Santos Brasil Participações (STBP3) Q4 2023 earnings summary

Executive summary

• 4Q23 net revenue rose 42.3% YoY to R$667.0 million; EBITDA increased 85.0% to R$366.8 million and net income rose 66.0% to R$225.0 million.

• FY2023 net revenue grew 10.5% to R$2,134.9 million, EBITDA rose 23.5% to R$1,000.1 million and net income increased 17.4% to R$504.3 million.

• Results benefited from higher container-terminal volumes and average ticket; automotive-sector weakness weighed on vehicle-terminal activity.

Financial highlights

• 4Q23 gross revenue increased 40.9% to R$760.4 million; net revenue rose 42.3% to R$667.0 million, led by Container and General Cargo Terminals, up 58.6%.

• 4Q23 EBIT rose 127.5% to R$326.8 million; FY2023 EBIT increased 29.2% to R$779.1 million.

• 4Q23 recurring EBITDA was R$366.8 million, up 119.3% excluding the R$31.0 million non-recurring item in 4Q22; FY recurring EBITDA reached R$1,000.1 million, up 28.3%.

• 2023 gross investments were R$631.3 million, up 55.3% YoY; net investments totaled R$623.9 million.

Outlook and guidance

• 2024 prospects cited improving volume trends, operational leverage and added capacity to meet market demand.

• Liquid-bulk capacity is planned to increase by 59,000 m³ in 2024 and a further 81,000 m³ by end-2025, reaching 190,000 m³.

• Tecon Santos capacity is expected to reach 2.6 million TEU in 2025 and 3.0 million TEU by 2031.

• Tecon Vila do Conde expansion targets annual capacity of 300,000 TEU by 2025, from 217,000 TEU, with R$120 million of capex.