Ocean Wilsons profit rises in face of forex challenges

Ocean Wilsons Holdings provided its interim management statement for the six months to 30 June on Monday, with profit before tax up 43% to $57.1m, from $39.9m a year ago.

The company said the Brazilian real appreciated 18% against the US dollar at period end, from BRL 3.90 to BRL 3.21 per USD, while the average dollar to real exchange rate in the period was 25% higher than the comparative period at BRL 3.70, against BRL 2.97.

Revenue in dollar terms was 20% lower at $214.7, against $268.9m, impacted by the lower average Brazilian real exchange rate.

Revenue in BRL terms was BRL 793.3m, in line with the prior period at BRL 797.2m.

Earnings per share were reported at 56.0 cents, against 33.8 cents, while dividends paid to shareholders during the period were $22.3m, in line with last year at $22.3m.

“The group delivered a solid result for the first half of 2016 in a challenging economic environment,” said chairman J F Gouvêa Vieira.

“Following the steep devaluation of the Brazilian real in 2015 against the dollar, the weaker average USD/BRL exchange rate in the period adversely impacted revenue, although the appreciation of the BRL against the USD at period end enhanced our bottom line earnings.

“Operating margins for the period remain robust at 21% [against 20%], underpinned by our two main businesses, towage and container terminals,” Vieira said.

“Container volumes at our two container terminals continued to improve in the period while towage volumes experienced some market weakness.”

At 1425 BST, shares in Ocean Wilsons were up 0.71% at 926.5p.