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 Wilson Sons Limited operations in Brazil, Cezar Baiao stated:

"Although the company's CAPEX is lower than we have seen since our IPO, we continue to add new capacity with important investments in the expansion of Brasco-Caju, as well as new Towage and Offshore Vessels. Investments like these to facilitate safe, secure, efficient and competitive services for our clients are a fundamental driver for the evolution of our volumes and profitability.

I would also like to highlight two important decisions contributing to the improvement of our corporate governance and capital allocation: the new dividend policy of approximately 50% of the company's net profit, which is designed to provide transparency on our immediate free cash flow while in no way compromising our priority on long term growth; and the new Share Option Scheme, which was designed for the long term alignment of key executives and management with shareholders.

Our results and strategic decisions are a direct reflection of the disciplined dedication of our staff. We stay alert to the challenges ahead, but confident in the fundamentals of our long-term model based on our people, systems processes and superior assets."

Financial Results

All the Group's sales are derived from our Brazilian operations held through Wilson Sons Limited. Revenue of US$147.7 million for the three months ended 31 March 2014 was in line with the comparative period in 2013 (US$148.3 million). Towage and ship agency revenue increased 7% to US$52.3 million (2013: US$49.1 million) due to an increase in the number of harbour towage manoeuvres and a higher average deadweight of vessels attended. Port terminal and logistics revenue was 4% lower at US$75.8 million (2013: US$79.0 million) although containers handled during the period, 243,500 Twenty foot equivalent units (TEUs), increased significantly compared with the comparative period in 2013, (195,800 TEUs). Revenue did not accompany the growth in volumes due principally to the weaker average Brazilian Real (BRL) / US dollar (USD) exchange rate in the period, (2.37 compared with 2.00 in 2013) impacting BRL denominated revenue when converted into USD, the conclusion of two logistic contracts and a less favourable sales mix. Lower value transhipment and empty containers accounted for 49% of container movements in 2014 compared with 38% in 2013. Shipyard revenues were in line with prior year.

Wilson Sons Limited operating profit for the period at US$24.4 million was in line with 2013 (US$22.2 million). Employee expenses at US$42.4 million (2013: US$50.3 million) were positively impacted by lower headcount, the weaker BRL / USD exchange rate which benefits BRL denominated costs when converted into our reporting currency and a credit on the share based payment expense. Raw material costs increased mainly as a result of third party vessel construction at our shipyard. Depreciation and amortisation for the period at US$15.8 million was US$2.0 million higher than the comparative period in 2013 (US$13.8 million) due to the capital investment undertaken by the Group in recent years.

EBITDA for the period at Wilson Sons Limited was US$40.2 million (2013: US$36.0 million).

Capital expenditure in the first quarter was US$6.0 million higher than prior year at US$27.5 million (US$21.5 million). Capital expenditure was mainly invested in the expansion of the Brasco-Caju oil and gas terminal, tugboat construction and the remaining civil works at Tecon Salvador. At 31 March 2014 Wilson Sons Limited borrowings (including obligations under finance leases) were US$380.7 million (31 December 2013: US$378.8 million) of which US$339.2 million are non-current. This does not include the Group's share of borrowings in the offshore joint venture of US$251.3 million.

Wilson Sons Limited announced today to the São Paulo Stock exchange its results for the first quarter ended 31 March 2014. Their full announcement is available on the Wilson Sons website (www.wilsonsons.com.br) and at the Brazilian stock exchange website.

Investment Portfolio

At 30 April 2014 the investment portfolio including cash under management amounted to US$251.4 million. The investment portfolio represents US$7.11 (£4.21) per Ocean Wilsons share.

Wilson Sons Limited valuation

At the close of business on 7 May 2013 the Wilsons Sons Limited share price was 32.81 Brazilian Reais, resulting in a market value for the Ocean Wilsons 58.25% holding in Wilson Sons Limited of approximately US$614.2 million, which is equivalent to US$17.37 (£10.26) 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

Company Broker

Cantor Fitzgerald Europe 020 7894 7000

Rick Thompson - Corporate Finance

David Banks - Corporate Broking