Ocean Wilsons (holdings)... Share Discussion Threads

[deepvalueinvestor] 30/3/2014 22:58

I'm not a fan of charts but a move towards £12 might make me a buyer.

[piedro] 29/3/2014 10:21

More on rented tugs ...

There may well be an economy involved as in peak demand and special situations, avoids having idle capacity.

[last of the mohicans] 29/3/2014 01:46

As I said before Wilson & Sons certainly had a good Q4 with EBITDA up 28% compared to the same period last year.

The EBIT comparison showed a rise of over 34%.

Earnings per share for the year fell from 66 cents to 56 cents per share thou.

The total dividend is up from $18M to $27M a 50% increase.

So that means a dividend to OCN holders from Wilson & Sons of 44 cents rather than the 29.5 cents last year. If OCN again give shareholders 1.85% of the investment portfolios value then the total dividend should be @ 56.5 cents per share rather than 42 cents.

Piedro,

The fact they are upping the dividend so much, with $26M still due to be paid on the Briclog purchase soon, would indicate that they are not looking to go on a capital spending spree any time soon, especially if you factor in the new oil & gas facility cap ex as well ($55M). Although they do have uncommitted loans of nearly $250M available to them.

What I did find amusing is that they have 63 tug boats plus one new finished one so far in 2014, plus another 4 in construction for delivery during 2014 (plus another 7 or 11 depending on how you look at it, on the shipyard order book) Yet managed to spend nearly $7M renting tugboats!!!!! not good planning there for at least the past 2 years!!

On the plus side Towage has one of the best margins and makes a big contribution to the bottom line, so these new bigger more powerful tugs should help drive the business going forward, but saving that $7M ASAP sure will help to. I wonder just how many tugboats we're renting to be paying out that kind of money?

LOTM

[piedro] 19/3/2014 16:47

LOTM,

I agree, there are so many possible projects, and the mentioned
CBO buyout is very big - CBO do use the Brasco terminal.

[last of the mohicans] 19/3/2014 16:12

Interesting Piedro,

But might just be too big for Wilson & Sons at an overall price of $1 Billion.

What would they do to fund the rest of the business? they need more tugboats & PSV's.

Also such a move would rule them out of any more container terminals near term would it not?

Lets see what the accounts say, after all I'm expecting a bumper Q4 performance.

LOTM

[piedro] 19/3/2014 14:05

21/10/2013
Wilson Sons se interessa pela compra da CBO
Com a compra empresa ampliará consideravelmente sua posição no mercado brasileiro
hxxp://www.guiamaritimo.com.br/gm_wp/noticias/wilson-sons-se-interessa-pela-compra-da-cbo/

Translation:
Wilson Sons is interested in buying the CBO
With the purchase the company would considerably expand its market position in Brazil
Wilson, Sons is interested in buying the CBO ( Companhia Brasileira de Offshore ) , controlled by the Fischer family. The active maintenance of platforms segment, the company also operates in the marine industry, on account of his participation in the Construction Alliance. Six groups of companies in the private equity industry, has sought the Fischer family. Among them would BTG Pactual. The family would be asking about $ 1 billion for this package of assets. Wilson, Sons should go into business in partnership with Chilean Ultramar, who is their partner in exactly the area of support platforms and offshore vessels. Besides providing services for others , Wilson, Sons Ultratug Offshore ( WSUT ) , arm of the English group in this segment operates 14 own boats .
If they buy the CBO, the British considerably expand their position in the Brazilian market, to have three more offshore support yards and 33 owned vessels in the country.

[piedro] 17/3/2014 16:11

for your interest ... {2014 harvest}

17/03/2014
Porto do Rio Grande investe em estruturas para granéis
hxxp://www.guiamaritimo.com.br/gm_wp/

- Tecon Rio Grande: said to be sending grains in the 'empty' containers
- Tecon Salvador: the bulk carrier Nordic Stockholm docked last night

[meijiman] 12/3/2014 11:39

Are you seeing that as a potential positive or negative. The negative would be more competition -equally it might attract more trade if infrastructure links are improved??

[piedro] 12/3/2014 11:19

No comments ??

That note in #922 is quite significant for Wilson Sons.

They may or may not be in the bidding for port concessions
But one is planned for the Port of Salvador and it may well,
(probably IMO), be right next door.

[m.t.glass] 12/3/2014 09:56

yf23 - Yep, I recall that. I maintain a shorts thread (DOWN), though not much input as my shorts are mostly brief intraday ones picked from the Advfn's narrowspreads Toplist.

[muzerewa] 12/3/2014 09:45

I also appreciate reading your posts Piedro. I have had a holding in OCN for some years, which has become more significant after a recent top-up.

[piedro] 11/3/2014 18:43

Brazil to call tenders for port concessions
By Michele Labrut
from Panama
Brazil Port Secretariat (SEP) plans to launch port concessions tenders in the states of Sao Paulo and Para worth around a total of $2.2bn in March. .... ....

[rambutan2] 11/3/2014 17:39

Yes, always check the posts on here, and happy to continue holding as have for most of this century...

[yf23_1] 11/3/2014 14:16

I was thinking more of an I.T route (HAN) to diversifying a bit rather than adding any more pure play single equities, but my first thoughts are that OCN looks rather favourable so i'm not unduly put off by the high stake. In fact it would save me from buying OCN directly and adding some diversificaton at the same time.

Thx for all the feedback.

MTGlass - I think I remember you from the days when goodfella and the bear club was around ?

[bdroop] 11/3/2014 13:58

I thought I'd add to the conversation too, now we're all posting.

I like OCN but there's a lot of capex still playing out I think - so I keep it on my watch list, but I sometimes want to take the plunge but macro issues keep getting in the way to mitigate against this good entry point as well.

Another way into OCN is through Utilico Emerging markets Trust as it's in their top 10 holdings, I think I'd recommend that route over Hansa Trust as it fits into the asset allocation EM "box" better for folks looking at EM funds over direct. Dividend there is OK too.The exposure is less though of course. Keep at it Piedro I read them too. Warm regards

[westcountryboy] 11/3/2014 09:30

Piedro

I am also a long-term holder who finds your posts very interesting (though I can't compete with them)

[ed 123] 11/3/2014 09:20

LOTM.

Ta. :-)

[last of the mohicans] 11/3/2014 08:47

Ed123,

As it says, "empty" with nothing in them, most likely to somewhere, so that they can be filled up and then transported somewhere else

LOTM

[marben100] 11/3/2014 08:37

Piedro,

There may no be many posts on here, but I can assure you that your detailed commentary/information is much appreciated. Please keep it coming!

Thanks,

Mark

[ed 123] 11/3/2014 08:35

Anyone know what they mean by "empty"? Ta.

[piedro] 11/3/2014 08:33

marben100,

Good to see you here.
I confess that nowadays I limit my postings on this particular bb.
There being not much interest in what the company actually does.

[marben100] 11/3/2014 08:31

More evidence of returns on CAPEX now being obtained, just announced. Unsurprisingly, most growth is from local Brazilian traffic, with international trade being down and strong oil service volume growth.

Cheers,

Mark

[marben100] 11/3/2014 08:17

Hi yf23,

Yes I think most holders will be aware of HAN, which also manages OCN's investment portfolio.

Personally, I choose to invest directly in OCN (though I reduced the level of my investment to a small one after the AGM in 2012, when it became clear that it would take a long time before investors saw any benefit from the huge CAPEX being made. I have recently added a tranche as it appears we might be starting to see the benefits appearing.

I hold directly because a) I see no reason to think the long-standing discount at HAN will reduce; b) my main reason for holding is OCN's interest in Wilson, Sons. This is already diluted by the investment portfolio OCN holds and would be diluted further by HAN's portfolio, if I held using that vehicle.

Cheers,

Mark
Twitter @marben100