Port of São Francisco Ups Profit Five-fold In a Year

The record-breaking cargo throughput set in 2023, totaling 16.8 million tons, was instrumental in helping the Port of São Francisco do Sul achieve its best financial performance since its inauguration on July 1, 1955.

The financial report released this week by the port terminal’s management revealed a net profit of nearly R$30 million (R$29,764,085.41).

This represents a remarkable increase of 400% compared to 2022 when profits stood at approximately R$6 million (R$5,953,117.23). In other words, earnings quintupled last year.

Net profit is the sum derived from total revenue minus expenses and taxes.

The primary driver behind this achievement was tariff revenue, stemming from charges imposed on vessels docking in São Francisco. These fees help finance the waterway and land infrastructure provided by the Port, as well as cargo storage and weighing services.

According to Cleverton Vieira, the port’s president, this outstanding financial outcome results from careful strategic thinking to effectively utilize collected tariff funds.

“Aligned with Governor Jorginho Mello’s directives, we strive to streamline and rationalize expenditures, consistently aiming to allocate resources towards initiatives and services that yield operational enhancements and bolster our infrastructure,” he remarked.

Moreover, Vieira emphasizes that all profits generated by the public enterprise must be reinvested back into the Port or its road, rail, and waterway access.

“In essence, it constitutes a virtuous cycle: the more efficient a state-owned enterprise becomes, the greater the investments from tariff resources, perpetually seeking enhancements that best serve the Port’s stakeholders.”

The chart below shows which were the most exported products from the Port of Sao Francisco do Sul. The data covers January and February 2024 and were extracted from Datamar’s maritime intelligence service DataLiner.

Top Exports in Sao Francisco do Sul | Jan-Feb 2024 | WTMT

Source: DataLiner (click here to request a demo)

Return on Capital

Due to investments in port infrastructure, the Return on Capital surged to 14% in 2023, surpassing the 4% recorded in 2022 by over fourfold.

This metric is the outcome of overall profit divided by the company’s net worth. Essentially, if the Port of São Francisco were a publicly traded entity on the stock market (which it isn’t as it’s a public company), its shares would witness substantial appreciation.

The percentage performance surpasses the 5% target set for the port terminal in North Santa Catarina in the Port Authority Management Index (Igap), part of administrative efficiency parameters established by the federal government.

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