Interim Management Statement

RNS Number : 4460D

Ocean Wilsons Holdings Ld

16 May 2012

 



Ocean Wilsons Holdings Limited

Interim Management statement

Ocean Wilsons Holdings Limited 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") is a Bermudian investment holding company which through its subsidiaries controls a maritime services and logistics company in Brazil and an investment portfolio.  

Results

Revenue for the three months ended 31 March 2012 at US$157.2 million was in line with the comparative period in 2011 (US$156.6 million). Increased revenue from our towage and offshore businesses was offset by lower revenue at our port terminals and logistics businesses. The lower revenue at our port terminals and logistics businesses was due to the end of Brasco operations in the public port of Rio de Janeiro and the termination of some low margin logistic contracts. All the Group's sales are derived from our Brazilian operations held through Wilson Sons Limited.

Operating profit for the period at Wilson Sons Limited was 58% lower at US$11.2 million (2011: US$27.1 million) principally due to the share based payment expense, higher raw material, employee and depreciation expenses. The share based payment expense for the period was US$5.2 million, US$11 million higher than the comparative period in 2011, US$5.8 million credit.  Raw material costs were impacted by a US$2.4 million one-off charge arising from a change in the accounting treatment for fuel inventory. Depreciation and amortisation for the period increased 36% to US$17.4 million from US$12.9 million for the comparative period in 2011 due to the significant capital expenditure undertaken by the Group in developing our business. Employee expenses (excluding the share base payment expense) at US$59.8 million (2011: US$54.3 million) reflect the higher average headcount during the period.

EBITDA for the period at Wilson Sons Limited was US$28.6 million (2011: US$39.9 million). Wilsons Sons Limited adjusted EBITDA (excluding the share based payment expense) for the period was US$33.8 million (2011: US$34.1 million)

Capital expenditure in the first quarter of US$43.0 million (2011: US$54.8 million) was spent principally on the expansion of Tecon Salvador, the new Guaruja shipyard and vessel construction. At 31 March 2012 Wilson Sons Limited borrowings (including obligations under finance leases) was US$516.0 million (31 December 2011: US$491.1 million) of which US$475.6 million is non-current. 

Trading continues to be in line with performance in the year to date and historical seasonal trends.

Wilson Sons Limited announced today to the São Paulo Stock exchange and Luxembourg Stock Exchange their results for the first quarter ended 31 March 2012. Their full announcement is available on the Wilson Sons website (www.wilsonsons.com.br) and at the Brazilian and Luxembourg websites.

Investment Portfolio

At 30 April 2012 the investment portfolio including cash under management amounted to US$235.3 million. The investment portfolio represents US$6.65 (£4.09) per Ocean Wilsons share.

Wilson Sons Limited valuation

At the close of business on 9 May 2012 the Wilsons Sons Limited share price was 30.50 Brazilian Reais, resulting in a market value for the Ocean Wilsons 58.25% holding in Wilson Sons Limited of approximately US$589 million which is equivalent to US$18.24 (£11.33) 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 would not have a material effect on the valuation of the business.

Company Contact

Keith Middleton                                   1 441 295 1309

Seymour Pierce Limited                       020 7107 8000

Guy Peters - Corporate Finance

David Banks - Corporate Broking

 

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