Brazil's Wilson, Sons, Record Increase in Towage, Offshore Business in Q1 2012

Wilson, Sons report increase in towage, offshore revenues during first quarter 2012

The Company recorded Net Revenues of USD 157.2M, in line with 1Q11 figures. There was, however, healthy increase in Towage (up 34,9%) and Offshore (up 12,5%), due to better pricing and an increase in the number of vessels in operation.

Currently, the Company has 3 tugboats and 5 PSVs in different phases of construction at the Guaruja Shipyard. The strategy to increase and renew its fleet is part of the Company's desire to meet the demand in the oil & gas industry and international trade flow.

The new Guaruja II shipyard, the new Offshore and Towage vessels, and Tecon Salvador's expansion works are the major contributors to the quarterly CAPEX of USD 43.0M.
"2012 is a year to celebrate the expansion of Tecon Salvador and Guaruja II Shipyard: the first will increase the present capacity from 300,000 to 530,000 TEU per year; the second will increase the processed steel capacity from 4,500 to 10,000 tons per year", said Cezar Baiao, CEO of Operations in Brazil.

The quarter saw a decrease of 28.3% in YoY EBITDA mainly due to the end of the Petrobras public port operations in Rio de Janeiro in October 2011 and represented approximately 30% of Brasco's 1Q11 EBITDA, and to the negative impact of the Long-Term Incentive Plan, which had been positive in 1Q11 and was negative in 1Q12, therefore recording a net variation of US$ -11.1M. Furthermore, the Logistics business discontinued 10 low-margin operations, and the Salvador port terminal was constrained by its on-going expansion works.