Prumo Logística released today its earnings report for 2017. Consolidated pro-forma EBITDA (earnings before interest, taxes, depreciation and amortization) added up to 194 million reais.
Ferroport and BP Prumo are considered joint operations (i.e., consolidated proportionally) in consolidated pro-forma EBITDA, but as joint ventures in financial statements, and are thus classified as equity income.
According to the report, total investments of 505 million reais in 2017 were deployed by subsidiaries Porto do Açu, Açu Petróleo (a partnership between Prumo and Oiltanking, in charge of operating the Oil Terminal) and Ferroport (a partnership between Prumo and Anglo American, in charge of the Iron Ore Terminal).
Net revenues totaled 232 million reais, or 89 million reais more than in the previous year (including every one of the company’s subsidiaries). Gains in revenues were driven by increased port and transportation services provided at the Multicargo Terminal.
The consolidated financial balance was negative by 458.9 million reais. Financial expenses were driven by interest payments, inflation adjustments and broker fees, while financial revenues came in the form of accrued interest and foreign exchange fluctuations.
For the year, the company recorded net losses of 989.1 million reais.
Highlights
A landmark in 2017 was the signature of a decree creating the Açu Export Processing Zone (ZPE), when Brazilian President Michel Temer visited the port. Set in the São João da Barra Industrial District, the ZPE has an area of 2 km², located 10 km away from the Multicargo Terminal (T-MULT), and will rely on road infrastructure for the transportation of different types and sizes of cargo. The Açu ZPE is expected to generate about 40 million reais in investments in local infrastructure during its first phase of implementation.
In December, the Brazilian Electricity Regulatory Agency (ANEEL) authorized Prumo subsidiary GNA to transfer the Novo Tempo thermal power plant to UTE GNA I Geração de Energia S.A. (a GNA subsidiary). ANEEL also approved the transfer to UTE GNA I of 37 Energy Commercialization Contracts in a Regulated Environment (CCEAR’s), which were signed in the past by UTE Novo Tempo and power distributors. In the same month, GNA presented a winning bid in new power auction A-6 2017 to build and operate a natural gas-fired thermal power plant in the Port of Açu.
Hence, the Port of Açu will have two thermal power plants with combined capacity of 2,911 MW, forming the largest thermal power farm in Latin America. For comparison’s sake, the two thermal plants will produce enough energy for 1.8 million homes or 4.7% of demand in Brazil.
The thermal power plants and the regasification terminal are part of the Açu Gas Hub, to be developed in the complex. The hub is a private solution to distribute, process and monetize natural gas from producing fields in the Campos and Santos basins, contributing to distribute the associated gas competitively.
In the next five years, 7 billion reais in investments are planned to develop the gas hub.
Additionally, Açu Petróleo dredged its terminal, increasing depth to 25 meters. Thus, the Oil Terminal became the only private terminal in Brazil with capacity to welcome Very Large Cruise Carriers (VLCCs, which are the world’s largest oil tankers).
The Port of Açu also signed a contract with Petrobras Distribuidora (BR) to supply fuel for motor vehicles and equipment through the installation and operation of a station in the Port Complex. The company will also provide services to operate a facility to screen trucks that arrive at the enterprise.
The area dedicated to the fuel station, of about 5,000 m², will offer tanks to supply fuel, selling directly to companies installed in the Port Complex. The truck screening facility will initially have an area of 15,000 m², with 80 slots for trucks, an administrative building, and convenience services for drivers.
Another landmark was the signature of a contract with Petrogral, which has been executing ship-to-ship operations in the Port of Açu’s Oil Terminal since late November.
