INVESTMENT company Ocean Wilsons yesterday reported a sharp fall in profits after the value of the Brazilian real tumbled.
The Bermuda-based firm saw a reduction in half-year profits of 58.6 per cent at $19.2m (£12.3m), down from $46.2m for the first six months of the previous year.
The 17 per cent fall in the value of the real against the US dollar over the first six months of the year was behind much of Ocean’s pain, as revenue growth of 18 per cent in terms of the real translated to a 10 per cent decline in dollar terms.
This significantly affected earnings per share, with the $33.8 total for the first half, down from $82.2 the previous year.
Cost-cutting measures such as a reduced head count helped the firm to increase operating profits to $52.5m from $32.3m. The firm said this was a “good operating result despite the difficult economic environment in Brazil”.
The report was published on the same day as the volatility of the real climbed to a three-year high as analysts forecast the Brazilian economy would shrink for two years running.