Brazil’s political turbulence and economic malaise eased in 2017, giving maritime group Ocean Wilsons (OCN) the opportunity to report its first revenue increase in four years. As its domestic market emerged from its worst ever recession to register GDP growth of 1 per cent, Ocean’s enjoyed a rise in demand for shipping services: container removal volumes rose 3.7 per cent to 1.1m 20-foot equivalent units, while the towage business performed 2.4 per cent more harbour manoeuvres.
But the strong performance in profits was less to do with the group’s shipping unit and more of a reflection of its investment business, which acts as a hedge against the maritime division. In 2017, the portfolio outperformed its benchmark by more than 10 per cent, leading to a 26 per cent uptick in investment income and a $36.9m (£26.5m) improvement in other gains and losses. This more than offset a $21.4m increase in finance costs, as the 2016 exchange gain on foreign currency borrowings reversed to a $0.8m loss.
Looking forward, management is confident about the continued recovery of the Brazilian economy and brokers at Cantor Fiztgerald are forecasting 2018 foreign exchange adjusted EPS of 111ȼ, from 106ȼ in 2017.
| OCEAN WILSONS HOLDINGS (OCN) | ||||
| ORD PRICE: | 1,125p | MARKET VALUE: | £398m | |
| TOUCH: | 1,110-1,140p | 12-MONTH HIGH: | 1,213p | LOW: 983p |
| DIVIDEND YIELD: | 4.4% | PE RATIO: | 7 | |
| NET ASSET VALUE: | 1661ȼ | NET DEBT: | 29% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
| 2013 | 660 | 101 | 107 | 60 |
| 2014 | 634 | 78.5 | 65.6 | 63 |
| 2015 | 509 | 68.7 | 43.7 | 63 |
| 2016 | 457 | 118 | 127 | 63 |
| 2017 | 496 | 145 | 222 | 70 |
| % change | +9 | +24 | +74 | +11 |
| Ex-div: | 10 May | |||
| Payment: | 8 Jun | |||
| £=$1.41 | ||||
