Interim Results

Ocean Wilsons Holdings Ld 27 September 2006 Ocean Wilsons Holdings Limited Chairman's Interim Statement Accounts and results The Group produced a good performance in the first half of 2006. Group turnover increased by 21% to US$150.4 million, compared with US$ 123.8 million in the first six months of 2005 driven principally by growth in the port operations and logistics business. Operating profit increased by 20% from US$19.7 to US$23.7 million mainly as a result of profit on disposal of our interest in the joint venture, WR Operacoes Portuarias Ltda and the release of surplus on the acquisition of our subsidiary, Brasco. Adjusting for these non-repeating items, operating profit at US$ 19.1 million was in line with the comparative period in 2005. The decline in margins from prior period reflects the increased market pressures, sales mix and currency movements. Towage revenue in US Dollars for the six months to 30 June 2006 grew 12% compared with prior period due to a stronger Real and an increase in the average size of vessels attended. Volumes were similar to 2005 with a fall in our overall market share. Margins have declined as a result of increased costs, principally fuel, maintenance and service costs. During the period the 73 ton bollard pull tugboats, Aquarius and Volans were completed at our shipyard as part of our ongoing tug fleet renewal programme and construction commenced on our third platform supply vessel. The first six months of 2006 were more difficult than expected for the ship agency division. Turnover remained in line with the comparative period in 2005 although margins were impacted by a fall in international freight rates and the stronger Real. Following eight years of double digit growth, volumes handled at Tecon Rio Grande decreased for the first time, 5% compared with the equivalent period in 2005 to 297,178 TEUs (Twenty foot equivalent units), (2005: 311,901). The downturn in volumes was caused principally by the strong Real, Asian bird flu crisis and continuing drought, which depressed exports from the region. Despite the fall in volumes operating margins and turnover improved driven by a recovery in tariffs that partially offset the price erosion of recent years. Construction of the third berth to expand the terminal is underway and is forecast for completion by the end of 2007. Tecon Salvador had another satisfactory result, reporting a 9% rise in container throughput to 100,205 TEUs. Turnover was 36% higher than first half 2005 mainly as the result of higher volumes and the appreciation of the Real against the US Dollar. Our joint venture dredging company, Dragaport reported substantially improved results in the period with dredging work performed in Angra dos Reis, Santos and Rio Grande. Investment revenues decreased from US$10.4 million to US$ 7.1million, due to a fall in revenue from underwriting activities and reduced exchange gains on cash and cash equivalents. Other gains arise from the Group's portfolio of trading investments comprising; increases in the fair value of trading investments held at period end; exchange gains on trading investments and profits on disposal of trading investments. As result of higher exchange gains in the period, other gains at US$ 4.0 million were US$3.1 million higher than prior year (2005 US$0.9 million). Finance costs were unchanged at US$3.2 million (2005: US$3.1 million). The resulting profit before tax for the period was US$31.5. million (2005: US$27.9 million) benefiting from the higher operating profit. Earnings per share based on ordinary activities after taxation and minority interests were 66.6 cents (2005: 54.1cents). Exchange rates In the six months to 30 June 2006 the Real appreciated 8% against the US Dollar from 2.34 at 1 January 2006 to 2.16 at the period end. Dividend The board has declared an interim dividend of 2.0cents per share (2005: 2.0 cents per share) be paid on 27 October 2006 to shareholders on the register at close of business on 6 October 2006. Cash flow and debt Net cash flows from operations were US$13.6 million in the first six months of 2006 compared with US$ 10.2 million in the same period last year, reflecting the improved operating results, lower tax payments and working capital movements. Capital expenditure of US$ 16.3 million (2005: US$ 18.9 million) was used mainly in vessel construction and the expansion of Tecon Rio Grande. During the first half of 2006 the Group sold its interest in the joint venture, WR Operacoes Portuarias Ltda. The net cash inflows included in the period from this disposal were US$ 1.3 million Repayments of borrowings and finance leasing obligations in the period were US$ 8.1 million in accordance with debt repayment schedules (2005: US$6.8 million). Total Group borrowings (including obligations under finance leases) at 30 June 2006 were US$102.0 million (31 December 2005: - US$ 109.4 million). Investment Portfolio At 31 August 2006 the investment portfolio (including cash under management of US$1.3 million) held outside Brazil was approximately US$73.4 million, a gain of 6.9% since year end. Balance Sheet Net equity (equity attributable to ordinary shareholders of the Company) increased from US$ 170.1 million at the beginning of the year to US$ 189.5 million mainly due to the profit in the period after minority interests less the ordinary dividend in respect of 2005. Minority interests increased from US$1.3 million at the beginning of the year to US$ 3.1 million, principally due to the sale of a 25% minority interest in the Group's subsidiary Brasco. At 30 June 2006, the Group's net assets amounted to US$ 192.6 million (31 December 2005: - US$ 171.4 million). This is the equivalent of 545 cents per share (31 December 2005: - 485 cents). Net assets located in Brazil account for 352 cents per share (31 December 2005: - 303 cents) and net assets outside Brazil 193 cents per share (31 December 2005: - 182 cents). Future Prospects The operating results for July and August are ahead of the same period in 2005. However the unevenness in Brazilian regional growth and currency movements may still adversely impact the Group's full year results. J F Gouvea Vieira 26 September 2006 Ocean Wilsons Holdings Limited Consolidated income statement At a board meeting held on 26 September 2006 the following announcement of the unaudited results of the Company and its subsidiary companies for the six months ended 30 June 2006 were approved by the Directors. Unaudited Unaudited Audited six months six months year to to 30 June to 30 June 31 December 2005 2006 2005 US$'000 US$'000 US$'000 Notes Revenue 150,423 123,849 285,227 Raw materials and consumables used (23,548) (16,924) (50,398) Employee benefits expense (40,450) (31,237) (71,719) Depreciation and amortisation expense (7,538) (6,363) (13,959) Other operating expenses (59,763) (50,368) (116,207) Profit on disposal of property, plant and equipment 113 515 565 Profit on disposal of joint venture 3,107 - - Release of surplus on acquisition of interest in 1,396 - - subsidiary Share of (loss)/profit of associate (50) 201 39 Operating Profit 23,690 19,673 33,548 Investment revenues 7,095 10,443 14,212 Other gains and losses 3,984 852 7,764 Finance Costs (3,220) (3,117) (6,002) Profit before tax 31,549 27,852 49,522 Income tax expense (7,674) (6,697) (14,865) 2 Profit for the period 23,875 21,115 34,657 Attributable to: Equity holders of parent 23,566 19,117 33,086 Minority Interests 309 2,038 1,571 23,875 21,155 34,657 Earnings per share Basic and diluted 66.6c 54.1c 93.6c Ocean Wilsons Holdings Limited Consolidated Balance Sheet Unaudited Unaudited Audited as at as at as at 30 June 2006 30 June 2005 31 December 2005 US$'000 US$'000 US$'000 Non Current Assets Goodwill 13,132 - 13,132 Other Intangible assets 2,140 2,470 2,288 Property, plant and equipment 160,926 138,834 147,651 Deferred tax assets 7,921 9,414 7,462 Interests in associates 344 880 365 Available for sale investments 5,281 4,272 4,821 Other non-current assets 7,256 4,342 5,657 197,000 160,212 181,376 Current Assets Inventories 7,145 5,492 6,669 Trading investments 72,313 59,015 64,563 Trade and other receivables 49,264 47,738 45,295 Cash and cash equivalents 40,909 64,463 50,881 169,631 176,708 167,408 Total Assets 366,631 336,920 348,784 Current liabilities Trade and other payables (55,964) (43,788) (54,266) Current tax liabilities (402) (6,862) (971) Obligations under finance leases (2,465) (3,553) (3,893) Bank overdrafts and loans (13,823) (14,947) (16,431) (72,654) (69,150) (75,561) Net current assets 96,977 107,558 91,847 Non-current liabilities Bank loans (85,362) (84,638) (88,515) Deferred tax liabilities (9,674) (10,373) (8,455) Provisions (5,908) (3,479) (4,317) Obligations under finance leases (389) (2,014) (566) (101,333) (100,504) (101,853) Total liabilities (173,987) (169,654) (177,414) Net assets 192,644 167,266 171,370 Capital and reserves Share capital 11,390 11,390 11,390 Retained earnings 142,311 120,933 126,331 Capital reserves 26,044 16,077 23,942 Investment reserve 1,958 1,353 1,856 Translation reserve 7,819 6,329 6,538 Equity attributable to equity holders of the parent 189,522 156,082 170,057 Minority interests 3,122 11,184 1,313 Total equity 192,644 167,266 171,370 OCEAN WILSONS HOLDINGS LIMITED Consolidated statement of changes in equity As at 30 June 2006 Attributable Investment to equity Share Retained Capital revaluation Translation Holders of Minority Capital earnings reserves reserve reserve The parent interests Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 For the six months ended 30 June 2005 Balance at 1 January 2005 11,390 101,137 23,122 1,353 1,406 138,408 9,019 14,427 Transfer to retained earnings - 7,045 (7,045) - - - - - Currency translation adjustment - - - - 4,923 4,923 127 5,050 Total recognised income for the - 19,116 - - - 19,116 2,038 21,154 period Dividends - (6,365) - - - (6,365) - (6,365) Balance at 30 June 2005 11,390 120,933 16,077 1,353 6,329 156,082 11,184 167,266 For the year ended 31 December 2005 Balance at 1 January 2005 11,390 101,137 23,122 1,353 1,406 138,408 9,019 14,427 Transfer to capital reserves - (820) 820 - - - - - Gains on available for sale - - - 503 - 503 - 503 investment Currency translation adjustment - - - - 5,132 5,132 - 5,132 Total recognised income for the - 33,086 - - - 33,086 1,571 34,657 period Dividends - (7,072) - - - (7,072) - (7,072) Acquisition of minority interest - - - - - - (9,277) (9,277) Balance at 1 January 2006 11,390 126,331 23,942 1,856 6,538 170,057 1,313 171,370 For the six months ended 30 June 2006 Balance at 1 January 2006 11,390 126,331 23,942 1,856 6,538 170,057 1,313 171,370 Transfer to capital reserves - (1,221) 1,221 - - - - - Fiscal Incentives received - - 881 - - 881 - 881 Gains on available for sale - - - 102 - 102 - 102 investment Currency translation adjustment - - - - 1,281 1,281 - 1,281 Total recognised income for the - 23,566 - - - 23,566 309 23,875 period Dividends - (6,365) - - - (6,365) - (6,365) Disposal of minority interest - - - - - - 1,500 1,500 Balance at 30 June 2006 11,390 142,311 26,044 1,958 7,819 189,522 3,122 192,644 Ocean Wilsons Holdings Limited Consolidated Cash Flow Statement for the six months ended 30 June 2006 Unaudited Unaudited Audited six months to Six months to year to 30 June 30 June 31 December 2006 2005 2005 US$'000 US$'000 US$'000 Net cash inflow from operating activities 13,562 10,165 24,871 Investing Activities Interest received 2,572 3,579 5,997 Dividends received from associates - - 323 Dividends received from trading investments 417 381 642 Proceeds on disposal of trading investments 2,146 4,615 12,843 Income from underwriting activities - 1,289 1,530 Proceeds on disposal of property, plant and 113 1,090 3,077 equipment Purchases of property, plant and equipment (16,307) (18,943) (36,245) Net cash inflow arising from acquisition of 685 - (23,222) subsidiary Purchases of trading investments (5,912) (4,888) (11,704) Net cash inflow arising on disposal of joint 1,355 - - venture Net cash used in investing activities (14,931) (12,877) (46,759) Financing Activities Dividends paid (6,365) (6,365) (7,072) Repayments of borrowings (6,498) (5,844) (11,389) Repayments of obligations under finance leases (1,605) (599) (2,932) New bank loans raised 1,928 5,750 18,295 Decrease in bank overdrafts (169) (318) (409) Net cash used in financing activities (12,709) (7,376) (3,507) Net decrease in cash and cash equivalents (14,078) (10,088) (25,395) Cash and cash equivalents at beginning of period 50,881 70,915 70,915 Effect of foreign exchange rate changes 4,106 3,636 5,361 Cash and cash equivalents at end of period 40,909 64,463 50,881 Exchange rates used Period End Brazilian $Real to US Dollar 2.16 2.35 2.34 Sterling to US Dollar 0.54 0.56 0.58 Ocean Wilsons Holdings Limited Notes to the Interim Accounts 1 In respect of the six monthly results, which are based on unaudited reports for management purposes. (a) The figures are not the Company's statutory accounts. (b) The auditors of the Company have not made any report thereon under section 90(2) of the Bermuda Companies Act. (c) The interim financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRSs') with the exception of IAS 34 - interim financial reporting. For these purposes, IFRS comprise the standards issued by the International Accounting Standards Board ('IASB') and interpretations issued by the International Financial Reporting Interpretations Committee ('IFRIC') that have been endorsed by the European Union The interim financial information has been prepared on the basis of accounting policies consistent with those applied in the financial statements for the year ended 31 December 2005. 2 Taxation Unaudited Unaudited Audited six months to six months to year to 30 June 30 June 31 December 2006 2005 2005 US$'000 US$'000 US$'000 UK tax - 392 380 Overseas tax 7,674 6,305 14,485 7,674 6,697 14,865 3 Dividends The interim dividend of 2.00 cents per share will be paid on the 27 October 2006, to shareholders on the register at close of business on 6 October 2005. 4. Other information 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 Group Plc, The Registry 34 Beckenham Road, Beckenham, Kent BR3 4TU. Address for dividend currency election Ocean Wilsons Dividend election Capita Registrars The Registry 34 Beckenham Road Beckenham Kent, BR3 4TU This information is provided by RNS The company news service from the London Stock Exchange

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