Santos Brasil Participações (STBP3), a key Brazilian port operator managing terminals in São Paulo, Pará, and Santa Catarina, announced a first-quarter net profit of R$198 million ($35 million), up 34.3% year-on-year, per its May 13 filing.
EBITDA jumped 54.4% to R$496 million ($87 million), fueled by container volume growth and cost controls, while revenue rose 37% to R$884 million ($155 million).
Debt ballooned to R$2.2 billion ($386 million) by March 2025, a stark increase from R$92 million ($16 million) in early 2024, after a R$2 billion ($351 million) bond issuance.
Leverage hit 1.53x net debt/Ebitdathough executives highlighted long-term debt schedules and plans to trim obligations via cash flow. Cash reserves totaled R$382 million ($67 million) against R$2.6 billion ($456 million) in total debt.
The firm invested R$123 million ($22 million) in Q1, prioritizing upgrades at Tecon Santos and Tecon Vila do Conde. Full-year 2025 capex guidance holds at R$700 million ($123 million), aiming to modernize infrastructure amid rising Brazilian trade.
Santos Brasil’s Q1 2025 Profit Surges 34% as Debt Hits $386 Million for Port Expansion. (Photo Internet reproduction)
Container volumes grew 15.1% to 383,890 TEUs, with loaded containers accounting for 76.1% of throughput. Liquid bulk volumes fell 15%, reflecting a 2024 tax-driven import surge.
Shareholders gained R$507 million ($89 million) in 2024 dividends and interest, reflecting full profit distribution. Analysts foresee sustained EPS growth, balancing expansion and returns.
Risks loom from global trade shifts and fuel storage demand swings, but strategic port upgrades aim to lock in regional trade advantages. The results reveal a calculated gamble: leveraging debt to fund expansion while maintaining profitability.
As Brazil’s trade rebounds, Santos Brasil’s upgraded terminals could strengthen its logistics dominance, provided debt stays manageable.
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