Ocean Wilsons Regulatory News (OCN)

12 November 2012

Ocean Wilsons Holdings Limited

Interim Management statement

Ocean Wilsons Holdings Limited 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") is a Bermudian investment holding company which through its subsidiaries controls a maritime services and logistics company in Brazil (Wilson Sons Limited) and an investment portfolio.

Results

Results for Wilson Sons Limited ("Wilson Sons") for the third quarter of 2012 demonstrate that, whilst overall revenues have been significantly negatively impacted, EBITDA and EBIT has proved very resilient and Wilson Sons continues to produce strong operating cashflow.

Wilson Sons' revenue for the nine months ended 30 September 2012 at US$ 468.6 million was 10% lower than the comparative period in 2011 (US$521.2 million), principally due to the devaluation of the Brazilian Real against the US Dollar. The average exchange rate for the nine months ended 30 September 2012 was 1.92 compared with 1.63 for the comparative period in 2011. Approximately 65% of the Groups' revenue is denominated in Brazilian Real. Operating costs at our Brazilian maritime subsidiaries, where all the Groups' revenue arise, were also lower as approximately 90% of their operating costs (excluding depreciation) are denominated in Brazilian Real.

Revenues from port terminals were negatively impacted by currency depreciation and reduced rice and frozen cargo volumes, shipyard activities by currency depreciation, and logistics by the discontinuation of certain dedicated operations. However, revenue from our towage, offshore and ship agency businesses increased. Towage revenue benefitted from improved pricing and sales mix. Growth in our offshore business was driven by our larger vessel fleet. All the Group's sales are derived from our Brazilian operations held through Wilson Sons.

Operating profit for the nine months at Wilson Sons was 29% lower at US$55.8 million (2011: US$78.5 million. Operating profit was adversely impacted by lower revenue, higher employee and depreciation expenses. Total operating costs and expenses for the nine months were 7% lower at US$412.8 million (2011: US$445.4 million) principally due to the devaluation of the Brazilian Real although depreciation and amortisation for the period increased 18% to US$49.8 million from US$42.3 million for the comparative period in 2011 reflecting the investment undertaken by the Group in recent years. Employee expenses increased US$5.3 million to US$182.3 million (2011: US$177.0 million) reflecting the higher average headcount during the period and higher share based payment expense. The Wilson Sons Limited share based payment expense for the period was US$10.0 million higher at US$2.3 million (2012 :US$7.7 million credit)

EBITDA for the period at Wilson Sons was US$105.6 million (2011: US$120.9 million). Wilsons Sons adjusted EBITDA (excluding the share based payment expense) for the period was US$107.9 million (2011: US$113.2 million)

Capital expenditure for the nine months of US$135.6 million (2011: US$191.9 million) was spent principally on the expansion of Tecon Salvador, the new Guarujá shipyard and vessel construction. At 30 September 2012 Wilson Sons' borrowings (including obligations under finance leases) was US$549.1 million (31 December 2011: US$491.1 million) of which US$504.5 million is non-current.

Historically the second half of the year is stronger in terms of performance and results for our Brazilian businesses. However, the uncertain economic environment and currency movements may still adversely impact the Group's full year results. These factors, combined with the Group's performance for the nine months ended 30 September 2012, means that it is likely that the outcome in terms of profit for the full year may fall significantly short of current market forecasts.

Wilson Sons announced today to the São Paulo Stock exchange and Luxembourg Stock Exchange its results for the third quarter ended 30 September 2012. Their full announcement is available on the Wilson Sons website (www.wilsonsons.com.br) and at the Brazilian and Luxembourg websites.

Investment Portfolio

At 31 October 2012 the investment portfolio including cash under management amounted to US$233.6 million. The investment portfolio represents US$6.61 (£4.09) per Ocean Wilsons share.

Wilson Sons Limited valuation

At the close of business on 1 November 2012 the Wilsons Sons share price was 29.00 Brazilian Reais, resulting in a market value for the Ocean Wilsons 58.25% holding in Wilson Sons of approximately US$589 million which is equivalent to US$16.73 (£10.36) per Ocean Wilsons share. 

Shareholders should be aware that in addition to Wilson Sons 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 would not have a material effect on the valuation of the business.

Company Contact

Keith Middleton 1 441 295 1309

Seymour Pierce Limited 020 7107 8000

Guy Peters - Corporate Finance

David Banks - Corporate Broking