Brazil’s Rumo profit soars on higher volumes, tariffs

Brazilian railroad operator Rumo SA RAIL3.SA reported a six-fold jump in third-quarter profit, benefiting mainly from higher agribusiness cargo volumes in Brazil’s Midwest plus higher tariffs.

Rumo’s net profit came in at 309 million reais, compared to gains of 51 million reais during the same period a year ago.

Net revenues meanwhile totaled 2.95 billion reais, up by half versus the same three-month period last year, reflecting a nearly 24% rise in the volumes it transported, especially corn, and a 23% increase in tariffs.

The Ebitda margin grew 2.4 percentage points to 48.4%.

“Price dynamics for the second half of the year remain more favorable, and freight prices showed an important correction throughout 2022,” Rumo said in its quarterly report.

Rumo’s negative financial result increased by 70%, to 612 million reais, as a result of an increase in the cost of debt service in an environment of higher interest rates.

Net debt stood at 9.7 billion reais, and financial leverage was 2.4 times, considering the net debt to Ebitda ratio, down 0.3 points compared to June.

Source: Money Times

To read the full original article, please go to: https://www.moneytimes.com.br/lucro-da-rumo-rail3-dispara-6-vezes-no-3o-tri-com-recorde-de-carga-e-alta-de-tarifas/

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