Ocean Wilsons Profit Rises But Brazil Market Faces Challenging 2018

19th Mar 2018 10:57

LONDON (Alliance News) - Ocean Wilsons Holdings Ltd on Monday said it experienced "improved returns from the investment portfolio and higher operating profit" in 2017 with a significant rise in pretax profit, outpacing a more modest rise in revenue.

Ocean Wilsons is a Bermuda-based investment company which operates as a maritime services company in Brazil through its Wilson Sons Ltd subsidiary.

Ocean Wilsons recorded a pretax profit of USD145.5 million for 2017, up 24% from USD117.5 million in 2016. Revenue increased to 8.6% to USD496.3 million from USD457.2 million.

The improved profit performance was primarily due to a USD36.9 million net upward movement in gains and losses from the investment portfolio, a USD12.7 million rise in operating profit, and a USD3.9 million increase in investment income.

The company said its revenue growth was principally due to higher port terminal and logistics revenue.

Ocean Wilson declared a dividend of 70 US cents per share, up 11% from 63 cents in 2016. Based on the company's current share price and the current dollar exchange rate, a dividend of 70 cents gives a dividend yield of approximately 4.7%, the company said.

Shares in Ocean Wilsons Holdings were up 5.4% at a price 1,122.00 pence on Monday morning.

"The group delivered a strong performance in 2017 from both our Brazilian and investment portfolio businesses," said Chairman Jose Francisco Gouvea Vieira.

"The Brazilian economy is forecast to grow between 2.5% and 3% in 2018 with stronger growth from 2019," Gouvea Vieira added.

"We are still awaiting the necessary environmental license approval to begin the expansion of the Tecon Salvador container terminal and do not expect to be able to start construction before the fourth quarter of 2018. Demand for towage services remains healthy despite recent increased competition in the segment. The Brazilian offshore oil and gas market will face another challenging year in 2018 although prospects for the longer-term are brighter following the investment friendly reforms implemented during 2017. Market over-capacity continues to dampen demand for both offshore vessel hire and new vessel construction although we continue to explore alternative revenue streams for our excess supply vessel capacity."

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