Prumo Logística has today announced that Açu Port received investment of R$ 1.4 billion in 2013. Of this total, R$ 820.1 million (R$ 1.038 billion including capitalized interest) was invested in T2 (onshore terminal) and adaptation of the breakwater of T1 (offshore terminal) for handling oil. A further R$ 642.1 million (R$ 743.1 million including capitalized interest) was invested in the development of the iron ore venture.
For 2014 the company expects to invest R$ 1.9 billion in the venture. Of this amount, R$ 1.494 billion will be invested in developing Terminal 2, such as finalizing the canal, building the transmission line and breakwater, developing the Multicargo Terminal (TMULT), dredging of the terminals and adaptation of the T1 breakwater for handling oil. The remainder will be invested in developing the iron ore venture.
The data appears in the 2013 earnings release and confirms that works have been resumed at a fast pace on the port, which is forecast to come into operation in June this year.
In the report the company also informs that R$ 5.2 billion was invested in the venture from 2007 to 2013, including the capitalized interest. Of this amount R$ 2.6 billion was invested by LLX Açu (subsidiary of Prumo Logística) and the remainder by LLX Minas-Rio (partnership between Anglo American and Prumo) and Anglo American.
“This year Prumo will cease being preoperational and effectively commence the operation of Açu Port. We wish to start up our activities and to provide efficient and secure services to our clients. This year we will focus on the securing of new clients and maximizing the value of the main ventures currently in place at Açu Port. The current management team and all staff are highly motivated and united before a single objective: to deliver Brazil an efficient and state-of-the-art alternative to further develop the country’s infrastructure”, said Eduardo Parente, Prumo’s CEO.
The main events of 2013 include the awarding of the INEA license to Intermoor to install a plant offering logistical support and specialized services to the oil and gas industry; the signing of a contract with BP to create a joint venture to import, export, sell and distribute marine fuels and the signing of a contract with Wartsila to rent area in the channel of T2.
2013 also stood out for financial reasons. Prumo and the BNDES renewed the bridge loan taken out in February 2012 for R$ 518 million. The funds already disbursed were used to finance the works on the hydraulic fill and dredging and construction of the breakwater. In December the capital increase process was completed by which the US Group became the new controlling shareholder of Prumo with a 52.8% interest in the Company’s total shares. The company also changed its name that month to Prumo Logística.
In 2013, Prumo reported net revenue of R$ 56 million from renting land to its clients Technip, NOV, Intermoor, Wartsila, OSX and ENEVA. Administrative expenses amounted to R$ 152.2 million compared with R$ 165.6 million in 2012. The consolidated net financial income in 2013 amounted to R$ 4.6 million. The financial expenses amounted to R$ 83.1 million, primarily consisting of expenses on interest payments incurred on bank loans.
Prumo closed the fourth quarter with a cash balance of R$ 928.4 million. In the period the company’s financing amounted to R$ 2.25 billion, including principal and interest. As it is a pre-operational company, in 2013 Prumo recorded a net loss of R$ 135.8 million.