Ocean Wilsons Holdings Limited
Quarterly Update – Q3 2023
Ocean Wilsons Holdings Limited (LSE: OCN) today announces its third quarter update for 2023.
Our Operations
Ocean Wilsons Holdings Limited (“Ocean Wilsons”, the “Company”) is a Bermuda based investment holding company with two subsidiaries: Ocean Wilsons (Investments) Limited which holds a managed portfolio of global investments, and Wilson Sons S.A. (“Wilson Sons”), which operates a maritime services and logistics company in Brazil.
Net asset value at 30 September 2023
As at market close on 30 September 2023, the trading value of the Ocean Wilsons’ investment in Wilson Sons totalled approximately US$679.4 million, which represents US$19.21 (£15.74) per Ocean Wilsons share. The investment portfolio was valued at approximately US$297.8 million which represents US$8.42 (£6.90) per Ocean Wilsons share. In aggregate, including US$2.7 million of cash at the holding company level, results in an implied net asset value per Ocean Wilsons share of US$27.71 (£22.70).
Investment Portfolio
In the 3Q 2023 the investment portfolio was flat against a backdrop of generally negative global equity returns. In the 9 months ended 30 September 2023 the portfolio increased in value by US$11 million, or 3.7%.
Wilson Sons’ Q3 2023 Financial Results
Wilson Sons reported year to date Q3 2023 net revenues of US$356.4 million were 8.3% higher than the prior year period (2022: US$329.0 million) and EBITDA of US$153.1 million was 14.2% higher (2022: US$134.1 million). Profit for the period is up 33.3% over the previous year at US$58.5 million (2022: US$43.9 million).
Towage revenues rose 11.4% year-over-year with higher volume and an increase in average revenue per manoeuvre and special operations. In September 2023, the shipyard delivered the new 91-tonne bollard pull tug WS Castor to the fleet, the fourth of a six-tugboat series joining the fleet by 3Q24.
Container terminal revenues increased 10.2% with volumes up 12.0%. The Rio Grande terminal reported a 17.8% increase in overall handling driven by increases in all trade flows. The Salvador terminal registered a 3.6% increase in volumes mainly due to the increase in trans-shipment and shifting, import, cabotage and empty container flows. The completion of the quay reinforcement in August 2023 has contributed to an improved service offering in the Salvador terminal.
Demand for offshore energy-linked services improved markedly as vessel turnarounds in the offshore support bases increased 51.7% and operating days in the offshore support vessel joint venture rose 17.1% year-over-year.
Overall, the year-to-date performance demonstrates strong organic growth in the business. We remain positive on the fundamentals of trade flow-related businesses of towage and container terminals which, together with rebounding demand for offshore energy-linked services are driving growth and improved performance of these assets.
On 14 November 2023, Wilson Sons announced to the Brazilian Stock Exchange (B3) its results for the third quarter 2023. The full announcement is available on the Wilson Sons website (www.wilsonsons.com.br/ir) and at the Brazilian Stock Exchange website.
Update on strategic review
This update has been made to enable Wilson Sons to comply with Brazilian Corporate Law No. 6,404/1976 as amended and the provisions of Resolution No 44/201 of the Brazilian Securities and Exchange Commission (“CVM”).
Further to the announcement of 12 June 2023 regarding the Company’s strategic review of its investment in Wilson Sons, the Company has retained Banco BTG Pactual S.A. as adviser to Ocean Wilsons Overseas Limited (“OWOL”), the holding company for the Group’s indirect investment in OW Overseas (Investments) Limited (“OWOIL”) and in Wilson Sons. Ocean Wilsons also confirms that BTG Pactual has received a number of indicative non-binding offers for its indirect investment in OWOIL and in Wilson Sons.
As the strategic review process remains ongoing, there can be no certainty as to its outcome and the indicative non-binding offers received by the Company are highly conditional. The Board continues to evaluate all potential strategic options and will update shareholders further in due course.
Enquiries
| CompanyLeslie Rans, CPAChief Operating and Financial Officer | +1 441 295 1309 |
| Peel Hunt LLP, BrokerEdward Allsopp, Charles Batten | +44 20 7418 8900 |
| MediaDavid HaggieHaggie Partners LLP | +44 20 7562 4444 |