Ocean Wilsons Holdings - Quarterly Update
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Ocean Wilsons Holdings Limited
Ocean Wilsons Holdings Limited (LSE: OCN) today announces its third quarter update for 2020.
Ocean Wilsons Holdings Limited ("Ocean Wilsons", "the Company" 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.
On 25 March 2020 Wilson Sons announced the withdrawal of its proposal for a dividend of US 54 cents per issued share to shareholders as had previously been announced on 12 March 2020 and instead recommended that US 21 cents per issued share be paid to shareholders. In light of this on 26 March 2020 the board of Ocean Wilsons Holdings Limited withdrew its recommendation to pay a final dividend of US 70 cents per share and instead paid a final dividend of US 30 cents per share to shareholders on 5 June 2020.
On the 5 November 2020, Wilson Sons paid a further dividend (in reference to its 2019 results) of US 33 cents per issued share to shareholders of Wilson Sons. In light of this the Board is declaring a dividend of US 40 cents per share to be paid on 11 December 2020 to shareholders of the Company as of the close of business on 20 November 2020. Together with the US 30 cents per share paid to shareholders in June this represents total dividends paid to shareholders in calendar 2020 of US 70 cents per share (2019: US 70 cents).
Shareholders will receive dividends in sterling by reference to the exchange rate applicable to the USD on the dividend record date (20 November 2020) except for those shareholders who elect to receive dividends in USD
The CEO of Wilson Sons Limited operations in Brazil, Cezar Baião, stated:
Wilson Sons reports 3Q20 EBITDA of US$37.8 million , a 17.3% decrease in US$ terms from 3Q19, although a 12.1% increase in BRL terms.
? Trade-linked volumes at our container terminals and towage businesses remained resilient despite the impacts of the Covid-19 pandemic.
? Liquidity remains strong with US$112.6 million in cash at the quarter end.
? 3Q20 profit after tax fell 20.3% to US$10.4 million . In BRL terms net profit increased 113% to R$55.4 million . Excluding foreign exchange movements, Wilson Sons would have shown a net profit of US$8.6 million .
? An additional US$23.6 million dividend in reference to our 2019 results has been approved by shareholders an d distributed on the 5 Nov ember 2020 .
Wilson Sons 3Q20 EBITDA of US$37.8 million decreased 17.3% against 3Q19 (US$45.7 million ) mainly impacted by lower container terminal results. In BRL terms EBITDA rose 12.1% in Q3.
With the towage performance particularly strong, we recently approved the construction of six new 80-tonne tugboats to be delivered between 2022 and 2024 by the Wilson Sons shipyard. These vessels further increase the ability of our towage fleet to attend the larger ships now calling in Brazil.
In October 2020 the Brazilian Navy certified the new 15-metre draft for the navigation channel serving the Port of Rio Grande, allowing our container terminal to receive super-post-Panamax vessels, strengthening our position as a principal hub port in the southern region of Brazil.
The outlook heading into the fourth quarter of 2020 remains subdued with lingering economic impacts of Covid-19, and the recent oil price weakness continuing to delay the recovery in offshore oil and gas support services. Debt standstill agreements have benefitted our oil service businesses through this extraordinary period.
In what is a challenging operational environment with the effects of the Covid-19 pandemic, we reaffirm our commitment to the safety and well-being of our employees, clients, suppliers and the communities where we operate to ensure the continuity of the essential services we provide. All our operations and facilities are applying rigorous health and safety protocols established by Brazilian authorities and agencies, and we are closely monitoring the evolution of the pandemic in the country.
CEO of Operations in Brazil
Group revenue for the three months ended 30 September 2020, at US$88.1 million, was 17.0% lower than the comparative period (2019: US$106.1 million) principally due to reduced revenue at our container terminals, lower logistics revenue due to the completion of a specific high-volume contract, and lower offshore support base revenues. In BRL terms revenue was 12.5% higher than prior year. The average USD/BRL exchange rate in the period at R$5.38 was 35.5% higher than the comparative period in 2019 (2019: R$3.97). Container terminal revenue for the quarter was 27.0% lower than the prior year at US$32.5 million (2019: US$44.5 million) mainly due to the devaluation of the BRL against the USD and lower import volumes although total c ontainer volumes moved in the period at 279,100 TEUs (2019: 275,900 TEUs) were 1.2% higher. Import volumes in the period continued to be affected by the slowdown in domestic consumption and industrial activity in Brazil due to the ongoing impact of the Covid-19 pandemic. Towage revenue at US$44.1 million was 3.0% higher than the third quarter of 2019 (US$42.8 million) due to an improved sales mix and higher harbour towage volumes. Harbour towage manoeuvres increased 1.8% to 13,973 (2019: 13,724). Revenue from towage special operations was US$2.1 million lower at US$1.6 million (2019: US$3.7 million). Offshore support base revenue was US$2.2 million lower at US$2.0 million (2019: US$4.2 million).
Wilson Sons EBITDA for the third quarter, at US$37.8 million, was 17.3% lower than prior year (2019: US$45.7 million) and for the nine months ended 30 September 2020 was 4.8% lower at US$110.9 million (2019: US$116.4 million).
Wilson Sons profit after tax for the third quarter of US$10.4 million was US$2.6 million lower than the comparative period in 2019 (US$13.0 million) and for the nine months ended 30 September 2019 was US$17.8 million lower at US$8.3 million (2019: US$26.1 million), principally due to higher exchange losses.
On 11 November 2020, Wilson Sons Limited announced to the São Paulo and Luxembourg Stock exchanges its results for the third quarter ended 30 September 2020. The full announcement is available on the Wilson Sons website ( www.wilsonsons.com.br ) and at the Brazilian stock exchange website.
At 30 September 2020, the investment portfolio including cash under management amounted to US$281.8 million (30 June 2020: US$267.7 million). The investment portfolio represents US$7.94(£6.11) per Ocean Wilsons share. At 31 October 2020, the investment portfolio including cash under management amounted to US$280.6 million.