Ocean Wilsons Holdings Limited (LSE: OCN) today announces its third quarter update for 2024.
Ocean Wilsons Holdings Limited
Quarterly Update – Q3 2024
Ocean Wilsons Holdings Limited (LSE: OCN) today announces its third quarter update for 2024.
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 port and maritime logistics company in Brazil.
Implied Net asset value at 30 September 2024
On 21 October 2024 the Company announced it has agreed to sell its subsidiary Wilson Sons for an estimated US$593 million, net of taxes and transaction costs equivalent to US$16.77 (£12.53) per Ocean Wilsons share. It should be noted that this transaction is based on a BRL offer price of R$17.50 per share which will be converted to USD at the exchange rate on the date of closing.
At 30 September 2024, the investment portfolio was valued at US$327.9 million which represents US$9.27 (£6.93) per Ocean Wilsons’ share.
In aggregate, including US$23.2 million of cash at the holding company level, this results in an implied net asset value per Ocean Wilsons’ share of US$26.70 (£19.95).
Investment Portfolio
In the 9 months ended 30 September 2024 the portfolio increased in value by US$17.8 million, or 5.7%. This result was driven by the strong performance of the public asset portfolio, particularly within the thematic exposures where there were good returns from the technology and insurance sectors, and the robust performance of the diversifying portfolio which outperformed government bonds.
Wilson Sons’ Q3 2024 Financial Results
Wilson Sons’ year to date Q3 2024 net revenues of US$400.7 million were 12.4% higher than Q3 2023 (US$356.4 million). Profit for the 9 months period was US$69.1 million, up 18.2% over the prior year (2023: US$58.5 million).
Towage revenues year to date were 7.1% higher at US$194.0 million (2023: US$181.1 million). Harbour manoeuvres increased 4.7% mainly due to a greater number of ships carrying iron ore, grains, vehicles and breakbulk cargo.
Container terminal revenues year to date increased 22.2% to US$149.5 million (2023: US$122.3 million) driven by volume growth and increased revenues from ancillary services. Salvador terminal operating volumes increased 22.2% to 355.5 TEUs (2023: 291.0 TEUs) and Rio Grande terminal operating volumes increased 29.3% to 616.6 TEUs (2023: 476.7 TEUs) for the 9 months period. These results are attributed to the strategic move in April 2024, where Wilson Sons established a partnership that positions Rio Grande as a key hub port on South America’s east coast.
On 7 November 2024, Wilson Sons announced its Q3 2024 results to the Brazilian Stock Exchange (B3). The full announcement is available on the Wilson Sons’ investor relations webpage (www.wilsonsons.com.br/ir) and on the website of the Brazilian Securities and Exchange Commission.
Strategic Review
The Company announced that it has entered into an agreement with MSC, the international shipping group, to sell its entire shareholding in Wilson Sons. This strategic decision marks an important milestone, aligning with the Company’s focus on enhancing shareholder value. The transaction is expected to close by 2H 2025, subject to regulatory approvals and customary closing conditions.
The Board is pleased with the outcome of the strategic review and believes this divestment is in the best interests of our shareholders. The Company remains committed to keeping the market informed throughout this process as required.