Ocean Wilsons Holdings Limited

Quarterly Update - Q1 2022

Ocean Wilsons Holdings Limited (LSE: OCN) today announces its first quarter update for 2022. 

Our Operations

Ocean Wilsons Holdings Limited ("Ocean Wilsons", the "Company") is a Bermuda based investment holding company with two subsidiaries: Ocean Wilsons Investments Limited ("OWIL") which manages a portfolio of international investments, and Wilson Sons Holdings Brazil S.A. ("Wilson Sons"), which operates a maritime services and logistics company in Brazil.

Wilson Sons' Q1 2022 Financial Results

Wilson Sons reports 1Q22 EBITDA of US$45.9 million (1Q21 US$41.9 million), a 9.5% increase over the same quarter last year.

Group revenue for the quarter ended 31 March 2022 of US$101.4 million was 9.6% higher than the comparative period (2021: US$92.5 million) principally due to strong towage revenues, benefitting from an improved mix and resilient volumes. On a constant currency basis, revenue was 4.4% higher than prior year. The average USD/BRL exchange rate in the period at R$5.16 was 5.3% lower than the comparative period (2021 R$5.45).

Container terminal revenue for the quarter was 3.9% higher than prior year at US$35.0 million (2021: US$33.7 million) mainly due to increased demand in warehousing and other services. Total containers moved declined 14.7% at 161,500 TEUs (2021: 189,300 TEUs) as the impact of global container availability and delays in off-loading cargo continue to prove challenging. Import volumes in the period declined with the closure of some Chinese ports as Covid restrictions have been reintroduced. Towage revenue at US$48.5 million was 7.8% higher than the first quarter of 2021 (US$45.0 million).

Net profit for the period of US$27.8 million was US$23.0 million higher than the comparative period in 2021 (US$4.8 million) with improved operating profits and foreign exchange gains.

The full earnings release is available on the Wilson Sons website (www.wilsonsons.com.br) and at the Brazilian stock exchange website.

The CEO of Wilson Sons Limited operations in Brazil, Fernando Salek, stated:

Wilson Sons' 1Q22 EBITDA of US$45.9 million with robust towage revenues EBITDA grew 9.5% year over year.

Towage results were strong with an increased average revenue per manoeuvre despite the decrease in operating volume mainly due to the reduction of containerized cargo. Towage net revenues increased to US$48.5 million in 1Q22, from US$45.0 million in 1Q21.

Container terminal operating volumes were impacted by the limited availability of empty containers and worldwide logistics bottlenecks causing vessel call cancellations. We believe that this challenging scenario will remain throughout 2022 given port closures in China in this first quarter.

This month we released our first sustainability report in line with the Global Reporting Initiative (GRI). Through this report we bring increased disclosure of Wilson Sons' environmental, social and governance performance and strategy. One of the key material priorities for us and our stakeholders is safety to which we are pleased to confirm our commitment and report that during the quarter and since September 2021 we have had no lost time accidents. As such our LTFR has reduced to 0.51 on a trailing twelve-month basis.

This month we will deliver the first out of a series of six 80-ton bollard pull tugboats from our shipyard. The vessels are IMO Tier III certified which attests to the elimination of nitrogen oxide (NOx) emissions and will introduce an innovative concept for the tugboats in the country. By increasing the hydrodynamic efficiency of the vessels, the new design allows an estimated reduction of up to 14% in greenhouse gas emissions, compared to previous technology.

We are pleased to have delivered very resilient financial results despite the challenging worldwide trade environment and logistical bottlenecks, lack of empty containers and cancellation of vessel calls.

Fernando Salek

CEO

Investment Portfolio quarterly update

Current market conditions are both complex and challenging. The year began with an expectation of rising inflation and declining growth but importantly there was a belief that inflation would start to ease as the year progressed and that growth, whilst slowing, would not enter recession. As the year has progressed however, the combination of the war in Ukraine together with the slowdown in China due to its zero COVID policy has served to place further upward pressure on inflation and downward pressure on growth.  As a result, the market is trying to determine whether or not central banks can regain control of inflation but not at the expense of growth. The investment portfolio, whilst clearly impacted by these events, has a high degree of diversity both by geography, sector and asset type; which together with our long-term mandate is expected to manage the current uncertainty.  The defensive part of the portfolio continues to be resilient. To date, the private asset investments have substantially maintained their value, but there will undoubtedly be a lag between private and public assets over time.

At 31 March 2022, the investment portfolio including cash under management amounted to US$328.2 million (31 December 2021: $351.8million) a decrease of a 6.7% decrease. At 31 March 2022, the investment portfolio represents US$9.28 or £7.08 per Ocean Wilsons share value. At 30 April 2022, the investment portfolio including cash under management amounted to US$312.9 million, a decrease of US$38.9 million (11.0%).