Santos Brasil’s net profit totals R$216.2 million in 3Q24

Santos Brasil reported a net profit of R$216.2 million (+55.5% YoY) in Q3 2024, with a net margin of 28.3% (+2.2 p.p. YoY). The company’s EBITDA reached R$406.5 million (+57.7% YoY), reflecting a 4.9 p.p. increase in the consolidated EBITDA margin, which reached 53.2%. Consolidated net revenue totaled R$764.3 million (+43.2% YoY), with a 51.2% YoY increase in net revenue from container and general cargo terminals.

The company’s operational performance positively impacted its economic-financial indicators, as its container terminals handled 403,187 units in Q3 2024 (+25.1% YoY), mainly driven by long-haul operations (+29.3% YoY) due to increased imports (+26.3% YoY) and exports (+37.2% YoY). Notably, the mix of full containers improved, representing 75.6% of total volumes handled (vs. 71.7% in Q3 2023), with full container imports growing by 29.2% YoY.

Tecon Santos, Santos Brasil’s flagship terminal, handled 357,478 containers in Q3 2024 (+24.3% YoY), fueled by a robust increase in long-haul flows (+26.8% YoY), thanks to higher exports of cotton, coffee, pulp and paper, and frozen meat, as well as seasonal growth in imports, particularly chemicals, consumer goods, capital goods, and plastics. Cabotage volumes also rose by 12.1% in the quarter.

The terminal’s market share at the Port of Santos reached 42.5% (vs. 39% in Q3 2023 and 41.9% in Q2 2024). The high import season and the sharp increase in commodity exports maintained high terminal occupancy levels, creating opportunities for Tecon Santos to handle additional vessel calls, totaling 15 ships.

Tecon Imbituba processed 21,610 containers (+88.0% YoY), bolstered by a new CMA CGM long-haul service that began in February 2024, along with additional vessel calls. Cabotage volumes, however, fell by 9.6%, primarily due to reduced rice shipments.

At Tecon Vila do Conde, container volumes reached 24,099 units (+3.7% YoY). The increased volume of empty containers (+9.7% YoY) suggests a repositioning of units to support exports from northern Brazil. Long-haul operations continued to be affected by skipped calls due to vessel delays from congestion in other regions.

The Vehicle Terminal (TEV) in the Port of Santos handled 55,855 vehicles (+17.4% YoY), with exports rising by 19.5% YoY, mainly due to resumed light vehicle shipments to Argentina. Imports saw a 3.6% YoY decline.

At the Port of Itaqui, Santos Brasil’s liquid bulk terminals recorded a 10.3% YoY increase in stored fuel volume, with higher tank turnover rates and a shift from spot to long-term contracts.

Santos Brasil Logística saw an 8.3% YoY increase in container storage at the Santos and Guarujá Bonded Logistics Centers (CLIAs), driven by higher import volumes at the Port of Santos.

Investments and Debentures

The company invested R$157.9 million last quarter, focusing on expanding Tecon Santos’ capacity and modernizing its liquid bulk terminal projects.

A total of R$89.4 million was invested in container and general cargo terminals, with R$80 million allocated to Tecon Santos. This involved demolishing administrative buildings and a warehouse to expand yard storage and purchasing new reach stackers.

In liquid bulk terminals, R$66.2 million was invested, primarily in constructing the greenfield terminal (TGL 2), which will add 81,000 m³ of capacity by the end of 2025, and expanding brownfield areas (TGL 1 and TGL 3), which will add 59,000 m³ to the existing 50,000 m³ and are expected to be operational by year’s end.

Santos Brasil also completed its fifth debenture issuance in Q3 2024, raising R$2 billion. This capital infusion strengthens the company’s balance sheet. Of the raised funds, R$1.6 billion will be used for shareholder capital returns, with payments scheduled for Thursday (7).

In September, Santos Brasil’s shares joined the Bovespa Index (IBOV) on the B3 exchange, a significant milestone in the company’s history. Average daily trading volumes reached R$92 million, with a market capitalization exceeding R$12 billion.

On September 22, Opportunity-managed firms announced plans to sell a nearly 48% stake in Santos Brasil to CMA CGM, a global leader in maritime and land logistics solutions. The deal awaits approval from Brazil’s Antitrust Regulatory Agency (Cade) and the National Agency for Waterway Transportation (Antaq), with completion expected in Q1 2025, followed by a Public Share Offering (OPA) for 100% of the company’s outstanding shares.

According to Daniel Pedreira Dorea, Santos Brasil’s CFO and Investor Relations Director, the company’s substantial growth demonstrates the success of its strategy to invest in capacity expansion and meet potential demand with premium service offerings. “Up to the third quarter, Santos Brasil has grown 24% year-over-year, double the Port of Santos rate. We’ve hired over 400 employees in 2024, with many already allocated to operations. Moreover, we continue to invest, especially in Tecon Santos, aiming for 2.6 million TEUs in capacity by early 2025 and 3 million TEUs by 2026. In 2024 alone, we expect to invest around R$700 million in our assets,” he said.

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