Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Santos Brasil Participacoes SA (BSP:STBP3, Financial) achieved the highest quarterly volume in its history, handling 403,000 containers in Q3 2024.
- Tecon Santos saw a 24% year-on-year increase in container handling, capturing a 42.5% market share.
- Net revenue increased by 43% year-on-year to BRL764 million, indicating a higher average ticket invoiced.
- EBITDA grew by 57% year-on-year with a margin of 53%, reflecting strong operational leverage.
- The company will distribute BRL164 million in dividends, totaling BRL467 million for 2024, without compromising investment capabilities.
Negative Points
- Vehicle exports faced a 31% compression despite a recovery in light vehicle exports to Argentina.
- The completion of the liquids terminal expansion is pending one ANP license, delaying full operational capacity.
- Increased leverage to 1.6, although the company expects to deleverage at a reasonable speed.
- The acquisition of a 48% stake by CMA CGM is still pending regulatory approval, which could delay strategic plans.
- CapEx of BRL357 million in the first 9 months of 2024 indicates significant ongoing investment requirements.
Q & A Highlights
Q: Has CMA CGM entered the process at CADE, the antitrust regulatory agency, and how will this partnership operate through capital or a stake?
A: The notification to CADE has already been done by the acquirers and sellers, and it was published in the Official Gazette. The process is following the expected pace at CADE. Regarding the partnership, it will involve the acquisition of 100% of the outstanding shares under the same conditions offered to the seller, Opportunity.
Q: Can you provide more details on the financial performance and future cash generation of Santos Brasil?
A: Santos Brasil's net revenue reached BRL764 million in Q3 2024, a 43% increase year-on-year. EBITDA totaled BRL406 million, with a margin of 53%. Net income grew by 55% year-on-year, totaling BRL216 million. The company continues to distribute 100% of its distributable net profit while maintaining investment capacity. Future cash generation is promising, with a trend towards reasonable deleveraging.
Q: What are the key growth drivers for Santos Brasil's terminals and logistics operations?
A: Key growth drivers include a 24% year-on-year increase in container handling at Tecon Santos, a favorable cargo mix, and significant growth in imports and exports. Warehousing activities showed a 38.5% gain, and cabotage volume grew by 12%. The repositioning of empty containers and strong performance at Tecon Vila do Conde also contributed to growth.
Q: How has the movement of vehicles and liquid bulk terminals performed in Q3 2024?
A: The movement of vehicles grew by 17.4% in Q3 2024, driven by a recovery in exports to the Argentinian market. The liquid bulk terminal moved 135,000 cubic meters, a 10% year-on-year growth, with long-term contracts being a highlight. The first phase of the liquid terminal expansion project has been completed, increasing capacity significantly.
Q: What are the significant events for Santos Brasil in the quarter, and what is their impact?
A: Significant events include the entry of Santos Brasil's shares into the Ibovespa index, increasing liquidity, and the announcement of CMA CGM acquiring a 48% stake in Santos Brasil. This transaction, pending regulatory approval, marks a new chapter for the company, promising further growth and collaboration with a leading global shipping and logistics company.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
