Santos Brasil reported R$ 9.1 million net income in Q318
Santos Brasil reported a R$ 9.1 million net income in Q318, reversing a net loss of R$ 1.0 million in Q317. Consolidated net revenue in the period totaled R$ 255.7 million, in a 23.3% increase.
EBITDA (earnings before interest, taxes, depreciation and amortization) reached R$ 60.7 million, with a 23.8% margin and 18.1% growth. Pro forma EBITDA (R$ 40.0 million) grew 37.0%, with a 15.7% margin, and recurring pro forma EBITDA (R$ 45.9 million) increased 165.3% with a 18.0% margin*.
With low leverage, Santos Brasil closed Q318 with a cash balance of R$ 247.7 million and R$ 38.9 million net cash. In the quarter, the company´s investments totaled R$ 11.5 million, of which R$ 3.2 million in Tecon Santos and R$ 7.9 million in Tecon Vila do Conde.
According to Santos Brasil Economic and Financial and Investor Relations Director Daniel Pedreira Dorea, the solid income recorded in Q318 is the result of successful diversification initiatives in providing higher value-added logistics services. He also mentioned the growth and consolidation of the shipping services operating at the Company´s terminals, such as PIL´s Asian service at Tecon Santos, as well as the continuation of a strict cost and operating and administrative expense control program. ¿Santos Brasil is prepared to accelerate its operations¿ investment and expansion cycle¿, he says.
Santos Brasil reported a 21.1% growth in dockside operations at its three terminals - Santos (SP), Imbituba (SC) and Vila do Conde (PA) - in the third quarter of 2018, totaling 288,798 containers. In long-haul operations, which accounted for 72.5% of the total handled in Q318, the container import volume grew 5.2% and the export volume increased 30.0% over Q317. Coastal navigation operations grew 1.4% and accounted for 27.5% of the total volume handled. Transshipment operations (long haul + coastal navigation) accounted for 37.5% of the total operation volume, with a 32.4% growth, mainly due to the synergy between Maersk and Hamburg Sud operations at Tecon Santos.
Tecon Santos handled 241,892 containers in Q318, with an 18.2% increase over Q317. Annualized capacity utilization at Tecon Santos (2 million TEU - twenty foot equivalent unit - per year) in the nine months of the year was 72%. The company´s market share in the port of Santos increased from 30.3% in Q317 to 35% in Q318. Recovery of the company´s market share in the port in 2018 mainly reflects the growth of PIL´s Asian service, which began in February 2018, and coastal navigation operations, which began operating larger ships.
Tecon Imbituba handled 19,991 containers in Q318, a volume 58.9% higher than in Q317. The handling of long-haul containers, represented by the Asian ASAS service, accounted for 38.3% of the terminal¿s volume in Q318. Coastal navigation operations represented 61.7% of the total volume handled at the terminal.
At Tecon Vila do Conde, the handled container volume increased 26.5% in Q318, reaching 26,915 units. In September, Tecon Vila do Conde achieved an all-time handling record of 10,602 containers.
The volume of containers stored at Santos Brasil Logística increased 15.9% in Q318, at pace with the growth in imports at Tecon Santos.
The Vehicle Terminal (TEV) handled 56,118 vehicles in Q318, a volume 24.2% lower than Q317, mainly reflecting the decline in exports to Argentina.
*With the new accounting methodology adopted by the Company in Q118 for port terminal leasing, the Income Statement changed due to the alteration in treating the operating lease (off-balance) as financial - that is, the EBITDA of port terminals ceases to reflect lease expenses paid to the port authority, previously under the ¿Rental and Infrastructure Costs¿ caption. In order to maintain the comparative analysis with previous periods, the company calculated the ¿pro forma EBITDA¿