors.
FINANCIAL REPORTING PRINCIPLES
Current financial investments consists of financial assets held for trading. Derivatives are also placed in this category unless designated as hedges.
Note 17 Interest-bearing debt and undrawn credit facilities
FINANCIAL REPORTING PRINCIPLES
Loans are recognised at fair value when the proceeds are received, net of transaction costs. In subsequent periods, loans are stated at amortised cost using the effective interest method.
USD mill | Note | 2024 | 2023 |
Interest-bearing debt | |||
Bank and mortgages loan | 300 | 483 | |
Lease liabilities | 134 | 125 | |
Total interest-bearing debt at 31.12 | 18 | 434 | 608 |
The groups bank and mortages loan facilities are held in the Maritime Services segment and the New Energy segment, amounting to USD 65 million and USD 235 million per 31 December 2024. The loan facilitiy in the Maritime Services segment matures in 2027. The New Energy debt comprise two loan facilities, where the primiary facility, amounting to USD 204 million per 31 December 2024, matures in 2027.
Loan agreements entered into by the group contain financial covenants relating to liquidity, leverage and value-adjusted equity. The group was in compliance with all covenants at 31 December 2024.
USD mill | Note | 2024 | 2023 |
Book value of collateral, mortgaged and leased assets: | |||
Financial assets to fair value and current financial investments | 14/16 | 186 | 211 |
Assets in the New Energy segment | 746 | 834 | |
Total book value of collateral, mortgaged and leased assets at 31.12 | 932 | 1 045 |
The parent company\u2019s portfolio of financial investments is held as collateral within a securities\u2019 finance facility.
USD mill | Note | 2024 | 2023 |
Repayment schedule for interest-bearing debt | |||
Due in year 1 | 49 | 51 | |
Due in year 2 | 36 | 19 | |
Due in year 3 | 259 | 28 | |
Due in year 4 | 13 | 435 | |
Due in year 5 and later | 77 | 76 | |
Total interest-bearing debt at 31.12 | 18 | 434 | 608 |
The overview above shows the actual maturity structure, with the amount due in year one as the first year\u2019s instalment classified under other current liabilities.
Cont. note 17 Interest-bearing debt and undrawn credit facilities
USD mill | Note | 2024 | 2023 |
The group net interest-bearing debt | |||
Non current interest-bearing debt | 277 | 456 | |
Non current lease liabilities | 108 | 101 | |
Current interest-bearing debt | 23 | 27 | |
Current lease liabilities | 26 | 24 | |
Total interest-bearing debt at 31.12 | 434 | 608 | |
Cash and cash equivalents | 155 | 224 | |
Current financial investments | 16 | 121 | 124 |
Net interest-bearing debt at 31.12 | 157 | 260 |
USD mill | 2024 | 2023 |
Guarantee commitments | ||
Guarantees for group companies | 2 | 15 |
Bank guarantees | 29 | 20 |
Payroll tax guarantees | 7 | 5 |
Total guarantee commitments at 31.12 | 38 | 40 |
The carrying amounts of the group\u2019s bank loans are denominated in the following currencies | ||
USD | 95 | 175 |
NOK | 193 | 294 |
DKK | 13 | 14 |
Total | 300 | 483 |
See otherwise note 18 for information on financial derivatives (currency hedges) relating to interest-bearing debt.
USD mill | 2024 | 2023 |
Net debt | ||
Cash and cash equivalents | 155 | 224 |
Liquid investments * | 121 | 124 |
Borrowings - repayable within one year | (49) | (51) |
Borrowings - repayable after one year | (385) | (557) |
Net debt at 31.12 | (157) | (260) |
Cash and cash equivalents and liquid investments | 276 | 349 |
Gross debt - variable interest rates ** | (434) | (608) |
Net debt at 31.12 | (157) | (260) |
*\tLiquid investments are investment grade bonds and liquid equities traded in active markets. These assets are held at fair value recognised through the income statement.
** Interest-bearing debt is exposed to movements in floating interest rates in USD and NOK. Material parts of the interest rate risk in the NOK-denominated debt is hedged within the New Energy segment.
Cont. note 17 Interest-bearing debt and undrawn credit facilities
USD mill | Liabilities from financing activities | ||||
Finance leases due within 1 year | Finance leases due after 1 year | Borrowings due within 1 year | Borrowings due after 1 year | Total financing activities | |
Total interest-bearing debt at 01.01.2024 | 24 | 101 | 27 | 456 | 608 |
Reclass | 3 | (3) | (1) | 1 | |
Cash flows | (33) | (9) | (161) | (203) | |
Foreign exchange adjustments | (2) | (9) | (31) | (43) | |
Other non-cash movements | 34 | 19 | 6 | 12 | 71 |
Total interest-bearing debt at 31.12.2024 | 26 | 108 | 23 | 277 | 434 |
Total interest-bearing debt at 01.01.2023 | 23 | 93 | 65 | 473 | 654 |
Reclass | 19 | (19) | (2) | 2 | |
Cash flows | (27) | (41) | (31) | (99) | |
Business combinations | 2 | 2 | |||
Foreign exchange adjustments | 1 | (2) | (8) | (10) | |
Other non-cash movements | 10 | 26 | 7 | 19 | 62 |
Total interest-bearing debt at 31.12.2023 | 24 | 101 | 27 | 456 | 608 |
Cash and cash equivalents, undrawn credit facilities
The group has cash pool arrangements within each segment. Each cash pool arrangement is considered as one financial instrument and the net balance against the bank is presented as cash and cash equivalents. Wilh. Wilhelmsen Holding ASA (Strategic Holdings and Investments segment) owns and operates a multicurrency cash pool with a header-account in NOK, comprising of subsidiaries registered in
Norway. Wilhelmsen Maritime Services AS (Maritime Services segment) owns and operates a multicurrency cash pool with a header-account in USD, comprising of subsidiaries in Europe, Asia-Pacific and North America. NorSea Group AS (part of the New Energy segment) owns and operates a multicurrency cash pool with a header-account in NOK, comprising of subsidiaries in Norway, Denmark, Germany and the United Kingdom.
USD mill | 2024 | 2023 |
Committed undrawn credit facilities | 456 | 321 |
Committed undrawn credit facilities are key part of the liquidity reserve.
USD mill | 2024 | 2023 |
Cash and cash equivalents | ||
Banks | 155 | 224 |
COVENANTS
The group\u2019s bank and lease financing are subject to financial or non-financial covenant clauses related to one or several of the following:
\u00a0
Limitation on the ability to pledge assets
Change of control
Minimum liquidity
NIBD / EBITDA or equivalent Debt-Service Coverage-Ratios
Loan-to-Value
\u00a0
As of the balance sheet date, the group is not in breach of any financial or non-financial covenants. Covenants are related to the consolidated accounts of Wilhelmsen Maritime Services AS and NorSea Group AS.
CAPITAL RISK MANAGEMENT
The group\u2019s overall policy is to maintain a strong capital base to maintain investor, creditor and market confidence and to sustain future business development. The board of directors monitors various return metrics, where Return on Equity and dividend levels are predominant.
\u00a0
The group seeks to maintain a balance between the potential higher returns stemming from higher levels of financial gearing and the advantages of a strong balance sheet. The financial strategy and setting of thresholds for capital structure, return requirements and risk are revised by the board of directors.
FAIR VALUE ESTIMATION
The fair value of financial instruments traded in an active market is based on quoted market prices at the balance sheet date. The fair value of financial instruments not traded in an active market (over-the-counter contracts) is based on third party quotes. These quotes use observable market rates for price discovery. Specific valuation techniques used by financial counterparties (banks) to value financial derivatives include:
\u00a0
Quoted market prices or dealer quotes for similar derivatives.
The fair value of interest rate swaps is calculated as the net present value of the estimated future cash flows based on observable yield curves.
The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the resulting value discounted back to net present value.
The fair value of foreign exchange option contracts is determined using observable forward exchange rates, volatility, yield curves and time-to-maturity parameters at the balance sheet date, resulting in an option premium. Options are typically valued by applying the Black-Scholes model.
\u00a0
The carrying value less impairment provision of receivables and payables are assumed to approximate their fair values. The group estimates the fair value of financial liabilities for disclosure purposes by discounting the future contractual cash flows at current market interest rates available to the group for similar financial derivatives.
USD mill | Note | Fair value | Book value |
Interest-bearing debt | |||
Mortgages | 234 | 233 | |
Finance lease liabilities | 134 | 134 | |
Bank loan | 68 | 67 | |
Total interest-bearing debt at 31.12.2024 | 17 | 436 | 434 |
Mortgages | 306 | 306 | |
Finance lease liabilities | 125 | 125 | |
Bank loan | 178 | 177 | |
Total interest-bearing debt at 31.12.2023 | 17 | 610 | 608 |
Note 17 Interest-bearing debt and undrawn credit facilities
FINANCIAL REPORTING PRINCIPLES
Loans are recognised at fair value when the proceeds are received, net of transaction costs. In subsequent periods, loans are stated at amortised cost using the effective interest method.
USD mill | Note | 2024 | 2023 |
Interest-bearing debt | |||
Bank and mortgages loan | 300 | 483 | |
Lease liabilities | 134 | 125 | |
Total interest-bearing debt at 31.12 | 18 | 434 | 608 |
The groups bank and mortages loan facilities are held in the Maritime Services segment and the New Energy segment, amounting to USD 65 million and USD 235 million per 31 December 2024. The loan facilitiy in the Maritime Services segment matures in 2027. The New Energy debt comprise two loan facilities, where the primiary facility, amounting to USD 204 million per 31 December 2024, matures in 2027.
Loan agreements entered into by the group contain financial covenants relating to liquidity, leverage and value-adjusted equity. The group was in compliance with all covenants at 31 December 2024.
USD mill | Note | 2024 | 2023 |
Book value of collateral, mortgaged and leased assets: | |||
Financial assets to fair value and current financial investments | 14/16 | 186 | 211 |
Assets in the New Energy segment | 746 | 834 | |
Total book value of collateral, mortgaged and leased assets at 31.12 | 932 | 1 045 |
The parent company\u2019s portfolio of financial investments is held as collateral within a securities\u2019 finance facility.
USD mill | Note | 2024 | 2023 |
Repayment schedule for interest-bearing debt | |||
Due in year 1 | 49 | 51 | |
Due in year 2 | 36 | 19 | |
Due in year 3 | 259 | 28 | |
Due in year 4 | 13 | 435 | |
Due in year 5 and later | 77 | 76 | |
Total interest-bearing debt at 31.12 | 18 | 434 | 608 |
The overview above shows the actual maturity structure, with the amount due in year one as the first year\u2019s instalment classified under other current liabilities.
Cont. note 17 Interest-bearing debt and undrawn credit facilities
USD mill | Note | 2024 | 2023 |
The group net interest-bearing debt | |||
Non current interest-bearing debt | 277 | 456 | |
Non current lease liabilities | 108 | 101 | |
Current interest-bearing debt | 23 | 27 | |
Current lease liabilities | 26 | 24 | |
Total interest-bearing debt at 31.12 | 434 | 608 | |
Cash and cash equivalents | 155 | 224 | |
Current financial investments | 16 | 121 | 124 |
Net interest-bearing debt at 31.12 | 157 | 260 |
USD mill | 2024 | 2023 |
Guarantee commitments | ||
Guarantees for group companies | 2 | 15 |
Bank guarantees | 29 | 20 |
Payroll tax guarantees | 7 | 5 |
Total guarantee commitments at 31.12 | 38 | 40 |
The carrying amounts of the group\u2019s bank loans are denominated in the following currencies | ||
USD | 95 | 175 |
NOK | 193 | 294 |
DKK | 13 | 14 |
Total | 300 | 483 |
See otherwise note 18 for information on financial derivatives (currency hedges) relating to interest-bearing debt.
USD mill | 2024 | 2023 |
Net debt | ||
Cash and cash equivalents | 155 | 224 |
Liquid investments * | 121 | 124 |
Borrowings - repayable within one year | (49) | (51) |
Borrowings - repayable after one year | (385) | (557) |
Net debt at 31.12 | (157) | (260) |
Cash and cash equivalents and liquid investments | 276 | 349 |
Gross debt - variable interest rates ** | (434) | (608) |
Net debt at 31.12 | (157) | (260) |
*\tLiquid investments are investment grade bonds and liquid equities traded in active markets. These assets are held at fair value recognised through the income statement.
** Interest-bearing debt is exposed to movements in floating interest rates in USD and NOK. Material parts of the interest rate risk in the NOK-denominated debt is hedged within the New Energy segment.
Cont. note 17 Interest-bearing debt and undrawn credit facilities
USD mill | Liabilities from financing activities | ||||
Finance leases due within 1 year | Finance leases due after 1 year | Borrowings due within 1 year | Borrowings due after 1 year | Total financing activities | |
Total interest-bearing debt at 01.01.2024 | 24 | 101 | 27 | 456 | 608 |
Reclass | 3 | (3) | (1) | 1 | |
Cash flows | (33) | (9) | (161) | (203) | |
Foreign exchange adjustments | (2) | (9) | (31) | (43) | |
Other non-cash movements | 34 | 19 | 6 | 12 | 71 |
Total interest-bearing debt at 31.12.2024 | 26 | 108 | 23 | 277 | 434 |
Total interest-bearing debt at 01.01.2023 | 23 | 93 | 65 | 473 | 654 |
Reclass | 19 | (19) | (2) | 2 | |
Cash flows | (27) | (41) | (31) | (99) | |
Business combinations | 2 | 2 | |||
Foreign exchange adjustments | 1 | (2) | (8) | (10) | |
Other non-cash movements | 10 | 26 | 7 | 19 | 62 |
Total interest-bearing debt at 31.12.2023 | 24 | 101 | 27 | 456 | 608 |
Cash and cash equivalents, undrawn credit facilities
The group has cash pool arrangements within each segment. Each cash pool arrangement is considered as one financial instrument and the net balance against the bank is presented as cash and cash equivalents. Wilh. Wilhelmsen Holding ASA (Strategic Holdings and Investments segment) owns and operates a multicurrency cash pool with a header-account in NOK, comprising of subsidiaries registered in
Norway. Wilhelmsen Maritime Services AS (Maritime Services segment) owns and operates a multicurrency cash pool with a header-account in USD, comprising of subsidiaries in Europe, Asia-Pacific and North America. NorSea Group AS (part of the New Energy segment) owns and operates a multicurrency cash pool with a header-account in NOK, comprising of subsidiaries in Norway, Denmark, Germany and the United Kingdom.
USD mill | 2024 | 2023 |
Committed undrawn credit facilities | 456 | 321 |
Committed undrawn credit facilities are key part of the liquidity reserve.
USD mill | 2024 | 2023 |
Cash and cash equivalents | ||
Banks | 155 | 224 |
FINANCIAL REPORTING PRINCIPLES
Loans are recognised at fair value when the proceeds are received, net of transaction costs. In subsequent periods, loans are stated at amortised cost using the effective interest method.
FINANCIAL REPORTING PRINCIPLES
Loans are recognised at fair value when the proceeds are received, net of transaction costs. In subsequent periods, loans are stated at amortised cost using the effective interest method.
FINANCIAL REPORTING PRINCIPLES
Loans are recognised at fair value when the proceeds are received, net of transaction costs. In subsequent periods, loans are stated at amortised cost using the effective interest method.
Note 18 Financial risk
FINANCIAL REPORTING PRINCIPLES
The group uses derivatives to address financial risk. Derivatives are included in current assets or current liabilities, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets or other non-current liabilities as they form part of the group\u2019s long-term economic hedging strategy and are not classified as held for trading.
\u00a0
Derivatives are recognised at fair value on the date a derivative contract is entered into and are revalued on a continuous basis at their fair value.
\u00a0
Derivatives which do not qualify for hedge accounting
Most derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instruments which do not qualify for hedge accounting are presented in the income statement as financial income/expense.
\u00a0
Derivatives which do qualify for hedge accounting
The group designates certain derivatives as hedges of highly probable forecast transactions (cash flow hedges).
\u00a0
At the date of the hedging transaction, the group documents the relationship between hedging instruments and hedged items, as well as the objective of its risk management and the strategy underlying the various hedge transactions. The
group also documents the extent to which the applied derivatives are effective in offsetting changes in fair value or cash flow associated with the hedge items. Such assessments are documented both initially and on an ongoing basis.
\u00a0
The fair value of derivatives used for hedging is shown below. Changes in the valuation of qualified hedges are recognised directly in other comprehensive income until the hedged transactions are realised.
\u00a0
The fair value of financial derivatives traded in active markets is based on quoted market prices at the balance sheet date. The fair value of financial derivatives not traded in an active market is determined using valuation methodology, such as the discounted value of future cash flows. Independent experts verify the value determination for instruments which are considered material.\u00a0
\u00a0
The group has exposure to the following financial risks from its operations:
\u2022 Market risk
\u25e6 Foreign exchange rate risk
\u25e6 Interest rate risk
\u25e6 Equity market risk
\u2022 Credit risk
\u2022 Liquidity risk
MARKET RISK
The group operates worldwide selling products and services to the maritime and offshore industry. The group also holds strategic investments in the maritime sector as well as financial investments primarily in the Nordic equity and bond market.\u00a0The group is exposed to market risks including foreign exchange rates, interest rates and equity market prices.
The group has established hedging strategies to mitigate risks on material exposures originating from movements in currencies and interest rates. This is compliant with the financial strategy approved by the board of directors.
To mitigate risk, the group holds financial instruments for the following purposes:
Financing: to raise finance for the group\u2019s operations or, in the case of short-term deposits, to invest surplus funds. The types of instruments used include bank debt, cash and short-term deposits.
Operational: the group\u2019s activities generate financial instruments, including cash, trade receivables, trade payables and finance advances.
Risk management: to reduce risks arising from the financial instruments described above, including foreign exchange contracts, interest rate swaps and cross-currency interest rate swaps.
Changes in the market value of foreign exchange financial derivatives are recognised through the income statement. New Energy segment applies hedge accounting for interest rate hedges where derivatives are recognised in other comprehensive income.
\u00a0
Associates hedge their own exposures. The group records the effects of realised and unrealised changes in financial derivatives held in these entities in accordance with the equity method under \u201cshare of profit from joint ventures and associates\u201d. The material associates are Wallenius Wilhelmsen ASA group and Hyundai Glovis group in
Strategic Holdings and Investments segment and the joint venture investment Coast Center Base group in New Energy segment.
\u00a0
Foreign exchange rate risk
The group is exposed to currency risk on revenues and costs in non-functional currencies (transaction risk), and balance sheet items denominated in non-functional currencies (translation risk).
\u00a0
The group\u2019s largest foreign exchange exposures are NOK, EUR, SGD, AUD and KRW - all against USD.
\u00a0
TRANSACTION RISK HEDGING (CASH FLOW)
The group\u2019s operating segments are responsible for hedging their own material transaction risk. Within Maritime Services, USD/NOK, EUR/USD and USD/SGD exposures are subject to a systematic three-year rolling hedge program, utilizing a portfolio of currency options and currency forwards. The group target current hedge ratio to be within the interval of 30-70% of future opex. USD/MYR is hedged using currency forwards with maturities up to 12 months. Remaining exposures are non-material and not hedged.
\u00a0
TRANSLATION RISK HEDGING (BALANCE SHEET)
The group\u2019s policy for mitigating translation risk is to match the denomination currency of assets and liabilities to as large extent as possible.
FX SENSITIVITES (TRANSLATION RISK)
The group monitors the net exposure and calculates sensitivities on a regular basis, based on average market volatility per currency cross. Sensitivities showing a potential accounting effect below USD 5 million on group level are considered non-material.
The sensitivity analysis below shows the impact that a reasonably possible change in foreign exchange rates over a financial year would have on profit after tax and equity, based solely on the group\u2019s foreign exchange risk exposures existing at the balance sheet date. The group has used the observed range of actual historical rates for the preceding one-year period, in determining reasonably possible exchange movements to be used for the current year\u2019s sensitivity analysis.
Cont. note 18 Financial risk
USD mill | |||||
Sensitivities of foreign exchange rates risk | |||||
Change in exchange rates | (10%) | (5%) | 0% | 5% | 10% |
USD/NOK | 10.22 | 10.78 | 11.35 | 11.92 | 12.49 |
Income statement effect | 4 | 2 | (2) | (3) | |
Equity effect | 54 | 25 | (23) | (44) | |
EUR/USD | 0.93 | 0.99 | 1.04 | 1.09 | 1.14 |
Income statement effect | 8 | 4 | (4) | (8) | |
Equity effect | (3) | (2) | 2 | 3 | |
USD/SGD | 1.23 | 1.29 | 1.36 | 1.43 | 1.50 |
Income statement effect | (3) | (1) | 1 | 2 | |
Equity effect | 12 | 6 | (5) | (10) | |
USD/AUD | 1.45 | 1.53 | 1.61 | 1.69 | 1.78 |
Income statement effect | |||||
Equity effect | 9 | 4 | (4) | (8) | |
USD/KRW | 1 327.43 | 1 401.18 | 1 474.93 | 1 548.67 | 1 622.42 |
Income statement effect | |||||
Equity effect | 73 | 35 | (31) | (60) |
(Tax rate used is 22% that equals the Norwegian tax rate)
USD mill | Note | 2024 | 2023 |
Currency through income statement | |||
Included in other financial income/(expenses) | |||
Operating currency, net | 15 | (2) | |
Financial currency, net | (21) | (6) | |
Currency derivatives, realised | (3) | (3) | |
Currency derivatives, unrealised | (20) | 10 | |
Net currency items in other financial income/(expenses) | 1 | (28) | (1) |
Through other comprehensive income | |||
Currency translation differences through OCI | (228) | (15) | |
Total net currency effects | (257) | (16) |
For Maritime Services, New Energy and Strategic Holdings and Investments, material translation risks are booked to other comprehensive income due to the functional currency for most of the entities being different from the reporting currency USD.
\u00a0
The group\u2019s segments perform sensitivity analyses on the unhedged part of the transaction risk on a regular basis.
\u00a0
The portfolio of derivatives used to hedge the group\u2019s transaction risk (described above), exhibit the following income statement sensitivity:
USD mill | |||||
Sensitivity | (10%) | (5%) | 0% | 5% | 10% |
Income statement sensitivities of economic hedge program | |||||
Transaction risk | |||||
USD/NOK spot rate | 10.22 | 10.78 | 11.35 | 11.92 | 12.49 |
Income statement effect | 15 | 8 | (8) | (15) | |
EUR/USD spot rate | 0.93 | 0.99 | 1.04 | 1.09 | 1.14 |
Income statement effect | 8 | 4 | (4) | (8) | |
USD/SGD spot rate | 1.23 | 1.29 | 1.36 | 1.43 | 1.50 |
Income statement effect | 4 | 2 | (2) | (4) |
(Tax rate used is 22% that equals the Norwegian tax rate)
Cont. note 18 Financial risk
INTEREST RATE RISK
Interest rate risk is identified as the effect on the group\u2019s future cash flows or fair value of financial instruments when interest rates change. Changes in interest rates expose the group to changes in the fair value of borrowings subject to fixed interest rates (fair value risk), and changes in future interest payments on borrowings subject to floating interest rates (cash flow risk).
The group\u2019s strategy is to hedge material parts of the interest-bearing debt against rising interest rates. As the capital intensity varies across the group\u2019s business segments, which have their own policies on hedging of interest rate risk, hedge ratios vary. The main source of exposure to interest rate risk arises from the risk associated with fair value interest rates.\u00a0 \u00a0
\u00a0
Within Strategic Holdings and Investments and Maritime Services respectively, no interest rate hedging is implemented due to low net interest-bearing debt (NIBD), whereas New Energy has hedged about 50% of its interest-bearing debt (Interest bearing debt of USD 235 million, with hedged amout totalling USD 113 million) as of 31 December 2024.\u00a0
The group has financial liabilities that are exposed to NIBOR and USD Term SOFR reference rates. The group has interest-bearing liabilities of USD 65 million that have a USD Term SOFR reference rate. Other interest-bearing debt is primarily linked to NIBOR and NOWA. No date has been set for the transition of NIBOR, however the group is monitoring the development of the IBOR reform.
\u00a0
The risk exposure related to financial instruments as a consequence of the transition is considered to be low. The IBOR reform will not change the risk management strategy.
Sustainability-linked loans
In 2023, the group amended the loan agreements in the Maritime Services and New Energy segment, including sustainability-linked KPIs in the agreements. Based on the annual fulfilment of the KPI targets, the interest rate on the loans may be adjusted up to maximum of +/- 5 basis points.
USD mill | 2024 | 2023 |
Maturity schedule interest rate hedges (nominal amounts) | ||
Due in year 1 | 23 | |
Due in year 2 | ||
Due in year 3 | 62 | |
Due in year 4 | 18 | 39 |
Due in year 5 and later | 34 | 58 |
Total interest rate hedges at 31.12 | 113 | 120 |
The average remaining term of the existing total debt portfolio is three years. The hedges have an average remaining term of four years.\u00a0
\u00a0
Interest rate sensitivity
The group\u2019s interest rate risk originates from differences in duration between assets and liabilities. On the asset side, bank deposits and investments in interest-bearing
instruments are subject to risk from changes in the general level of interest rates, primarily in USD and NOK.
\u00a0
The group uses the weighted average duration of interest-bearing liabilities, and financial interest rate derivatives to compute the group\u2019s sensitivity towards changes in interest rates.
USD mill | 2024 | 2023 | |
Assets | Liabilities | Assets | Liabilities |
Interest rate derivatives | |||
New Energy | 3 | 2 | |
Total interest rate derivatives at 31.12 | 3 | 2 | |
Currency derivatives | |||
Maritime Services | 20 | ||
Strategic Holdings and Investments | 1 | ||
Total currency derivatives at 31.12 | 2 | 20 | |
Other derivatives | |||
New Energy* | 16 | ||
Total other derivatives at 31.12 | 16 | ||
Total market value of financial derivatives at 31.12 | 21 | 20 | 2 |
Book value equals market value
*Other derivatives in New Energy comprise the warrant towards Reach Subsea ASA, see note 4 for more information
Cont. note 18 Financial risk
The following sensitivity analysis shows the impact that a reasonably possible change in interest rates over a financial year would have on profit after tax and equity. The impact is determined by assessing the effect of a reasonably possible change in interest rates would have had on interest income and expense and the impact on
financial instrument fair values existing at the balance sheet date. The analysis is performed assuming a parallel shift in the relevant interest rate curves of 1%- and 2%-points.
USD mill | |||||
Fair value sensitivities of interest rate risk | |||||
Change in interest rates' level | (2%) | (1%) | 0% | 1% | 2% |
Income statement effect | (0) | (0) | 0 | 0 | |
Equity effect | (6) | (3) | 3 | 6 |
(Tax rate used is 22% that equals the Norwegian tax rate)
EQUITY MARKET RISK
The group holds several assets listed on equity markets as well as a defined portfolio of financial assets for a proportion of the group\u2019s short-term liquidity.\u00a0The investment portfolio is divided between stocks and bonds, holding positions in various sectors. All investments are concentrated within the Nordic countries and are diversified
across more than 30 different companies. The bond positions exclusively fall within the Investment Grade space.
Below table summarises the equity market sensitivity towards the market value of all listed equities held as current financial investments, see note 16.
Income statement sensitivities of equity market risk | |||||
USD mill | |||||
Change in equity prices | |||||
Change in market value | (20%) | (10%) | 0% | 10% | 20% |
Income statement effect | (24) | (12) | 12 | 24 |
(Tax rate used is 22% that equals the Norwegian tax rate)
CREDIT RISK
Credit risk is the risk of financial loss to the group if a customer or counterparty to a financial derivative fails to meet its contractual obligations. The group\u2019s credit risk originates primarily from the account receivables, financial derivatives used to hedge interest rate risk or foreign exchange risk, as well as investments, including bank deposits.
\u00a0
TRADE RECEIVABLES
The group\u2019s exposure to credit risk on its receivables varies across segments and subsidiaries.
\u00a0
Within Maritime Services and New Energy, the global customer base provides diversification with respect to credit risk on receivables. The segments monitor and manage their respective credit risk on a regular basis. Reference is made to note 13.\u00a0
BANK DEPOSITS AND FINANCIAL DERIVATIVES
The group maintains cash management operations and trades financial derivatives
with a selection of financially solid banks (as determined by their official credit ratings), limiting the corresponding credit risk.
OTHER CREDIT EXPOSURES
No material loans or receivables were past due or impaired at 31 December 2024 (analogous for 2023).
\u00a0
Guarantees
The group\u2019s policy is that no financial guarantees are provided by the parent company. However, financial guarantees are provided within Maritime Services and New Energy. See note 17 for further details.
\u00a0
Credit risk exposure
The carrying amount of financial assets represents the maximum credit exposure.
\u00a0
The maximum exposure to credit risk at the reporting date was as per below table:
USD mill | Note | 2024 | 2023 |
Exposure to credit risk | |||
Financial derivatives (interest) | 12 | 3 | 2 |
Account receivables | 12 | 255 | 240 |
Bonds | 16 | 36 | 36 |
Cash and bank deposits | 17 | 155 | 224 |
Total exposure to credit risk at 31.12 | 450 | 503 |
Cont. note 18 Financial risk
LIQUIDITY RISK
The group\u2019s approach to managing liquidity is to ensure that the group meets its liabilities, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the group\u2019s reputation.
\u00a0
The group\u2019s liquidity risk is low in that it holds significant liquid assets in addition to credit facilities with the banks. \u00a0
At 31 December 2024, the group had in excess of USD 337 million (2023: USD 404 million) in cash, investment grade bonds and listed equities (cash and cash equivalents, current financial investments and investment in Qube Holdings Limited), in addition to USD 456 million (2023: USD 321 million) in committed undrawn credit facilities.
USD mill | Less than 1 year | Between 1 and 2 years | Between 2 and 5 years | Later than 5 years |
Undiscounted cash flows financial liabilities 2024 | ||||
Mortgages | 23 | 13 | 183 | 13 |
Finance lease liabilities | 26 | 22 | 25 | 61 |
Bank loan | 1 | 64 | 2 | |
Financial derivatives | 20 | |||
Interest due | 30 | 25 | 29 | 31 |
Total undiscounted cash flow financial liabilities at 31.12 | 98 | 61 | 301 | 108 |
Current liabilities (excluding next year's instalment on interest-bearing debt) | 451 | |||
Total gross undiscounted cash flows financial liabilities at 31.12 | 550 | 61 | 301 | 108 |
Undiscounted cash flows financial liabilities 2023 | ||||
Mortgages | 14 | 13 | 265 | 14 |
Finance lease liabilities | 24 | 18 | 24 | 59 |
Bank loan | 174 | 3 | ||
Interest due | 36 | 35 | 67 | 33 |
Total undiscounted cash flow financial liabilities at 31.12 | 73 | 67 | 529 | 109 |
Current liabilities (excluding next year's instalment on interest-bearing debt) | 477 | |||
Total gross undiscounted cash flows financial liabilities at 31.12 | 550 | 67 | 529 | 109 |
Cont. note 18 Financial risk
COVENANTS
The group\u2019s bank and lease financing are subject to financial or non-financial covenant clauses related to one or several of the following:
\u00a0
Limitation on the ability to pledge assets
Change of control
Minimum liquidity
NIBD / EBITDA or equivalent Debt-Service Coverage-Ratios
Loan-to-Value
\u00a0
As of the balance sheet date, the group is not in breach of any financial or non-financial covenants. Covenants are related to the consolidated accounts of Wilhelmsen Maritime Services AS and NorSea Group AS.
CAPITAL RISK MANAGEMENT
The group\u2019s overall policy is to maintain a strong capital base to maintain investor, creditor and market confidence and to sustain future business development. The board of directors monitors various return metrics, where Return on Equity and dividend levels are predominant.
\u00a0
The group seeks to maintain a balance between the potential higher returns stemming from higher levels of financial gearing and the advantages of a strong balance sheet. The financial strategy and setting of thresholds for capital structure, return requirements and risk are revised by the board of directors.
FAIR VALUE ESTIMATION
The fair value of financial instruments traded in an active market is based on quoted market prices at the balance sheet date. The fair value of financial instruments not traded in an active market (over-the-counter contracts) is based on third party quotes. These quotes use observable market rates for price discovery. Specific valuation techniques used by financial counterparties (banks) to value financial derivatives include:
\u00a0
Quoted market prices or dealer quotes for similar derivatives.
The fair value of interest rate swaps is calculated as the net present value of the estimated future cash flows based on observable yield curves.
The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the resulting value discounted back to net present value.
The fair value of foreign exchange option contracts is determined using observable forward exchange rates, volatility, yield curves and time-to-maturity parameters at the balance sheet date, resulting in an option premium. Options are typically valued by applying the Black-Scholes model.
\u00a0
The carrying value less impairment provision of receivables and payables are assumed to approximate their fair values. The group estimates the fair value of financial liabilities for disclosure purposes by discounting the future contractual cash flows at current market interest rates available to the group for similar financial derivatives.
USD mill | Note | Fair value | Book value |
Interest-bearing debt | |||
Mortgages | 234 | 233 | |
Finance lease liabilities | 134 | 134 | |
Bank loan | 68 | 67 | |
Total interest-bearing debt at 31.12.2024 | 17 | 436 | 434 |
Mortgages | 306 | 306 | |
Finance lease liabilities | 125 | 125 | |
Bank loan | 178 | 177 | |
Total interest-bearing debt at 31.12.2023 | 17 | 610 | 608 |
Cont. note 18 Financial risk
USD mill | Level 1 | Level 2 | Level 3 | Total |
Financial assets to fair value | ||||
Equities | 84 | 84 | ||
Bonds | 36 | 36 | ||
Financial derivatives | 21 | 21 | ||
Financial assets to fair value | 61 | 8 | 17 | 86 |
Total financial assets at 31.12.2024 | 181 | 29 | 17 | 227 |
Financial liabilities to fair value | ||||
Financial derivatives | (20) | (20) | ||
Total financial liabilities at 31.12.2024 | (20) | (20) | ||
Financial assets to fair value | ||||
Equities | 88 | 88 | ||
Bonds | 36 | 36 | ||
Financial derivatives | 2 | 2 | ||
Financial assets to fair value | 55 | 8 | 24 | 87 |
Total financial assets at 31.12.2023 | 179 | 10 | 24 | 213 |
Financial liabilities to fair value | ||||
Financial derivatives | ||||
Total financial liabilities at 31.12.2023 |
USD mill | 2024 | 2023 |
Changes in level 3 instruments | ||
Opening balance at 01.01 | 24 | 22 |
Gain/(loss) recognised through income statement | (8) | 2 |
Closing balance at 31.12 | 17 | 24 |
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm\u2019s length basis.
The quoted market price used for financial assets held by the group is the current close price. These instruments are included in level 1. Instruments included in level 1 at the end of 2024 are liquid investment grade bonds and listed equities (analogous for 2023).
The fair value of financial instruments not traded in an active market (over-the-counter contracts) are based on third party quotes (Mark-to-Market). These quotes use observable market rates for price discovery. The different techniques typically applied by financial counterparties (banks) were described above. These instruments - FX and IR derivatives - are included in level 2.
\u00a0
If one or more of the significant inputs is not based on observable market data, the derivatives is in level 3.
Cont. note 18 Financial risk
Financial instruments by category | ||||
USD mill | Note | Financial assets at amortised cost | Fair value through the income statement | Total |
Assets | ||||
Other non current assets | 12 | 19 | 19 | 39 |
Financial assets to fair value | 14 | 86 | 86 | |
Current financial investments | 16 | 120 | 120 | |
Current financial derivatives | 12 | 21 | 21 | |
Other current assets | 12 | 293 | 293 | |
Cash and cash equivalent | 155 | 155 | ||
Assets at 31.12.2024 | 467 | 246 | 713 |
Liabilities at fair value through the income statement | Other financial liabilities at amortised cost | Total | |
Liabilities | |||
Non current interest-bearing liabilities | 17 | 385 | 385 |
Current interest-bearing liabilities | 17 | 49 | 49 |
Current financial derivatives | 12 | 20 | 20 |
Other non current liabilities | 12 | 8 | 8 |
Other current liabilities | 12 | 451 | 451 |
Liabilities at 31.12.2024 | 28 | 885 | 913 |
USD mill | Note | Financial assets at amortised cost | Fair value through the income statement | Total |
Assets | ||||
Other non current assets | 12 | 30 | 12 | 42 |
Financial assets to fair value | 14 | 87 | 87 | |
Current financial investments | 16 | 124 | 124 | |
Current financial derivatives | 12 | 2 | 2 | |
Other current assets | 12 | 276 | 276 | |
Cash and cash equivalent | 224 | 224 | ||
Assets at 31.12.2023 | 531 | 225 | 756 |
Liabilities at fair value through the income statement | Other financial liabilities at amortised cost | Total | |
Liabilities | |||
Non current interest-bearing liabilities | 17 | 557 | 557 |
Current interest-bearing liabilities | 17 | 51 | 51 |
Other non current liabilities | 12 | 11 | 11 |
Other current liabilities | 12 | 477 | 477 |
Liabilities at 31.12.2023 | 11 | 1 085 | 1 096 |
FINANCIAL REPORTING PRINCIPLES
The group uses derivatives to address financial risk. Derivatives are included in current assets or current liabilities, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets or other non-current liabilities as they form part of the group\u2019s long-term economic hedging strategy and are not classified as held for trading.
\u00a0
Derivatives are recognised at fair value on the date a derivative contract is entered into and are revalued on a continuous basis at their fair value.
\u00a0
Derivatives which do not qualify for hedge accounting
Most derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instruments which do not qualify for hedge accounting are presented in the income statement as financial income/expense.
\u00a0
Derivatives which do qualify for hedge accounting
The group designates certain derivatives as hedges of highly probable forecast transactions (cash flow hedges).
\u00a0
At the date of the hedging transaction, the group documents the relationship between hedging instruments and hedged items, as well as the objective of its risk management and the strategy underlying the various hedge transactions. The
group also documents the extent to which the applied derivatives are effective in offsetting changes in fair value or cash flow associated with the hedge items. Such assessments are documented both initially and on an ongoing basis.
\u00a0
The fair value of derivatives used for hedging is shown below. Changes in the valuation of qualified hedges are recognised directly in other comprehensive income until the hedged transactions are realised.
\u00a0
The fair value of financial derivatives traded in active markets is based on quoted market prices at the balance sheet date. The fair value of financial derivatives not traded in an active market is determined using valuation methodology, such as the discounted value of future cash flows. Independent experts verify the value determination for instruments which are considered material.\u00a0
\u00a0
The group has exposure to the following financial risks from its operations:
\u2022 Market risk
\u25e6 Foreign exchange rate risk
\u25e6 Interest rate risk
\u25e6 Equity market risk
\u2022 Credit risk
\u2022 Liquidity risk
FINANCIAL REPORTING PRINCIPLES
The group uses derivatives to address financial risk. Derivatives are included in current assets or current liabilities, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets or other non-current liabilities as they form part of the group\u2019s long-term economic hedging strategy and are not classified as held for trading.
\u00a0
Derivatives are recognised at fair value on the date a derivative contract is entered into and are revalued on a continuous basis at their fair value.
\u00a0
Derivatives which do not qualify for hedge accounting
Most derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instruments which do not qualify for hedge accounting are presented in the income statement as financial income/expense.
\u00a0
Derivatives which do qualify for hedge accounting
The group designates certain derivatives as hedges of highly probable forecast transactions (cash flow hedges).
\u00a0
At the date of the hedging transaction, the group documents the relationship between hedging instruments and hedged items, as well as the objective of its risk management and the strategy underlying the various hedge transactions. The
group also documents the extent to which the applied derivatives are effective in offsetting changes in fair value or cash flow associated with the hedge items. Such assessments are documented both initially and on an ongoing basis.
\u00a0
The fair value of derivatives used for hedging is shown below. Changes in the valuation of qualified hedges are recognised directly in other comprehensive income until the hedged transactions are realised.
\u00a0
The fair value of financial derivatives traded in active markets is based on quoted market prices at the balance sheet date. The fair value of financial derivatives not traded in an active market is determined using valuation methodology, such as the discounted value of future cash flows. Independent experts verify the value determination for instruments which are considered material.\u00a0
\u00a0
The group has exposure to the following financial risks from its operations:
\u2022 Market risk
\u25e6 Foreign exchange rate risk
\u25e6 Interest rate risk
\u25e6 Equity market risk
\u2022 Credit risk
\u2022 Liquidity risk
The group\u2019s strategy is to hedge material parts of the interest-bearing debt against rising interest rates. As the capital intensity varies across the group\u2019s business segments, which have their own policies on hedging of interest rate risk, hedge ratios vary. The main source of exposure to interest rate risk arises from the risk associated with fair value interest rates.\u00a0 \u00a0
\u00a0
Within Strategic Holdings and Investments and Maritime Services respectively, no interest rate hedging is implemented due to low net interest-bearing debt (NIBD), whereas New Energy has hedged about 50% of its interest-bearing debt (Interest bearing debt of USD 235 million, with hedged amout totalling USD 113 million) as of 31 December 2024.\u00a0
The group has financial liabilities that are exposed to NIBOR and USD Term SOFR reference rates. The group has interest-bearing liabilities of USD 65 million that have a USD Term SOFR reference rate. Other interest-bearing debt is primarily linked to NIBOR and NOWA. No date has been set for the transition of NIBOR, however the group is monitoring the development of the IBOR reform.
\u00a0
The risk exposure related to financial instruments as a consequence of the transition is considered to be low. The IBOR reform will not change the risk management strategy.
Sustainability-linked loans
In 2023, the group amended the loan agreements in the Maritime Services and New Energy segment, including sustainability-linked KPIs in the agreements. Based on the annual fulfilment of the KPI targets, the interest rate on the loans may be adjusted up to maximum of +/- 5 basis points.
USD mill | 2024 | 2023 |
Maturity schedule interest rate hedges (nominal amounts) | ||
Due in year 1 | 23 | |
Due in year 2 | ||
Due in year 3 | 62 | |
Due in year 4 | 18 | 39 |
Due in year 5 and later | 34 | 58 |
Total interest rate hedges at 31.12 | 113 | 120 |
The average remaining term of the existing total debt portfolio is three years. The hedges have an average remaining term of four years.\u00a0
\u00a0
Interest rate sensitivity
The group\u2019s interest rate risk originates from differences in duration between assets and liabilities. On the asset side, bank deposits and investments in interest-bearing
instruments are subject to risk from changes in the general level of interest rates, primarily in USD and NOK.
\u00a0
The group uses the weighted average duration of interest-bearing liabilities, and financial interest rate derivatives to compute the group\u2019s sensitivity towards changes in interest rates.
USD mill | 2024 | 2023 | |
Assets | Liabilities | Assets | Liabilities |
Interest rate derivatives | |||
New Energy | 3 | 2 | |
Total interest rate derivatives at 31.12 | 3 | 2 | |
Currency derivatives | |||
Maritime Services | 20 | ||
Strategic Holdings and Investments | 1 | ||
Total currency derivatives at 31.12 | 2 | 20 | |
Other derivatives | |||
New Energy* | 16 | ||
Total other derivatives at 31.12 | 16 | ||
Total market value of financial derivatives at 31.12 | 21 | 20 | 2 |
Book value equals market value
*Other derivatives in New Energy comprise the warrant towards Reach Subsea ASA, see note 4 for more information
Cont. note 18 Financial risk
The following sensitivity analysis shows the impact that a reasonably possible change in interest rates over a financial year would have on profit after tax and equity. The impact is determined by assessing the effect of a reasonably possible change in interest rates would have had on interest income and expense and the impact on
financial instrument fair values existing at the balance sheet date. The analysis is performed assuming a parallel shift in the relevant interest rate curves of 1%- and 2%-points.
USD mill | |||||
Fair value sensitivities of interest rate risk | |||||
Change in interest rates' level | (2%) | (1%) | 0% | 1% | 2% |
Income statement effect | (0) | (0) | 0 | 0 | |
Equity effect | (6) | (3) | 3 | 6 |
(Tax rate used is 22% that equals the Norwegian tax rate)
Credit risk is the risk of financial loss to the group if a customer or counterparty to a financial derivative fails to meet its contractual obligations. The group\u2019s credit risk originates primarily from the account receivables, financial derivatives used to hedge interest rate risk or foreign exchange risk, as well as investments, including bank deposits.
\u00a0
TRADE RECEIVABLES
The group\u2019s exposure to credit risk on its receivables varies across segments and subsidiaries.
\u00a0
Within Maritime Services and New Energy, the global customer base provides diversification with respect to credit risk on receivables. The segments monitor and manage their respective credit risk on a regular basis. Reference is made to note 13.\u00a0
BANK DEPOSITS AND FINANCIAL DERIVATIVES
The group maintains cash management operations and trades financial derivatives
with a selection of financially solid banks (as determined by their official credit ratings), limiting the corresponding credit risk.
OTHER CREDIT EXPOSURES
No material loans or receivables were past due or impaired at 31 December 2024 (analogous for 2023).
\u00a0
Guarantees
The group\u2019s policy is that no financial guarantees are provided by the parent company. However, financial guarantees are provided within Maritime Services and New Energy. See note 17 for further details.
\u00a0
Credit risk exposure
The carrying amount of financial assets represents the maximum credit exposure.
\u00a0
The maximum exposure to credit risk at the reporting date was as per below table:
USD mill | Note | 2024 | 2023 |
Exposure to credit risk | |||
Financial derivatives (interest) | 12 | 3 | 2 |
Account receivables | 12 | 255 | 240 |
Bonds | 16 | 36 | 36 |
Cash and bank deposits | 17 | 155 | 224 |
Total exposure to credit risk at 31.12 | 450 | 503 |
Cont. note 18 Financial risk
The group\u2019s approach to managing liquidity is to ensure that the group meets its liabilities, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the group\u2019s reputation.
\u00a0
The group\u2019s liquidity risk is low in that it holds significant liquid assets in addition to credit facilities with the banks. \u00a0
At 31 December 2024, the group had in excess of USD 337 million (2023: USD 404 million) in cash, investment grade bonds and listed equities (cash and cash equivalents, current financial investments and investment in Qube Holdings Limited), in addition to USD 456 million (2023: USD 321 million) in committed undrawn credit facilities.
USD mill | Less than 1 year | Between 1 and 2 years | Between 2 and 5 years | Later than 5 years |
Undiscounted cash flows financial liabilities 2024 | ||||
Mortgages | 23 | 13 | 183 | 13 |
Finance lease liabilities | 26 | 22 | 25 | 61 |
Bank loan | 1 | 64 | 2 | |
Financial derivatives | 20 | |||
Interest due | 30 | 25 | 29 | 31 |
Total undiscounted cash flow financial liabilities at 31.12 | 98 | 61 | 301 | 108 |
Current liabilities (excluding next year's instalment on interest-bearing debt) | 451 | |||
Total gross undiscounted cash flows financial liabilities at 31.12 | 550 | 61 | 301 | 108 |
Undiscounted cash flows financial liabilities 2023 | ||||
Mortgages | 14 | 13 | 265 | 14 |
Finance lease liabilities | 24 | 18 | 24 | 59 |
Bank loan | 174 | 3 | ||
Interest due | 36 | 35 | 67 | 33 |
Total undiscounted cash flow financial liabilities at 31.12 | 73 | 67 | 529 | 109 |
Current liabilities (excluding next year's instalment on interest-bearing debt) | 477 | |||
Total gross undiscounted cash flows financial liabilities at 31.12 | 550 | 67 | 529 | 109 |
Cont. note 18 Financial risk
Financial instruments by category | ||||
USD mill | Note | Financial assets at amortised cost | Fair value through the income statement | Total |
Assets | ||||
Other non current assets | 12 | 19 | 19 | 39 |
Financial assets to fair value | 14 | 86 | 86 | |
Current financial investments | 16 | 120 | 120 | |
Current financial derivatives | 12 | 21 | 21 | |
Other current assets | 12 | 293 | 293 | |
Cash and cash equivalent | 155 | 155 | ||
Assets at 31.12.2024 | 467 | 246 | 713 |
Liabilities at fair value through the income statement | Other financial liabilities at amortised cost | Total | |
Liabilities | |||
Non current interest-bearing liabilities | 17 | 385 | 385 |
Current interest-bearing liabilities | 17 | 49 | 49 |
Current financial derivatives | 12 | 20 | 20 |
Other non current liabilities | 12 | 8 | 8 |
Other current liabilities | 12 | 451 | 451 |
Liabilities at 31.12.2024 | 28 | 885 | 913 |
USD mill | Note | Financial assets at amortised cost | Fair value through the income statement | Total |
Assets | ||||
Other non current assets | 12 | 30 | 12 | 42 |
Financial assets to fair value | 14 | 87 | 87 | |
Current financial investments | 16 | 124 | 124 | |
Current financial derivatives | 12 | 2 | 2 | |
Other current assets | 12 | 276 | 276 | |
Cash and cash equivalent | 224 | 224 | ||
Assets at 31.12.2023 | 531 | 225 | 756 |
Liabilities at fair value through the income statement | Other financial liabilities at amortised cost | Total | |
Liabilities | |||
Non current interest-bearing liabilities | 17 | 557 | 557 |
Current interest-bearing liabilities | 17 | 51 | 51 |
Other non current liabilities | 12 | 11 | 11 |
Other current liabilities | 12 | 477 | 477 |
Liabilities at 31.12.2023 | 11 | 1 085 | 1 096 |
Note 19 Related party transactions
FINANCIAL REPORTING PRINCIPLES
Transactions with related parties include shared services and other services provided by the group. Shared Services are priced in accordance with the principles set out in the OECD Transfer Pricing Guidelines and are delivered according to agreements that are renewed annually.
The services are:
Ship management including crewing, technical and management service.
Agency services.
Freight and liner services.
Marine products.
Shared services.
The ultimate owner of the group is Tallyman ASwhich controls about 61% of voting shares of the group. Tallyman AS is controlled by Thomas Wilhelmsen.
Detailed remuneration discloures are provided in the remuneration report.
Business office, country | Ownership | |
Material related parties in the group are: | ||
Wallenius Wilhelmsen ASA | Norway | 37.9% |
Coast Center Base AS / KS | Norway | 50.0% |
Wilhelmsen Ahrenkiel Ship Management group | Germany | 50.0% |
USD thousand | 2024 | 2023 |
KEY MANAGEMENT PERSONNEL COMPENSATION | ||
Base salary | 1 963 | 2 086 |
Bonus | 2 201 | 1 436 |
Pension | 556 | 513 |
Other benefits | 381 | 341 |
Total | 5 100 | 4 376 |
Detailed remuneration discloures are provided in the remuneration report.
USD mill | 2024 | 2023 |
OPERATING REVENUE FROM RELATED PARTY | ||
Sale of goods and services to joint ventures and associates: | ||
WAWI group | 23 | 22 |
Maritime Services | 9 | 7 |
New Energy | 1 | 1 |
Operating revenue from related party | 33 | 31 |
OPERATING EXPENSES TO RELATED PARTY | ||
Purchase of goods and services from joint ventures and associates: | ||
Maritime Services | (3) | (1) |
New Energy | (26) | (28) |
Operating expenses to related party | (29) | (29) |
ACCOUNT RECEIVABLES FROM RELATED PARTY | ||
Maritime Services | 5 | 4 |
Account receivables from related party at 31.12 | 5 | 4 |
ACCOUNT PAYABLES TO RELATED PARTY | ||
Maritime Services | (3) | (4) |
New Energy | (5) | (3) |
Account payables to related party at 31.12 | (8) | (7) |
NON CURRENT ASSETS TO RELATED PARTY | ||
New Energy | 1 | |
Non current assets to related party at 31.12 | 1 |
Note 20 Subsidiaries with material non-controlling interests
Business office, country | 2024 | |
Voting/control share | ||
Treasure ASA | Norway | 84.16% |
Set out below is the summarised financial information for the subsidiary that has non-controlling interests (NCI) material to the group. The amounts disclosed are 100% and before inter-company eliminations.
USD mill | Treasure ASA | |
2024 | 2023 | |
Summarised balance sheet | ||
Non current assets | 672 | 675 |
Current assets | 1 | 4 |
Total assets at 31.12 | 673 | 680 |
Non current liabilities | ||
Current liabilities | 1 | |
Total liabilities at 31.12 | 1 | |
Net assets at 31.12 | 672 | 679 |
Accumulated non-controlling interests (NCI) | 106 | 145 |
Summarised income statement/OCI | ||
Total income | ||
Profit for the year | 87 | 84 |
Other comprehensive income | (75) | (16) |
Total comprehensive income | 12 | 68 |
Profit allocated to NCIs | 3 | 15 |
Dividends paid to NCIs | 4 | 4 |
Summarised cash flows | ||
Net cash flow provided by/(used in) operating activities | 15 | 13 |
Net cash flow provided by/(used in) financing activities | (19) | (19) |
Net increase/(decrease) in cash and cash equivalents | (4) | (5) |
USD mill | 2024 | 2023 |
Total allocation to NCIs | ||
Profit for the period to material NCIs | 18 | 18 |
Profit for the period to other immaterial NCIs | 2 | 3 |
Profit for the period to NCIs | 20 | 21 |
Note 21 Investment in joint ventures and associates - restated financial figures
Background
On 7 June 2024, Wallenius Wilhelmsen issued a stock exchange notice informing the market of a required restatement of historical figures due to change in accounting treatment related to the EUKOR put and call option (put option going forward). It has been concluded that the put option liability must be recognised in full and the non-current asset recognised related to the call option must be removed. The combined effect shall be recognised in equity.
Impact of change on the groups consolidated financial statemenets
In the group\u2019s consolidated financial statements, the investment in Wallenius Wilhelmsen is accounted for as an investment in associate, applying the equity method for measurement.
In the Wallenius Wilhelmsen consolidated financial statements, the put option has been recognised by derecognising the non-controlling interest, with excess value, exceeding the carrying value of the non-controlling interest, being recognised as a reduction in the equity attributable to the owners of the parent.
IAS 28 - Investments in Associates and Joint Ventures, does not give any specific guidance on how to account for other equity movements than total comprehensive income and transactions with shareholders. Wilhelmsen has therefore developed an accounting policy for the equity movements in Wallenuis Wilhelmsen caused by the NCI put, where equity movements in the investee are presented as equity movements also in the consolidated financial statements of the company.
Since the risk and rewards associated with the shares in EUKOR primarly resides with the non-controlling interest, management has concluded that the put option should be recognised in full towards the equity attributable to the owners of Wallenius Wilhelmsen. By electing this principle, the group assumes its full relative share of the redemption liability reported by Wallenius Wilhelmsen, as a reduction in the carrying value of the shares in Wallenius Wilhelmsen with a corresponding adjustment in equity. The proportionate share of changes in the liability is recognised directly in equity in Wilh. Wilhelmsen, as other equity movements.
Presentation of restated comparable amounts
Applying IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, the group has presented in this note the restated comparable amounts for each period presented as if the put option had beed recognised in Wallenius Wilhelmsens consolidated financial statements for each period, starting from the reporting period ending December 31, 2022. The related income statement effect is immaterial for group reporting.
RESTATED FINANCIAL FIGURES FOR THE PERIOD ENDING 31 DECEMBER 2023 | ||
Consolidated balance sheet | ||
USD mill | ||
31.12.2023 | 31.12.2023 | |
as reported | restated | |
Investments in joint ventures and associates | 2 247 | 1 877 |
Total non current assets | 3 294 | 2 924 |
Total assets | 4 105 | 3 735 |
Attributable to equity holders of the parent | 2 702 | 2 332 |
Non-controlling interests | 155 | 155 |
Total equity | 2 857 | 2 488 |
Total equity and liabilities | 4 105 | 3 735 |
RESTATED FINANCIAL FIGURES FOR THE PERIOD ENDING 31 DECEMBER 2022 | ||
Consolidated balance sheet | ||
USD mill | ||
31.12.2022 | 01.01.2023 | |
as reported | restated | |
Investments in joint ventures and associates | 1 962 | 1 717 |
Total non current assets | 2 981 | 2 735 |
Total assets | 3 711 | 3 465 |
Attributable to equity holders of the parent | 2 278 | 2 032 |
Non-controlling interests | 160 | 160 |
Total equity | 2 438 | 2 192 |
Total equity and liabilities | 3 711 | 3 465 |
RESTATED FINANCIAL FIGURES FOR THE PERIOD ENDING 31 DECEMBER 2022 | |||||
Consolidated equity | |||||
USD mill | |||||
Share capital | Own shares | Retained earnings | Total | Non-controlling interests | Total equity |
Balance at 31.12.2022 as reported | 118 | 2 160 | 2 278 | 160 | 2 438 |
Effect of restatement of put liability | (246) | (246) | (246) | ||
Balance at 01.01.2023 restated | 118 | 1 914 | 2 032 | 160 | 2 192 |
Note 22 Contingencies
The size and global activities of the group dictate that companies in the group will be involved from time to time in disputes and legal actions.
The group is not aware of any financial risk associated with disputes and legal actions which are not largely covered through insurance arrangements. Nevertheless, any such disputes/actions which might exist are of such a nature that they will not significantly affect the group\u2019s financial position.
Fraud risk, with examples such as risk of cyber-based fraud attempts, are continuously being assed by the group, with mitigating actions being conducted
to prevent such attempts. While the potential financial effect from fraud may be significant in the most severe cases, the group assesses the risk of fraud attempts being successful to be low, with the group not being aware of any ongoing cases.
Risk factors related to climate and environmental changes as well as regulatory changes responding to such changes are taken into consideration when assessing the risk of events occurring that could significantly affect the group\u2019s financial position. The group has not identified any material exposure that could significantly affect the group\u2019s financial position.
Note 23 Alternative performance measures
Alternative performance measures
This section describes non-GAAP financial alternative performance measures (APM) that may be used in the quarterly and annual reports and related presentations.
The following measures are not defined nor specified in the applicable financial reporting framework of IFRS. They may be considered as non-GAAP financial measures that may include or exclude amounts that are calculated and presented according to the IFRS. These APMs are intended to enhance comparability of the results, balance sheet and cash flows from period to period and it is the group\u2019s experience that these are frequently used by investors, analysts and other parties. Internally, these APMs are used by the management to measure performance on a regular basis. The APMs should not be considered as a substitute for measures of performance in accordance with IFRS.
EBITDAis defined as Total income (Operating revenue and gain/(loss) on sale of assets) adjusted for Operating expenses. EBITDA is used as an additional measure of operational profitability, excluding the impact from financial items, taxes, depreciation and amortisation.
EBITDA adjusted is defined as EBITDA excluding certain income and/or cost items which are not regarded as part of the underlying operational performance for the period. The group does not report EBITDA adjusted on a regular basis, but may use it on a case by case basis to better explain operational performance.
EBITDA marginis defined as EBITDA as a % of of Total income.
EBITDA margin adjustedis defined as EBITDA adjusted as a % of Total income, with Total income also adjusted for the same income elements as those which have been adjusted for in EBITDA adjusted.
EBITis defined as Total income (Operating revenue and gain/(loss) on sale of assets) less Operating expenses, Other gain/loss and depreciation and amortisation. EBIT is used as a measure of operational profitability excluding the effects of how the operations were financed, taxed and excluding foreign exchange gains & losses.
EBIT adjusted, EBIT margin and EBIT margin adjusted will, if used, be prepared in the same manner as described under EBITDA.
Net interest-bearing debt (NIBD)is defined as total interest bearing debt (Non-current interest-bearing debt and Current interest-bearing debt) less Cash and cash equivalenets and Current financial investments.
Equity ratiois defined as Total equity as a percent of Total assets.
Enterprise Value (EV) is defined as the market capitalisation of a company plus NIBD.
EV/EBITDA is derfined as Enterprise Value (EV) divided by EBITDA.
Note 25 Events after the balance sheet date
In February 2025, Wilh. Wilhelmsen Holding ASA bought back 443.253 A-shares atNOK 395 per share and 167.808 B-shares at NOK 377 per share. Following the buyback, Wilh. Wilhelmsen Holding ASA holds 1.393.506 A-shares and 906.367 B-shares.
On 5 March 2025, the group exercised its remaining warrants towards Reach Subsea ASA. 44.7 million warrants were exercised at a strike price of NOK 3.28 with the total consideration amounting to USD 13 million (NOK 147 million). The fair value of the
warrants, held as a current financial derivative in the group\u2019s balance sheet, has been reclassified to the cost price of the shares in Reach Subsea ASA. After the exercise, the group holds 29.6% of the shares in Reach Subsea ASA.
No other material events occurred between the balance sheet date and the date when the accounts were presented which provide new information about conditions prevailing on the balance sheet date.
Wilhelmsen group
Wilh. Wilhelmsen Holding ASA, Norway
Wallenius Wilhelmsen ASA,
Norway 37.87%
Treasure ASA,
Norway 84.16%
Wilhelmsen Maritime Services AS, Norway
Wilhelmsen New Energy AS,
Norway
Maritime Services Segment
New Energy Segment
For group company list sorted by segment and business unit see under \u2018Maritime Services\u2019 and \u2018New Energy\u2019 below
Governance
To secure that the Human Rights commitment and framework
is implemented in the group and individual business units, clear roles and responsibilities have been defined.
Role | Strategic targets |
Board of directors | \u2022 Commit to human rights due diligence and transparency. \u2022 Ensure the group is compliant with legal and other requirements as a listed entity in Norway. |
Senior executives | \u2022 Commit to human rights due diligence and transparency \u2022 Set expectations and requirements in the Owner\u2019s statement to business units and non-controlled investments. |
Head of business segments | \u2022 Ensure the business units in the segment have integrated human rights in their business strategy, policies, and processes and deliver on group expectations. |
Business unit management | \u2022 Commit to human rights due diligence and transparency. \u2022 Establish policy commitments relevant to their operations and secure employees are aware and comply. |
Group Human Rights due diligence team | |
\u2022 Develop and continuously improve framework on behalf of business unit management. \u2022 Facilitate implementation of framework with business unit management. \u2022 Support execution of framework with functional management (human resources, procurement, HSEQ, operations, sales). \u2022 Interact and consult with affected or other stakeholders \u2022 Manage information requests and grievance handling related to human rights with appropriate functional experts. | |
Functional management | \u2022 Execution of framework with relevant stakeholders (employees, suppliers, customers, partners). |
Human rights management in Wilhelmsen
Policy commitment and governance
Wilhelmsen\u2019s commitment to respecting human rights is set outin the group\u2019s Human Rights commitment. Wilhelmsen respects the human rights of all individuals and groups that may be affected by its operations. This includes, but is not limited to, employees, contractors and non-employees, suppliers, employees working for its suppliers (including contracted and agency workers and sub-suppliers), communities and children. The commitment to respect human rights is guided by internationally recognised human rights and labour standards such as the UN Universal Declaration of Human Rights and the International Labour Standards (ILO Declaration on Fundamental Principles and Rights at Work). This includes, but is not limited to, human trafficking, forced labour, exploitative working conditions and practices, slavery, and child labour.
Wilhelmsen has implemented a human rights framework and a human rights due diligence process. The human rights due diligence process is guided by the UN Guiding Principles on Business and Human Rights2and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct3.
Stakeholder engagement
To be able to engage with stakeholders and accept information requests regarding how Wilhelmsen addresses actual and potential adverse impacts on human rights, the group has an established information request channel - humanrights@wilhelmsen.com.
Two requests for information were received in 2024:
\u2022\tEnquiry related to the situation in Gaza and if Wilhelmsen directly or indirectly deal with Israeli companies that perform their work in any occupied Palestinian territory or the Israeli Defence Force.
\u2022\tEnquiry related to use of suppliers of goods or services that are purchased from Israel, including whether these suppliers canbe linked directly or indirectly to occupied territories in Israel.
An internal investigation was conducted following both enquiries, and a factual response provided within the required three-week period.
Grievance mechanisms and remediation
Grievance or complaint mechanisms are important tools to inform Wilhelmsen of its impact on individuals and groups. Grievances may be of any kind, including social and environmental issues.
Wilhelmsen has a whistleblowing channel that may be used by employees and external parties, including clients, suppliers, business partners and other representatives of Wilhelmsen, to raise concerns for non-compliance including situations where the group has contributed to direct or indirect, actual or potential adverse effects on human rights and decent working conditions. The channel is accessible on Wilhelmsen\u2019s website, written in plain English, and guarantees confidentiality and offers proper protection for stakeholders. For employees, non-employees, and other individuals within Wilhelmsen, the group\u2019s intranet also provides direct access to the portal.
Human rights due diligence process
Wilhelmsen assess the group\u2019s actual and potential human rights impacts, integrate and act upon the findings, monitor progress, track responses, and communicate how impacts are addressed. This is an ongoing process, and Wilhelmsen plans to continually improve the group\u2019s approach.
The human rights due diligence assessment includes:
\u2022\tHuman right scope
\u2022\tScenario identification
\u2022\tImpact assessment
\u2022\tLikelihood assessment
\u2022\tPrioritisation
\u2022\tOutput (heat map)
\u2022\tMitigation measures
2UN Guiding Principles on Business and Human Rights
3OECD Guideline for Multinational Enterprises on Responsible business conduct
Wilh. Wilhelmsen Holding ASA
Phone: (+47) 67 58 40 00
Postal address:
PO Box 33, NO-1324
Lysaker, Norway
Visiting address:
wilhelmsen.com