Santos Brasil Participações (STBP3) Q4 2024 earnings summary

Executive summary

• Achieved record operational and financial performance in 2024, with net revenue up 36% and EBITDA up 46.9% year-over-year, driven by strong container throughput and expansion projects.

• Tecon Santos handled nearly 1.5 million containers, up 23% year-over-year, and reached 2.6 million TEUs annual capacity.

• Advanced ESG initiatives, including Net Zero by 2040 strategy, ISO certifications, and diversity and inclusion programs.

• Shareholder returns prioritized, with R$ 741.9 million distributed in dividends and IOC, reflecting a 100% payout.

• Transitioned to a new chapter with acquisition by CMA CGM, pending regulatory approval.

Financial highlights

• Net revenue reached R$ 2.9 billion in 2024 (+36% YoY); EBITDA was R$ 1.5 billion (+46.9% YoY), with a margin of 50.6%.

• Net income for 2024 was R$ 742 million (+47.1% YoY); 4Q24 net income was R$ 206.3 million (-8.3% YoY).

• CapEx for 2024 totaled R$ 731.1 million, focused on terminal expansion and modernization.

• R$ 2.3 billion paid to shareholders, including R$ 741.9 million in dividends and IOC, and capital restitution.

• Net debt at year-end was R$ 2.0 billion, with leverage at 1.54x Net Debt/Proforma EBITDA.

Outlook and guidance

• Tecon Santos targets 3 million TEUs annual capacity by 2026, a 400,000 TEU increase.

• Liquid Bulk Terminals to expand to 190,000 m³ in 2025; investments in tankage and modernization ongoing.

• Management anticipates robust and sustainable future cash generation, aiming to reduce leverage.

• Expecting further growth in liquid terminal results in 2025 and full potential from 2026.

• CMA CGM Group's pending acquisition may trigger a public tender offer for all outstanding shares.