Ocean Wilsons Holdings Ltd warns of sharp falls in shipping demand


The total NAV per share of £10.87 was at a discount of 38% to the closing share price of 675p at the end of April

Ocean Wilsons Holdings Ltd () said its net asset value (NAV) was still well below its share price after its investment portfolio weakened in March but started to bounce back in April. 

Its Wilson Sons subsidiary, which operates a Brazilian maritime services and logistics company, saw revenue fall 9% to US$91.1mln in the three months to 31 March and made a loss after tax of US$7.8mln. It had US$96.8mln in cash at the quarter end.

The demand outlook heading into the second quarter has been deteriorating sharply, with Wilson Sons’ April container terminal and towage volumes down 7.2% and 5.6% respectively.

Cezar Baião, chief executive of Wilson Sons’ Brazilian operations, said measures have been taken to safeguard the financial strength and resilience of the business, and that he was “actively pursuing several operational and financial initiatives” to increase liquidity, though there remained material headroom on the unit’s bank covenants.

The investment portfolio fell 10.9% in the first quarter, but rebounded 4.6% in April to take the year-to-date return to -6.8%.

As of 30 April, the market value of the holding of Wilson Sons totalled roughly US$218.1mln, or US$6.17 (£4.90) per Ocean Wilsons share, while the investment portfolio stood at US$265.7mln, or US$7.51 (£5.97) per Ocean Wilsons share. 

The total resulting NAV per share of US$13.68 (£10.87) was therefore at a discount of 38% to the closing share price of 675p at that date.

Ocean Wilsons shares were down 6% on Friday morning to 589p, a fall of almost 40% so far this year.



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