Don’t be too impressed by the hike in Ocean Wilsons' (OCN) reported half-year profit. That's down to a $21.9m boost (£13m) from favourable exchange rates, a $9.4m cut in finance costs and a 3.7 per cent investment portfolio return. Operating profit actually dropped 32 per cent year-on-year to £34.3m reflecting a tough second quarter. Last year's comparative period was buoyed by a $9.8m from asset disposals, too.
The Bermuda-based holding company, which runs shipping and port services in Brazil, suffered a notably weak second quarter at its Brazilian maritime unit Wilsons Sons. Shipyard revenue fell 23 per cent to $17m, which pushed shipyard cash profit down 76 per cent to $1.7m. This reflected delays in vessel deliveries resulting from a warehouse fire at the group's shipyard last year and the suspension of work on a third-party platform supply vessel while the client waits for further financing.
Still, container volumes rose 15 per cent year-on-year and the shipyards boast a healthy forward order book for various specialist vessels. Civil works at the new oil and gas support base unit at Brasco Caju are on track for completion in 2015, too.
Prior to these results, broker Cantor Fitzgerald was expecting full-year EPS of 148ȼ (107ȼ in 2013), but thinks consensus forecasts could be cut by 10 per cent.
| OCEAN WILSONS (OCN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,183p | MARKET VALUE: | £419m | |
| TOUCH: | 1,175-1,190p | 12-MONTH HIGH: | 1,290p | LOW: 910p |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 1,590ȼ* | NET CASH: | 37% | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2013 | 306 | 34.5 | 20.8 | nil |
| 2014 | 300 | 57.6 | 82.2 | nil |
| % change | -2 | +67 | +295 | - |
Ex-div: - Payment: - *Includes intangible assets of $84.8m or 240ȼ a share £1=$1.67 | ||||
