Ocean Wilsons shares drop as profits halve

Ocean Wilsons Holdings, a Bermuda based investment holding company, saw pre-tax profits halve for the year ended December 31st, despite a rise in revenues.

Revenue rose from $575.6m to $698.1m year-on-year, while pre-tax profits plunged from $117.2m to $58.6m.

A $29m increase in operating profit was offset by the lower investment revenues in the period ($7.8m lower), negative returns from the investment portfolio (a $50.3m adverse movement compared to the prior year), higher financing costs ($9.1m higher) and a one off $20.4m profit in 2010 realised on the formation of the offshore joint-venture.

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In a statement the firm said: "Strong revenue growth from Wilson Sons terminal and logistics businesses was predominantly responsible for revenue increasing 21%, although it was pleasing to see growth from all business lines.

"Our long term approach, combined with a resilient strategy, warranted us another positive year in 2011. There are achievements to celebrate in each one of our businesses. In the past, we have made commitments to modernize and expand our terminals, to increase the productivity of our port assets and to renew and enlarge our fleets. This year's accomplishments are directly related to those past commitments."

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The firm is paying a final dividend of 29 cents per share (cps) (2010: 38 cps), making a total dividend for the year of 33 cps (2010: 42 cps), reflected the value of the investment portfolio and the dividend to be received from Wilson Sons relating to 2011.

At December 31st the group's debt was $491.1m (2010: $325.3m).

The share price dropped 4.62% to 1,187.50p.

NR