Quarterly Update

RNS Number : 1576O
Ocean Wilsons Holdings Ld
16 May 2018
 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION. UPON THE PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Ocean Wilsons Holdings Limited

Quarterly Update

Ocean Wilsons Holdings Limited (LSE: OCN) today announces its first quarter update for 2018. 

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

Group revenue for the three months ended 31 March 2018 increased US$1.5 million to US$119.3 million, (2017: US$117.8 million) with higher port terminal and logistic revenue partially offset by lower towage and ship agency revenue. Port terminal and logistics revenue increased 11% to US$67.1 million (2017: US$60.4 million) principally due to a more favourable sales mix with more full container movements in the period and a better import / export split. Container volumes in the period were relatively flat at 248,200 TEUs (2017: 248,900 TEUs). Towage and ship agency revenue for the quarter was 11% lower at US$45.6 million (2017: US$51.1 million) with stronger competition in harbour towage impacting volumes and pricing. Harbour towage manoeuvres were 5% lower at 14,013, (2017: 14,742). Revenue from towage special operations increased US$1.2 million to US$3.1 million (2017: US$1.9 million) with an ocean towage operation, a vessel re-float and shipyard support. Shipyard revenue grew 8% to US$6.7 million (2017: US$6.2 million) reflecting an increase in third-party shipbuilding and dry-docking operations.

 

Wilson Sons Limited's ("Wilson Sons") EBITDA for the first quarter at US$41.4 million was 16.5% higher than 2017 (US$35.5 million) with overall costs 5% lower helped by a higher average USD/BRL exchange rate, lower headcount, lower payroll taxes and a one-off US$1.8 million PIS tax expense in 2017. The average USD/BRL exchange rate in the first quarter at 3.24 was 3% higher than the comparative period in 2017 of 3.15.

 

Wilson Sons profit after tax for the first quarter of US$15.3 million was US$0.4 million higher than 2017 (US$14.9 million).

 

At 31 March 2018, Wilson Sons had US$120.1 million in cash equivalents and short-term investments (31 December 2017: US$111.7 million). 

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

"Wilson Sons 1Q18 EBITDA was up 16.5% against the comparative to US$41.4 million with Container Terminals posting strong results. Full container flows grew 5.3% and import volumes continued to improve, helping to lift profitability. Tecon Salvador achieved a net productivity record of 102 movements per hour following recent investments in equipment and upgrade of the terminal operating system. The Rio Grande terminal doubled the capacity of its inland navigation feeder service now including four weekly calls linking the Northern Region of the State directly to the Port of Rio Grande.

Towage results were pressured by a more competitive environment affecting volumes and pricing, and a weak oil and gas market. Weakness for offshore vessel demand has been partially mitigated through alternative vessel solutions, with two shallow-water diving support conversions and one oil spill recovery conversion underway for second quarter contract commitments. The Brasco offshore logistics base signed new contracts to support oil production activities in the Lapa field and the exploratory campaign at the Carcará discovery. Brazil's recent success in pre-salt oilfield auctions reinforces a more favourable long-term outlook despite the short-term challenges.

Once more we would like to thank all our stakeholders, but in particular the efforts of all our staff, for their contribution to these solid results and their continued commitment to safety."

Investment Portfolio

At 30 April 2018, the investment portfolio including cash under management amounted to US$277.8 million (31 December 2017: US$274.7 million). The investment portfolio represents US$7.86 (£5.70) per Ocean Wilsons share.

 

Enquiries

 

Company Contact

Keith Middleton

 

+1 441 295 1309

Media

David Haggie

Haggie Partners LLP   

                        

+44 20 7562 4444

Cantor Fitzgerald Europe

David Foreman, Will Goode (Corporate Finance)

+44 20 7894 7000

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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