Ocean Wilsons Hldgs - Quarterly Update

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 30 September 2018 at US$114.1 million was US$15.3 million lower than the comparative period (2017: US$129.4 million) due to a higher average USD/BRL exchange rate in the period and lower towage and ship agency revenue. The average USD/BRL exchange rate in the period at 3.95 was 25% higher (2017: 3.16). Towage and ship agency revenue for the quarter was 23% lower than prior year at US$43.2 million (2017: US$56.0 million) pressured by a more competitive environment impacting both volumes and prices. Container volumes in the period were 6% higher at 312,300 TEUs (2017: 295,400 TEUs) although port terminal and logistics revenue in the period was 1% lower at US$67.5 million (2017: US$68.1 million) principally due to the higher average USD/BRL exchange rate in the period. Shipyard revenue of US$3.2 million was US$2.3 million lower than the third quarter of 2017 ($5.5 million). Group revenue for the nine months ended 30 September 2018 was 7% lower at US$349.1 million (2017: US$375.2 million).

 

Wilson Sons Limited's ("Wilson Sons") EBITDA for the third quarter of US$45.8 million was 5% lower (2017: US$47.9 million) while Wilson Sons EBITDA for the nine months of US$123.7 million is 3% lower than the comparative period (2017: US$128.1 million).

 

Wilson Sons profit after tax for the third quarter of US$15.5 million was US$10.6 million lower than the comparative period in 2017 (US$26.1 million).

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

"Wilson Sons reports 3Q18 EBITDA of US$45.8 million, a decrease of 4.5% in US Dollar terms, but an increase of 19.5% in BRL terms.

•           Solid growth in both container terminals reflecting fledging economic recovery.

•           Tecon Salvador commenced preparations to start civil works for the quay extension after receiving all licensing approvals.

•           Towage volumes and prices constrained by a more intense market competition.

Wilson Sons 3Q18 EBITDA was down 4.5% against the comparative quarter to US$45.8 million (3Q17: US$47.9 million), despite the solid results in container terminals. Full container TEU volumes grew 9.2% and imports improved by 10.6%. In September, Tecon Salvador moved a record 33,100 TEUs and commenced preparations to start civil works to extend the principal quay from 377 metres to 800 metres to allow simultaneous berthing of two super-post-Panamax ships. We are pleased to announce that MSC started operating a new dedicated feeder service for transshipment cargo connecting Rio Grande to the River Plate region.

Towage results continued to be pressured by a very competitive environment affecting volumes and prices. After quarter-end, the division received the escort tug WS Sirius with 90 tonnes of bollard pull. It is the largest and most powerful tugboat in Brazil, further differentiating Wilson Sons towage service by offering clients superior assets, safety and efficiency levels.

Offshore support vessel results were negatively affected by the end of seven contracts during the quarter. Weakened demand has been partially mitigated through alternative vessel solutions. In July, WSUT expanded its range of services commencing two contracts for shallow-water diving support and one contract to support oil spill recovery. Brazil's recent success in pre-salt oilfield auctions reinforces a more favourable long-term outlook for the Brazilian oil and gas industry despite the short-term challenges.

The Company remains focused on increasing cash flow and improving capacity utilisation across all businesses in order to maximise value for stakeholders, with our continued commitment to safety."

On 9 November 2019, Wilson Sons Limited announced to the São Paulo and Luxembourg Stock exchanges its results for the third quarter ended 30 September 2018. The 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 2018, the investment portfolio including cash under management amounted to US$265.3 million (30 June 2018: US$272.5 million). The investment portfolio represents US$7.50 (£5.88) per Ocean Wilsons share.