Westshore Terminals Investment (WTE) Q4 2023 earnings summary

Executive summary

• Solid 2023 operating performance: shipments rose to 27.7M tonnes from 23.3M, while profit increased to $116.6M from $66.8M.

• Potash terminal construction advanced, with major contracts in place; the project remains on schedule and is expected to begin handling potash in 2026.

Financial highlights

• FY2023 revenue was $381.0M, up from $297.0M; coal loading revenue reached $360.4M versus $282.2M.

• Profit before tax was $159.7M versus $91.7M; net profit was $116.6M versus $66.8M, and EPS was $1.86 versus $1.06.

• Operating and administrative expenses increased to $218.7M from $195.6M, reflecting higher labour and external costs, throughput, inflation and potash-project disruption.

• Operating cash flow was $189.6M versus $144.1M; cash and cash equivalents ended the year at $164.7M.

Outlook and guidance

• 2024 throughput is forecast at 25.5M tonnes, with an average loading charge of $13.40 per tonne, based on customer information, rail performance and site construction activity.

• Potash handling is expected to commence in 2026; construction remains on schedule and is expected to finish close to the original budget despite higher-than-expected inflation.

• BHP approved Jansen Stage 2, targeting production capacity of 8.5M tonnes per year, with first production expected in 2029; formal construction notification is anticipated after current-project milestones.