TIDMOCN
RNS Number : 9818M
Ocean Wilsons Holdings Ld
15 May 2020
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE MARKET ABUSE REGULATION. UPON THE PUBLICATION OF THE
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION
IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Ocean Wilsons Holdings Limited
Quarterly Update
Ocean Wilsons Holdings Limited (LSE: OCN) today announces its
first quarter update for 2020.
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 ("Wilson Sons"), controls a maritime services and
logistics company in Brazil.
The CEO of Wilson Sons operations in Brazil, Cezar Baião,
stated:
"Wilson Sons reports 1Q20 EBITDA of US$36.1 million, a 3.3%
decrease in US$ terms from 1Q19, but a 14.4% increase in BRL
terms.
-- 1Q20 results were little impacted by the effects of Covid-19
on trade flows, although 2Q20 expectations are significantly lower,
with our April container terminal and towage volumes already down
7.2% and 5.6% respectively compared with April 2019.
-- Liquidity remains strong with US$96.8 million in cash at the quarter end.
-- 1Q20 loss after tax of US$7.8 million due to negative
exchange rate effects totalling US$14.4 million. Excluding foreign
currency movements, Wilson Sons would show a profit after tax of
US$6.6 million.
While our 1Q20 results suffered little impact from the Covid-19
outbreak, the demand outlook heading into 2Q20 has been
deteriorating sharply, with our April container terminal and towage
volumes already down 7.2% and 5.6% respectively. This reflects the
lockdown strategy in many countries and will take some months to
stabilise. The World Trade Organization predicts that global trade
flows may contract between 13% and 32% in 2020, reflecting
continuing uncertainties in forecasting the effects of the
worldwide pandemic. Also, the recent oil price shock will delay the
recovery in offshore oil and gas support services. In light of such
circumstances, we are continuously assessing the potential impacts
on our businesses and remain confident in their resilience as
demonstrated in other volatile periods such as the 2008 financial
crisis.
In view of the rapid spread of the virus, we are taking
significant precautions to ensure the health, safety and well-being
of our employees, clients and other stakeholders. To date we have
been successful in keeping all our business activities operational.
This has been made possible by the flexibility, commitment and
courage of our more than 4,300 active employees.
We have also taken immediate austerity measures to safeguard the
financial strength and resilience of our business. In order to
preserve a robust cash flow through this global crisis we are
actively pursuing several operational and financial initiatives to
further increase our liquidity, including reduction in our capital
spend and operating expenses. The Company currently has material
headroom in its bank covenants.
In what is a challenging environment for world trade 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, connecting
Brazil with its trading partners to meet the urgent needs of
society, as well as ensuring support to the country's offshore oil
and gas industry. All our operations and facilities are applying
the more rigorous health and safety protocols established by
Brazilian authorities and agencies, and we are closely monitoring
the evolution of the disease in the country."
Cezar Baião,
CEO of Operations in Brazil
Financial Results
Group revenue for the three months ended 31 March 2020 was 9%
lower at US$91.1 million (2019: US$100.5 million). Results in the
first quarter were minimally impacted by the effects of Covid-19 on
trade flows. Port terminal and logistics revenue was 21% lower at
US$47.5 million (2019: US$60.3 million) principally due to a higher
average USD/BRL exchange rate in the period and lower offshore
support base and logistics revenue. The average USD/BRL exchange
rate in the period at 4.47 was 19% higher than the comparative
period (2019: 3.77). Container volumes in the period at 243,900
TEUs were in line with the prior year (2019: 244,100 TEUs). Towage
and ship agency revenue for the quarter was 11% higher at US$42.9
million (2019: US$38.6 million) due to improved pricing and higher
special towage operations revenue. Harbour towage manoeuvres
decreased 3% to 12,540, (2019: 12,926). Shipyard revenue fell
US$0.9 million to US$0.7 million (2019: US$1.6 million).
Wilson Sons EBITDA for the first quarter was 3% lower than 2019
at US$36.1 million (2019: US$37.3 million). The decrease in EBITDA
is largely due to a decrease in offshore support base and logistics
results.
Wilson Sons made a loss after tax for the first quarter of
US$7.8 million (2019: US$6.4 million profit) after exchange losses
on translation of US$13.2 million (2019: US$0.5 million).
Covid-19
While we are starting to see the first impacts from the Covid-19
pandemic on our businesses the outlook remains uncertain and is
changing rapidly. As previously announced the Board has withdrawn
its market guidance and outlook statements for 2020 until both the
impact and duration of the pandemic becomes clearer.
Since January 2020 Wilson Sons have been implementing several
measures and protocols to ensure (i) the health, safety and
well-being of their employees, clients and other stakeholders, (ii)
the continuity of all their operations safely, and (iii) the
financial strength and resilience of our business. A Covid-19
crisis committee has been created to manage risks and responses in
alignment with the interests of all stakeholders.
Wilson Sons has published a Covid-19 and oil price impact
assessment in their earnings release for the quarter ended 31 March
2020 which was announced to the São Paulo and Luxembourg Stock
exchanges on the 14(th) May 2020. The full announcement is
available on the Wilson Sons website (www.wilsonsons.com.br) and at
the Brazilian stock exchange website.
Ocean Wilsons and our investment managers, Hanseatic Asset
Management LBG continue to work remotely to ensure the health and
safety of our/their employees whilst ensuring the continuity of
operations.
Investment Portfolio
At 30 April 2020, the investment portfolio including cash under
management amounted to US$265.7 million (31 December 2019: US$285.3
million). The investment portfolio has bounced back from the
weakness exhibited in March. Having fallen by 10.9% in the quarter
to the end of March the portfolio rebounded by 4.6% in April taking
the year-to-date return to -6.8%. This compares to a fall of 13.0%
for the MSCI World index over the same period.
Net asset value
At the close of markets on 30 April 2020, the market value of
the Ocean Wilsons holding of Wilson Sons totalled approximately
US$218.1 million which is the equivalent of US$6.17 (GBP4.90) per
Ocean Wilsons share. The investment portfolio of US$265.7 million
represents US$7.51 (GBP5.97) per Ocean Wilsons share. Adding the
market value per share of Wilsons Sons and the investment portfolio
results in a net asset value per Ocean Wilsons share price of
US$13.68 (GBP10.87) per share. The Ocean Wilsons share price of
GBP6.75 at 30 April 2020 represented an implied discount of
38%.
Enquiries
Company Contact
Keith Middleton +1 441 295 1309
Media
David Haggie
Haggie Partners LLP +44 20 7562 4444
Cantor Fitzgerald Europe
Rick Thompson, David Foreman, Will Goode (Corporate
Finance) +44 20 7894 7000
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDVZLFFBELXBBL
(END) Dow Jones Newswires
May 15, 2020 02:00 ET (06:00 GMT)
Ocean Wilsons (holdings)... (LSE:OCN)
Historical Stock Chart
From Apr 2024 to May 2024
Ocean Wilsons (holdings)... (LSE:OCN)
Historical Stock Chart
From May 2023 to May 2024