Coronavirus Update

Ocean Wilsons Holdings First Quarterly Update 2021

This content has been sourced from: https://www.investegate.co.uk/ocean-wilsons-hldgs-...

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 ("Wilson Sons"), controls a maritime services and logistics company in Brazil.

The CEO of Wilson Sons Operations in Brazil, Fernando Salek, stated:

"Wilson Sons reports 1Q21 EBITDA of US$43.6 million, a 20.8% increase in US$ terms from 1Q20.

1Q21 operating results were solid off the back of trade flow growth.

Container terminal volumes increased 5.7% compared to 1Q20 from greater import volumes and trans-shipment.

Towage manoeuvres increased 5.3% compared to 1Q20 with strong commodities flows.

1Q21 profit after tax increased to US$4.6 million. Excluding foreign exchange movements, Wilson Sons would show a profit after tax of US$8.8 million.

 

Wilson Sons 1Q21 EBITDA of US$43.6 million increased 20.8% against 1Q21 (US$36.1 million) remaining very resilient despite the Covid-19 pandemic. In Brazilian Real ("BRL") terms EBITDA grew 48.6%.

Container terminal results were positively impacted by import volumes in 1Q21 with some positive domestic economic activity in the quarter and an improvement in the mix of containers handled. The Salvador terminal reported a 2.9% increase in operating volumes during the quarter, with the completion of civil works related to the expansion in March. At the Rio Grande terminal, total volumes grew 7.3% against 1Q20 and trans-shipment volumes continued to improve, showing an increase of 35.8% in 1Q21 compared to 1Q20. 

Towage results continued to be solid with strong volume both in manoeuvres and average deadweight, mainly due to the increase of vessels carrying commodity volumes with iron ore and petroleum performing well. 

The outlook for 2021 remains overshadowed by a new wave of Covid-19 infection in Brazil so the health and safety protocols established in our operations and facilities are fundamental to our business in these difficult times, and we are closely monitoring the evolution of the pandemic in the country. Despite this, we continue to see some evidence of recovery in trade flows, although oil and gas services demand remains challenging, with oversupply for offshore supply vessels. 

I would like to thank the Wilson Sons team for the delivery of this impressive set of results during such challenging times.

Fernando Salek,

CEO of Operations in Brazil

 

Financial Results

Revenues increased 1.5% to US$92.5 million as a result of (i) higher towage volumes in ports that operate larger ships, (ii) a better mix of containers handled and (iii) seven dry docking operations performed.  The average USD/BRL exchange rate in the period at 5.48 was 10.3% higher than the comparative period (2020: 4.97)

 

Container volumes in the period at 257,900 TEUs are 5.8% better than the prior year (2020: 243,900).  Towage and ship agency revenue for the quarter was 9.8% higher at US$47.1 million (2020: US$42.9 million) mainly due to increases in harbour manoeuvres and tariff levels.  Shipyard revenues increased US$1.8 million to US$2.5 million (2020: US$0.9 million) reflecting growth in dry-docking activity. Offshore Support Vessel revenue was down 16.4% to US$13.4 million due to the negative impact of currency depreciation on the portion of revenues denominated in R$.

Wilson Sons made an after-tax profit of US$4.6 million compared to a loss of US$7.8 million in 2020.  Excluding foreign exchange losses, profit for the quarter is US$8.8 million (2020: US$6.7 million).

Investment Portfolio

At 30 April 2021, the investment portfolio including cash under management amounted to US$332.7 million (31 December 2020: US$310.3 million). The gross time-weighted performance of the portfolio YTD is 7.5%. This compares to 9.1% for the MSCI All Country World Index inc. Frontier Markets over the same period.

Net asset value

At the close of markets on 30 April 2021, the market value of the Ocean Wilsons holding of Wilson Sons totalled approximately US$375.5 million which is the equivalent of US$10.62 (£7.69) per Ocean Wilsons share. The investment portfolio of US$332.7 million represents US$9.41 (£6.81) per Ocean Wilsons share. Adding the market value per share of Wilsons Sons and the investment portfolio results in a net asset value per Ocean Wilsons share of US$20.03 (£14.50) per share. The Ocean Wilsons share price of £9.25 at 30 April 2021 represented an implied discount of 36.2%.

COVID-19

 

Wilson Sons provides port and maritime logistics services , which is classified as essential activities by the Brazilian Government, has limited the negative effects of COVID-19 on the company's results thus far . The company does not predict any material impact on its long-term performance at this time. 

Environmental, Social and Governance Practices (ESG)

Ocean Wilsons continues to focus on ESG practices within its subsidiaries.  In 2021, Wilson Sons became a member of the Carbon Disclosure Project (CDP Latin Am) ratifying its commitment with environmental sustainability. Wilson Sons' operation at Tecon Rio Grande received ISO 45001 certification. The standard confirms the excellence of the unit's occupational safety and health systems. The terminal is already certified with ISO 14001, relating to environmental management, and with ISO 9001, focused on quality management.

 

Wilson Sons continues to monitor its performance through various environmental and other social responsibility indicators with a number of actions and results disclosed in the Integrated Annual Report and the Bloomberg ESG Survey published on the company's investor relations website (wilsonsons.com.br/ir).