Prumo has today (14) unveiled its earnings for the 1st quarter of this year. From January to March Açu Port received investment of R$ 633.7 million (including capitalized interest). The amount is the largest amount invested in a single quarter since construction of the venture began in 2007.
“The investment made in this quarter reflects the substantial progress made by the works at Açu Port. Completion of the dredging of the extension of the T2 channel along with the 900 meters of wharfline of our clients clearly demonstrate that Açu Port’s infrastructure is ready to come into operation in the coming months”, said Eduardo Parente, Prumo CEO.
The investments made and pace of the works also bolsters client confidence in Açu Port. At the start of this year alone two important commercial contracts have been signed (with Edison Chouest and BP) which bring in additional revenue for renting area and an expected large movement of vessels for the channel of Terminal 2 (T2 – onshore terminal). The signing of these contracts bolsters Açu Port’s competitiveness as the best alternative as a services hub for the O&G industry.
Investment
R$ 204 million of the total R$ 633.7 million invested in the 1st quarter of this year was invested by LLX Minas-Rio (joint venture owned by Prumo (50%) and Anglo American (50%)), responsible for developing the Port’s iron ore terminal. The remainder (R$ 429.7 million) was invested by Prumo in the construction of Terminal 2 and the infrastructure of Açu Port (dredging of the T2 channel, construction of wharfline and breakwater and the energy transmission line, amongst others).
The venture has received investment of R$ 5.8 billion since construction commenced in 2007 until March this year. R$ 2.8 billion of this was invested by LLX Minas-Rio and R$ 3 billion by Prumo.
Quarter
The headlines include the formation of a new executive team. In March, Cristiane Marsillac took over operations, assuming the challenge of spearheading the operation of Açu Port. The Development Board was created the same month, headed by Marina Fontoura, which has extensive experience in new business development. In March, Jorge Camargo, former CEO of Statoil and former officer of Petrobras, was also appointed to Prumo’s Board of Directors. All the changes reflect the company’s new stage, which has been led by Eduardo Parente, formerly of MRS and McKinsey, since February.
Quarterly earnings
In the first quarter, Prumo reported net revenue of R$ 17.2 million from renting land to its clients Technip, NOV, Intermoor, Wartsila, Eneva and OSX. Administrative expenses fell by 18% over the same period the previous year, from R$ 34 million to R$ 28.2 million. The financial expenses amounted to R$ 22.8 million, primarily consisting of expenses on interest payments incurred on bank loans and monetary variance.
Prumo closed the first quarter of 2014 with a cash and equivalents balance of R$ 374.4 million. In the period the company reported a net loss of R$ 13.1 million.
Açu Port
With 17 km of piers which can simultaneously moor up to 47 vessels, Açu Port is being constructed in São João da Barra, in northern Rio de Janeiro. Occupying 90 km² the venture is comprised of Terminal 1 (T1 – offshore) and Terminal 2 (T2 – onshore).
T1 will consist of a 3-km access bridge, a tugboat pier, 9 oil and iron-ore piers, approach channel and turning basin. Of these, 2 iron ore piers, the tugboat pier, approach channel and turning basin are now ready. The 1st shipment of iron ore at Açu Port is scheduled for the second half of this year.
T2 is being built around a 6.5 km long, 300 meter wide approach channel with a current depth of 7.5 meters (reaching 14.5 meters in its deepest section). Works are taking place on the site for the construction of the approach channel, turning basin, construction of the concrete blocks to be used in the breakwater and implementation of the transmission line. With a wharf line of over 13 km, T2 will handle pig iron, project cargo, coal, vehicles, liquid and solid bulk, general cargo and oil.
With unique features, such as great depth, a strategic location and efficient infrastructure, Açu Port is the main solution for oil and gas companies to locate. Facilities can be installed at the Port to handle and treat oil, provide support to offshore E&P operations and to house a metalworking cluster dedicated to the oil and gas industry.
Açu Port is forecast to come into operation in June this year, when the operations of our clients who have already set up in the T2 channel will commence.
