Ocean Wilsons (OCN) H1 2024 earnings summary

Executive summary

• Revenue rose 14.2% to $262.4m for H1 2024, driven by Wilson Sons' strong container terminal and towage performance.

• Operating profit increased 22.4% to $68.4m; profit after tax declined to $38.4m from $47.9m due to higher tax expense.

• Investment portfolio delivered a 3.9% gross return, in line with its absolute benchmark and ahead of the 60:40 comparable benchmark.

• Strategic review of Wilson Sons ongoing, with outcome expected by end of 2024.

• Dividend per share increased 21.4% to 85c; EPS fell 17.5% to 71.1c.

Financial highlights

• Revenue: $262.4m (up 14.2% YoY); operating profit: $68.4m (up 22.4% YoY); profit after tax: $38.4m (down from $47.9m YoY).

• Net cash inflow from operating activities doubled to $90.5m; cash and equivalents at $66.2m.

• Net assets at $789.8m (down 3.2% from Dec 2023); net debt reduced by 8.8% to $436.7m.

• Investment portfolio assets at $319.6m, up 2.8% from Dec 2023.

• Dividend paid: $30.1m to equity holders, $17.7m to non-controlling interests.

Outlook and guidance

• Management remains optimistic, citing robust operational performance and strong cash generation.

• Interest rates expected to decline through 2025, supporting long-term investment strategy.

• Strategic review of Wilson Sons to conclude by year-end, with dividend policy to be reviewed thereafter.