Hidrovias do Brasil releases record 1H 2023 financial figures

Hidrovias do Brasil has unveiled its performance for the second quarter and first half of 2023, showcasing remarkable achievements in terms of volume and revenue. During 2Q23, the company had a staggering 5.1 million tonnes throughput, displaying growth across all logistics corridors. This figure represents a noteworthy 10.3% increase compared to the same period in the previous year, which had also set a record. The net operating revenue reached its highest point ever recorded for a single quarter, marking a growth of 12.7% compared to Q2 2022, reaching a total of R$ 567 million.

Over the first half of the year, revenue exceeded R$ 1 billion, reflecting a remarkable surge of 20.5% from the previous half. In a notable streak, the adjusted EBITDA + EBIDTA of the joint ventures grew for the fifth consecutive time compared to the same periods in previous years, reaching R$ 299 million in Q2 2023, a remarkable 11.7% higher compared to Q2 2022.

Hidrovias do Brasil’s CEO, Fabio Schettino, commented, “We concluded the second quarter of 2023 with yet another volume record and the company’s highest single-quarter result ever achieved. Despite its impressive nature, this result still falls short of our full installed capacity, considering the ongoing construction at the Santos terminal. This reflects the growth phase of our volume curve, highlighting the strength and stability of our foundational elements.”

He adds, “The initial six months of 2023 provide us with confidence that we are navigating the correct path and that our strategic priorities are well-aligned, creating value for all our stakeholders and establishing a more prominent presence in a sector teeming with future opportunities. We believe that now is the time to reap the rewards of our cumulative efforts, demonstrating the resilience and soundness of our business model through exceptional results.”

The company is embarking on a new chapter in its history, as Schettino elaborates, “With the completion of payments for the new trunk pushers and maneuvering hybrids — set to operate in the North Corridor — along with investments in rail shipments in Santos, we are concluding the initial investment cycle. By 2024, we anticipate significant cash generation that will be channeled towards deleveraging while remaining open to growth opportunities in the short term.”

Recently, Hidrovias do Brasil revealed its plans to expand capacity within the Northern System by 700,000 tons. This expansion follows the company’s success in a simplified elective process, securing the operation involving ships anchored in the water mirror, using the direct transshipment system from barges to ships at the CDP — the public port of Barcarena.

Another pivotal metric for the company is its leverage ratio. The net debt/EBITDA indicator experienced a noteworthy reduction of 1.7x compared to the same period in the previous year, reaching a total of 4.04x. Ricardo Pereira, CFO of Hidrovias do Brasil, affirms that the company is strategically executing deleveraging efforts, stating, “Over the past few years, the company has made deliberate and meticulous investment decisions. We have been consistently reducing leverage for four consecutive quarters. Our net debt has decreased by over R$ 500 million, and we have established a lengthy and cost-effective debt profile. Our aim is to achieve a leverage ratio of 3x to 3.5x by the end of the coming year,” the executive analyzes.

Sharing is caring!