Santos Port Authority earns R$191.6 million in profit over second quarter, up 32.3%

The Santos Port Authority (APS), responsible for the management of the largest Organized Port in Latin America, reported an operating profit of R$ 191.6 million in the 2nd quarter of 2023, representing a 32.3% growth compared to the same period the previous year. The adjusted Ebitda for the 2nd quarter of 2023 reached R$ 256 million, with a margin of 63.4%.

The financial result showed a gain of R$ 58.5 million in the 2nd quarter of 2023, compared to R$ 28.8 million in the same period the previous year. Net revenues reached R$ 404.0 million, also marking an 18.9% increase compared to the 2nd quarter of 2022. Notably, there was a significant improvement in operational efficiency, with a 1.8 percentage point reduction in recurring administrative expenses, accounting for just 6.6% of net revenue.

The total costs for the 2nd quarter grew by 2.6% compared to the same period in 2022, mainly impacted by increased expenses related to facility/equipment maintenance, Itatinga Plant maintenance, and depreciations/amortizations.

The APS achieved increased productivity gains due to process reviews and automation investments implemented within the company, continuously enhancing operational efficiency and service quality. Particularly noteworthy is the excellent performance in personnel expenses, which decreased by 2.5% compared to the same period the previous year, even with the 11.73% salary increase negotiated in the collective agreement signed in June 2022. The personnel cost/productivity relative indicator showed an 18.0% improvement in the period.

General and administrative expenses, excluding non-recurring events, decreased by 1.8%, going from R$ 28.6 million in 2Q22 to R$ 26.8 million in 2Q23. Considering the 18.9% increase in net revenue over the same period, the positive result reached R$ 404.0 million.

One of the factors contributing to these positive results was the Cargo handling: the Port of Santos reached 44.4 million tons in the 2nd quarter of 2023, a 5.4% increase compared to the same period the previous year. Ship arrivals also increased by 4.4%, totaling 1,481 between April and June.

The chart below compares container exports and imports at the Port of Santos between Jan 2019 and Aug 2023. The data is from DataLiner.

Container Exports & Imports | Jan 2019 – Aug 2023 | TEU

Source: DataLiner (click here to request a demo)

These positive financial results were achieved despite investments in operational improvements. During the 2nd quarter of 2023, investments amounted to R$ 6.3 million, including equipment acquisitions and works on the right bank perimeter. The total operating cost (excluding extraordinary events)/net revenue indicator also demonstrated a 13.6% gain, highlighting the continuous productivity improvements achieved through efficient operations.

According to APS President Anderson Pomini, the APS administration is committed to expanding the capacity of the Santos port complex, with plans for auctions of new port terminals that will significantly increase port capacity by 2040. “These remarkable results reflect APS’s ongoing commitment to providing efficient services and infrastructure to its customers and users while contributing to the responsible economic development of the region,” said President Pomini.

The full financial results report for the 2nd quarter has been published on the Santos Port website.

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