Blame Brazil's economic slowdown for sluggish growth at maritime services company Ocean Wilsons (OCN). Trading in the country stalled in the fourth quarter, and the weaker Brazilian real also contributed to a 4 per cent dip in full-year revenues. Factor in lower operating margins and a $10m (£6.7m) property gain in 2013, and group operating profit dropped by nearly a quarter to $89.4m. Reduced gains from the investment portfolio - Ocean Wilsons owns what amounts to a $252m hedge fund in addition to its 58 per cent stake in Brazilian shipping services specialist Wilson Sons - also help explain the $23m tail-off in pre-tax profits.
But chairman José Francisco Gouvêa Vieira called last year's operating performance "robust" in light of year-on-year growth within the towage, container terminal and offshore businesses. And the performance of the investment portfolio, which is mainly invested in global equities, was at least positive: it made $3.2m after fees.
Management say the falling oil price and tough economic conditions in Brazil "bring concerns" for the coming year. Although the shipyard order book has six vessels awaiting delivery, Mr Vieria said a "ramp-up in operations may take longer to materialise" as international oil companies "revise their investment plans".
Prior to the results, analysts at Cantor Fitzgerald expected pre-tax profits of $122m this year, giving EPS of 155ȼ.
| OCEAN WILSONS (OCN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 895p | MARKET VALUE: | £317m | |
| TOUCH: | 890-900p | 12-MONTH HIGH: | 1,290p | LOW: 895p |
| DIVIDEND YIELD: | 4.7% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 1,553ȼ | NET DEBT: | 35% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2010 | 576 | 117 | 161 | 42 |
| 2011 | 698 | 59 | -24 | 33 |
| 2012 | 610 | 99 | 117 | 42 |
| 2013 | 660 | 101 | 107 | 60 |
| 2014 | 634 | 78 | 66 | 63 |
| % change | -4 | -23 | -39 | +5 |
Ex-div: 7 May Payment: 5 Jun £1 = $1.49 | ||||
