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Ocean Wilsons buoyed by investment portfolio

Higher returns from the investment portfolio helped make up for a profit decline in the Brazilian business
Ocean Wilsons buoyed by investment portfolio

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.

IC TIP: Hold at 1005p

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:1,005pMARKET VALUE:£ 356m
TOUCH:980-1,030p12-MONTH HIGH:1,280pLOW: 985p
DIVIDEND YIELD:5.8%PE RATIO:14
NET ASSET VALUE:1,580ȼNET DEBT:35%
Half-year to 30 JunTurnover ($m)Pre-tax profit ($m)Earnings per share (ȼ)Dividend per share (ȼ)
201823527.728.4nil
201919947.179.5nil
% change-15+70+180-
Ex-div:na   
Payment:na   
£1=$1.21