Compañía Sud Americana de Vapores (VAPORES) Q2 2023 earnings summary

Executive summary

• H1 net income was $347.5m, down from $2.79bn YoY, reflecting lower equity-method earnings from Hapag-Lloyd and a $560.7m income tax expense.

• The 30% Hapag-Lloyd investment remained the principal asset and earnings driver; a large Q2 dividend receipt reduced its carrying value and funded financing outflows.

Financial highlights

• H1 net income was $347.490m vs. $2,788.535m in 2022; Q2 recorded a $250.487m loss vs. $1,387.188m net income YoY.

• H1 share of net income from associates and joint ventures was $935.490m vs. $2,834.265m YoY; Q2 contribution was $328.408m vs. $1,432.008m.

• Hapag-Lloyd H1 revenue was $10.847bn vs. $18.562bn; net income attributable to owners was $3.127bn vs. $9.457bn YoY.

• H1 finance income was $8.132m vs. $0.351m, primarily from time-deposit interest; finance costs were $10.752m vs. $11.625m.

Segment performance

• One operating segment, Container Shipping, represents the Hapag-Lloyd investment and related assets and liabilities; segment performance is reviewed by senior management.

• H1 segment results included $935.490m share of associate and joint-venture income, $908.147m pretax income and $347.490m net income.