Ocean Wilsons Holdings

LN: OCN

£307.7m market cap

870p last close

Ocean Wilsons Holdings is an investment company based in Bermuda. It has a controlling shareholding in Wilson Sons, a quoted maritime services company in Brazil, and holds a portfolio of international investments.

Investment summary

Ocean Wilsons Holdings (OCN) reported FY20 earnings of $48m down 21% y-o-y, due to the impact of COVID-19 on both Wilsons Sons’ operations and the significant BRL devaluation. The pandemic led to container terminal and towage volume dropping 1% and 0.4% y-o-y, respectively. However, there are good underlying trends of stronger prices in both towage and container terminals and we also note that volumes in the off-shore vessels grew 4.4%. The investment portfolio had a good year, beating its benchmark (up 4.4% in 2020) by 6.5%. The current 40% discount to a look-through valuation is above its long-term average in the mid-20s.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 460.2 156.0 60.2 37.6 32.2 2.7
2019A 406.1 147.9 82.5 132.6 9.1 2.7
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

The oil price recovery has been welcome news and improves Brazil’s deepwater pre-salt industry’s prospects for later this year. This will help businesses such as the offshore support companies as well as towage. The coronavirus crisis initially hurt China and Asian shipping, but the impact broadened as it became a pandemic and currently Brazil is lagging in its vaccination programme. Our FY21 forecasts remain suspended until we get more clarity on the impact of COVID-19.

Last updated on 13/04/2021
Register to receive research on Ocean Wilsons Holdings as it is published
Share price graph
Balance sheet
Forecast net debt (US$m) 456.1
Forecast gearing ratio (%) 59
Price performance
%
1m
3m
12m
Actual 5.5 0.0 26.1
Relative* 3.2 (3.0) 3.6
52-week high/low 885.0p/620.0p
*% relative to local index
Key management
Keith Middleton FD

You may also be interested in…