Ocean Wilsons Holdings
Sale of Wilson Sons investment
21 October 2024
Ocean Wilsons announced today that it has agreed to sell its 56.47% stake in Wilson Sons to SAS Shipping Agencies Services, a wholly owned subsidiary of MSC Mediterranean Shipping Company, for R$4.4bn (equivalent to R$17.50 per share). The consideration will be converted into US dollars, which, at the current exchange rate, implies a purchase price of US$768m. The transaction is expected to trigger a Brazilian withholding tax liability of up to US$142m and to ultimately realise net cash proceeds of ‘at least US$593m’. The transaction is expected to complete in H225. A ‘meaningful’ proportion of the proceeds will be returned to shareholders and some may be reinvested in Ocean Wilsons. MORE »
Confirmation of interest in Wilson Sons holding
11 October 2024
Ocean Wilsons Holdings’ (OCN’s) H124 results showed good growth, reflecting a strong performance from Wilson Sons and a positive performance from the investment portfolio (OWIL). While the strategic review remains ongoing, in August the company announced that it is in discussions with I Squared that may or may not lead to an offer for its holding in Wilson Sons (BOVESPA: PORT3). Despite the review and the potential for value realisation, OCN still trades at a c 40% discount to our valuation of 2,275p/share. MORE »
Strong FY23 results with strategic review in FY24
25 March 2024
Ocean Wilsons Holdings’ (OCN’s) FY23 results highlight a robust performance from the Brazilian subsidiary Wilson Sons, as well as growth from the investment portfolio. Our forecasts are under review following the announcement but, prior to this, we valued OCN at 2,564p/share, which implies it is currently trading at a 48% discount. Given the strong trading and optimistic outlook, risks appear to be to the upside. MORE »
Strategic options being considered
2 February 2024
Ocean Wilsons Holdings’ (OCN’s) strategic review remains ongoing. Despite the review and the potential for value realisation, OCN still trades at a c 51% discount to its value, which we believe is 2,564p. MORE »
Operations and markets drive good H121
23 August 2021
Ocean Wilsons (OCN) reported PBT of $66.2m in H121 versus a loss of $1.8m in H120. Buoyant financial markets have allowed OCN’s global investment portfolio (OWIL) to swing from a loss in H120 to a strong performance. At the same time, OCN’s EBITDA grew 13% y-o-y to $79.6m and its operating profit by 23% as Wilson Sons’ (WSON) results improved as expected from recovering business levels and firmer prices. We have made some adjustments to our forecasts on the back of the results. We have kept EPS unchanged in FY21 but earnings have been cut by 9% in FY22 due to higher cost of debt assumptions. Our forecasts are equivalent to ROEs of about 8% for FY21 and FY22. OCN shares are currently trading at a significant 39% discount to their look-through value, which consists of the OWIL portfolio and OCN’s 57% stake in listed WSON. MORE »
Smoother sailing ahead
21 June 2021
The COVID-19 pandemic has been tough on Brazil but OCN has weathered it well with a respectable 5.1% ROE in 2020 and maintained its 70c (4.3%) dividend. Business volumes fell in Wilson Sons (WSON), its Brazilian maritime services company, but prices firmed up and allowed WSON to post a 4.3% ROE. OCN’s international investment portfolio (OWIL) had a good year in 2020 with favourable if choppy markets. Business is now picking up in WSON’s key container terminals and tugboat business and a recovery seems underway. We forecast OCN’s PBT to rise by 44% in FY21 and by 20% in FY22 as business recovers to normal. OCN is currently trading on a 35% discount to look-through value despite having risen 27% since 1 April. Its stake in listed WSON alone is worth 99% of its market cap. MORE »
Sailing against the wind
11 September 2019
We forecast Wilson Sons’ (WSON’s) EBITDA to fall 6% y-o-y this year, still affected by the sluggish Brazilian economy and a tough competitive environment, before rebounding 10% in 2020. However, our Ocean Wilsons (OCN) 2019 forecasts are boosted by good returns in the investment portfolio. The business continues to benefit from the stabilising effect of the diversification of earnings by activity and currency and ownership of its international investment portfolio (OWIL). The current 42% discount to a look-through valuation is above its long-term average in the mid-20s. MORE »
Making headway in a challenging environment
11 October 2017
Ocean Wilsons’ (OCN) first-half figures reported in August showed that its quoted Brazilian operating subsidiary, Wilson Sons (WSON), made progress despite a still difficult trading background, particularly for its offshore JV. The main container terminal and towage businesses are well invested and positioned to exploit a longer-term revival in the local economy. Confidence in this appears to be growing if strength in the currency and Bovespa equity index are taken as indicators. MORE »
Wilson Sons' Q1 shows further resilience
13 June 2017
Ocean Wilsons (OCN) is an investment holding company with a controlling interest in Wilson Sons (WSON), a long-established maritime services company in Brazil, and a globally diversified investment portfolio. Both are managed with a long-term perspective. Wilson Sons’ Q117 results were further evidence of the resilience of this business in the face of the Brazilian economic recession and, while the near-term outlook is uncertain, recent investment in the business and extension of the Salvador container terminal concession help to position the business well for the future. MORE »
Resilient Q3 performance
16 December 2016
The third-quarter results from Ocean Wilsons’ quoted subsidiary, Wilson Sons, represented another resilient performance against a still difficult economic background in Brazil. In addition, the company has announced the extension of its concession for the Salvador container terminal confirming (as expected) the long-term future of this element of the business. The longer-term prospects for Wilson’s maritime services businesses remain promising and the 32% discount that Ocean Wilsons shares trade on compared with a look-through value appears conservative. MORE »
Brazil now a more positive influence
9 September 2016
After a period in which its controlling investment in Wilson Sons (WSON), a seasoned Brazilian maritime services business, was a source of earnings and valuation risk, Ocean Wilsons (OCN) has been benefiting from strength in Brazil’s equity market and currency. There may be setbacks as economic recovery has barely begun, but diversification within WSON, OCN’s global investment portfolio and the 33% discount to a look-through NAV can all be seen as helping to provide some margin for error to investors at this level. MORE »
An unusual proposition
9 June 2016
Ocean Wilsons Holdings (OCN) is an investment holding company that offers investors an unusual proposition: a controlling interest in a long-established Brazilian maritime services company (Wilson Sons) and a diversified investment portfolio, both run with a long-term view. While the trading background in Brazil is challenging, this is factored into market thinking and Wilson Sons has demonstrated resilience. An investor in OCN also gains the diversification provided by the global portfolio and a substantial discount cushion (35% based on a look-through NAV). MORE »
Look beyond near-term challenges
26 June 2015
Ocean Wilsons’ (OCN) main investment is its controlling interest in Wilson Sons (WSON), the Brazilian maritime services company. Against a background of negative macro newsflow from Brazil, WSON has proved relatively resilient and stands to benefit from a resumption of growth both domestically and internationally. OCN’s international investment portfolio provides a balance to WSON and is run with a long-term approach. OCN's shares trade at a significant discount to a look-through valuation and offer a yield of 4.6%. MORE »
