Interim Results

Ocean Wilsons Holdings Ld 22 September 2004 Chairman's Interim Statement for Ocean Wilsons Holdings Limited Accounts and results Ocean Wilsons Holdings Limited has produced another strong financial and operational performance in the first half of 2004. Group sales for the period were up 29% at US$ 86.2 million (2003: US$ 66.8 million) driven by the continuing boom in Brazilian exports and the expansion of our logistics and transport business. Group operating profit at US$14.6 million (2003: US$ 15.5 million) is in line with our expectations. Results at our towage businesses remain strong with volumes in line with prior period. As previously indicated operating margins in the period were adversely impacted by changes to the Brazilian federal tax legislation and some inflationary cost pressures. The Ship Agency division produced a solid first half performance with turnover up 25% in US Dollar terms. Tecon Rio Grande continued to operate above optimal capacity. Total movements in the period were 280,015 TEUs (twenty foot equivalent units), 9% higher than the comparative period in 2003. Revenue increased 21% in US Dollar terms although capacity constraints adversely affected margins. Expansion of the terminal at an estimated cost of US$25 million is forecast to commence in early 2005. Results at Tecon Salvador reflected the advances made in this business during 2003. We continue to expand our logistics and transport business. The first half of the year has delivered strong growth in turnover although margins remain disappointing. Shareholders should note that this is effectively a new business and it may take sometime to generate an adequate return on turnover. The disposal of non-core properties provided an additional profit of US$ 1.9 million (2003 : US$ 0.2 million). As anticipated profit before taxation fell US$23.5 million to US$ 12.7 million (2003: - US$36.2 million) primarily due to the movement in exchange losses on foreign currency borrowings of US$7.0 million (2003: - US$18.2 million gain), a movement of US$25.2 million. Earnings per share based on ordinary activities after taxation and minority interests were 20.82cents (2003: - 67.50cents). Exchange rates In the six months to 30 June 2004, the $Real depreciated 7% against the US dollar (from R$ 2.89 to R$ 3.10). The average rate of exchange in the period used to translate the Group's Brazilian results into US Dollars appreciated 8% against the US Dollar from R$ 3.22 to R$ 2.96. Exchange gains/losses on foreign currency borrowings The Group's Brazilian subsidiaries continue to have significant US dollar loans and $Real denominated loans that are monetarily corrected by the movement in the US dollar/ $Real exchange rate. The depreciation of the $Real against the US dollar has generated a US$7.0 million $Real denominated loss on the Group's US dollar and US dollar linked loans (2003: - US$18.2 million gain). Under UK GAAP the Group is required to recognise this result in the profit and loss account in the period it occurs. The cash flow effect of these exchange movements will only be realised over the life of the loans when repayments are made. Whilst the value of the loans remain unchanged in US Dollars, repayments need to be made out of local currency. The Board, in internally evaluating the Group's performance, spreads the exchange gain / loss on borrowings over the remaining life of the loans. On the basis of spreading the exchange gains / losses, the portion of current exchange losses and past exchange gains and losses attributable to the period would be a loss of US$ 4.2 million (2003: - US$3.0 million loss) as compared to the reported exchange loss of US$7.0 million (2003: - US$ 18.2 million gain). Dividend The board has resolved that an interim dividend of 2.00cents per share (2003: 1.61cents per share) be paid on 29 October, 2004 to shareholders on the register at close of business on 8 October 2004. Shareholders will continue to receive dividends in sterling determined by reference to the exchange rate applicable to the US Dollar on the dividend record date, except for those shareholders that elect to receive dividends in US dollars. As previously stated future dividend payments will be determined by the Board taking into consideration all aspects of the Group's business, but primarily profitability and free cash flow. Cash flow and capital expenditure The Group continues to be highly cash generative and during the six months to 30 June 2004 net cash inflow from operating activities increased to US$16.0 million (2003 : US$ 12.3 million). Capital expenditure in the period amounted to US$ 6.5 million (2003: US$ 5.0 million), the major element being expenditure on tug construction. At 30 June 2004 Group net debt was US$45.8 million (31 December 2003: - US$ 40.2 million). Investment Portfolio During the period there was significant portfolio activity with purchases totalling US$11.6 million and sales of US$5.4 million. At 31 August 2004 the investment portfolio (including cash under management of US$5.0 million) held outside Brazil was approximately US$54.5 million, including a gain of 3.2% since year end. Group Net Assets At 30 June 2004, the Group's net assets amounted to US$ 118.6 million (31 December 2003: - US$ 114.6 million). This is the equivalent of $3.35 per share (31 December 2003: - $3.24). Net assets located in Brazil account for $1.86 (31 December 2003: - $1.93) and net assets outside Brazil $1.49 (31 December 2003: - $1.31 cents). Future Prospects Our Brazilian business has performed well and the operational forecast for the year remains positive. Ocean Wilsons results are traditionally weighted towards the second half of the year and with the relative stability of the $Real the Group is well positioned to benefit from the growing Brazilian export sector. . J F Gouvea Vieira 21 September 2004 Ocean Wilsons Holdings Limited Preliminary Announcement At the board meeting held today the following announcement of the unaudited results of the Company and its subsidiary companies for the six months ended 30 June 2004 was approved by the directors. Consolidated Profit and Loss Account Unaudited Unaudited Audited six months six months year to to 30 June to 30 June 31 December 2003 2004 2003 US$'000 US$'000 US$'000 Turnover Turnover and share of joint ventures' turnover 96,395 73,640 160,952 Less share of joint ventures' turnover (10,243) (6,889) (16,442) Group Turnover 86,152 66,751 144,510 Operating costs (66,212) (47,870) (109,301) Depreciation (5,297) (3,381) (7,505) Group operating profit 14,643 15,500 27,704 Share of operating profit in joint ventures 2,646 2,033 4,973 Share of operating loss in associates (301) (642) (1,052) Income from fixed asset investments 314 127 307 Realised surpluses on sales of investments 372 1,045 633 Profit on disposals of assets 1,921 192 188 Profit on disposal of interest in associate - - 595 Interest receivable and similar income 3,564 2,573 6,650 Interest payable (3,541) (2,858) (5,948) Net exchange (loss)/gain on foreign currency (6,958) 18,248 17,795 borrowings Profit on ordinary activities before taxation 12,660 36,218 51,845 Taxation on profit on ordinary activities (4,664) (10,149) (19,132) Profit on ordinary activities after taxation 7,996 26,069 32,713 Minority interests (635) (2,199) (3,048) Profit for the period 7,361 23,870 29,665 Dividends Paid and Payable (707) (570) (6,247) Retained profit for the period 6,654 23,300 23,418 Earnings per share Basic and diluted 20.82c 67.50c 83.89c Ocean Wilsons Holdings Limited Preliminary Announcement Consolidated Balance Sheet Unaudited Unaudited Audited as at as at as at 30 June 2004 30 June 2003 31 December 2003 US$'000 US$'000 US$'000 Fixed Assets 104,706 107,298 113,072 Investments 52,990 34,953 45,171 Current Assets Stocks 3,715 2,950 3,166 Debtors 43,559 37,401 45,152 Investment held for resale 2,722 2,940 2,919 Cash at Bank 52,728 55,820 60,302 102,724 99,111 111,539 Creditors (amounts falling due within one year) (49,266) (44,001) (56,323) Net current assets 53,458 55,110 55,216 Total assets less current liabilities 211,154 197,361 213,459 Creditors (amounts falling due after one year) (84,165) (87,404) (88,391) Provisions for liabilities and charges (8,362) (4,000) (10,480) Net assets 118,627 105,957 114,588 Capital and reserves Called up share capital 11,390 11,390 11,390 Profit and loss account 71,034 65,551 66,239 Capital reserves 21,049 19,897 22,665 Revaluation reserve 8,131 2,988 7,411 Equity shareholders' funds 111,604 99,826 107,705 Minority interests 7,023 6,131 6,883 Total capital employed 118,627 105,957 114,588 Net assets per share 335c 300c 324c Ocean Wilsons Holdings Limited Preliminary Announcement Consolidated Cash Flow Statement for the six months ended 30 June 2004 Unaudited six Unaudited six Audited months to 30 months to 30 June 2004 June 2003 year to 31 December 2003 US$'000 US$'000 US$'000 Note Net cash inflow from operating activities 3 16,020 12,325 36,421 Dividends from joint ventures 1,436 2,702 4,582 Returns on investments & servicing of finance 726 (113) 267 Taxation (5,851) (5,295) (11,191) Capital expenditure and financial investment (8,899) (6,205) (19,171) Acquisitions and disposals - 484 1,090 Equity dividends paid (5,658) (2,846) (3,470) Cash (outflow)/inflow before management of (2,226) 1,052 8,528 liquid resources and financing Management of liquid resources 4,175 1,507 (27) Financing (2,183) (4,474) (10,326) Decrease in cash in period (234) (1,915) (1,825) Exchange rates used Average Brazilian $Real to US Dollar 2.96 3.22 3.07 Sterling to US Dollar 0.55 0.62 0.61 Period End Brazilian $Real to US Dollar 3.10 2.87 2.89 Sterling to US Dollar 0.55 0.61 0.56 Notes to the Interim Accounts 1 In respect of the six monthly results, which are based on unaudited reports for management purposes. (a) The figures are not the Company's statutory accounts. (b) The auditors of the Company have not made any report thereon under section 90(2) of the Bermuda Companies Act. (c) The accounts have been prepared using accounting policies consistent with those set out in the most recent audited financial statements ended 31 December 2003. 2 Taxation Unaudited Unaudited Audited six months to six months to year to 30 June 30 June 31 December 2004 2003 2003 US$'000 US$'000 US$'000 UK tax - - - Overseas tax 4,,664 10,149 19,132 4,664 10,149 19,132 3 Reconciliation of operating profit to net cash inflow from operating activities Unaudited Unaudited Audited six months six months to year to 30 June to 30 June 31 December 2003 2004 2003 US$'000 US$'000 US$'000 Operating profit 14,643 15,500 27,704 Depreciation 5,297 3,381 7,505 Amortisation 24 26 53 (Increase)/decrease in stocks (765) (879) (1,166) (Increase)/decrease in debtors (4,438) (6,212) (8,745) Increase/(decrease) in creditors 1,528 121 10,423 Increase/(decrease) in provisions (269) 388 647 Net cash inflow from operating activities 16,020 12,325 36,421 4 The interim dividends of 2.00c per share will be paid on the 29 October 2004, to shareholders on the register at close of business on 8 October 2003. Additional copies of this announcement can be obtained from the Company's registered office, Clarendon House, Church Street, Hamilton, Bermuda or from the Company's UK transfer agent, Capita Registrars, The Registry, 34 Beckenham Road, Kent BR3 4TU. This information is provided by RNS The company news service from the London Stock Exchange

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