Ocean Wilsons Holdings Limited
Preliminary results for the period ended 30 June 2024
About Ocean Wilsons Holdings Limited
Ocean Wilsons Holdings Limited (“Ocean Wilsons” or the “Company”) is a Bermuda investment holding company which, through its subsidiaries, holds a portfolio of international investments and operates a maritime services company in Brazil. The Company is listed on both the London Stock Exchange and the Bermuda Stock Exchange.
Principal Activities
The Company’s principal activities are the management of a diverse global investment portfolio and the provision of maritime and logistics services in Brazil.
Ocean Wilsons has two operating subsidiaries: Ocean Wilsons (Investments) Limited (“OWIL”) and Wilson Sons S.A. (“Wilson Sons”) (together with the Company and their subsidiaries, the “Group”).
The Company owns 100% of OWIL and 57% of Wilson Sons which is fully consolidated in the financial statements with a 43% non-controlling interest. Wilson Sons is one of the largest providers of maritime services in Brazil with activities including towage, container terminals, offshore oil and gas support services, small vessel construction, logistics and ship agency.
Objective
The Company’s objective is to focus on long-term value creation through both the investment portfolio and the investment in Wilson Sons. This longer-term view directs an OWIL investment strategy of a balanced thematic portfolio of funds leveraging our long-standing investment market relationships and through detailed insights and analysis. The Wilson Sons strategy focuses on providing best in class or innovative solutions in a rapidly growing maritime logistics market.
Data Highlights
| KEY DATA (in US$ millions) |
| 6 months ended 30 June 2024 | 6 months ended 30 June 2023 | Change | |
| Revenue | 262.4 | 229.7 | +32.7 (+14.2%) |
| Operating profit | 68.4 | 55.9 | +12.5 (+22.4%) |
| Profit after tax | 38.4 | 47.9 | -9.5 (-19.8%) |
| Investment portfolio net return | 10.7 | 11.2 | -0.5 (-4.5%) |
| Net cash inflow from operating activities | 90.5 | 45.5 | +45.0 (+98.9%) |
| At 30 June 2024 | At 31 December 2023 | Change | |
| Investment portfolio assets | 319.6 | 310.9 | +8.7 (+2.8%) |
| Net assets | 789.8 | 815.8 | -26.0 (-3.2%) |
| Net debt | 436.7 | 479.1 | -42.4 (-8.8%) |
| SHARE DATA |
| 6 months ended 30 June 2024 | 6 months ended 30 June 2023 | Change | |
| Dividend paid per share (USD) | 85 cents | 70 cents | +15 cents (+21.4%) |
| Earnings per share (USD) | 71.1 cents | 86.2 cents | -15.1 cents (-17.5%) |
| 12 months ended 31 December 2023 | |
| Earnings per share (USD) | 189.6 cents |
| At 30 June 2024 | At 31 December 2023 | Change | |
| Share price (GBP) | 12.90 | 12.00 | +0.90 (+7.5%) |
Chair’s Statement
I am pleased to report that Ocean Wilsons Holdings Limited has delivered a robust performance for the first half of 2024, underscored by the strong operating results from Wilson Sons driven by its strategic growth initiatives and operational resilience.
Wilson Sons has delivered a 14.2% growth in revenues period on period, with a particular highlight being the addition of a new feeder route in South America and two new direct services connecting Asia to both Rio Grande and Salvador. These developments have significantly boosted container volumes, offsetting the temporary slowdown from the severe floods in the southern region of Brazil. Wilson Sons’ growth strategy for its container terminals has proven to be highly successful and its other business lines are also continuing to produce solid results, leading to strong cash generation. More details are provided in the Wilson Sons’ management report.
Our investment portfolio delivered a 3.9% gross return for the six-month period which was in line with the absolute benchmark return and significantly ahead of the equal weighted 60:40 comparable benchmark. As shareholders are aware, our investment strategy is intentionally designed to have a balanced portfolio of assets generating sustainable but less volatile returns over the long term. We remain confident in our investment approach which combines exposure to both public and private markets as well as a defensive allocation to assets providing uncorrelated returns and our focus remains on sustainable, long-term growth. A key strength of our investment manager is its preferred access to individual funds in both public and private markets due to the strength of its long-term relationships. Private markets have performed exceptionally well over the long term, albeit they are lagging public markets at present, with the latter driven by the “Magnificent Seven”. Typically these lags in performance are temporary affairs. The portfolio commentary in this document provides more specifics. We believe that the ever more uncertain geopolitical backdrop at present is likely to drive longer-term asset returns, reinforcing the resilience of this strategy, particularly as interest rates are expected to decline through 2025.
Strategic Review
Our strategic review of our investment in Wilson Sons continues, albeit not as swiftly as we had initially anticipated. However, we remain on track to announce the outcome of this review before the end of 2024. Both external factors and the excellent performance of Wilson Sons are playing into these considerations. The Board compliments the Wilson Sons management team for its steadfast commitment and focus on delivering its strategy without distraction during this review period. This measured strategic review remains focused on ensuring that we continue to align both of our sectors with our long-term objectives and deliver value to our shareholders.
Wilson Sons has generated significant cash during the period and has distributed dividends in excess of those in previous periods and to an earlier timeframe. Currently our own dividend policy remains unchanged and will be reviewed in conjunction with the completion of the strategic review.
In summary, the first half of 2024 has been a period of strong operational performance for Ocean Wilsons Holdings Limited, primarily driven by the resilience and strategic advancements of Wilson Sons, supported by an investment return benchmarked to the market with a lower risk profile. We remain committed to our growth strategy and investment strategy and are optimistic about the future.