Santos Brasil posts net income of R$246.6 million in 2011

02/02/2012

Santos Brasil closed 2011 with net revenue of R$1,124.7 million, a 29.9% improvement on the R$865.5 million recorded in 2010. EBITDA totaled R$456.9 million, 47.3% up on the previous year,with an EBITDA margin of 40.6%, and consolidated net income came to R$246.6 million, a hefty 120.2% more than in 2010.

Grossrevenue from services provided by the Vehicle Terminal (TEV)was one of the year's highlights, climbing by a massive 112.7% from R$30.6 million, in 2010, to R$65.1 million, while gross revenue from port terminals recorded healthy growth of 26.7% to R$997.5 million. Revenue from logistics operations amounted to R$216.1 million, 30.6% up on 2010, reflecting the increase in stored cargo volume in the CLIAs (Industrial and Logistics Custom Centers) and in the Port of Santos,as well as the Company's commercial efforts to add integrated logistics services (expansion of the distribution center and road transportation services).

Annual investments in the Tecon Santos (SP), Tecon Imbituba (SC)and Tecon Vila do Conde (PA) terminalsand logistics units totaled R$196.7 million. Santos Brasil concluded the expansion projects in Tecon Imbituba and acquired two cranes capable of handling SuperPost Panamax vessels, 12 new twin pick RTGs (capable of lifting two 20-foot containers),and 30 new terminal tractors to replace the existing trucks. The investments in Vila do Conde went towards expanding the yard, acquiring stackers and weighing machines, and the opening oftwo new entry and exit gates.

In December 2011, the risk rating agency Standard&Poor's raised the Company's long-term corporate credit rating from br AA - to br AA, thanks to its recent positive cash flow trajectory together with its investment capacity and gradual financial deleveraging.

Thanks to the excellent prospects for Brazil's economy and international trade, the Companyestimates consolidated 2012 EBITDA of between R$500 million and R$550 million, accompanied by investments of R$80 million to expand and improve operations.

Operating indicators

In 2011, Santos Brasil handled 1,001,870 containers, exceeding the one-million mark for the first time, corresponding to 1,529,320 TEUs (20-feet container equivalents) and in line with the annual target. Volume increased by 6.7%, close to double the country's GDP growth. The Company's market share in the Port of Santos moved up to 53%, thanks to a substantial increase in operational productivity and efficiency, according to the São Paulo State Port Authority (Codesp).The Company estimates handled volume of between 1,630,000and 1,730,000 TEUs in 2012.

According to Marcos Tourinho,Santos Brasil's Investor Relations Officer, the strong growth in 2011was fueled by the Company's excellent operating performance, which broke consecutive records throughout the year. "With a quarterly average of 80 movements per hour (MPH), Tecon Santos has consolidated its position as Brazil's most efficient terminal, with productivity levels similar to those of the world's leading container terminals," declared Tourinho. Tecon Santos handles an average of 100 container vessels per month.

Fourthquarter

Santos Brasil recorded 4Q11 net revenue of R$309.7 million, 19.1% up on the same period last year. Net income came to R$74.6 million and gross revenue totaled R$351.2 million, up by 18.4%. In the vehicle segment, handled volume jumped by 107.9%, reaching a new record, while revenue climbed by an even heftier 126.3% to R$22.4 million.

Gross revenue from quay operations grew by 5.9% over 4Q10 to R$154.9 million, while revenue from warehousing operations came to R$114.4 million, up by 17.9%. EBITDA amounted to R$121.1 million, 40.7% more than in 4Q10. Tecon Imbituba absorbed 51% of total 4Q11 investments, which came to R$35.8 million.

Handled volume in Santos Brasil's port terminals - Tecon Santos (SP), Tecon Imbituba (SC) and Tecon Vila do Conde (PA) - totaled 267,957 containers, a slight 2.3% reduction over 4Q10. The full/empty container ratio stood at 77.2% in the final quarter and 78% in the year as a whole.

The number of stored containers totaled 43,712 in the quarter, 28.2% down year-on-year, and 179,202 in the full year, down by 2.0%. Santos Brasil Logística reported a 7.0% increase in bonded warehousing volume over 4Q10to 20,393 units.