Port of Santos obtains record profit for the 3rd quarter

Santos Port Authority (SPA), the state-owned company that manages the Port of Santos, ended the third quarter of the year with a net profit of BRL 136 million, the best result for the period, up 38.3% from the third quarter of 2021. The good performance was mainly driven by the increase in revenue, owing to the rise in revenue and cargo throughput. These factors led to the best performance in the port’s history in a single quarter, racing 42.8 million tonnes, up 17.2%.

In the first nine months of the year, net income increased 55.2% over the same period in 2021 and totaled R$416 million, outperforming the result for the entire year 2021, when SPA had a positive balance of R$329 million.

Net revenue in the third quarter totaled R$386 million, up 38.2% over the same period in 2021, as a result of (i) the outstanding performance in cargo handling and (ii) the increase in equity revenues, which were benefited from contract readjustments and the allocation of port areas for transition contracts and new leases.

The strong maintenance dredging campaign carried out during the quarter increased total costs for the quarter by 76.1% to R$147 million. Excluding this effect and extraordinary events, other recurring costs fell by 5.7%, demonstrating the company’s strict cost control.

Earnings before interest, taxes, depreciation, and amortization (Ebitda), adjusted for extraordinary events related to revenues and premature termination of contracts, fell 9.9% to R$154 million with a 43.4% margin reflecting the impact of the increase in dredging expenses in the quarter. In the first nine months, adjusted Ebitda grew 16.2%, reaching R$ 573 million with a margin of 56.8%.

SPA’s Director of Administration and Finance, Marcus Mingoni, highlighted that the quarter’s performance exhibits financial and operational strength. “Multiple advances in expense rationalization and revenue optimization enabled the company to achieve a high level of efficiency, allowing it to absorb the impact of the high maintenance dredging expenses while still keeping the best profit for the third quarter in the port’s history.”

To see more information on the third quarter results, please access SPA’s release, available in Portuguese.

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