Once again, currency volatility dominated full-year results for maritime services group Ocean Wilsons (OCN). The 47 per cent depreciation of the Brazilian real against the dollar in 2015 had a significant impact on both sales and operating costs, which in dollar terms fell by 20 and 27 per cent respectively.
The exchange effect, together with a lower depreciation charge, conspired to boost operating profits to $110m (£77.3m), while operating margins increased by 8 percentage points. However, progress at the operating level was offset by an increase in exchange losses on foreign exchange borrowings.
On a constant currency basis, the core maritime services division managed to increase revenues by 13 per cent owing to good volume growth in the container terminals business. The asset portfolio - which both hedges the maritime business and complicates Ocean Wilsons' investment case - had a poor year. That was due to the funds' weighting to emerging market equities, which decreased by 14.9 per cent in the period and led to a 3 per cent decline in the portfolio to $244m. Despite this, and thanks to lower capital expenditure and tax charges, cash inflows improved by $39.9m to $145.5m, which allowed Ocean Wilsons to maintain the heady dividend payment.
Canaccord Genuity forecasts adjusted cash profits of $178m for 2016, giving EPS of 89¢.
OCEAN WILSONS (OCN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 750p | MARKET VALUE: | £266m | |
| TOUCH: | 740-760p | 12-MONTH HIGH: | 950p | LOW: 700p |
| DIVIDEND YIELD: | 5.9% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 1398¢ | NET DEBT: | 33% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 698 | 59.0 | -24.0 | 33 |
| 2012 | 610 | 99.0 | 117 | 42 |
| 2013 | 660 | 101 | 107 | 60 |
| 2014 | 634 | 78.5 | 65.6 | 63 |
| 2015 | 509 | 69.0 | 43.7 | 63 |
| % change | -20 | -12 | -33 | - |
Ex-div: 5 May Payment: 3 Jun £1 = $1.42 | ||||
