TIDMOCN
RNS Number : 3601I
Ocean Wilsons Holdings Ltd
12 August 2021
Interim Statement
Highlights
-- Solid first half performance for both Ocean Wilsons Investments Limited
("OWIL" or "investment portfolio") and Wilson Sons Limited. OWIL's net
return for the six months ended 30 June 2021 was 9.0%, outperforming
the benchmark by 3.3%. Operational indicators from Wilson Sons are on
a positive trajectory as the Brazilian market starts its rebound from
the impact of Covid-19 on imports and exports.
-- Operating profit for the period was 83.0% higher than the comparable
period at US$50.7 million (2020: US$27.7 million).
-- OWIL returned US$29.5 million for the period (2020: US$13.8 million
loss); assets and cash under management was US$25.0 million higher at
US$335.9 million compared to 31 December 2020 (US$310.9 million).
-- Net profit after tax for the period was US$51.8 million (2020: US$18.4
million loss).
-- Net cash inflow from operating activities for the period of US$41.6
million (2020: US$68.5 million).
-- Dividends paid to shareholders in the period of US$24.8 million (2020:
US$10.6 million).
About Ocean Wilsons Holdings Limited
Ocean Wilsons Holdings Limited ("Ocean Wilsons" or the
"Company") is a Bermuda investment holding company which, through
its subsidiaries, operates a maritime services company in Brazil
and holds a portfolio of international investments. The Company is
listed on both the London Stock Exchange and the Bermuda Stock
Exchange. It has two principal subsidiaries: Wilson Sons Limited
("Wilson Sons") and Ocean Wilsons (Investments) Limited (together
with the Company and their subsidiaries, the "Group").
At 30 June 2021 Ocean Wilsons holds a 57% interest in Wilson
Sons which is fully consolidated in the Group accounts with a 43%
non-controlling interest. Wilson Sons is one of the largest
providers of maritime services in Brazil with over three thousand
employees and activities including towage, container terminals,
offshore oil and gas support services, small vessel construction,
logistics and ship agency.
Objective
Ocean Wilsons focuses on long-term performance and value
creation. This approach applies to both OWIL and our investment in
Wilson Sons. The long-term strategy, managed by the Board, enables
Wilson Sons' investments to grow and develop sustainable results
with less pressure to produce short-term performance at the expense
of longer-term value creation. This same view allows the Investment
Manager of OWIL to make investment decisions to achieve long-term
capital growth.
Chairman's Statement
The Group has delivered a strong financial performance with its
returns on the investment portfolio and has demonstrated both
operational and financial resilience with its direct investment in
Wilson Sons. Against the backdrop of continuing challenges and the
recovery from the impacts of Covid-19 on our investments, the Board
is pleased with the Investment Manager's performance and with the
Management team of Wilson Sons continued focus on growth and
innovation and their commitment to ensuring the welfare of our
employees and on continuity of services to our customers
We continue to drive strategies that we consider will improve
the current trading discount of our stock and improve market
valuations of our investment in Wilson Sons to match its industry
peers in Brazil. As such, in May of this year, we announced that
Wilson Sons would undertake a corporate restructuring that includes
the reverse merger of the Bermuda-registered Wilson Sons , into its
Brazilian subsidiary, Wilson Sons Holdings Brasil (WS S/A), and the
listing of its shares on the Novo Mercado, with former shareholders
and holders of Wilson Sons BDRs receiving shares of WS S/A on a 1:1
basis . Since Wilson Sons' announcement of this restructuring,
Wilson Sons' share price has increased 25% as at 31 July 2021
COVID-19
Wilson Sons provides port and maritime logistics services which
is classified as essential activities by the Brazilian government
limiting the negative effects of COVID-19 on the company's results
up to this time. The company does not predict any material impact
on its long-term performance as the global economy is expected to
gradually recover in the coming years.
Regarding the progress of vaccination, government authorities
prioritized the vaccination of port workers throughout the country.
As such, we expect to have more than 90% of employees vaccinated by
September 2021.
Environmental, Social and Governance Practices ("ESG")
The Group continues to evolve and seek improvements in its ESG
practices. In 2021 Wilson Sons is participating in the S&P ESG
Corporate Sustainability Assessment with results to be disclosed at
year end.
In response to the Covid-19 pandemic, Wilson Sons has developed
a detailed set of working practices and protocols to ensure (i) the
health, safety and well-being of our employees, clients and other
stakeholders and (ii) the continuity of all our operations safely,
in line with best practice, as well as health authority rules and
guidance.
Workplace safety improvement reflects our relentless commitment
to safety, with a reduction of 83% in lost-time injuries per one
million man-hours worked between 2011 and the first half of
2021.
Wilson Sons continues to monitor its performance through various
environmental and other social responsibility indicators with a
number of actions and results disclosed in the Integrated Annual
Report and the Bloomberg ESG Survey published on the company's
investor relations website ( wilsonsons.com.br/ir ).
OWIL Report
Market backdrop
The past six months proved to be another positive one for stock
markets. Risk assets generally continued their upward march with
world equities rising by 12.3% in US dollar terms. Confounding many
commentators who had expected 2021 to be less good for US equities
given the market's bias towards technology and growth stocks, the
US market continued to outperform and returned just under 15% for
the first half of the year. Elsewhere, Europe returned 11.8%
year-to-date and emerging markets a more modest 7.4% albeit with
significant variation at the country level with China barely
positive for the year (+1.8%) compared to +10% and +19.7% for
Brazil and Russia respectively.
Bonds had a more difficult period with global treasuries down
4.6%, investment grade bonds down 1.7% while high yield bonds were
up 2.1%. Similarly, US treasuries declined by 2.6% and emerging
market bonds were down 1% in USD terms. Rounding-off the picture
commodities delivered mixed returns with energy continuing its
strong run (up 28.7% year-to-date) and industrial metals lagged
although was positive while gold declined 6.8% in the first half of
the year.
Portfolio commentary
While most economies started the period in lockdown, equity
markets chose to look through this predicting a wave of activity as
economies reopened and vaccination rates crept up. This was
initially expressed by a swing towards more cyclical names further
boosted by higher oil prices. However, towards the end of the
period the uncertainty, and delay in some cases, of the reopening
process gave markets the jitters leading to a move back to higher
quality, growth stocks which led to strong performance for our
active managers later in the period. The investment portfolio was
up 9.5% in the first half of the year, whilst its benchmark, the US
CPI Urban Consumers NSA + 3%, returned 5.7% over the same period.
The MSCI ACWI gained 12.3% while the Bloomberg Barclays Global
Treasury index fell by 4.5%.
Cumulative Portfolio Returns
3 Years 5 Years
Performance (Time-weighted) YTD p.a. p.a.
---------------------------- ----- ------- -------
OWIL (net) 9.0% 8.8% 9.1%
Performance Benchmark* 5.7% 5.5% 5.4%
MSCI ACWI + FM 12.3% 14.5% 14.6%
MSCI Emerging Markets 7.4% 11.3% 13.9%
---------------------------- ----- ------- -------
*Notes:
The OWIL Performance Benchmark which came into effect on 1
January 2015 is US CPI Urban Consumers NSA +3% p.a. This has been
combined with the old benchmark (USD 12 Month LIBOR +2%) for
periods prior to the adoption of the new benchmark.
Investment Portfolio at 30 June 2021
Market Value
US$000 % Primary Focus
-------------------------------------- ------------ ----- -------------------------------------
Findlay Park American Fund 35,390 10.5 US Equities - Long Only
Adelphi European Select Equity Fund 18,216 5.4 Europe Equities - Long Only
BlackRock European Hedge Fund 15,887 4.7 Europe Equities - Hedge
GAM Star Fund PLC - Disruptive Growth 15,843 4.7 Technology Equities - Long Only
Egerton Long - Short Fund Limited 15,522 4.6 Europe/US Equities - Hedge
Select Equity Offshore, Ltd 13,251 3.9 US Equities - Long Only
Vulcan Value Equity Fund 13,197 3.9 US Equities - Long Only
Schroder ISF Asian Total Return Fund 10,202 3.0 Asia ex-Japan Equities - Long Only
Greenspring Global Partners VI, LP 7,987 2.4 Private Assets - US Venture Capital
Goodhart Partners: Hanjo Fund 7,924 2.4 Japan Equities - Long Only
Top 10 Holdings 153,419 45.7
-------------------------------------- ------------ ----- -------------------------------------
NG Capital Partners II, LP 7,027 2.1 Private Assets - Latin America
NTAsian Discovery Fund 6,923 2.1 Asia ex-Japan Equities - Long Only
Pangaea II, LP 6,405 1.9 Private Assets - GEM
Hudson Bay International Fund Ltd 6,159 1.8 Market Neutral - Multi-Strategy
Pershing Square Holdings Ltd 6,055 1.8 US Equities - Long Only
Silver Lake Partners IV, LP 5,479 1.6 Private Assets - Global Technology
Impax Environmental Markets Fund 5,448 1.6 Environmental Equities - Long Only
Prince Street Opportunities Fund 5,357 1.6 Emerging Markets Equities - Long Only
Indus Japan Long Only Fund 5,345 1.6 Japan Equities - Long Only
KKR Americas XII, LP 5,326 1.6 Private Assets - North America
Top 20 Holdings 212,943 63.4
-------------------------------------- ------------ ----- -------------------------------------
Remaining Holdings 121,300 36.1
-------------------------------------- ------------ ----- -------------------------------------
Cash 1,670 0.5
-------------------------------------- ------------ ----- -------------------------------------
TOTAL 335,913 100.0
-------------------------------------- ------------ ----- -------------------------------------
Wilson Sons Report
The Wilson Sons second quarter 2021 earnings report released on
12 August 2021 is available on the Wilson Sons website:
www.wilsonsons.com.br
In the report, Fernando Salek, CEO of Operations in Brazil
said:
"Wilson Sons 2Q21 EBITDA of US$41.1 million increased 11.4%
against 2Q20 (US$36.9 million) with strong operating results. In
BRL terms EBITDA grew 9.8%.
Robust container terminal results were driven by import and
transshipment volumes in 2Q21 with a growing domestic economic
activity in the quarter, although the lack of availability of empty
containers and logistic bottlenecks continues to be a challenge for
export volumes. The Salvador terminal had an all-time record first
half, handling 184,000 TEUs. The Rio Grande terminal total volumes
grew 10.8% against 2Q20 with an emphasis on the largest
simultaneous transshipment operation in terminal history, with
13,580 TEUs and two 300 metre long vessels.
Towage results continued solidly driven by commodity volumes
with chemicals and oil performing well. Oil and gas services demand
remains challenging, with oversupply for offshore supply
vessels.
Despite the complications of the Covid-19 pandemic in Brazil,
the company delivered robust growth in the quarter driven by the
container terminals and towage volumes. Health and safety continue
to be fundamental for our business in these difficult times and we
are closely monitoring the evolution of the pandemic in the
country."
Group Results
Revenue
Revenue increased by 8.4% compared to the first half of the
prior year to US$188.9 million (2020: US$174.2 million). In
Brazilian Real ("BRL") terms, revenues rose 19.1%. Revenues were up
for all lines of business compared to the first half of the prior
year, save for offshore support bases. Container terminals had
increased import volumes and higher storage revenue with a 2.8%
increase in revenues to US$69.3 million (2020: US$67.4 million).
Logistics revenues increased 8.4% as airport imports increased
correlating with the increases experienced at shipping ports.
Towage revenues for the first half of the year were US$92.9
million, an increase of 12.9% (2020: US$82.3 million) as a result
of both increased volumes and improving revenue per manoeuvre.
Shipping agency and shipyard services both improved with the
increased activity across the business lines. Offshore support
bases continue to struggle with a market backdrop of the pressured
oil and gas sectors.
Operating volumes (to 30 June) 2021 2020 % Change
-------------------------------------------------------- ------ ------ --------
Container Terminals (container movements in TEU '000s)* 538.6 484.0 11.3%
Towage (number of harbour manoeuvres performed) 29,957 25,175 7.1%
Offshore Vessels (days in operation) 2,573 2,553 0.8%
-------------------------------------------------------- ------ ------ --------
* TEUs stands for "twenty-foot equivalent units".
Operating profit
Operating profit was US$23.0 million better than the comparative
period at US$50.7 million (2020: US$27.7 million). This favourable
result is primarily driven by higher revenues and a stronger
USD/BRL exchange rate for the period. Raw materials and consumables
increased US$2.1 million over the prior period as economic activity
is climbing to pre-pandemic levels. Employee costs decreased US$3.5
million over the prior period; however, these costs continue to
climb quarterly as the workforce resumes activity with increased
overtime costs as we continue to take measures to protect our
employees during the pandemic by managing work crew scheduling.
Other operating expenses increased 17.6% during the first half of
the year as Wilson Sons had to rent tugs to manage demand while
their own vessels were dry-docked for repairs and maintenance.
Additionally, based on the performance of OWIL in the first half of
the year, operating expenses include a US$1.2 million performance
fee accrual. The depreciation and amortisation expense at US$25.3
million was US$0.5 million lower than the comparative period (2020:
US$25.8million). Foreign currency exchange gains were US$2.3
million, a US$14.0 million improvement on the prior period loss
(2020: US$11.7 million loss), arose from the Group's foreign
currency monetary items and reflect the movement of the BRL against
the USD during the period.
Share of results of joint ventures
The share of results of joint ventures is Wilson Sons' 50% share
of the net results for the period from our offshore support vessel
joint venture. The net loss attributable to Wilson Sons for the
period was US$0.8 million (2020: US$5.2 million loss) principally
due to improved foreign exchange gains and tax credits associate
with previous losses.
Returns on the investment portfolio at fair value through profit
and loss
The gain for the period on the investment portfolio of US$29.5
million (2020: US$13.8 million loss) comprises unrealised gains on
financial assets at fair value through profit and loss of US$23.4
million (2020: US$18.3 million loss), investment income of US$1.2
million (2020: US$1.5 million) and realised profits on the disposal
of financial assets at fair value through profit and loss of US$5.0
million (2020: US$3.0 million).
Finance costs
Finance costs for the period were US$3.2 million more than the
comparative period at US$14.6 million (2020: US$11.4 million) which
was driven by interest on bank loans and overdrafts which were
US$3.2 million higher than the prior year at US$7.8 million (2020:
US$4.6 million).
Exchange rates
The Group reports in USD and has revenue, costs, assets and
liabilities in both BRL and USD. Therefore, movements in the
USD/BRL exchange rate can impact the Group both positively and
negatively from period to period. In the six months to 30 June 2021
the BRL depreciated 3.8% against the USD from R$5.00 at 1 January
2020 to R$5.20 at the period end. In the comparative period in 2020
the BRL depreciated 26.5% against the USD from R$4.03 to
R$5.48.
The principal effects from the movement of the BRL against the
USD on the income statement are:
2021 2020
US$ million US$ million
------------------------------------------------- ----------- -----------
Exchange gain/(loss) on monetary items(1) 2.3 (11.7)
Deferred tax on retranslation of fixed assets(2) 6.6 (21.2)
Deferred tax on exchange variance on loans(3) (3.7) 19.6
------------------------------------------------- ----------- -----------
Total 5.2 (13.3)
------------------------------------------------- ----------- -----------
1. This arises from the translation of BRL denominated monetary items in
USD functional currency entities.
2. The Group's fixed assets are located in Brazil and therefore future
tax deductions from depreciation used in the Group's tax calculations
are denominated in BRL. When the BRL depreciates against the US Dollar
the future tax deduction in BRL terms remain unchanged but are reduced
in US Dollar terms and vice versa.
3. Deferred tax credit arising from the exchange losses on USD denominated
borrowings in Brazil.
The average USD/BRL exchange rate in the period at R$5.39 was
9.6% higher (2020: R$4.92) than the comparative period in 2020. A
higher average exchange rate negatively impacts BRL denominated
revenues and benefits BRL denominated costs when converted into our
reporting currency.
Profit/(Loss) before tax
Profit before tax increased US$68.0 million to US$66.2 million
compared with prior year (2020: US$1.8 million loss) with this
sharp increase mainly attributable to the improvement in operating
profit of US$23.0 million and the results of improved stock market
conditions as the investment portfolio produced returns of US$29.5
million. Additionally, losses from the share of results of joint
ventures were US$0.8 million (2020: US$5.2 million loss) which was
offset by increased finance costs of US$3.2 million at US$14.6
million (2020: US$11.4 million).
Taxation
The corporate tax rate prevailing in Brazil is 34%. The Group
recorded an income tax expense for the period of US$14.4 million
(2020:US$16.6 million). The principal net expenses not included in
determining taxable profit in Brazil are foreign exchange losses on
monetary items, share of results of joint ventures and deferred tax
items. These are mainly deferred tax credits arising on the
retranslation of BRL denominated fixed assets in Brazil and the
deferred tax charge on the exchange losses on USD denominated
borrowings.
Profit/(Loss) for the period
After deducting the profit attributable to non-controlling
interests of US$12.3 million (2020: US$0.6 million loss), the
profit attributable to equity holders of the Company is US$39.5
million (2020: US$17.8 million loss). The earnings per share for
the period was US 111.7 cents (2020: US 50.2 cents loss per
share).
Investment portfolio performance
As markets continue to improve while the global economy
navigates its way through the pandemic recovery, the investment
portfolio and cash under management was US$25.0 million higher at
US$335.9 million as at 30 June 2021 (31 December 2020: US$310.9
million), after paying dividends of US$2.5 million to the parent
company, deducting management and other fees of US$1.4 million and
accruing US$1.2 million in performance fees year based on current
performance.
Cash flow and debt
Net cash inflow from operating activities for the period was
US$41.6 million (2020: US$68.5 million). Dividends of US$24.8
million were paid to shareholders in the period (2020: US$10.6
million) with a further US$14.9 million paid to non-controlling
interests in our subsidiaries (2020: US$6.4 million). At 30 June
2021, the Group had cash and cash equivalents of US$55.6 million
(31 December 2020: US$63.3 million). Group borrowings including
lease liabilities at the period end were US$518.8 million (31
December 2020: US$500.6 million). New loans were raised in the
period of US$8.0 million (2020: US$47.2 million) while capital
repayments on existing loans in the period of US$41.1 million
(2020: US$20.5 million) were made. The Group's reported borrowings
do not include the Company's 50% share of our offshore vessel joint
venture's debt being US$209.9 million.
Balance sheet
Equity attributable to shareholders at the balance sheet date
was US$20.5 million higher at US$576.3 million compared with
US$555.8 million at 31 December 2020. The main movements in equity
for the half year was the profit for the period of US$39.5 million,
dividends paid of US$24.8 million and a positive currency
translation adjustment of US$2.7 million. The currency translation
adjustment arises from exchange differences on the translation of
operations with a functional currency other than USD.
Other matters
Principal risks
The Board reported on the principal risks and uncertainties
faced by the Company in the Annual Report and Financial Statements
for the year ended 31 December 2020. A detailed explanation can be
found in the Report of Directors on pages 30 to 33 of the Annual
Report and Financial Statements which are available on the website
at www. oceanwilsons.bm.
Related party transactions
Related party transactions during the period are set out in note
19.
Going concern
The Group closely monitors and manages its liquidity risk. The
Group has considerable financial resources including US$55.6
million in cash and cash equivalents and the majority of the
Group's borrowings have a long maturity profile. The Group's
business activities together with the factors likely to affect its
future development and performance are set out in the Chairman's
statement and Investment Manager's report. The financial position,
cash flows and borrowings of the Group are also set out in the
Chairman's statement. Details of the Group's borrowings are set out
in note 15 to the accounts. Based on the Group's cash forecasts and
sensitivities run, the Directors have a reasonable expectation that
the Company and the Group have adequate resources to continue in
operation for the foreseeable future.
The Group manages its liquidity risk and does so in a manner
that reflects its structure and two distinct businesses, being the
parent company along with OWIL and Wilson Sons.
OWIL
The parent company and OWIL have combined cash and cash
equivalents of US$2.1 million. They have no debts but have made
commitments in respect of investment subscriptions amounting to
US$38.0 million, details are provided in note 18. The timing of the
investment commitments may be accelerated or delayed in comparison
with those indicated in note 18.
However, highly liquid investments held are significantly in
excess of the commitments. Neither Ocean Wilsons nor OWIL have made
any commitments or have obligations towards Wilsons Sons and its
subsidiaries and their creditors or lenders. Therefore, in the
unlikely circumstance that Wilsons Sons was to encounter financial
difficulty, the parent company and its subsidiary have no
obligations to provide support and have sufficient cash and other
liquid resources to continue as a going concern on a standalone
basis.
Wilson Sons
Wilson Sons has cash and cash equivalents of US$53.5 million.
All of the debt, as set out in note 15, and all of the lease
liabilities, as set out in note 11, relate to Wilson Sons, and
generally have a long maturity profile. The debt held by Wilson
Sons is subject to covenant compliance tests as summarised in note
15, which were in compliance with at 30 June 2021.
Wilson Sons has adequate cash, other liquid resources and
undrawn credit facilities to enable it to meet its obligations as
they fall due in order to continue its operations.
Based on the Board's review of Wilson Sons' going concern
assessment and the liquidity and cash flow reviews of the Company
and its subsidiary OWIL, the Directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future.
Accordingly, the Directors continue to adopt the going concern
basis in preparing the Interim report and accounts.
Responsibility statement
The Directors confirm that this condensed interim financial
information has been prepared in accordance with IAS 34 and that
the interim management report includes a fair review of the
information required by DTR 4.2.7 and DTR 4.2.8, namely:
-- an indication of important events that have occurred during the first
six months and their impact on the condensed set of financial statements
and a description of the principal risks and uncertainties for the remaining
six months of the financial year; and
-- material related party transactions in the first six months and any
material changes in the related party transactions described in the
last Annual Report.
J F Gouvêa Vieira
Chairman
11 August 2021
Condensed Consolidated Interim Statement of Profit or Loss and
Other Comprehensive Income
for the six months ended 30 June 2021
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
Notes US$'000 US$'000
--------------------------------------------------------------------------------- ----- ------------- -------------
Revenue 3 188,877 174,211
Raw materials and consumables used (11,216) (9,163)
Employee benefits expense 5 (53,369) (56,868)
Depreciation and amortisation expense (25,270) (25,842)
Amortisation of right-of-use assets (5,982) (5,312)
Other operating expenses (44,677) (37,982)
Gain on disposal of property, plant and equipment 2 295
Foreign exchange gains/(losses) on monetary items 2,315 (11,657)
--------------------------------------------------------------------------------- ----- ------------- -------------
Operating profit 50,680 27,682
Share of results of joint ventures 16 (749) (5,212)
Returns on investment portfolio at fair value through profit and loss 6 29,548 (13,761)
Other investment income 1,307 923
Finance costs 7 (14,584) (11,413)
Profit/(loss) before tax 66,202 (1,781)
Income tax expense 8 (14,424) (16,572)
--------------------------------------------------------------------------------- ----- ------------- -------------
Profit/(loss) for the period 51,778 (18,353)
--------------------------------------------------------------------------------- ----- ------------- -------------
Other comprehensive income: items that may be reclassified subsequently to profit
and loss
Exchange differences arising on translation of foreign operations 4,804 (59,471)
Effective portion of changes in fair value of derivatives 106 (156)
--------------------------------------------------------------------------------- ----- ------------- -------------
Other comprehensive income/(loss) for the period 4,910 (59,627)
Total comprehensive income/(loss) for the period 56,688 (77,980)
--------------------------------------------------------------------------------- ----- ------------- -------------
Profit/(loss) for the period attributable to:
Equity holders of the Company 39,516 (17,766)
Non-controlling interests 12,262 (587)
--------------------------------------------------------------------------------- ----- ------------- -------------
51,778 (18,353)
--------------------------------------------------------------------------------- ----- ------------- -------------
Total comprehensive income/(loss) for the period attributable to:
Equity holders of the Company 42,284 (52,173)
Non-controlling interests 14,404 (25,807)
--------------------------------------------------------------------------------- ----- ------------- -------------
56,688 (77,980)
--------------------------------------------------------------------------------- ----- ------------- -------------
Earnings per share
Basic and diluted 10 111.7c (50.2c)
--------------------------------------------------------------------------------- ----- ------------- -------------
Condensed Consolidated Interim Statement of Financial
Position
as at 30 June 2021
Unaudited Audited
as at as at
30 June 31 December
2021 2020
Notes US$'000 US$'000
------------------------------------------------------- ----- --------- -----------
Non-current assets
Goodwill 13,518 13,429
Right-of-use assets 11 192,922 149,278
Other intangible assets 16,190 16,967
Property, plant and equipment 12 579,229 579,138
Deferred tax assets 23,366 29,716
Investment in joint ventures 16 25,774 26,185
Related party loans 30,634 30,460
Recoverable taxes 6,170 11,006
Other non-current assets 4,749 4,905
Other trade receivables 14 11,278 9
------------------------------------------------------- ----- --------- -----------
903,830 861,093
------------------------------------------------------- ----- --------- -----------
Current assets
Inventories 12,658 11,764
Financial assets at fair value through profit and loss 13 334,243 347,464
Trade and other receivables 14 61,793 47,807
Recoverable taxes 27,036 22,479
Cash and cash equivalents 55,616 63,255
------------------------------------------------------- ----- --------- -----------
491,346 492,769
------------------------------------------------------- ----- --------- -----------
Total assets 1,395,176 1,353,862
------------------------------------------------------- ----- --------- -----------
Current liabilities
Trade and other payables (52,823) (47,298)
Tax liabilities (878) (114)
Lease liabilities 11 (23,725) (18,192)
Bank overdrafts and loans 15 (44,514) (58,672)
------------------------------------------------------- ----- --------- -----------
(121,940) (124,276)
------------------------------------------------------- ----- --------- -----------
Net current assets 369,406 368,493
------------------------------------------------------- ----- --------- -----------
Non-current liabilities
Bank loans 15 (269,387) (283,989)
Post-employment benefits (1,739) (1,641)
Deferred tax liabilities (43,761) (50,987)
Provisions for tax, labour and civil cases (9,508) (9,560)
Lease liabilities 11 (181,150) (139,702)
------------------------------------------------------- ----- --------- -----------
(505,545) (485,879)
------------------------------------------------------- ----- --------- -----------
Total liabilities (627,485) (610,155)
------------------------------------------------------- ----- --------- -----------
Net assets 767,691 743,707
------------------------------------------------------- ----- --------- -----------
Capital and reserves
Share capital 11,390 11,390
Retained earnings 621,783 603,996
Capital reserves 31,991 31,991
Translation and hedging reserve (88,827) (91,595)
------------------------------------------------------- ----- --------- -----------
Equity attributable to equity holders of the Company 576,337 555,782
Non-controlling interests 191,354 187,925
------------------------------------------------------- ----- --------- -----------
Total equity 767,691 743,707
------------------------------------------------------- ----- --------- -----------
Condensed Consolidated Statement of Changes in Equity
as at 30 June 2021
Hedging Attributable
and to equity Non-
Share Retained Capital Translation holders of controlling Total
For the six months ended 30 June 2020
(unaudited) capital earnings reserves reserve the Company interests equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
--------------------------------------- ------- -------- -------- ----------- ------------ ----------- --------
Balance at 1 January 2020 11,390 588,160 31,991 (61,748) 569,793 216,067 785,860
--------------------------------------- ------- -------- -------- ----------- ------------ ----------- --------
Currency translation adjustment - - - (34,317) (34,317) (25,154) (59,471)
Effective portion of changes in fair
value of derivatives - - - (90) (90) (66) (156)
Loss for the period - (17,766) - - (17,766) (587) (18,353)
--------------------------------------- ------- -------- -------- ----------- ------------ ----------- --------
Total comprehensive loss for the period - (17,766) - (34,407) (52,173) (25,807) (77,980)
Dividends (note 9) - (10,609) - - (10,609) (6,418) (17,027)
Share options exercised in subsidiary - 1,272 - - 1,272 1,032 2,304
Share based expense (note 5) - - - - - 105 105
--------------------------------------- ------- -------- -------- ----------- ------------ ----------- --------
Balance at 30 June 2020 11,390 561,057 31,991 (96,155) 508,283 184,979 693,262
--------------------------------------- ------- -------- -------- ----------- ------------ ----------- --------
For the six months ended 30 June 2021
(unaudited)
Balance at 1 January 2021 11,390 603,996 31,991 (91,595) 555,782 187,925 743,707
--------------------------------------- ------- -------- -------- ----------- ------------ ----------- --------
Currency translation adjustment - - - 2,708 2,708 2,096 4,804
Effective portion of changes in fair
value of derivatives - - - 60 60 46 106
Profit for the period - 39,516 - - 39,516 12,262 51,778
--------------------------------------- ------- -------- -------- ----------- ------------ ----------- --------
Total comprehensive income for the
period - 39,516 - 2,768 42,284 14,404 56,688
Dividends (note 9) - (24,754) - - (24,754) (14,948) (39,702)
Share options exercised in subsidiary - 3,025 - - 3,025 3,860 6,885
Share based expense (note 5) - - - - - 113 113
--------------------------------------- ------- -------- -------- ----------- ------------ ----------- --------
Balance at 30 June 2021 11,390 621,783 31,991 (88,827) 576,337 191,354 767,691
--------------------------------------- ------- -------- -------- ----------- ------------ ----------- --------
Share capital
The Group has one class of ordinary share which carries no right
to fixed income.
Capital reserves
The capital reserves arise principally from transfers from
revenue to capital reserves made in the Brazilian subsidiaries
arising in the following circumstances:
(a) profits of the Brazilian subsidiaries and Brazilian holding company
which in prior periods were required by law to be transferred to capital
reserves and other profits not available for distribution; and
(b) Wilson Sons' byelaws require the company to credit an amount equal to
5% of the company's net profit to a retained earnings account to be
called legal reserve until such amount equals 20% of the Wilson Sons
share capital.
Hedging and translation reserve
The hedging and translation reserve arises from exchange
differences on the translation of operations with a functional
currency other than US Dollars and effective movements on
designated hedging relationships.
Amounts in the statement of changes in equity are stated net of
tax where applicable.
Condensed Consolidated Interim Statement of Cash Flows
for the six months ended 30 June 2021
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
Notes US$'000 US$'000
--------------------------------------------------------------------------------- ----- ------------- -------------
Net cash inflow from operating activities 17 41,582 68,500
--------------------------------------------------------------------------------- ----- ------------- -------------
Investing activities
Interest received 861 945
Income received from underlying investment vehicles 1,162 1,513
Proceeds on disposal of financial assets at fair value through profit and loss 13 56,036 32,980
Proceeds on disposal of intangible assets 4 -
Proceeds on disposal of property, plant and equipment 49 156
Purchase of property, plant and equipment (16,585) (40,968)
Purchase of intangible asset (405) (502)
Purchase of financial assets at fair value through profit and loss 13 (14,429) (13,407)
Advance for future capital increase in joint ventures 16 (9,985) -
Net cash provided by/(used in) investing activities 16,708 (19,283)
--------------------------------------------------------------------------------- ----- ------------- -------------
Financing activities
Dividends paid 9 (24,754) (10,609)
Dividends paid to non-controlling interests in subsidiary (14,948) (6,418)
Repayments of borrowings (41,059) (20,468)
Payments of lease liabilities (4,376) (3,240)
New bank loans drawn down 7,978 47,167
Net cash inflow arising from issue of new shares in subsidiary under employee
stock option
scheme 6,885 2,304
--------------------------------------------------------------------------------- ----- ------------- -------------
Net cash (used in)/provided by financing activities (70,274) 8,736
--------------------------------------------------------------------------------- ----- ------------- -------------
Net (decrease)/increase in cash and cash equivalents (11,984) 57,953
--------------------------------------------------------------------------------- ----- ------------- -------------
Cash and cash equivalents at beginning of period 63,255 68,979
--------------------------------------------------------------------------------- ----- ------------- -------------
Effect of foreign exchange rate changes 4,345 (26,517)
--------------------------------------------------------------------------------- ----- ------------- -------------
Cash and cash equivalents at end of period 55,616 100,415
--------------------------------------------------------------------------------- ----- ------------- -------------
Notes to Condensed Consolidated Interim Financial
Information
for the six months ended 30 June 2021
1. General Information
The condensed consolidated interim financial information is not
the Company's statutory accounts. The auditors of the Company have
not made any report thereon under section 90(2) of the Bermuda
Companies Act.
Ocean Wilsons Holdings Limited ("Ocean Wilsons" or the
"Company") is a Bermuda investment holding company which, through
its subsidiaries, operates a maritime services company in Brazil
and holds a portfolio of international investments. The Company is
listed on both the London Stock Exchange and the Bermuda Stock
Exchange. It has two principal subsidiaries: Wilson Sons Limited
("Wilson Sons") and Ocean Wilsons (Investments) Limited ("OWIL")
(together with the Company and their subsidiaries, the
"Group").
Ocean Wilsons Holdings Limited is a company incorporated in
Bermuda under the Companies Act 1981 and the Ocean Wilsons Holdings
Limited Act, 1991. The condensed consolidated interim financial
information is presented in US Dollars, the currency of the primary
economic environment in which the Group operates.
2. Accounting policies
The condensed consolidated interim financial information of the
Company for the six months ended 30 June 2021 comprises the Company
and its subsidiaries (together referred to as the "Group") and the
Group's interests in associates and jointly controlled
entities.
The condensed set of financial statements has been prepared
using accounting policies consistent with International Financial
Reporting Standards ("IFRS") and in accordance with 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").
The condensed consolidated interim financial information has
been prepared on the basis of accounting policies consistent with
those applied to the consolidated financial statements for the year
ended 31 December 2020.
3. Revenue
An analysis of the Group's revenue is as follows:
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
---------------------------------------------------- ------------- -------------
Sales of services (note 3.1) 188,877 174,211
Income from underlying investment vehicles (note 6) 1,162 1,513
Other investment income 1,307 923
---------------------------------------------------- ------------- -------------
191,346 176,647
---------------------------------------------------- ------------- -------------
3.1 Disaggregated revenue information
The following is an analysis of the Group's revenue from sales
of services for the period:
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
-------------------------------------- ------------- -------------
Harbour manoeuvres 83,776 73,873
Special operations 9,156 8,433
Ship agency 4,247 4,006
-------------------------------------- ------------- -------------
Total Towage and ship agency services 97,179 86,312
-------------------------------------- ------------- -------------
Container handling 36,453 35,636
Warehousing 16,426 15,429
Ancillary services 10,622 8,960
Oil and Gas support base 3,183 4,535
Other services 5,830 7,371
-------------------------------------- ------------- -------------
Total Port terminals 72,514 71,931
-------------------------------------- ------------- -------------
Logistics 16,012 14,768
-------------------------------------- ------------- -------------
Total Logistics 16,012 14,768
-------------------------------------- ------------- -------------
Shipyard 3,172 1,200
-------------------------------------- ------------- -------------
Total Shipyard 3,172 1,200
-------------------------------------- ------------- -------------
Total 188,877 174,211
-------------------------------------- ------------- -------------
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
------------------------------ ------------- -------------
Timing of revenue recognition
At a point of time 185,705 173,011
Over time 3,172 1,200
------------------------------ ------------- -------------
188,877 174,211
------------------------------ ------------- -------------
3.2 Contract balance
Trade receivables are generally received within 30 days of the
invoice date. The carrying amount of operational trade receivables
at the end of reporting period was US$49.6 million (31 December
2020: US$40.6 million). These amounts included US$12.7 million (31
December 2020: US$10.4 million) of contract assets (unbilled
accounts receivables).
There were no contract liabilities as at 30 June 2021 (31
December 2020: nil).
4. Business and geographical segments
Business segments
Ocean Wilsons Holdings Limited has two reportable segments:
maritime services and investments. These segments report their
financial and operational data separately to the Board. The Board
considers these segments separately when making business and
investment decisions. The maritime services segment provides towage
and ship agency, port terminals, offshore, logistics and shipyard
services in Brazil through Wilson Sons. The investment segment
holds a portfolio of international investments.
Segment information relating to these businesses is presented
below:
Maritime
services Investment Unallocated Consolidated
US$'000 US$'000 US$'000 US$'000
-------------------------------------------------------------------- --------- ---------- ----------- ------------
Result - six months to 30 June 2021 (unaudited)
Revenue 188,877 - - 188,877
Segment result 53,459 (2,953) (2,141) 48,365
Share of results of joint venture (749) - - (749)
Returns on investment portfolio at fair value through profit and
loss - 29,548 - 29,548
Other investment income 1,307 - - 1,307
Finance costs (14,584) - - (14,584)
Foreign exchange gains/(losses) on monetary items 2,416 3 (104) 2,315
-------------------------------------------------------------------- --------- ---------- ----------- ------------
Profit/(loss) before tax 41,849 26,598 (2,245) 66,202
Tax (14,424) - - (14,424)
-------------------------------------------------------------------- --------- ---------- ----------- ------------
Profit/(loss) after tax 27,425 26,598 (2,245) 51,778
-------------------------------------------------------------------- --------- ---------- ----------- ------------
Other information - six months to 30 June 2021 (unaudited)
Capital additions 16,990 - - 16,990
Depreciation and amortisation (25,270) - - (25,270)
Amortisation of right-of-use assets (5,982) - - (5,982)
Balance Sheet - as at June 30 2021 (unaudited)
Segment assets 1,054,889 335,913 4,374 1,395,176
Segment liabilities (625,147) (1,554) (784) (627,485)
Net Assets 429,742 334,359 3,590 767,691
-------------------------------------------------------------------- --------- ---------- ----------- ------------
Maritime
services Investment Unallocated Consolidated
six months to six months to six months to six months to
30 June 30 June 30 June 30 June
2020 2020 2020 2020
US$'000 US$'000 US$'000 US$'000
---------------------------------------------------------- ------------- ------------- ------------- -------------
Result - six months to 30 June 2020 (unaudited)
Revenue 174,211 - - 174,211
Segment result 41,906 (1,420) (1,147) 39,339
Share of results of joint venture (5,212) - - (5,212)
Returns on investment portfolio at fair value through
profit and loss - (13,761) - (13,761)
Other investment income 923 - - 923
Finance costs (11,413) - - (11,413)
Foreign exchange (losses)/gains on monetary items (11,653) (12) 8 (11,657)
---------------------------------------------------------- ------------- ------------- ------------- -------------
Profit/(loss) before tax 14,551 (15,193) (1,139) (1,781)
Tax (16,572) - - (16,572)
---------------------------------------------------------- ------------- ------------- ------------- -------------
Loss after tax (2,021) (15,193) (1,139) (18,353)
---------------------------------------------------------- ------------- ------------- ------------- -------------
Other information - six months to 30 June 2020 (unaudited)
Capital additions 43,173 - - 43,173
Depreciation and amortisation (25,842) - - (25,842)
Amortisation of right-of-use assets (5,312) - - (5,312)
Balance Sheet - as at December 31 2020
Segment assets 1,039,374 310,882 3,606 1,353,862
Segment liabilities (609,104) (621) (430) (610,155)
Net Assets 430,270 310,261 3,176 743,707
---------------------------------------------------------- ------------- ------------- ------------- -------------
Finance costs and associated liabilities have been allocated to
reporting segments where interest costs arise from loans used to
finance the construction of fixed assets in that segment.
Geographical Segments
The Group's operations are located in Bermuda and Brazil. The
Group, through its participation in an offshore vessel joint
venture in Panama, earns income in that country and in Uruguay. All
the Group's sales are derived in Brazil.
The following is an analysis of the carrying amount of segment
assets and additions to property, plant and equipment and
intangible assets, analysed by the geographical area in which the
assets are located.
Carrying amount of Additions to property, plant and
segment assets equipment and intangible assets
---------------------- ----------------------------------
Unaudited Unaudited
Unaudited Audited six months to six months to
30 June 31 December 30 June 30 June
2021 2020 2021 2020
US$'000 US$'000 US$'000 US$'000
-------- --------- ----------- ---------------- ----------------
Brazil 1,054,889 994,826 16,990 43,173
Bermuda 340,287 359,036 - -
-------- --------- ----------- ---------------- ----------------
1,395,176 1,353,862 16,990 43,173
-------- --------- ----------- ---------------- ----------------
5. Employee benefits expense
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
---------------------------------- ------------- -------------
Aggregate remuneration comprised:
Wages and salaries 43,199 45,209
Share based expense 113 105
Social security costs 9,675 11,261
Other pension costs 382 293
---------------------------------- ------------- -------------
53,369 56,868
---------------------------------- ------------- -------------
6. Returns on investment portfolio at fair value through profit and loss
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
------------------------------------------------------------------------------------ ------------- -------------
Unrealized gains/(losses) on financial assets at fair value through profit and loss 23,398 (18,301)
Income from underlying investment vehicles 1,162 1,513
Profit on disposal of financial assets at fair value through profit and loss 4,988 3,027
------------------------------------------------------------------------------------ ------------- -------------
29,548 (13,761)
------------------------------------------------------------------------------------ ------------- -------------
7. Finance costs
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
-------------------------------------- ------------- -------------
Interest on lease liabilities 6,790 6,839
Interest on bank overdrafts and loans 7,755 4,552
Other interest 39 22
-------------------------------------- ------------- -------------
14,584 11,413
-------------------------------------- ------------- -------------
8. Taxation
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
-------------------------------------------------------------- ------------- -------------
Current
Brazilian taxation:
Corporation tax 10,549 10,989
Social contribution 4,035 4,056
-------------------------------------------------------------- ------------- -------------
Total current tax 14,584 15,045
-------------------------------------------------------------- ------------- -------------
Deferred tax - origination and reversal of timing differences (160) 1,527
-------------------------------------------------------------- ------------- -------------
Total taxation 14,424 16,572
-------------------------------------------------------------- ------------- -------------
Brazilian corporation tax is calculated at 25% (2020: 25%) of
the assessable profit for the year.
Brazilian social contribution tax is calculated at 9% (2020: 9%)
of the assessable profit for the year.
At the present time, no income, profit, capital or capital gains
taxes are levied in Bermuda and accordingly, no provision for such
taxes has been recorded by the Company. In the event that such
taxes are levied, the Company has received an undertaking from the
Bermuda Government exempting it from all such taxes until 31 March
2035. The Group is monitoring the ongoing development of the G20
initiative to implement a global minimum tax rate as it relates to
its corporate structure.
9. Dividends
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
---------------------------------------------------------------------------------------- ------------- -------------
Dividend declared and paid to equity holders in the current period of 70 cents (2020: 30
cents)
per share 24,754 10,609
10. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following data:
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
---------------------------------------------------------------------------------------- ------------- -------------
Earnings:
Earnings for the purposes of basic earnings per share being net profit/(loss)
attributable
to equity holders of the Company 39,516 (17,766)
Number of shares:
Weighted average number of ordinary shares for the purposes of basic and diluted
earnings
per share 35,363,040 35,363,040
---------------------------------------------------------------------------------------- ------------- -------------
11. Lease arrangements
11.1 Right-of-use assets
Operational Vehicles, plant
facilities Floating craft Buildings and equipment Total
US$'000 US$'000 US$'000 US$'000 US$'000
------------------------------------------------ ----------- -------------- --------- --------------- --------
Cost or valuation
At 1 January 2020 186,026 4,481 6,449 12,703 209,659
Transfers from property, plant and equipment - - - 495 495
Contractual amendments 9,376 52 201 83 9,712
Additions 1,553 3,504 19 124 5,200
Exchange differences (42,245) (759) (772) (1,745) (45,521)
Terminated contracts - - (200) (1,911) (2,111)
------------------------------------------------ ----------- -------------- --------- --------------- --------
At 31 December 2020 154,710 7,278 5,697 9,749 177,434
Contractual amendments 34,780 110 10 3 34,903
Additions - 7,353 16 145 7,514
Exchange differences 8,255 797 (259) 182 8,975
Terminated contracts - - (109) (399) (508)
------------------------------------------------ ----------- -------------- --------- --------------- --------
At 30 June 2021 197,745 15,538 5,355 9,680 228,318
------------------------------------------------ ----------- -------------- --------- --------------- --------
Accumulated amortisation
At 1 January 2020 8,269 2,276 1,469 8,634 20,648
Transfers from property, plant and equipment - - - 471 471
Charge for the year 7,280 2,995 1,099 1,062 12,436
Exchange differences (1,810) (521) (77) (1,060) (3,468)
Terminated contracts - - (70) (1,861) (1,931)
------------------------------------------------ ----------- -------------- --------- --------------- --------
At 31 December 2020 13,739 4,750 2,421 7,246 28,156
Charge for the year 3,639 2,042 503 424 6,608
Exchange differences 755 204 (218) 176 917
Terminated contracts - - (62) (223) (285)
------------------------------------------------ ----------- -------------- --------- --------------- --------
At 30 June 2021 18,133 6,996 2,644 7,623 35,396
------------------------------------------------ ----------- -------------- --------- --------------- --------
Carrying Amount
------------------------------------------------ ----------- -------------- --------- --------------- --------
At 30 June 2021 (unaudited) 179,612 8,542 2,711 2,057 192,922
------------------------------------------------ ----------- -------------- --------- --------------- --------
At 31 December 2020 (audited) 140,971 2,528 3,276 2,503 149,278
------------------------------------------------ ----------- -------------- --------- --------------- --------
Operational facilities
The main lease commitments included as operational facilities
are described below:
Tecon Rio Grande
The Tecon Rio Grande lease was signed on 3 February 1997 for a
period of 25 years renewable for a further 25 years. Tecon Rio
Grande was granted the right to renew the lease as set out in the
contract amendment signed on 7 March 2006 due to compliance with
the contractual requirements to make additional investments in
expanding the terminal by constructing a third berth and achieving
the minimum annual container volume handled.
Tecon Salvador
Tecon Salvador S.A. has the right to lease and operate the
container terminal and heavy cargo terminal in the Port of Salvador
for 25 years renewed in 2016 for a further 25 years. The total
lease term of 50 years, until March 2050, is provided in the second
addendum to the rental agreement. This addendum requires the Group
to make a minimum specified investment in expanding the leased
terminal area.
Wilson Sons shipyard
Lease commitments mainly refer to a 60-year right to lease from
June 2008 and operate an area located adjacent to our shipyard in
Guarujá, São Paulo state. The initial lease of 30 years is
renewable for a further period of 30 years at the option of the
Group. The area has been used to expand and develop the Wilson Sons
shipyard. Management's intention is to exercise the renewal
option.
Brasco
The Brasco lease commitments mainly refers to a 30-year lease
expiring in 2043 to operate a port area in Caju, Rio de Janeiro,
with convenient access to service the Campos and Santos oil
producing basins.
Logistics
Lease commitments mainly refer to the bonded terminals and
distribution centres located in Santo André, São Paulo state and
Suape, Pernambuco state with terms ranging between 18 and 24
years.
Floating craft
Variable chartering of vessels for maritime transport between
port terminals. Payments made relating to the number of vessel
trips were not included in the measurement of lease liabilities
because they relate to variable payments.
Buildings
The Group has lease commitments for its Brazilian business
headquarters, branches and commercial offices in several Brazilian
cities.
Vehicles, plant and equipment
Rental contracts mainly for forklifts, vehicles for operational,
commercial and administrative activities and other operating
equipment.
11.2 Lease liabilities
Unaudited Audited
30 June 31 December
2021 2020
Discount rate US$'000 US$'000
------------------------------------ -------------- --------- -----------
Lease liabilities by class of asset
Operational facilities 5.17% - 9.33% 191,680 150,513
Buildings 4.41% - 12.9% 2,555 2,932
Vehicles, plant and equipment 4.87% - 12.9% 1,615 1,690
Floating craft 7.75% - 8.54% 9,025 2,759
Total 204,875 157,894
---------------------------------------------------- --------- -----------
Total current 23,725 18,192
---------------------------------------------------- --------- -----------
Total non-current 181,150 139,702
---------------------------------------------------- --------- -----------
The breakdown of lease liabilities by maturity is as
follows:
Unaudited Audited
30 June 31 December
2021 2020
US$'000 US$'000
-------------------------------------------------------- --------- -----------
Maturity analysis - contractual undiscounted cash flows
Within one year 24,940 19,153
In the second year 22,807 17,365
In the third to fifth years inclusive 64,721 49,353
After five years 373,099 292,766
-------------------------------------------------------- --------- -----------
Total cash flows 485,567 378,637
-------------------------------------------------------- --------- -----------
Adjustment to present value (280,692) (220,743)
-------------------------------------------------------- --------- -----------
Total lease liabilities 204,875 157,894
-------------------------------------------------------- --------- -----------
Inflation adjustment of the lease liabilities
The table below presents the lease liabilities balance
considering the projected future inflation rate in the discounted
payment flows. For the purposes of this calculation, all other
assumptions were maintained.
Unaudited Audited
30 June 31 December
2021 2020
US$'000 US$'000
------------------ --------- -----------
Actual flow 485,567 378,637
Embedded interest (280,692) (220,743)
------------------ --------- -----------
Lease liabilities 204,875 157,894
------------------ --------- -----------
11.3 Amounts recognised in profit and loss
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
---------------------------------------------------------------------------------- ------------- -------------
Amortisation of right-of-use assets (6,608) (6,486)
Amortisation of PIS and COFINS(1) 626 1,174
---------------------------------------------------------------------------------- ------------- -------------
Net Amortisation of right-of-use assets (5,982) (5,312)
---------------------------------------------------------------------------------- ------------- -------------
Interest on lease liabilities (7,237) (7,790)
Interest of PIS and COFINS 447 951
Variable lease payments not included in the measurement of lease liabilities (2,) (1,117) (968)
Expenses relating to short-term leases (13,325) (8,953)
Expenses relating to low-value assets (311) (568)
---------------------------------------------------------------------------------- ------------- -------------
Total (27,525) (22,640)
---------------------------------------------------------------------------------- ------------- -------------
1. The PIS (Program of Social Integration) and COFINS
(Contribution for the Financing of Social Security) are federal
taxes based on the turnover of companies
2. The amounts refer to payments, which exceeded the minimum
forecast volumes of Tecon Rio Grande and Tecon Salvador.
The Group is not able to estimate the future cash outflows
related to variable lease payments due to operational, economic and
foreign exchange uncertainties.
11.4 Amounts recognised in the statement of cash flows
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
-------------------------------- ------------- -------------
Payment of lease liability (4,376) (3,237)
Interest paid - lease liability (7,237) (7,805)
Short-term leases paid (13,325) (8,953)
Variable lease payments (1,117) (968)
Low-value leases paid (311) (568)
-------------------------------- ------------- -------------
Total (26,366) (21,531)
-------------------------------- ------------- -------------
12. Property, plant and equipment
Land and Vehicles, plant Assets under
buildings Floating Craft and equipment construction Total
US$'000 US$'000 US$'000 US$'000 US$'000
---------------------------------------- --------- -------------- --------------- ------------ ---------
Cost or valuation
At 1 January 2020 313,432 516,361 231,226 292 1,061,311
Additions 25,901 10,216 25,284 - 61,401
Transfers 148 (124) (24) - -
Transfers to right-of-use assets - - (495) - (495)
Transfers to intangible assets - - (99) - (99)
Exchange differences (56,443) - (42,819) - (99,262)
Disposals (3,725) (969) (4,039) - (8,733)
---------------------------------------- --------- -------------- --------------- ------------ ---------
At 1 January 2021 279,313 525,484 209,034 292 1,014,123
Additions 3,711 9,736 2,318 820 16,585
Transfers (22) - 22 - -
Transfers to intangible assets (1) - - - (1)
Exchange differences 6,717 - 6,572 - 13,289
Disposals 38 (114) (552) - (628)
---------------------------------------- --------- -------------- --------------- ------------ ---------
At 30 June 2021 289,756 535,106 217,394 1,112 1,043,368
---------------------------------------- --------- -------------- --------------- ------------ ---------
Accumulated depreciation and impairment
At 1 January 2020 91,945 217,369 124,948 - 434,262
Charge for the year 6,774 29,030 11,989 - 47,793
Elimination on construction contracts - 13 - - 13
Transfers to right-of-use assets - - (471) - (471)
Exchange differences (16,691) - (22,764) - (39,455)
Disposals (2,400) (829) (3,928) - (7,157)
---------------------------------------- --------- -------------- --------------- ------------ ---------
At 1 January 2021 79,628 245,583 109,774 - 434,985
Charge for the period 3,957 13,382 6,557 - 23,896
Elimination on construction contracts - 25 - - 25
Exchange differences 2,234 - 3,580 - 5,814
Disposals - (113) (468) - (581)
---------------------------------------- --------- -------------- --------------- ------------ ---------
At 30 June 2021 85,819 258,877 119,443 - 464,139
---------------------------------------- --------- -------------- --------------- ------------ ---------
Carrying Amount
---------------------------------------- --------- -------------- --------------- ------------ ---------
At 30 June 2021 (unaudited) 203,937 276,229 97,951 1,112 579,229
---------------------------------------- --------- -------------- --------------- ------------ ---------
At 31 December 2020 (audited) 199,685 279,901 99,260 292 579,138
---------------------------------------- --------- -------------- --------------- ------------ ---------
The Group has pledged assets with a carrying amount of
approximately US$252.5 million (31 December 2020: US$253.6 million)
to secure loans granted to the Group.
There were no capitalised borrowing costs in 2021 (2020: US$3.0
million, at an average interest rate of 2.49%).
13. Financial assets at fair value through profit and loss
Unaudited Audited
six months to 31 December
30 June 2021 2020
US$'000 US$'000
Financial assets at fair value through profit and loss
At 1 January 347,464 298,839
Additions, at cost 14,429 63,723
Disposals, at market value (56,036) (45,154)
Increase/(decrease) in fair value of financial assets at fair value through profit and
loss 23,398 (29,055)
Profit on disposal of financial assets at fair value through profit and loss 4,988 1,001
------------------------------------------------------------------------------------------ ------------- -----------
At period end 334,243 347,464
------------------------------------------------------------------------------------------ ------------- -----------
OWIL 334,243 307,874
Wilson Sons - 39,590
------------------------------------------------------------------------------------------ ------------- -----------
Financial assets at fair value through profit and loss held at period end 334,243 347,464
------------------------------------------------------------------------------------------ ------------- -----------
Wilson Sons
The Wilson Sons investments are held and managed separately from
the OWIL portfolio and consist of US Dollar denominated depository
notes.
OWIL portfolio
The Group has not designated any financial assets that are not
classified as trading investments as financial assets at fair value
through profit and loss.
Financial assets at fair value through profit and loss above
represent investments in listed equity securities, funds and
unquoted equities that present the Group with opportunity for
return through dividend income and capital appreciation.
Included in financial assets at fair value through profit and
loss are open ended funds whose shares may not be listed on a
recognised stock exchange but are redeemable for cash at the
current net asset value at the option of the Group. They have no
fixed maturity or coupon rate. The fair values of these securities
are based on quoted market prices where available. Where quoted
market prices are not available, fair values are determined by
third parties using various valuation techniques that include
inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
14. Trade and other receivables
Unaudited Audited
30 June 31 December
2021 2020
US$'000 US$'000
------------------------------------------- --------- -----------
Trade and other receivables
Other trade receivables 11,278 9
------------------------------------------- --------- -----------
Total other non-current trade receivables 11,278 9
------------------------------------------- --------- -----------
Amount receivable for the sale of services 49,973 41,152
Allowance for bad debts (390) (554)
------------------------------------------- --------- -----------
Total current trade receivables 49,583 40,598
------------------------------------------- --------- -----------
Prepayments 5,796 4,252
Insurance claim receivable 750 995
Other receivables 5,664 1,953
------------------------------------------- --------- -----------
Total other current trade receivables 12,210 7,200
------------------------------------------- --------- -----------
Total current trade and other receivables 61,793 47,807
------------------------------------------- --------- -----------
Unaudited Audited
30 June 31 December
2021 2020
Ageing of trade receivables US$'000 US$'000
---------------------------- --------- -----------
Current 43,504 34,561
From 0 - 30 days 4,170 4,800
From 31 - 90 days 1,033 852
From 91 - 180 days 786 197
More than 180 days 480 742
---------------------------- --------- -----------
Total 49,973 41,152
---------------------------- --------- -----------
Due to the Covid-19 pandemic, the Company has reviewed the
variables that make up the methodology of measurement of estimated
losses. There has been no increase in customer default rate due to
the outbreak. Additionally, the Company created a credit committee
to monitor and, if necessary, propose payment terms to those
customers with credit risk.
The Board considers that the carrying amount of trade and other
receivables approximates their fair value.
15. Bank loans and overdrafts
Unaudited Audited
Annual 30 June 31 December
interest rate 2021 2020
% US$'000 US$'000
--------------------------------------------- ---------------- --------- ------------
Secured borrowings
BNDES - FMM linked to US Dollar(1) 2.07% to 5.00% 146,021 146,446
BNDES - Real 6.64% to 13.23% 57,087 55,177
BNDES - FMM Real(1) 8.59% 774 805
Total BNDES 203,882 202,428
--------------------------------------------- ---------------- --------- ------------
Banco do Brasil - FMM linked to US Dollar(1) 2.00% - 4.00% 74,791 75,795
Bradesco - NCE - Real(2) 5.08% - 5.45% 35,228 38,660
Itaú - NCE - Real(2) 3.38% - 4,056
Santander - Real 6.44% - 8,056
China Construction Bank - Real 5.65% - 13,666
Total others 110,019 140,233
--------------------------------------------- ---------------- --------- ------------
Total 313,901 342,661
--------------------------------------------- ---------------- --------- ------------
1. As an agent of Fundo da Marinha Mercante's ("FMM"), Banco Nacional de
Desenvolvimento Econômico e Social ("BNDES") and Banco do Brasil
("BB") finances the construction of tugboats and shipyard facilities.
2. NCE is an export credit note.
The breakdown of bank overdrafts and loans by maturity is as
follows:
Unaudited Audited
30 June 31 December
2021 2020
US$'000 US$'000
-------------------------------------------- --------- ------------
Within one year 44,514 58,672
In the second year 38,712 44,707
In the third to fifth years (inclusive) 95,464 96,250
After five years 135,211 143,032
-------------------------------------------- --------- ------------
Total 313,901 342,661
-------------------------------------------- --------- ------------
Amounts due for settlement within 12 months 44,514 58,672
-------------------------------------------- --------- ------------
Amounts due for settlement after 12 months 269,387 283,989
-------------------------------------------- --------- ------------
The analysis of borrowings by currency is as follows:
BRL
linked to
BRL US Dollars US Dollars Total
US$'000 US$'000 US$'000 US$'000
--------------------------- ------- ---------- ---------- -------
30 June 2021 (unaudited)
Bank loans 93,090 220,811 - 313,901
--------------------------- ------- ---------- ---------- -------
Total 93,090 220,811 - 313,901
--------------------------- ------- ---------- ---------- -------
31 December 2020 (audited)
Bank loans 120,420 222,241 - 342,661
--------------------------- ------- ---------- ---------- -------
Total 120,420 222,241 - 342,661
--------------------------- ------- ---------- ---------- -------
Loan agreement for civil works
In December 2018, the subsidiary Tecon Salvador S.A. signed a
US$67.9 million financing agreement with the BNDES to be used for
civil works during the terminal's expansion. The civil works for
this expansion were completed in October 2020.
Guarantees
Loans with the BNDES and Banco do Brasil rely on corporate
guarantees from Wilson Sons de Administração e Comércio Ltda. For
some contracts, the corporate guarantee is in addition to a pledge
of the respective financed tugboat or a lien over the logistics and
port operations equipment financed.
The loan agreement for Tecon Rio Grande from Banco Santander for
the purchase of equipment relies on a corporate guarantee from
Wilson, Sons de Administração e Comércio Ltda.
The loan agreement for Tecon Rio Grande from Banco Itaú for the
purchase of equipment relies on a corporate guarantee from Wilport
Operadores Portuários Ltda.
The loan agreement for Tecon Salvador from Banco Bradesco for
the purchase of equipment relies on a corporate guarantee from
Wilport Operadores Portuários Ltda.
Undrawn credit facilities
At 30 June 2021, the Group had available US$14.5 million (31
December 2020: US$19.1 million) of undrawn borrowing facilities in
relation to (i) the Salvador container terminal expansion and (ii)
the dry-docking, maintenance and repair of tugboats. In addition,
the Group has US$9.4 million in contracted financing for the future
construction of tugboats.
Covenants
Wilson, Sons de Administração e Comércio Ltda. ("WSAC") as
corporate guarantor has to comply with annual loan covenants for
Wilson Sons Estaleiros, Brasco Logística Offshore and Saveiros
Camuyrano Serviços Marítimos S/A in respect of loan agreements
signed with BNDES.
Wilport Operadores Portuários Ltda. as corporate guarantor for
loan agreements signed with both Bradesco for Tecon Salvador S.A
and Tecon Rio Grande and BNDES for Tecon Salvador S.A has to comply
with annual loan covenants including ratios of debt service
coverage, net debt ratio over EBITDA and equity over total assets.
For the BNDES agreements the Salvador container terminal has to
comply with the debt service coverage ratio covenant.
At 30 June 2021, the Company was in compliance with all
covenants in the above mentioned loan agreements.
Fair value
Management estimates the fair value of the Group's borrowings as
follows:
Unaudited Audited
30 June 31 December
2021 2020
US$'000 US$'000
-------------------------- --------- -----------
Bank loans
BNDES 203,882 202,428
Banco do Brasil 74,791 75,795
Bradesco - NCE - Real 35,111 40,577
Itaú - 4,060
Santander - 8,045
China Construction Bank - 13,657
Total 313,784 344,562
-------------------------- --------- -----------
16. Joint ventures
The Group holds the following significant interests in joint
operations and joint ventures at the end of the reporting
period:
Place of Proportion of ownership interest
----------------------------------
incorporation 30 June 31 December
and operation 2021 2020
--------------------------------------------------------- -------------- ------------- -------------------
Towage
Consórcio de Rebocadores Baia de São Marcos(3) Brazil 50% 50%
Logistics
Porto Campinas, Logística e Intermodal(3) Brazil 50% 50%
Offshore
Wilson, Sons Ultratug Participações S.A.(1) Brazil 50% 50%
Atlantic Offshore S.A.(2) Panamá 50% 50%
--------------------------------------------------------- --------------- ------------- -------------------
1. Wilson, Sons Ultratug Participações S.A. controls Wilson,
Sons Offshore S.A. and Magallanes Navegação Brasileira S.A.
These latter two companies are indirect joint ventures of the Company.
2. Atlantic Offshore S.A. controls South Patagonia S.A. This company is
an indirect joint venture of Wilson Sons.
3. Joint Operations.
The Group's interests in joint ventures are for accounted for on
the equity basis.
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
--------------------------------------------------- ------------- -------------
Revenue 55,389 60,025
Raw materials and consumables used (4,272) (3,498)
Employee benefits expense (18,638) (17,800)
Amortisation of right-of-use assets (5,228) (5,222)
Depreciation and amortisation (19,355) (20,529)
Other operating expenses (9,082) (7,652)
Gain on disposals of property, plant and equipment 1 -
--------------------------------------------------- ------------- -------------
(Loss)/profit from operating activities (1,185) 5,324
Finance income 48 (359)
Interest on lease liabilities (127) (347)
Finance costs (7,821) (8,271)
Foreign exchange gains/(losses) on monetary items 4,217 (21,605)
--------------------------------------------------- ------------- -------------
Loss before tax (4,868) (25,258)
Income tax credit 3,368 14,834
Loss for the period (1,500) (10,424)
--------------------------------------------------- ------------- -------------
Participation 50% 50%
Equity result (749) (5,212)
--------------------------------------------------- ------------- -------------
Unaudited Unaudited
30 June 30 June
2021 2020
US$'000 US$'000
------------------------------ --------- ---------
Right-of-use assets 4,563 15,036
Property, plant and equipment 555,504 578,803
Long-term investment 2,146 2,103
Other current assets 9,955 10,871
Trade and other receivables 35,929 33,065
Cash and cash equivalents 28,848 23,341
------------------------------ --------- ---------
Total assets 636,945 663,219
------------------------------ --------- ---------
Bank loans 419,731 433,190
Lease liabilities 4,765 15,273
Other non-current liabilities 23,818 38,739
Trade and other payables 111,082 96,394
Equity 77,549 79,623
------------------------------ --------- ---------
Total liabilities 636,945 663,219
------------------------------ --------- ---------
We have not provided separate disclosure of all material joint
ventures because they belong the same economic group and are
managed on a unified basis. Wilson Sons holds a non-controlling
interest in Wilson, Sons Ultratug Participações S.A and Atlantic
Offshore S.A.
Wilson, Sons Ultratug Participações S.A is a controlling
shareholder of Wilson, Sons Offshore S.A. and Magallanes Navegação
Brasileira S.A, while Atlantic Offshore S.A. is a controlling
shareholder of South Patagonia S.A.
Guarantees
Loan agreements of Wilson, Sons Ultratug Participações S.A. and
subsidiaries with the BNDES are guaranteed by a lien on the
financed supply vessels and in the majority of the contracts a
corporate guarantee from both Wilson Sons Holdings Brasil Ltda. and
Remolcadores Ultratug Ltda, each guaranteeing 50% of its subsidiary
's debt balance with the BNDES. As at 30 June 2021, Wilson Sons 50%
share of the amounts outstanding under the loan agreements is
US$171.0 million (2020: US$170.7 million).
Wilson, Sons Ultratug Participações S.A. subsidiary's loan
agreement with Banco do Brasil is guaranteed by a pledge on the
financed offshore support vessels. The security package also
includes a standby letter of credit issued by Banco de Crédito e
Inversiones - Chile for part of the debt balance, assignment of
Petrobras' long-term contracts and a corporate guarantee issued by
Inversiones Magallanes Ltda - Chile. A cash reserve account of
US$2.1 million is required to be maintained until full repayment of
the loan agreement. As at 30 June 2021, Wilson Sons 50% share of
the loan amounts outstanding under the loan agreements is US$25.4
million (2020: US$25.7 million).
The loan agreements for Atlantic Offshore from Deutsche
Verkehrs-Bank "DVB" and Norddeutsche Landesbank Girozentrale Trade
"Nord/LB" for the financing of the offshore support vessels is
guaranteed by a pledge on the vessels, the shares of Atlantic
Offshore and a corporate guarantee for half of the credit from
Wilson Sons Holdings Brasil Ltda. and Remolcadores Ultratug Ltda,
which is the partner in the business, guarantee the other half of
the loans. As at 30 June 2021, Wilson Sons 50% share of the loan
amounts outstanding under the loan agreements is US$10.2 million
(2020: US$10.7 million).
Covenants
On 30 June 2021 Wilson Sons Ultratug Participações S.A.'s
subsidiary was not in compliance with one of its covenants' ratios.
On the assumption of a non-attainment, the joint venture's
subsidiary has to be capitalized within a year in the amount
necessary (US$6.0 million) to reach the required ratio. Since there
was already a financial contribution through an advance for future
capital increase in the first half of 2021 of US$9.985 million,
management's understanding is that there is no breach of a clause
or event that prompts negotiation or a waiver letter from Branco do
Brasil. There are no other capital commitments for any of the joint
ventures or joint operations.
Atlantic Offshore S.A. has to comply with specific financial
covenants on its two loan agreements with Deutsche Verkehrs-Bank
"DVB" and Norddeutsche Landesbank Girozentrale Trade "Nord/LB". At
30 June 2021 the subsidiary was in compliance with all loan
agreement clauses.
17. Notes to the cash flow statement
Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
US$'000 US$'000
----------------------------------------------------------------------------------- ------------- -------------
Reconciliation from profit/(loss) before tax to net cash from operating activities
Profit/(loss) before tax 66,202 (1,781)
Share of results of joint venture 749 5,212
Returns on investment portfolio at fair value through profit and loss (29,548) 13,761
Other investment income (1,307) (923)
Finance costs 14,584 11,413
Foreign exchange (gains)/losses on monetary items (2,315) 11,657
----------------------------------------------------------------------------------- ------------- -------------
Operating profit 48,365 39,339
Adjustments for:
Amortisation of right-of-use assets 5,982 5,312
Depreciation of property, plant and equipment 23,896 24,412
Amortisation of intangible assets 1,374 1,430
Share based payment expense 113 105
Gain on disposal of property, plant and equipment (2) (295)
(Increase)/decrease in provisions (703) 25
----------------------------------------------------------------------------------- ------------- -------------
Operating cash flows before movements in working capital 79,025 70,328
(Increase)/decrease in inventories (894) 1,030
(Increase)/decrease in receivables (15,521) 5,923
(Decrease)/increase in payables 5,524 (17)
(Increase)/decrease in other non-current assets (715) 16,527
----------------------------------------------------------------------------------- ------------- -------------
Cash generated by operations 67,419 93,791
Income taxes paid (13,814) (12,635)
Interest paid (12,023) (12,656)
----------------------------------------------------------------------------------- ------------- -------------
Net cash from operating activities 41,582 68,500
----------------------------------------------------------------------------------- ------------- -------------
18. Commitments
At 30 June 2021 the Group had entered into commitment agreements
with respect to trading investments. These commitments relate to
capital subscription agreements entered into by OWIL. The expiry
dates of the outstanding commitments may be analysed as
follows:
Unaudited Audited
30 June 31 December
2021 2020
US$'000 US$'000
-------------------------------------- --------- -----------
Within one year 4,904 4,670
In the second to fifth year inclusive 3,726 5,153
After five years 29,391 35,495
-------------------------------------- --------- -----------
Total 38,021 45,318
-------------------------------------- --------- -----------
The expiry date is not indicative of when a commitment call may
be made and could be accelerated. There may be situations when
commitments may be extended by the manager of the underlying
structure beyond the initial expiry date dependent upon the terms
and conditions of each individual structure.
At 30 June 2021 the Group had contractual commitments to
suppliers for the acquisition and construction of property, plant
and equipment amounting to US$10.9 million (2020: US$1.6 million).
The amount mainly refers to investments in the Salvador container
terminal with some smaller amounts related to the Rio Grande
container terminal and Offshore support bases
19. Related party transactions
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not
disclosed in this note.
Transactions between the group and its associates, joint
ventures and other investments are disclosed below.
Dividends received/ Amounts paid/
Revenue from services Cost of services
---------------------------- ----------------------------
Unaudited Unaudited Unaudited Unaudited
six months to six months to six months to six months to
30 June 30 June 30 June 30 June
2021 2020 2021 2020
US$'000 US$'000 US$'000 US$'000
---------------------------------------------------- ------------- ------------- ------------- -------------
Joint ventures
1. Allink Transportes Internacionais Limitada - - (125) (111)
3. Consórcio de Rebocadores Baía de São - -
Marcos 129 (6)
4. Wilson Sons Ultratug Participações S.A. 262 263 - -
Others
7. Hanseatic Asset Management LBG - - (1,329) (1,343)
8. Gouvêa Vieira Advogados - - (13) (16)
9. Jofran Services - - - (92)
Amounts owed Amounts owed
by related parties to related parties
--------------------- ---------------------
Unaudited Unaudited Unaudited Unaudited
30 June 30 June 30 June 30 June
2021 2020 2021 2020
US$'000 US$'000 US$'000 US$'000
---------------------------------------------------------- ---------- --------- ---------- ---------
Joint ventures
1. Allink Transportes Internacionais Limitada - 1 (19) -
2. Consórcio de Rebocadores Barra de Coqueiros - 45 - -
3. Consórcio de Rebocadores Baía de São Marcos - 1,782 (335) -
4. Wilson Sons Ultratug Participações S.A. 20,639 10,215 - -
5. Atlantic Offshore S.A 20,167 20,167 - -
6. Porto Campinas, Logística e Intermodal Ltda. 13 10 - -
---------------------------------------------------------- ---------- --------- ---------- ---------
Others
7. Hanseatic Asset Management LBG - - (276) (235)
1. Mr A C Baião is a Director of Wilson Sons and a shareholder and
Director of Allink Transportes Internacionais Limitada. Allink Transportes
Internacionais Limitada is 50% owned by the Group and rents office space
from the Group.
2. Mr. W H Salomon is chairman of Hanseatic Asset Management LBG. Fees
were paid to Hanseatic Asset Management LBG for acting as Investment
Manager of the Group's investment portfolio.
3. Mr. J F Gouvêa Viera is a partner in the law firm Gouvêa Vieira
Advogados. Fees were paid to Gouvêa Vieira Advogados for legal
services.
4. Related party loans with Wilson, Sons Ultratug Participações
S.A. (interest - 0.3% per month with no maturity date) and other trade
payables and receivables from Wilson, Sons Offshore S.A. and Magallanes
Navegação Brasileira S.A.
5. Related party loans with Atlantic Offshore S.A. (with no interest and
with no maturity date).
6. Advance for future capital increase from Porto Campinas
7. Mr W H Salomon is Chairman of Hanseatic Asset Management LBG. Fees were
paid to Hanseatic Asset Management LBG for acting as Investment Manager
of the Group's investment portfolio and administration services.
8. Mr J F Gouvêa Vieira is a partner in the law firm Gouvêa Vieira
Advogados. Fees were paid to Gouvêa Vieira Advogados for legal
services.
9. Mr J F Gouvêa Vieira is a Director of Jofran Services. Directors'
fees and consultancy fees were paid to Jofran Services.
20. Coronavirus ("Covid-19")
Wilson Sons was deemed as an essential service with respect to
its maritime logistics services by the Brazilian Government which
allows it to operate with limited restrictions, as such our
employees are prioritized for receiving vaccinations. Wilson Sons
anticipates having 90% of its workforce vaccinated by September
2021 and a gradual return of office workers commencing in the
fourth quarter of 2021. Wilson Sons does not predict any material
impact on its long-term performance as the global economy and the
interim results indicate signs of gradual recovery throughout the
first half of 2021.
At the time of writing, the effects of Covid-19 have not caused
any changes in the circumstances that could require an impairment
charge to be made against any of the Group's assets.
Management will continue to review key assumptions used in
determining value and carefully monitor short-term fluctuations and
macroeconomic assumptions related to the impact of Covid-19.
Enquiries:
Company Contact:
Leslie Rans, CPA 1 (441) 295 1309
Media:
David Haggie 020 7562 4444
Haggie Partners LLP
Brokers:
Peel Hunt 020 7418 8900
Sam Cann, Charles Batten
Investment Banking
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR QFLFFFVLFBBF
(END) Dow Jones Newswires
August 12, 2021 02:00 ET (06:00 GMT)
Ocean Wilsons (holdings)... (LSE:OCN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ocean Wilsons (holdings)... (LSE:OCN)
Historical Stock Chart
From Apr 2023 to Apr 2024
