Ocean Wilsons (OCN), a Bermuda-based holding company that runs shipping and port services in Brazil, was busy last year. Operating profit soared by 40 per cent to $119m (£71m), a tenth higher than City forecasts, and broker Cantor Fitzgerald is pencilling in double-digit earnings growth for both this year and next.
Admittedly, cuts in payroll tax slashed Ocean's social security bill by $11m, and offloading commercial property in downtown Rio de Janeiro and Sao Paulo chipped in $10m in 2013. Yet, even after a $19m foreign exchange hit and a doubling of finance costs driven by overseas currency loans, pre-tax profit still edged up 2 per cent to $101m. Wilson Sons, Ocean's maritime unit (the shipyard, terminals and towage operation), generated much of that - more than $86m. Extra capacity drove shipyard revenue up 61 per cent to over $100m, and demand for new vessels from the offshore oil and gas industry "remains robust", says management.
It made the rest of its money playing the global bond and equity markets, initially funded by the $205m received when Ocean floated 42 per cent of the business in Brazil seven years ago. Ocean's investment portfolio returned almost 8 per cent year-on-year.
Cantor Fitzgerald expects pre-tax profit of $108m this year, giving EPS of 124¢ (from 107¢ in 2013), rising to $122m and 137¢ in 2015.
OCEAN WILSONS HOLDINGS (OCN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,095p | MARKET VALUE: | £388m | |
| TOUCH: | 1,090-1,100p | 12-MONTH HIGH: | 1,125p | LOW: 898p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 17 | |
| NET ASSET VALUE | 1,560¢* | NET DEBT: | 31% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 478 | 140 | 199 | 42 |
| 2010 | 576 | 117 | 161 | 42 |
| 2011 | 698 | 59 | -24 | 33 |
| 2012 | 610 | 99 | 117 | 42 |
| 2013 | 660 | 101 | 107 | 60 |
| % change | +8 | +2 | -8 | +43 |
Ex-div: 7 May Payment: 6 Jun *Includes intangible assets of $84m, or 238¢ a share £1=$1.66 | ||||
