TIDMOCN
RNS Number : 1717T
Ocean Wilsons Holdings Ld
13 November 2019
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE MARKET ABUSE REGULATION. UPON THE PUBLICATION OF THE
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION
IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Ocean Wilsons Holdings Limited
Quarterly Update
Ocean Wilsons Holdings Limited (LSE: OCN) today announces its
third quarter update for 2019.
Our Operations
Ocean Wilsons Holdings Limited ("Ocean Wilsons" or "the Group")
is a Bermudian investment holding company which holds a portfolio
of international investments, and through its subsidiary, Wilson
Sons Limited ("Wilson Sons"), controls a maritime services and
logistics company in Brazil.
IFRS 16
On 1 January 2019 the Group applied the new accounting standard,
IFRS16 - leases, for the first time using the modified
retrospective approach. As a result, the Group recognised a
right-of-use asset and a lease liability at a present value of
US$176.3 million. The impact was principally due to the recognition
of right-of-use assets previously recognised as operating leases.
Due to the application of the new standard, Wilson Sons EBITDA for
the third quarter benefited by US$5.2 million while profit for the
period was negatively impacted by US$1.0 million. Comparatives for
the 2018 financial period were not restated.
Financial Results
Group revenue for the three months ended 30 September 2019, at
US$106.1 million, was 7% lower than the comparative period (2018:
US$114.1 million) principally due to reduced revenue at container
terminals, lower logistics revenue due to the completion of a
specific high-volume contract, and lower shipyard revenues.
Container terminal revenue for the quarter was 8% lower than the
prior year at US$44.5 million (2018: US$48.3 million) mainly due to
reduced import warehousing revenue. Container volumes in the period
were 12% lower at 275,900 TEUs (2018: 312,300 TEUs) principally due
to less transhipment volume resulting from the cancellation of two
feeder services from Argentina in the first half of 2019. Excluding
transhipment and shifting movements, container volumes in the
period were 2% lower at 253,100 TEU's compared with 257,800 TEU's
in 2018. Towage revenue at US$42.8 million was US$1.9 million
higher than the third quarter of 2018 (US$40.9 million) with higher
revenue per manoeuvre offsetting lower harbour towage volumes.
Harbour towage manoeuvres decreased 2% to 13,724 (2018: 13,992).
Shipyard revenue of US$0.9 million was US$2.3 million lower than
the third quarter of 2018 (US$3.2 million) reflecting the decrease
in third-party shipbuilding and dry-docking operations. Group
revenue for the nine months ended 30 September 2019 was 12.6% lower
at US$305.3 million (2018: US$349.1 million).
Wilson Sons EBITDA for the third quarter, at US$45.7 million,
was in line with the prior year (2018: US$45.8 million) and for the
nine months ended 30 September 2019 was 5.9% lower at US$116.4
million (2018: US$123.7 million). Adjusting for the effects of IFRS
16, Wilson Sons EBITDA in the third quarter would have been 11.6%
lower than prior year at US$40.5 million and 18.8% lower for the
nine months ended 30 September 2019 at US$100.4 million.
Wilson Sons profit after tax for the third quarter of US$13.0
million was US$2.5 million lower than the comparative period in
2018 (US$15.5 million) and for the nine months ended 30 September
2019 was US$3.9 million lower at US$26.1 million (2018: US$30.0
million). Adjusting for the effects of IFRS 16, Wilson Sons profit
after tax in the third quarter would have been US$1.5 million lower
than prior year at US$14.0 million and US$0.8 million lower for the
nine months ended 30 September 2019 at US$29.2 million.
The CEO of Wilson Sons Limited operations in Brazil, Cezar
Baião, stated:
Wilson Sons reports 3Q19 EBITDA of US$45.7M, a 0.2% decrease
from 3Q18, while the adjusted EBITDA (ex-IFRS16) was down
11.6%.
-- Container terminal volumes were impacted by lower transshipment in Rio Grande.
-- Towage volumes remained constrained by intense market
competition and temporary reduction in iron ore exports, while
prices have begun to stabilize.
-- Adoption of the new IFRS16 accounting standard for the 3Q19
has resulted in a US$5.2M increase in EBITDA but a US$1.0M
reduction in profit after tax.
Wilson Sons 3Q19 EBITDA of US$45.7 million decreased slightly
against 3Q18 (US$45.8 million) largely due to reduced import
warehousing revenue for container terminals. Excluding the IFRS16
effects 3Q19 EBITDA would have been US$40.5 million, 11.6% lower
than the comparative period.
Container terminal results declined as economic growth in Brazil
remains sluggish. The Salvador terminal reported a 6.3% decrease in
operating volumes due to a weak local economy, though 20.4% growth
in import volumes led to a better cargo mix (with solar panel
volumes performing well). Civil works on the Salvador terminal to
extend the principal quay are 60% completed and when finished, will
allow the simultaneous berthing of two super-post-Panamax ships,
facilitating access to the port and the largest economy in the
north-east of Brazil. The expansion project is a priority
investment of the federal government's Investment Partnership
Program and is critical to the economy of the state of Bahia. The
Rio Grande terminal reported weaker volumes affected by reduced
transshipment cargo with the loss of two feeder services in
1Q19.
Towage results continued to feel the temporary reduction of iron
ore exports and a very competitive environment affecting volumes.
After quarter end the division signed a R$42.6 million financing
agreement to be used for dry-docking, repair and maintenance of 34
tugboats between 2019 and 2020.
Our oil services businesses including support bases and offshore
support vessels ("OSV") still face a weak demand, although we
expect a recovery in the medium term. We continue to explore
alternative revenue streams for our off-hire vessels and base
areas, which are well positioned to profit from the expected
recovery in the industry over the next couple of years. In
September, the OSV unit signed a new short-term contract with
Seaseep for PSV Biguá.
The Company remains focused on increasing cash flow and
improving capacity utilisation across all businesses in order to
maximise stakeholder value, maintaining our relentless commitment
to safety.
Cezar Baião,
CEO of Operations in Brazil
On 12 November 2019, Wilson Sons Limited announced to the São
Paulo and Luxembourg Stock exchanges its results for the third
quarter ended 30 September 2019. The full announcement is available
on the Wilson Sons website (www.wilsonsons.com.br) and at the
Brazilian stock exchange website.
Investment Portfolio
At 31 October 2019, the investment portfolio including cash
under management amounted to US$277.5. million (30 June 2019:
US$278.4 million). The investment portfolio represents US$7.85.
(GBP6.08) per Ocean Wilsons share.
Enquiries
Company Contact
Keith Middleton +1 441 295 1309
Media
David Haggie
Haggie Partners LLP +44 20 7562 4444
Cantor Fitzgerald Europe
Rick Thompson, Will Goode (Corporate Finance) +44 20 7894 7000
Person responsible:
The person responsible for arranging the release of this
announcement on behalf of Ocean Wilsons is Keith Middleton.
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END
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