Ocean Wilsons Holdings Limited

Quarterly Update

Ocean Wilsons Holdings Limited (LSE:OCN) today announces its first quarter update for 2016. 

Our Operations

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, controls a maritime services and logistics company in Brazil.

Financial Results

Wilson Sons Limited's ("Wilson Sons") net income for the first quarter of US$22.0 million was US$30.1 million higher than 2015 (US$8.1 million loss) principally due to exchange gains arising from the appreciation of the Brazilian Real "BRL" at period end against the US Dollar "USD". During the first quarter the BRL appreciated 11% from R$3.90 at 1 January 2016 to  R$3.56 at period end, although the average USD/BRL exchange rate for the period at 3.91 moved in the opposite direction compared with prior year (2015: 2.86), a 37% depreciation.  

Group revenue for the three months ended 31 March 2016 was US$101.7 million, down 27% on the comparative period in 2015 (US$139.2 million) mainly due to the adverse impacts of the weaker average BRL on BRL denominated revenue when converted into USD and lower shipyard activity in the period. Container volumes in the period were 6% higher at 237,500 TEUs (2015 225,800 TEUs) with increased export volumes partially offset by lower import and transhipment movements. Port terminal and logistics revenue fell 29% in the period to US$44.9 million (2015 US$63.7 million) due to lower warehousing income and the impact of the weaker average BRL. Towage and ship agency revenue for the quarter of US$51.9 million was 5% lower than 2015 (US$54.9 million) principally as a result of fewer towage manoeuvres performed reflecting tighter market conditions. Shipyard revenue at US$4.9 million (2015 US$20.6 million) was affected by reduced third party construction in the period.

Wilson Sons' EBITDA margins at 33.8 % were in line with 2015 (33%). EBITDA at Wilson Sons decreased 25% to US$34.4 million (2015: US$46.0 million) accompanying the fall in revenues.

Capital expenditure in the period of US$41.3 million for the period is higher than prior year (2015: US$20.8 million), largely as the result of the one-off acquisition of six tugboats that were previously bareboat chartered by the Group.

The CEO of Wilson Sons Limited operations in Brazil, Cezar Baião, stated:

"Net profit of US$22.0M was boosted by exchange rate movements, although a continuing weak Brazilian macroeconomic scenario has contributed to a first quarter 2016 EBITDA result 25% below the first quarter 2015 comparative.

The positive highlights were Container Terminal business operational TEU increases and continued solid results for the Towage. The Brasco offshore base turnarounds were up by 16.9% which, although welcome, is still significantly below its full potential reflecting a very challenging oil and gas service market. Our Offshore Vessels business suffered reduced operating days due to early January offhire and a specific client request for vessel adaptation completed throughout the quarter. Looking forward, operational days should be in line with 2015 for the remainder of the year. 

Highlights for the quarter were the January acquisition of the 7.5% minority in our Tecon Salvador subsidiary and the acquisition of six tugboats which had previously been leased. In these challenging times, the Company will continue its focus on improving cash flow, operational efficiencies and maximizing the use of our installed capacity."

Wilson Sons Limited announced on Wednesday 11^th May 2016 to the São Paulo and Luxembourg Stock exchanges its results for the first quarter ended 31 March 2016. Their full announcement is available on the Wilson Sons website (www.wilsonsons.com.br) and at the Brazilian stock exchange website.

Investment Portfolio

At 30 April 2016 the investment portfolio including cash under management amounted to US$239.5 million (31 December 2015: US$244.4 million). The investment portfolio represents US$6.77 (£4.69) per Ocean Wilsons share.

Enquiries

Company Contact

Keith Middleton                                                +1 441 295 1309

Media

David Haggie                                                   +44 20 7562 4444

Haggie Partners LLP

Cantor Fitzgerald Europe                               +44 20 7894 7000

David Foreman, Will Goode (Corporate Finance)

David Banks (Sales)