Ocean Wilsons Regulatory News (OCN)

Ocean Wilsons Holdings Limited

Interim Management statement

Ocean Wilsons Holdings Limited (LSE:OCN) today announces its interim management statement in accordance with the UK Listing Authority's Disclosure and Transparency rules. 

Our Operations

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

The CEO of operations in Brazil, Cezar Baiao stated:

"Despite soft exports, we delivered a strong first quarter in terms of cash generation, with bottom-line margins growing significantly primarily due to strong performances in the Towage, Offshore Vessels, and Shipyard businesses.

The conclusion of important projects and the launch of new vessels provide us with the necessary tools for growth in our different business segments. We believe we are well positioned to carry out our strategy in each of our businesses and remain optimistic with the following quarters, while attentive to the shifts in international and domestic markets. The management will continue employing the customary diligence with new opportunities, and our talented and engaged employees will continue the Company's successful history"

Financial Results

In the current year the Group has adopted IFRS 10 and 11. The main impact from the adoption of these standards is that the Group's share of results from our offshore joint venture, (Wilson Sons Ultratug Offshore) which were previously consolidated on a line-by-line basis are now reported in a single line in the income statement and balance sheet. While the impact on profit for the period attributable to equity holders of the parent, earnings per share and equity attributable to equity holders of the parent is neutral, the revenue line no longer includes the Group's share of the joint venture's revenue. The accounting treatment of our logistics joint venture, Allink, is also impacted following the adoption of these standards with Allink being 100% consolidated in the Group accounts with the non-controlling interest identified separately from the Group's equity. Previously 50% of Allink was consolidated. Comparative figures have been adjusted to reflect the change in accounting treatment.

All the Group's sales are derived from our Brazilian operations held through Wilson Sons Limited. Revenue of US$149.2 million for the three months ended 31 March 2013 was in line with the comparative period in 2012 (US$150.2 million). Increased revenue from our towage and shipyard businesses was offset by lower revenue at our port terminals and logistics businesses. Towage revenues benefitted from increased demand for special operations while shipyard revenue grew on the back of our increased capacity. A weaker average Brazilian Real (BRL) / US dollar (USD) exchange rate in the period compared with 2012 and softer deep-sea export volumes negatively impacted reported revenue at our port terminals.

Operating profit for the period at Wilson Sons Limited increased by US$10.2 million to US$24.1 million (2012: US$13.9 million) principally due to a credit on the share based payment expense line and to lower raw material, employee and depreciation expenses. The share based payment expense for the period was a US$1.8 million credit, this is US$7.0 million lower than the comparative period in 2012, a US$5.2 million expense. Raw material costs in 2012 were adversely impacted by a US$2.4 million one-off charge arising from a change in the accounting treatment for fuel inventory. Depreciation and amortisation for the period at US$13.8 million was US$0.9 million lower than the comparative period in 2012 (US$14.7 million) due to the increase in the economic life of our vessels in 2012. Reported employee expenses (excluding the share base payment expense) at US$52.1 million were lower than 2012 (US$55.4 million), principally due to the higher average USD/BRD exchange rate which benefits BRD denominated costs when converted into our reporting currency. 

EBITDA for the period at Wilson Sons Limited was US$37.9 million (2012: US$28.6 million) reflecting the improved operating result.

Capital expenditure in the first quarter at US$21.5 million was US$17.8 million lower than 2012 (US$39.3 million) due to the conclusion of the expansion of Tecon Salvador and the new Guaruja shipyard. At 31 March 2013 Wilson Sons Limited borrowings (including obligations under finance leases) was US$357.1 million (31 December 2012: US$363.7 million) of which US$318.7 million is non-current. This does not include the Group's share of borrowings in the offshore joint venture of US$229.1 million.

Wilson Sons Limited announced today to the São Paulo Stock exchange and Luxembourg Stock Exchange their results for the first quarter ended 31 March 2013. Their full announcement is available on the Wilson Sons website (www.wilsonsons.com.br) and at the Brazilian and Luxembourg websites.

Investment Portfolio

At 30 April 2013 the investment portfolio including cash under management amounted to US$238.8 million. The investment portfolio represents US$6.75 (£4.34) per Ocean Wilsons share.

Wilson Sons Limited valuation

At the close of business on 7 May 2013 the Wilsons Sons Limited share price was 26.10 Brazilian Reais, resulting in a market value for the Ocean Wilsons 58.25% holding in Wilson Sons Limited of approximately US$538 million, which is equivalent to US$15.22 (£9.78) per Ocean Wilsons share. 

Shareholders should be aware that in addition to Wilson Sons Limited and the investment portfolio, the Group has other assets and liabilities on its Balance sheet. In the opinion of the Directors, the net impact of these items does not have a material effect on the valuation of the business.

Outlook

Trading continues to be in line with performance in the year to date and historical seasonal trends.

Enquiries:

Company Contact

Keith Middleton 1 441 295 1309

Media

David Haggie 020 7562 4444

Haggie Partners LLP

Seymour Pierce 020 7894 7000

Nic Hellyer - Corporate Finance

David Banks - Corporate Broking