12th Aug 2020 11:40
(Alliance News) - Ocean Wilsons Holdings Ltd on Wednesday said it swung sharply to a loss in the first half of its financial year due to currency movements, lower revenue, and negative returns on its investments.
Ocean Wilsons is a Bermuda-based investment company that operates a maritime services company in Brazil through its Wilson Sons Ltd subsidiary.
It posted a USD1.8 million pretax loss for the six months ended June 30, representing a sharp swing from the previous year's USD47.1 million profit.
Revenue fell 13% to USD174.2 million from USD199.2 million, which contributed to the swing to loss.
On top of this, Ocean Wilsons reported a negative return of USD13.8 million on its investment portfolio at fair value through profit and loss, compared to a USD22.8 million gain the year before.
Moreover, Ocean Wilsons reported a USD11.7 million foreign exchange loss on monetary items compared to its previous USD347,000 profit from currency changes.
Chair Jose Francisco Gouvea Vieira said: "Whilst trade flows in Brazil remain sound, we are seeing some fall in imports and industrial activity in response to the pandemic. Brazilian agricultural production remains robust helping to support volumes at our two container terminals which are predominantly export focused. The weaker [Brazilian real] is also improving the competitiveness of Brazil and assisting in sustaining export volumes.
"The anticipated recovery in the Brazilian offshore oil and gas industry is expected to be further delayed by the recent softening in oil prices which is hampering demand for offshore oil and gas support services in Brazil. We remain confident in the long-term prospects for these businesses. Whilst there is limited visibility as to the full impact of the Covid-19 pandemic, the board is confident the group is well positioned to successfully negotiate these unusual times. Given the continued uncertainty caused by the Covid-19 pandemic, the board has withdrawn its market guidance for 2020 until both the impacts and duration of the pandemic becomes clearer."
In terms of Covid-19's longer-term impact, the Ocean Wilsons chair said: "While it is difficult to predict the full impact of the Covid-19 pandemic we are not forecasting any material impact on our long-term performance as the global economy is expected to gradually recover in the coming years."
The stock was down 0.7% at 665.46 pence in London on Wednesday morning.
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Ocean Wilsons