Santos Brasil Participações (STBP3) Q2 2024 earnings summary

Executive summary

• Strong financial and operational performance in Q2 2024, with net revenue reaching BRL 703 million, up 39% year-over-year, and net income up 82%, driven by record container handling at Tecon Santos and robust organic expansion.

• Container throughput and market share increased, led by Tecon Santos (+24.4%) and Tecon Imbituba (+58.9%), with strong demand and favorable cargo mix.

• Continued focus on ESG initiatives, including sustainability reporting and community engagement.

• Positive outlook for the second half of 2024, with expectations of sustained high volumes and continued investment in capacity expansion.

• CapEx for H1 2024 totaled BRL 217 million, with intensified investment expected in H2 to reach the annual target of BRL 700–800 million.

Financial highlights

• Net revenue reached BRL 703 million in Q2 2024, up 39% year-over-year, driven by higher volumes in most business units.

• Recurring EBITDA was BRL 348.3 million, up 57% year-over-year, with a margin near 50%, six percentage points higher than Q2 2023.

• Net income grew 82% to BRL 172 million, with a net margin of 24%, also up six percentage points year-over-year.

• CapEx for Q2 2024 was BRL 101 million, focused on terminal expansion and modernization.

• Net debt at quarter-end was BRL 228.5 million, with low leverage and a comfortable cash position.

Outlook and guidance

• Anticipated continued strong volume growth through the end of 2024, with peak season volumes materializing earlier than usual.

• 2025 expected to see organic volume growth of 3–4%, supported by additional capacity investments.

• CapEx for 2025 and 2026 projected at BRL 350–450 million per year, down from the 2024 peak.

• Expansion of Tecon Santos to reach 3 million TEU capacity by 2026; Itaqui liquid bulk terminal expansion underway.

• Ongoing focus on maximizing value generation from current assets and shareholder returns.