Prumo Logística released yesterday its earnings statement for 2016, with consolidated capital expenditures of 700.8 million reais during the year. The amount was disbursed by Porto do Açu, Ferroport and Açu Petróleo – all of them subsidiaries of Prumo Logística.
Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) totaled 73 million reais last year. Net operational revenues reached 441 million reais (including all subsidiaries).
The company also released its forecasted capex for 2017: 226.6 million reais by Porto do Açu and 444.4 million reais by Açu Petróleo, adding up to 671 million reais.
In the message from the CEO, published along with the report, the company outlined the negative scenario for the economy in 2016, when Brazilian GDP declined 3.6%, after a 3.8% drop in 2015. “Given the turmoil in the macroeconomic scenario, Port of Açu was also affected. Expectations of new commercial contracts for investments and occupancy in the Industrial Complex did not materialize, neither did the growth pace of occupancy in our terminals. Hence, management formed provisions for impairment for some of its business units, with a negative impact of 104 million reais in its consolidated balance sheet. Consequently, net losses in 2016 increased to 237 million reais,” according to the text.
Highlights
One of the year’s highlights was the inauguration and beginning of operations of three new terminals in Port of Açu: Multicargo Terminal (T-MULT), Marine Fuel Terminal (Tecma) and Oil Terminal (T-OIL).
T-MULT achieved several landmarks in the past year, such as the execution of two simultaneous operations, when the terminal welcomed one vessel loaded with coils and another with off-road trucks used in mining. In the end of 2016, T-MULT executed other operations, involving bauxite, pet coke and project cargo. Development continues in early 2017, as the terminal executed five operations with project cargo in January and received coal for the steel industry. For the first time, the terminal received two semi-submersible drilling rigs for deep water at the same time.
Tecma, managed by BP Prumo (a joint venture by Prumo and BP), started works in mid-2016 and carried out a number of operations supplying diesel to customers in Port of Açu. In November, the company executed the first marine diesel fueling operation in two vessels in its terminal. Tecma is located on more than 215,000 m² on Terminal 2, having two discontinuous docking berths that enable simultaneous operations. BP Prumo is licensed to provide fueling services in all of T2, including anchorage areas. Furthermore, in the beginning of 2017, Tecma imported marine diesel for the first time, receiving 10,000 m³.
Açu Petróleo, which began operations in late August, had carried out seven oil transhipment operations by the end of the year, all of them related to the contract signed with Shell subsidiary BG. The terminal is still ramping up and executed six more operations by February 2017.
Ferroport, the Prumo-Anglo American partnership in charge of developing and operating the iron ore terminal, handled about 16 million tons of ore by the end of the year, with 105 shipments.
Another highlight was the signature of a contract between Prumo and Wilson Sons for towing services at Port of Açu. The contract will offer quality service to Port of Açu clients at competitive fees.
In 2016, nearly 1,000 vessels accessed Port of Açu, a four-fold increase from 2015. Growth continues in 2017, as the enterprise welcomed 224 vessels in the first two months of the year. Some of these vessels were Capesize, Suezmax, PSV and platforms, along with convoys formed by tows and barges, etc.
Results
In 2016, Prumo Logística subsidiaries invested 701 million reais in Port of Açu (299.8 million by Açu Petróleo, 89.4 million by Ferroport, and 311.6 million by Porto do Açu).
The amount was employed chiefly to dredge and build the channel in Terminal 2 (T2), complete breakwater and dredge Terminal 1 (T1), develop the Multicargo Terminal, in enhancement and operational efficiency projects at Ferroport, and in general infrastructure, among other uses.
During the year, Prumo reported consolidated net revenues of 441 million reais, including all subsidiaries. Financial expenses reached 663 million reais, led by interest, fees and monetary fluctuations. Financial revenues stood at 453.7 million reais, made up mainly of interest and foreign exchange fluctuations.
The enterprise reported a net loss in 2016 of 237 million reais, driven by the impairment of the Industrial Hub / T-MULT asset, referring to space leasing, handling and storage of containers, motor vehicles, solid bulk and loose cargo. When reviewing asset recoverability tests, the company found the need for consolidated provisions of 104 million reais.
