SAAM Reports Solid Results for the First Nine Months of the Year
Comparable figures represent an increase of 17% over the same period last year, with net income of US$ 65 million.
The financial statements reflect the extraordinary accounting effects from classifying SAAM Ports and SAAM Logistics as available for sale.
Santiago, November 4, 2022. SAAM [SM SAAM] reported comparable net income of US$ 65 million for the nine months ended in September, 17% more than the same period last year. Sales and EBITDA for the same period reached US$ 624 million (+14%) and US$ 215 million (+6%), respectively. Meanwhile, net income for the third quarter was US$ 22 million (+14%), sales totaled US$ 214 million (+11%) and EBITDA reached US$ 75 million (+9%).
“Our results remain solid, driven by improved performances from the towage division—especially our operations in Brazil, Canada and Peru—and the port division, which, despite declines in volumes, had a good mix of services. These improved results offset reduced activity in air cargo logistics and cost increases due to inflation and fuel during the period,” commented SAAM’s CEO, Macario Valdés.
Recent milestones included the announcement of the signing of a binding agreement with Hapag-Lloyd for the sale of SAAM Ports and SAAM Logistics. Last quarter the company also closed a deal to purchase the towage business operated by Ian Taylor in Peru; signed an agreement with Teck to build SAAM Towage’s first electric tugs for Canada; and received a new vessel for Panama and another for Peru.
Results of Continuing and Discontinued Operations
Beginning with this report, the company’s financial statements will separately disclose continuing and discontinued operations, following the agreement signed with Hapag-Lloyd to sell its port terminals and related logistics operations.
In addition, according to accounting standards, an extraordinary deferred tax expense of US$ 32.5 million was recorded for the differences between the book and historical values of SM SAAM S.A.’s investments in SAAM Ports and SAAM Logistics, anticipating part of the tax expenses of the transaction
Continuing operations, which include mainly the towage and air cargo logistics operations, reported net income of US$8.3 million in the third quarter and US$20.5 million YTD through September. For 3Q22, the Towage Division reported sales of US$ 284 million (+13%) and EBITDA of US$ 99 million (-6%).
Discontinued operations, which include port terminals and inland logistics operations, had net income of US$13,3 million in the third quarter, excluding the extraordinary adjustment mentioned above. For the third quarter, the Port Terminals Division achieved sales of US$ 238 million and EBITDA of US$ 89 million, improvements of +15% and +16%, respectively.