REG - Ocean Wilsons Hldgs - Quarterly Update – Q1 2022

Ocean Wilsons HoldingsAnnouncement

16/05/2022 07:00

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RNS Number : 5309L  Ocean Wilsons Holdings Ltd  16 May 2022

Ocean Wilsons Holdings Limited

 

Quarterly Update - Q1 2022

 

Ocean Wilsons Holdings Limited (LSE: OCN) today announces its first quarter
update for 2022.

Our Operations

Ocean Wilsons Holdings Limited ("Ocean Wilsons", the "Company") is a Bermuda
based investment holding company with two subsidiaries: Ocean Wilsons
Investments Limited ("OWIL") which manages a portfolio of international
investments, and Wilson Sons Holdings Brazil S.A. ("Wilson Sons"), which
operates a maritime services and logistics company in Brazil.

 

Wilson Sons' Q1 2022 Financial Results

Wilson Sons reports 1Q22 EBITDA of US$45.9 million (1Q21 US$41.9 million), a
9.5% increase over the same quarter last year.

 ·                           Robust towage results due to a better revenue mix and resilient volumes.

 ·                           Container terminal volumes continue to be impacted by the limited availability
                             of empty containers and worldwide logistics bottlenecks.

 ·                           Wilson Sons shareholder approval of a six-for-one stock split for all the
                             shares of the company to be traded "ex" split as of 16 May 2022.

 

Group revenue for the quarter ended 31 March 2022 of US$101.4 million was 9.6%
higher than the comparative period (2021: US$92.5 million) principally due to
strong towage revenues, benefitting from an improved mix and resilient
volumes. On a constant currency basis, revenue was 4.4% higher than prior
year. The average USD/BRL exchange rate in the period at R$5.16 was 5.3% lower
than the comparative period (2021 R$5.45).

Container terminal revenue for the quarter was 3.9% higher than prior year at
US$35.0 million (2021: US$33.7 million) mainly due to increased demand in
warehousing and other services. Total containers moved declined 14.7% at
161,500 TEUs (2021: 189,300 TEUs) as the impact of global container
availability and delays in off-loading cargo continue to prove challenging.
Import volumes in the period declined with the closure of some Chinese ports
as Covid restrictions have been reintroduced. Towage revenue at US$48.5
million was 7.8% higher than the first quarter of 2021 (US$45.0 million).

Net profit for the period of US$27.8 million was US$23.0 million higher than
the comparative period in 2021 (US$4.8 million) with improved operating
profits and foreign exchange gains.

The full earnings release is available on the Wilson Sons website
(www.wilsonsons.com.br (https://www.wilsonsons.com.br/pt-br/) ) and at the
Brazilian stock exchange website.

The CEO of Wilson Sons Limited operations in Brazil, Fernando Salek, stated:

Wilson Sons' 1Q22 EBITDA of US$45.9 million with robust towage revenues EBITDA
grew 9.5% year over year.

Towage results were strong with an increased average revenue per manoeuvre
despite the decrease in operating volume mainly due to the reduction of
containerized cargo. Towage net revenues increased to US$48.5 million in 1Q22,
from US$45.0 million in 1Q21.

Container terminal operating volumes were impacted by the limited availability
of empty containers and worldwide logistics bottlenecks causing vessel call
cancellations. We believe that this challenging scenario will remain
throughout 2022 given port closures in China in this first quarter.

This month we released our first sustainability report in line with the Global
Reporting Initiative (GRI). Through this report we bring increased disclosure
of Wilson Sons' environmental, social and governance performance and strategy.
One of the key material priorities for us and our stakeholders is safety to
which we are pleased to confirm our commitment and report that during the
quarter and since September 2021 we have had no lost time accidents. As such
our LTFR has reduced to 0.51 on a trailing twelve-month basis.

This month we will deliver the first out of a series of six 80-ton bollard
pull tugboats from our shipyard. The vessels are IMO Tier III certified which
attests to the elimination of nitrogen oxide (NOx) emissions and will
introduce an innovative concept for the tugboats in the country. By increasing
the hydrodynamic efficiency of the vessels, the new design allows an estimated
reduction of up to 14% in greenhouse gas emissions, compared to previous
technology.

We are pleased to have delivered very resilient financial results despite the
challenging worldwide trade environment and logistical bottlenecks, lack of
empty containers and cancellation of vessel calls.

Fernando Salek

CEO

 

Investment Portfolio quarterly update

Current market conditions are both complex and challenging. The year began
with an expectation of rising inflation and declining growth but importantly
there was a belief that inflation would start to ease as the year progressed
and that growth, whilst slowing, would not enter recession. As the year has
progressed however, the combination of the war in Ukraine together with the
slowdown in China due to its zero COVID policy has served to place further
upward pressure on inflation and downward pressure on growth.  As a result,
the market is trying to determine whether or not central banks can regain
control of inflation but not at the expense of growth. The investment
portfolio, whilst clearly impacted by these events, has a high degree of
diversity both by geography, sector and asset type; which together with our
long-term mandate is expected to manage the current uncertainty.  The
defensive part of the portfolio continues to be resilient. To date, the
private asset investments have substantially maintained their value, but there
will undoubtedly be a lag between private and public assets over time.

At 31 March 2022, the investment portfolio including cash under management
amounted to US$328.2 million (31 December 2021: $351.8million) a decrease of a
6.7% decrease. At 31 March 2022, the investment portfolio represents US$9.28
or £7.08 per Ocean Wilsons share value. At 30 April 2022, the investment
portfolio including cash under management amounted to US$312.9 million, a
decrease of US$38.9 million (11.0%).

 Enquiries

 Company Contact

 Leslie Rans, CPA                        +1 441 295 1309

 Chief Operating and Financial Officer

 Media

 David Haggie                            +44 20 7562 4444

 Haggie Partners LLP

 Peel Hunt, Broker

 Edward Allsopp, Charles Batten          +44 20 7418 8900

 

 

 

 

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