Compañía Sud Americana de Vapores (VAPORES) Q3 2023 earnings summary

Executive summary

• 9M 2023 net profit was MUS$256,997, down from MUS$4,336,989 YoY; earnings were primarily driven by MUS$1,019,943 of equity-accounted income from Hapag-Lloyd.

• Q3 2023 recorded a MUS$90,493 net loss versus MUS$1,548,454 profit YoY, reflecting a sharp reduction in Hapag-Lloyd contribution and negative foreign-exchange results.

Financial highlights

• 9M operating loss improved to MUS$9,786 from MUS$26,567; administrative expenses fell to MUS$9,802 from MUS$28,756.

• 9M pretax profit was MUS$955,210 versus MUS$4,342,118; income-tax expense rose to MUS$698,213 from MUS$5,049, leaving net profit of MUS$256,997.

• Cash and equivalents reached MUS$395,330 at Sep. 30, 2023, up from MUS$97,197 at Dec. 31, 2022; total assets were MUS$8,317,302 versus MUS$10,296,575.

• 9M operating cash outflow was MUS$688,894; investing inflow was MUS$3,242,771 and financing outflow was MUS$2,232,165.

Segment performance

• A single container-shipping segment is reported, reflecting the Hapag-Lloyd joint venture and related assets and liabilities.

• Hapag-Lloyd 9M revenue was MUS$15,311,600 versus MUS$28,439,471 YoY; net income attributable to its parent shareholders was MUS$3,413,225 versus MUS$14,651,927.

• Equity-accounted earnings from Hapag-Lloyd were MUS$1,019,943 for 9M 2023, including a MUS$4,043 purchase-price-allocation adjustment reducing the direct earnings share.

• The Hapag-Lloyd investment carrying value declined to MUS$6,519,664 from MUS$9,169,662; dividends received were MUS$3,660,125.