Good morning. Welcome to the fourth quarter result for Wilh. Wilhelmsen Holding. Christian Berg and myself will cover this presentation. I will start off with a more general introduction and backdrop for the quarter, and then Christian will come back later with more detail of the financials. Overall, I would say the fourth quarter has been a strong quarter. We've had stable operating results for our operating entities, with some growth in top line, and ending at an EBITDA of $34 million. We've had very strong contribution from Wallenius Wilhelmsen during the quarter. I'll come back to that a little bit later. We've had a solid financial gain related to our shareholding in Hyundai Glovis, mainly this time related to foreign exchange and currency.
All in all, then landing at an profit to equity holders of the company of $182 million. It was announced in our report that the board proposes a dividend of 6 NOK plus potential additional 4 NOK. Looking back at last year, we had four plus three, so seven NOK. All in all, if dividend is distribution is coming to its full, it's approximately an increase of 40% compared to last year. We are trying, of course, our best to balance distribution to shareholders with continued growth of the various businesses and our, say, strive towards shaping the maritime industry. Moving on to Maritime Services. We had a relatively ambitious new strategy at the start of the year 2022.
I'm very pleased that we've been able to deliver and execute on this strategy. We've invested in the businesses, and we've done a few acquisitions. These are acquisitions solidifying our position within the value chains in which we operate. We made a smaller acquisition in a tanker management company, allowing us to enter the third-party tanker management side again. We've done two acquisitions within cargo hold cleaning, which is strengthening our position within this vertical. A vertical where we've been relatively weak in the past. We've done, I would call it a more significant acquisition, which has just been finalized, buying a company called Vopak Agencies, an agency company adding approximately 15,000 new port calls to overall agency business or port services business, as we call it.
I was lucky to go down and see Vopak Agencies a week and a half ago. I must say it's a very impressive organization, and I'm looking forward to see this company as part of our group, which is also really strengthening our position within the hub side of agency. Looking really forward to see all these new people being part of and employees being part of our group. All in all, the investments are approximately $30 million-$35 million. We do not expect to see significant, say, result in the numbers for 2023. This is related to integration costs, which is more or less being one to one with the additional contribution that we plan to see going forward.
For Maritime Services in the quarter, it's been a steady quarter for us with some growth in top line. I must also say, I think when we look at this business, we are moving ahead in the right direction, but there are certain areas that are of specific key focus for us. One is currency. We are relatively dependent on U.S. dollars or have a high exposure to U.S. dollars. We are exposed, of course, to cost and inflation in a business like this, which we are working on 24/7, 365 days a year.
Lastly, there's been a significant focus during last year, we'll also enter this year with a new price structure, trying our best to make sure that we are not absorbing all the increased costs, but that we have a fair share or fair sharing of this towards our customers. It's a business which is performing relatively well. There's been certain one-offs, Christian will come back to that in his presentation. Moving on to New Energy. Also here, we've had a strategy of investing in this value chain. We've invested approximately NOK 1 billion. I'll refer more to kroners when it comes to New Energy because we are more kroner exposed than US dollars, even though we report officially in US dollars.
We invested then, as I said, approximately NOK 1 billion during the year, predominantly within what I would call the NorSea Group infrastructure. We exercised the option to acquire the remaining 24% in NorSea Group and also we made an agreement to acquire or to buy out our partner in Vikan Næringspark, which is a large property up in Kristiansund. All this we believe is important for our position within this field. We invested and bought approximately 20% of Reach Subsea, which is also performing very well. It will be very interesting to see the phasing in of the unmanned vessels going forward into the next couple of years.
There's been significant focus within the offshore wind segment, not necessarily in terms of significant investments, but in terms of, say, groundwork being done and aligning ourselves with partners to potentially play a role in a large industry to come. All in all, we are pleased with the efforts that we've been able to execute on within New Energy during the year. I just would like to leave it in terms of the key backbone for this segment is the infrastructure we have within the NorSea Group and how we can leverage that infrastructure for future value creation and to take a position within several areas within the renewable space. Moving over to the financials. It's been high activity during the quarter.
And to see that within NorSea Group, Denmark is, say now up and running and not being a drag on the overall results. We have strong profitability in Norwegian kroner. We are being hampered by the US dollar translation going back to our official reporting. All in all, I think, the results from the New Energy segment and in particular NorSea Group is pretty pleasing. The EBITDA margin for the quarter is probably a little bit on the low side. There are certain one-offs, restructuring costs, currency translation issues, et cetera, but Christian will also come back to that a little bit later. All in all, New Energy has also performed well during the quarter and during the year.
For holding and investments, it is extremely pleasing, of course, the journey that we've had over the last couple of years with Wallenius Wilhelmsen. Strong profitability, high utilization. I think what we see here, there's very few who thought we would see this if we go a few years back in time. We've been, say, a little bit cash strapped on liquidity within the Wilhelmsen group, as we have hardly had any dividend distribution from Wallenius Wilhelmsen over the last many, many years.
Now we're coming into a position, as most of us know, with the proposed dividend that Wallenius Wilhelmsen has, which will give the Wilhelmsen group a much more solid liquidity position than what we've had in the past, meaning that we can invest further in the overall business and also distribute to shareholders. Wallenius Wilhelmsen also had a new CEO during the year with Lasse Kristoffersen. We are very pleased with that and there are some very good developments within this company. I mentioned Hyundai Glovis, very good in terms of the gain for the quarter, but this is mainly related to currency and foreign exchange. We will see valuation fluctuations also going forward.
We've had strong financial performance within our financial management side, which is also contributing positively towards our result for the quarter. Just a quick backdrop on 2022 before I leave it over to Christian. When we at the outset of 2022, there were significant uncertainties in the world, and we've all been witnessing the tragedy that's happening in Ukraine, geopolitical tension, high inflation. There's been a lot of, I would call, uncertainty and unfortunate events. I do not think any of us thought that the Wilhelmsen group would have delivered the results that we have during the year at the start of the year. Here we are, with a year which ended up actually being very strong. We delivered 35% shareholder return during the year.
We've continued to invest and expand within the various segments of especially Maritime Services and New Energy. We are constantly working towards our vision of shaping the maritime industry. We've done actually quite significant efforts in terms of refinancing most of our debt, which again, Christian will come back to later. I would say all in all, we are pleased with the year of 2022 and delivered way above expectations that we had at the start of the year. Looking forward, unfortunately, there are still significant uncertainties out there and geopolitical tensions and inflation, et cetera.
We believe that we have a strong platform, and we also believe that we will continue to invest and try to grow this business in also 2023. With that, Christian, I will hand this to you and, thank you so much.
Thank you very much, Thomas. Going a bit into some of the details that Thomas mentioned and the top lines as he said coming up during the quarter, somewhat also including the sale of North Sea Fighter, a PSV vessel from NorSea. Income was up both for the Maritime Services sector and the service segment and the New Energy segment. Of the $34 in EBITDA, $25 is positive coming from Maritime Services side and $15 coming from the New Energy side, and -$6 coming from the strategic holding and investments, mainly being admin and some minor financial losses.
As Thomas said, we do have an goodwill impairment in the quarter coming from the acquisition in 2017 of Chemtec in WSS at that time. There's a write down of $13 million in that goodwill impairment. Do have a very strong contribution from our JVs and associates. Again, basically all of the one hundreds coming from Wallenius Wilhelmsen, contributing with $98 million, a very strong number for the quarter. $78 million coming from the change in fair value, whereof $70 million is Hyundai Glovis change, mainly Korean won versus U.S. dollars, impacting the valuation.
Then a strong earning per share through the quarter, ending at $4.08 per share, not to be translated into cash per share. Some comments on the full year. Strong EBITDA, again, coming up at $153 million, of which $94 coming from Maritime Services and $75 from New Energy, both basically in historically high numbers, showing from both segments. The total total JV share profit from from our JVs coming from Wallenius Wilhelmsen ending up at $281 during this year. A strong, very strong contribution to our results through the year.
The full year fair loss of fair value of Hyundai Glovis is a loss through the year of $46 million. Basically again, as Thomas said a couple of times and I've said before, currency translation of the Korean won and US dollars. Again, for the full year, strong earning per share of $6.63. Again, not to be mistaken as cash per share. On the cash flow through the year, we started the year at the level of $230, ended the year at $163.
Again, coming back to Thomas's point of investing in our businesses, as you can see from the Maritime Services and New Energy, coming back to the EBITDA, not converting directly into the numbers you see here. We have invested quite substantially in working capital, specifically and mostly in the Maritime Services side. Some $60 million invested in working capital, both due to the fact that we are increasing top line, but also the fact that we are increasing our warehouse capacity and our warehouse and our goods in warehouses to be able to take advantage of a better market than we used to see.
It's also a build-up of working capital as we are building up back from the previous period of COVID. Have invested further into, as alluded to, Viken Næringspark, our 24% share in NorSea, and as Thomas also said in the Reach Subsea, basically then being overall financed by selling some shares in Cube, selling off some other financial assets, and ending up there at a lower point of $163 through the year. The last refinancing we did in 2022 was the refinancing of NorSea.
It's actually quite impressive both from the banks and the team conducting this refinancing through a sort of not too good period to do refinancing, but we were able to close this refinancing before the year, giving us a better capacity, a better-suited facility to challenges that we will see in the NorSea Group going forward, and also giving us the capacity to actually do further investments in the NorSea Group. All in all, very happy with the bank group and the teams who have conducted that. As we have said earlier this year, we also through the year finalized the refinancing of Maritime Services Group.
As you all probably know, Wallenius Wilhelmsen have done several refinancings of their debt, giving us a pretty healthy debt maturity profile. We are happy to see that we still and have always had a very good relationship with a very strong bank group and that we are able to on a general basis improve and conduct continuous refinancings. On the balance sheet side, you see some increase in the equity, and you see some increase in the total balance sheet numbers due to the fact that you have increase in coming back to the U.S. dollar exposure, increasing the balance sheet somewhat and also of course from the operational side.
As Thomas has always, already said, the board in Wilh. Wilhelmsen Holding proposes a first dividend of NOK six per share with a potential, second dividend of up to, NOK four per share. The NOK six is, comparable to the, first payout last year was NOK four and giving us a potential total of, NOK 10 per share. As Thomas said, quite some percentage in increase from last year, so if being, decided to pay out. Pretty happy to be able to, deliver also to shareholders, an increase in the dividend. I think, Thomas, on, that note, we are still shaping the maritime industry.
I certainly hope so. I think we're extremely proud of the infrastructure that we have, and we have very strong belief in both our ability and not least our people to actually to take this forward. Might be a little bit biased, but still we are very positive towards that. I think we will open up for questions, and thank you very much for presenting.
Good. Åge Sturtzel here, investor relations. We have had some questions. I'll group them. One is on operational side, and there are four link questions related to capital side. I take the operational one first. That is from Jørgen Lian, DNB Markets. That is, I read it, "Loss on NorSea Wind tender revenue impact," it says, "$10 million per quarter question, but how will costs changed on this?
The...
It's about the net, call it.
The net effect.
EBITDA impact, from the loss of.
The-
The NorSea Wind contract.
It's the loss of the contract will be sort of, all the losses has been taken in this quarter. We don't expect any further losses going forward on that contract. The contract has been lost, and it's been sort of taken out, as a cost, potential cost going forward in this quarter.
The EBITDA impact going forward.
Yeah. The EBITDA effect going forward will be very marginal, on basically not-
It's minor.
Yeah.
Minor.
Very minor.
I think it's fair. It's minor, but I think it's fair to say that we had an ambition to grow that part of our business. The contract was up for renewal. It ended at terms which we could not really stand by, and we thought the margins were not defendable. Unfortunately, that's just the way it is, and I think when closing this down, we're closing a legal entity down. It doesn't mean that we're exiting focus on other parts of the offshore wind industry.
Good. We have four questions from Morten Astrup. They are partly linked, but there is a lot of wording. I'll take them maybe split up. Start with the net asset value. I read it. "Congratulations on good results." That's the first. Thank you. "What is value adjusted net asset value per share by end of the year when taking into value adjusted market value of all underlying investments in the portfolio?" Linked to net, "You are an investment company. Why isn't value adjusted net asset value per share reported?
If you don't track the figure, how do you allocate capital correctly?" And then, the last, or the third one, I link it, "What changes do you need to do in order for the underlying value to better reflect the share price?" There are two more.
Okay. Why don't we stop there?
Yes.
as suggestion.
Yeah
If you take a punt at answering the first, and then we'll take the remaining two or three questions later. Just so that we're able to answer them as best as we can.
I'll try to. We do not report on net asset value. You can sort of extract some of the net asset value directly from sort of the listed entities we do own, but we do not report on any net asset value of the non-listed entities. Yes, we are a holding company, but we are an industrial holding company, holding both industrial assets and listed or unlisted assets. We are not reporting on the net asset value, and we have no natural plan on how to do that reporting on the non-listed entities that we do hold.
They are industrial parts of our group, and then we develop them, and our work and our sort of contribution to the shareholders of the company is to make sure that we are delivering, of course, underlying good operations and good results and visibility into those numbers and results so that all shareholders, existing and potential ones can sort of look through and see what they put as evaluation on those assets.
Yeah. Thanks. I continue with the fourth question. I'll take the last one separate. When you allocate capital, you are able to create more than 100% return to shareholders by buying your own shares. At the same time, being concerned about external shareholder value means more options to finance and list subsidiaries, and hence lower cost of capital. What are you doing to address these untapped potentials?
Um-
It was basically a share buyback and, if I read, list, subsidiaries.
I think these are evaluations that are being carried out on an ongoing basis, both by management and especially the board. Share buybacks has been carried out on several occasions. It may be carried out on occasions also going into the future and trying to balance dividends, buybacks, and investments within the overall group to enhance total shareholder value creation. That is what we are trying to do. I'm sure there can be a lot of different views on what business should have been listed when or not, or what have you, but I think this is a dynamic process which we are working on a continuous basis, both in management and also in discussions with the board.
Adding to Thomas's answer, I think it's also important for us and then for everyone listening in too that it's important for us to have a financial capacity and capability to support our companies, both the listed and the unlisted companies, in the journey to create value. Being able to and having the capability to do that is also an important part on how we do evaluate our sort of total capital. That's also taken into consideration when we do allocate or decide on how to deploy capital, both internally, but also then externally, either towards share buybacks or dividends to the shareholders.
I think we have to take into account that we are a long-term industrial player, meaning that we typically have a very long cycle and view on the investments and the engagements that we have.
I have the last of the five questions from Morten Astrup, and that is linked to pay in a way or share ownership. Why are there not any form of investment program that link the long-term share price development to total remuneration of the board and top management, excluding the CEO, he says.
Yeah. A good question, and also another question which has been addressed on a continuous basis. I think there's an AGM coming up in not too long, in April. That's the, in a way, the area where we declare what type of remuneration that we do have for top management. We'll see where we end up there.
Again, to add on to Thomas', comment, management at least are, and the whole group is actually, incentivized and have a program sort of, giving positive results adding in onto the value creation in the company. At least value creation at some point should, at least, come out in some way or form into the share price as well.
We have to hurry up here because of the timing on what slot we have. There is one from Basim Sekeri. Congratulations on good performance in 2022. WE is receiving 31.4 NOK per share in 2023 from Wallenius Wilhelmsen, in addition to receive from 6.9 NOK from Maritime Services. Treasury is paying 2.15 NOK. Total upstream, 40.2 NOK. 25% of cash upstream. Is 25% of cash upstream what we should expect? Current yield on book value is 2.4%. It, yeah, was technical, but.
Are we referring to... I assume he's referring to expected dividends.
Yes.
I think when Christian showed a chart on the development of our cash position, and I had certain comments that we are trying our best to find the balance between predictable dividend distribution to our shareholders in combination, of course, with what is the underlying liquidity upstream that we have. In combination also with the strategic ambitions and our wish to grow this business and to deliver on those. So, it's probably a little bit of a politician answer, but still, I think today we are announcing a potential dividend, which is 40% up on last year's, which we believe is a nice trajectory.
We have to take into account that we now had many years where I would say that we've been somewhat cash strapped without any liquidity coming from Wallenius Wilhelmsen, and we need to build up the right balance again within the group.
Thank you. We have the last question we have time for. It is the last question here from J ørgen Lian again DNB Markets. "Can you provide any outlook for the amount of cash flow expected to be directed to capital expenditures, investments, acquisitions in the coming quarters?
Christian, I will leave that to you.
Thank you very much. Sort of course, M&A is sort of coming when it's coming or not coming when it's not coming. Overall, the most sort of CapEx-intensive business we are running, excluding then Wallenius Wilhelmsen, is the North Sea as infrastructure side. That will also vary. If you are building up a key, you are sort of spending a lot at that year or those two years, but you're not sort of investing the next years. They are on a steady pace in the area of $15-$25 in somewhat of a bulky recurring CapEx program. You will see some...
I don't know if you will refer it as to big CapExes, but there are some smaller CapExes also in WMS, mainly referring to the physical assets that we do own, typically gas tanks and a couple of other sort of storage areas as well. I will call them minor in the bigger scheme of numbers.
I think the probably the best proxy is our predictability of dividend distribution.
Mm.
We have, if you go through history, we have a call it a high level of predictability, and we will of course strive to continue with that predictability.
That was the last question.
Very good. Thank you very much for listening in and, looking forward to a probably exciting but challenging 2023.
Thank you.