Higher returns from the investment portfolio helped boost first half profits at Ocean Wilsons (OCN), a Bermuda-based investment and maritime services company. The investment portfolio increased to $278m (£230m) from $259m at the 2018 year-end, as markets rallied following a soft end to last year.
Overall performance was held in check due to OCN's exposure to the faltering Brazilian economy, evidenced by an $8m year-on-year fall in net operating cash flow to $47.6m.
Revenue contracted due to an unfavourable real to dollar exchange rate and deteriorating trading conditions at some of its businesses, most notably port terminals and logistics, where sales were down 9 per cent to $118m, while container terminal revenue declined 10 per cent to $80.6m despite an increase in volumes.
Capital expenditure nearly doubled to $44.6m during the period as the company spent more on the expansion of Tecon Salvador container terminal, which contributed to the decline in net cash flow. However, profitability benefited from a sharp reduction in the cost of raw materials and consumables, down 39 per cent to $12.9m.
Consensus forecasts collated by Bloomberg give EPS of 86ȼ during 2019, increasing to 93ȼ in 2020.
|OCEAN WILSONS HOLDINGS (OCN)|
|ORD PRICE:||1,005p||MARKET VALUE:||£ 356m|
|TOUCH:||980-1,030p||12-MONTH HIGH:||1,280p||LOW: 985p|
|DIVIDEND YIELD:||5.8%||PE RATIO:||14|
|NET ASSET VALUE:||1,580ȼ||NET DEBT:||35%|
|Half-year to 30 Jun||Turnover ($m)||Pre-tax profit ($m)||Earnings per share (ȼ)||Dividend per share (ȼ)|