Ocean Wilsons (holdings)... Share Discussion Threads

[piedro] 10/10/2017 12:12

Dozey3, when considering the activity figures for September and October,{when we get there}, please bear in mind that c.5 hurricanes will have passed through the Caribe during that period, disrupting the shipping apart from other damages ....

[dozey3] 10/10/2017 09:25

Btw I agree with tttie’s comments. Ups and downs are to be expected, but for diversification away from the UK with generous dollar denominated dividend and prospects of growth OCN is a strong hold IMO.

[dozey3] 10/10/2017 07:36

Today’s activity figures seem rather better than previously.

[trytotakeiteasy] 03/10/2017 12:14

LOTM - you raise valid points but I think your overall slant is unduly bearish. Brazil is just exiting a two year downturn. Wilson Sons has a very inexpensive P/E rating and offers a good dividend. Container terminal and tugboat demand are the two two key drivers and are linked to Brazil's economic recovery. Wilson Sons recently held an investor day and is optimistic about container terminal and tugboat demand. Wilson Sons is the leading tugboat business in Brazil.

At the end of the day the forecast Wilson Sons P/E is 10.7X for 2018 with a 4.7% yield and 9.6X in 2019 with a 5.2% yield. Borrowing is at a very low rate of interest. EBITDA is expected to cover interest 28X in 2017 and net debt to EBITDA is expected to be 1.5X.

In my view, you are focusing on a small part of the business to extrapolate an unwarranted bearish case.

[flyfisher] 03/10/2017 12:07

WSON33 share price in on new multi year highs and yet OCN lags £3 below highs and is at a 35% discount to a SOTP valuation, which is at the higher end of its range.

Growth should come from an improvement in the brazilian economy and an improvement in ports capacity and efficiency.

[last of the mohicans] 27/9/2017 23:36

Trytotakeiteasy,

Where's the future growth coming from ?

Tecon Salvador, has legal issues to get over before it can expand any further. There's no sign of them buying up or even trying to buy up / start up another container terminal.

Towage has little room for growth at the moment.

Ship building is doing very little, as is bonded warehousing.

All that debt has to be repaid on the PSV fleet & $100M plus invested in oil & gas and doing nothing with a ticking time limit is another noose around the company. The numbers you refer to are low, but always will be, there's not that many oil & gas players in the first place. Yes it was a small share in 2016 because day rates and margins everywhere else in the sector were being squeezed, but that's the sector they pinned there hopes on for real growth in the coming years and its now going to be delayed considerably.

Yes flyfisher the recent rise in the WSON33 share price is strange when you take into account all of the above.

LOTM

[trytotakeiteasy] 27/9/2017 11:27

Last of the Mohicans - I meant not significant relevant to the current drivers of total profit for Wilson Sons. Only 17% of clients are related to offshore support. Only 17% of 2016 EBITDA was driven by the offshore Vessels JV. See slides 5 and slides 27 below:



The reality is that the business is driven by towage and container terminal ports. Both areas made up 78% of 2016 total EBITDA. With Brazil's economy recovering and trade on a growing global trend the backdrop is positive for Wilson Sons.

[flyfisher] 27/9/2017 11:12

Fair point LOTM, but a greater issue was announced with the Q1 results of WSON33, with the Brazilian Federal Government having lifted the payroll tax exemption from 1 July 2017, with a net EBITDA impact of approx US$5.8M.

Rather surprisingly in light of that announcement, the wson33 share price has shrugged it off and been very firm, having increased by over 20% in recent weeks.

With hindsight, the company went into the O&G j/v at the top of the cycle and is getting no return for it.

[last of the mohicans] 27/9/2017 03:39

It's much more significant than most of you are realising.

The company invested a lot of money building the 2nd oil & gas facilities of BRASCO (cost $44M to buy + assumed debts of $14.5M for the 30 year lease see 2013 annual report).

Can't find the exact cost yet but it made up a good chunk of the $100M of capex in 2014 (probably close to $45M) to build the berths etc.

Then there is the $257M of debt for the 50/50 joint venture that owns the PSV fleet.

So if there sitting idle a total waste of assets that constantly depreciate in value.

LOTM

[topvest] 26/9/2017 19:36

Not good news, but hopefully not too significant.

[trytotakeiteasy] 26/9/2017 10:02

Not really sure this has much impact at all. This part of the business isn't a significant contributor to Wilson Sons profits. The main drivers are tugboats (towage) and the container terminal ports. The majority of Wilson Sons clients are trade related rather than in energy.

[pugugly] 26/9/2017 06:39

Looks as though knock on effect from low oil prices/Petrobras/ ? Braziilian politics Potentially not good for share price - Alredy marked down before market opens

[galeforce1] 30/8/2017 11:55

OCN's Interim statement (issued August 9th) for the 6 months to end of June looks encouraging. Am surprised the share price hasn't seen more a pop.

An opportunity, I think, and I've beed adding. Looks like good value. 35% discount to NAV. Container ports much busier. Brazilian maritime logistics generally picking up. If the divi rises from this years $63cents to maybe $70cents that's a 5% yield.

[pugugly] 21/8/2017 17:36

Piedro & LOM - Many thanks for your input - OW is a long term holding for me as a play on Brazil PLUS of course the discount which might at sometime narrow.

[last of the mohicans] 21/8/2017 14:14

Video of Piedro's story



News story link



Piedro

I remember when Ocean Wilson's used to have its own dredge, then sold it to used in the USA because no-one wanted dredging done in Brazil for over 2 years !!!

The tighter things are manovering ships the more Tugs will be required to do the job, more $$$ for the company.

LOTM

[piedro] 21/8/2017 11:46

That silting has been a problem for many years hence the queue of waiting vessels.
More of a problem is getting the channel dredged and last week 50+ containers got dropped into the water due to freak wave.

Many Brazilian ports require permanent dredging and some in the south were shut last week due to rough water caused by heavy rains.

[pugugly] 21/8/2017 06:55

FT Today "Silting in the port of Santos .. .. is forcing ships to carry 220 containers less per vessel to avoid the risk of grounding" Not sure if any implications .

[last of the mohicans] 15/8/2017 20:00

09/8/2017 - Tecon Rio Grande sets productivity record


Tecon Rio Grande, the container terminal of the Wilson Sons Group, registered a historic record of productivity in port operations in July. On July 25, 140 movements per hour were made during the operation of the Monte Tamaro ship, on the East Coast line of North America.

This record was obtained with an average use of 3.32 STS (Super Post Panamax Ship to Shore), equipment responsible for the movement of containers between the ship and the yard. Each STS obtained an average productivity of 29.98 movements per hour.

This is the second record recorded in the month. The first occurred with the ship Monte Aconcágua, on July 11, when 122.18 movements per hour were made. The highest result so far was 121.04 movements / hour, registered in August 2012, with the ship Maersk Lima, In operation that used five STS cranes.

Among the main factors that contributed to the increase in productivity are the commitment and constant training of the team, the start of the operation of three new STSs and eight RTGs (Rubber Tire Gantry Cranes used in moving the containers in the yard), The acquisition of new patio tractors (trucks) and the implementation of the new Navis N4 system.

"With the acquisition of new cranes and technology, an investment of R $ 146 million, Tecon Rio Grande has consolidated itself as one of the best containers terminals in the country's supply of equipment, with nine STS and 22 RTG, capable of serving the largest Ships that climb the Brazilian ports, "says Paulo Bertinetti, director-president of the terminal. Among the main factors that contributed to the increase in productivity are the commitment and constant training of the team, the start of the operation of three new STSs and eight RTGs (Rubber Tire Gantry Cranes used in the movement of the containers in the yard), The acquisition of new patio tractors (trucks) and the implementation of the new Navis N4 system.

LOTM

[piedro] 13/6/2017 09:33

Edison investment search

Ocean Wilsons Holdings
Wilson Sons’ Q1 shows further resilience
13 June 2017
Ocean Wilsons Holdings, Update, Investment companies

[piedro] 23/5/2017 14:40

Hyundai Loyalty to call at Tecon Rio Grande tomorrow
339.62mts x 45.67mts

[flyfisher] 16/5/2017 07:25

With the WILSONS share price having risen in brazil and a gain in the investment portfolio during the first quarter it looks like a current SOTP valuation for OCN of 1662p, so at 1100p it currently trades at a 34% discount.

Quite possible that the discount will narrow to the more normal 20%-25% range at which it has typically traded over recent years.

[trytotakeiteasy] 02/5/2017 14:53

Piedro - I can't quite figure this out as it seems to be a very technical legal dispute. The ports division is a reasonably large profit driver. Will have to see what happens long-term I guess.

[piedro] 29/4/2017 00:35

Well well well,
I'm surprised the Company has not mentioned it,{re: #1213} ...

Federal Judge determines suspension of work at the Port of Salvador

but then ...

Brazilian ports prep for general strike

... and it's Friday - Labour Day in Brazil Monday, so nothing ­± till Tuesday

[piedro] 14/4/2017 11:10

Translation:
A preliminary court decision suspended the works to expand the container terminal at the port of Salvador.

The decision was made by the judge of the Federal Regional Court of the 1st Region, João Paulo Pirôpo, who says that the work should only be feasible through a bidding process, which did not occur.

The decision was signed on 6 April. The judge disputes the agreement to renew the concession of the port ...

... the company has 30 days to present documents related to the work. Tecon, which took over the management of the container terminal in 2000, said it has not yet been notified of the decision.

EDITED: 17/04/2017 - left out the most important part

Not noticed ??