Santos Brasil Participações (STBP3) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly container volume, handling 403,000 containers, and strong financial and operational performance in 3Q24, with significant growth in revenue, EBITDA, and net income year-over-year.

• Tecon Santos handled 557,000 containers, up 24% year-on-year, doubling the Port of Santos' aggregate growth; container throughput increased 25.1% YoY, led by Tecon Santos (+24.3%) and Tecon Imbituba (+88.0%).

• Market share at Tecon Santos reached 42.5% in the period.

• Continued focus on ESG initiatives, earning multiple industry awards and supporting community and environmental projects.

• Major events included a R$2 billion debenture issuance, inclusion in the Bovespa Index, and the announced sale of 48% of capital to CMA CGM, pending regulatory approval.

Financial highlights

• Net revenue reached R$764.3 million in Q3 2024, a 43.2% year-on-year increase; gross revenue was R$864 million, also up 43%.

• EBITDA was R$406.5 million, up 57.7% year-on-year, with a margin of 53.2%, nearly 5 percentage points higher than Q3 2023 and Q2 2024.

• Net income grew 55.5% year-on-year to R$216.2 million, with a net margin of 28.3%.

• Dividends of R$467.1 million announced for 9M24, with BRL 164 million to be paid (BRL 0.54 per share).

• Cash and investments totaled R$2.43 billion at quarter-end, boosted by the debenture issuance.

Outlook and guidance

• Management expects continued growth in container throughput, supported by new long-haul services and strong import/export demand.

• Ongoing investments in terminal expansion and modernization, with R$157.9 million capex in 3Q24, focus on Tecon Santos and liquid bulk terminals.

• Capacity expansion at the liquids terminal to reach 190,000 cubic meters by 2025.

• Future cash generation is promising, with expectations of deleveraging at a reasonable speed despite current leverage of 1.6.

• Pending completion of CMA CGM transaction, with regulatory approval expected in 1Q25, followed by a public tender offer.