Ocean Wilsons Regulatory News (OCN)

Ocean Wilsons Holdings Limited

Quarterly Update

Ocean Wilsons Holdings Limited (LSE: OCN) today announces its third quarter update for 2016. 

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") net income for the third quarter of US$22.7 million was US$29.0 million higher than the comparative period in 2015 (US$6.3 million loss) as 2015 was adversely impacted by exchange losses arising from the depreciation of the Brazilian Real ("BRL") against the US Dollar ("USD") at the period end. During the third quarter of 2016 the BRL depreciated 1% from R$3.21 at 30 June 2016 to R$3.25 at period end compared to a 28% depreciation for the third quarter in 2015.

Revenue for the three months ended 30 September 2016 at US$125.5 million was US$3.1 million higher than the comparative period in 2015 (US$122.4 million). Port terminal and logistics revenue in the period was 7% higher at US$58.5 million (2015 US$54.7 million) with higher container terminal revenue partially offset by lower Brasco and logistics revenue. Container terminal revenue was positively impacted by the average USD/BRL exchange rate in the period. The average USD/BRL exchange rate for the period was 8% lower at 3.26 compared with 3.55 in 2015. Container volumes in the period were 5% lower at 275,200 TEUs (2015 288,700 TEUs), principally due to fewer empty container movements. Both towage and ship agency revenue for the quarter of US$57.7 million and shipyard revenue of US$9.3 million were in line with the comparative period in 2015 (US$58.0 million and US$9.7 million respectively). Revenue for the nine months ended 30 September 2016 of US$340.2 million was 13% lower than the comparative period in 2015 (US$391.3 million).

EBITDA at Wilson Sons for the third quarter at US$46.2 million was 3.7% higher than 2015 (US$44.6 million) while Wilson Sons EBITDA for the nine months of US$117.5 million remains 9% behind the comparative period in 2015 (US$129.5 million).

Capital expenditure in the period of US$10.8 million was invested mainly in tug boat construction.

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

"EBITDA for the third quarter 2016 of US$46.2 million was 3.7% higher than the third quarter 2015 comparative demonstrating a resilient result despite a continuing weak Brazilian macroeconomic scenario. Net profit of US$22.7 million increased as the 2015 comparative was affected by exchange rate movements.

In the current competitive environment, fleet increases and efficiency gains lead to an 11.1% increase in the Towage EBITDA. The offshore support vessel business was boosted by the commencement of operations of the largest vessel in the fleet, although the two offhire vessels reflect a very challenging oil and gas service market.

In light of the challenging trading environment we have implemented reductions in the structure of our Shipyard and Brasco businesses to reduce costs and improve efficiency. We continue our focus on improving cash flow, operational efficiencies and maximising the use of our installed capacity across all businesses."

Wilson Sons Limited announced on Friday 11 November to the São Paulo and Luxembourg Stock exchanges its results for the third quarter ended 30 September 2016. 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 2016, the investment portfolio including cash under management amounted to US$237.1 million (30 June 2016: US$234.1 million). The investment portfolio represents US$6.70 (£5.48) per Ocean Wilsons share.

Enquiries

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon publication of this announcement, this information is now considered to be in the public domain.