Quarterly Update

RNS Number : 2592F

Ocean Wilsons Holdings Ld

11 November 2015

 

Ocean Wilsons Holdings Limited

Quarterly Update

Ocean Wilsons Holdings Limited (LSE:OCN) today announces its 3^rd quarter update. 

Our Operations

Ocean Wilsons Holdings Limited ("Ocean Wilsons" or "the Group") is a Bermudian investment holding company which holds a portfolio of international investments, and through its subsidiary, Wilson Sons Limited, controls a maritime services and logistics company in Brazil.

Financial Results

Wilson Sons Limited's ("Wilson Sons") operating profit for the 3^rd quarter of US$33.3 million was US$2.7 million lower than 2014 (US$35.9 million) with improved operating margins partially offsetting decreased revenue in the period. Wilson Son's operating profit for the nine months ended 30 September 2015 of US$88.3 million was US$15.7 million higher than the comparative period in 2014 (US$72.6 million). Wilson Son's net cash flow from operating activities for the nine months was up US$69.7 million to US$131.0 million compared with US$60.3 million in the same period last year.

Operating Revenue of US$122.5 million was 31% lower than the comparative period in 2014 (US$177.2 million) principally due to the adverse impacts of the weaker Brazilian Real on Brazilian Real denominated revenue when converted into US Dollars and lower shipyard activity in the period. Port terminal and logistics revenue in the period of US$54.7 million (2014 US$80.7 million) was impacted by the weaker Brazilian Real although container volumes in the period were 15% higher at 288,700 TEUs (2014 250,500 TEUs), driven by increased exports, cabotage and transhipment movements. Shipyard revenues at US$9.7 million (2014 US$38.2 million) were affected by reduced third party construction in the period. Towage and ship agency revenue for the quarter of US$58.1 million was in line with 2014 (US$58.4 million) as the majority of invoicing is linked to the US Dollar.  Revenue for the nine months ended 30 September 2015 of US$391.9 million was 18% lower than the comparative period in 2014 (US$477.1 million).

EBITDA at Wilson Sons for the third quarter was 15% lower at US$44.7 million (2014: US$52.4 million) with improved margins at our towage, container terminal and shipyard businesses  partially offsetting lower revenue. Wilson Sons EBITDA for the nine months ended 30 September 2015 of US$128.6 million was 7% ahead of the comparative period in 2014 (US$120.7 million).

Capital expenditure of US$21.5 million for the period is 28% lower than prior year (2014: US$29.7 million), as a result of reduced expenditure on the expansion of Brasco Caju and 2014 included expenditure on port terminals equipment.

The CEO of Wilson Sons Limited operations in Brazil, Cezar Baião, stated:

"Despite a continuing weak Brazilian macroeconomic scenario, the third quarter of 2015 produced positive results for the towage and offshore vessels businesses and solid export growth for our terminals proving the importance of our diversified business portfolio.

We are confident that the Company is strongly positioned in the markets in which it operates and our fundamentals are robust. We believe that in challenging times, the Company should be focused on improving operational efficiencies and exploring business opportunities. The current quarter´s results, mainly in terms of operating cash flow and free cash flow are a reflection of the resilience of the Wilson Sons business."

Wilson Sons Limited announced on Tuesday the 10^th November to the São Paulo and Luxembourg Stock exchanges its results for the third quarter ended 30 September 2015. Their full announcement is available on the Wilson Sons website (www.wilsonsons.com.br) and at the Brazilian stock exchange website.

Investment Portfolio

At 31 October 2015 the investment portfolio including cash under management amounted to US$246.0 million (30 June 2015: US$248.4 million). The investment portfolio represents US$6.96 (£4.51) per Ocean Wilsons share.

Enquiries

Company Contact

Keith Middleton                                                                     [phone]

Media

David Haggie                                                                       [phone]

Haggie Partners LLP

Cantor Fitzgerald Europe                                                    [phone]

Rick Thompson, David Foreman (Corporate Finance)

David Banks, Tessa Sillars  (Corporate Broking)

 

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