Ocean Wilsons H1 profits up but shipyards take hit

15th Aug 2014 08:00

Tough trading in its shipyard and logistics businesses and currency headwinds hit container terminal and shipyard operator Ocean Wilsons, although first half profits rose.Ocean Wilsons said its container terminal and towage businesses lifted volumes strongly but group revenue stayed flat at about $300m due to currency volatility and weaker results in shipyards and logistics.The Bermuda-based investment company, which operates as a maritime services company in Brazil through its subsidiary Wilson Sons, said container volumes handled at Tecon Rio Grande and Tecon Salvador rose 15% to 489,300 20ft equivalent units.Shipyard revenue took a hit from delays in vessel deliveries resulting from a warehouse fire last year and the suspension of work on a third party platform supply vessel, as the client was still awaiting bank financing. Pre-tax profit rose 67% to $57.6m due to the appreciation of the Brazilian real against the dollar and improved results from the investment portfolio, which returned 3.7% in the six months to 30 June.Operating profit of $34.3m was $16.1m lower than last year's $50.4m mainly due to a profit on property plant sales, and $9.8m of equipment sales a year ago and higher depreciation and amortisation costs.The group said shipyard orders were healthy. Earnings were 82.2 cents per share against 20.8 cents last time.It paid dividends to shareholders in the period of $21.2m, up from $13.4m a year ago, but said it had decided to stop paying an interim dividend.Broker Cantor Fitzgerald said second quarter trading was disappointing and predicted a 10% cut in full-year consensus forecasts, but said the group's container terminal and shipyard business may do better in the second half."We believe Wilson's portfolio of businesses offer attractive medium-term earnings growth prospects," the broker's Robin Byde said, reiterate its 'buy' recommendation and target price of 1,500p.Shares in the group fell 17.5p or 1.5% to 1182.5p at 08:48 in London.PW