SAAM Sales Up, Net Income Down in Q1 '23

SAAM reported comparable net income of $18.9 million for the first quarter of 2023 (-19%). This figure excludes $1.3 million in extraordinary accounting losses related to the binding agreement to sell the port terminal and associated logistics operations to Hapag-Lloyd.

Sales totaled $218.1 million (+8%) and consolidated EBITDA $67.7 million (-4%).

"During the period we saw a decrease in volumes at our port and logistics operations, mainly due to less dynamic trade in Chile, while cargo at our foreign terminals remained stable. In the towage area, meanwhile, we had greater activity and positive results due to the consolidation of recently acquired operations and adequate cost containment, which allowed us to mitigate the effects of inflation and the exchange rate,” said SAAM's CEO, Macario Valdés.

Regarding the binding agreement to sell its port operations, logistics and real estate assets to Hapag-Lloyd, the company noted that the deal is still under review by regulatory authorities. The continuing operations (towage and air logistics), which SAAM will continue to manage after closing the deal, ended the first quarter of the year with $126.8 million in revenue, up 19% from the same period last year.

Meanwhile, EBITDA reached $40.2 million (+15%). Discontinued operations (port terminals and inland logistics) reported revenue of $91.4 million (-4%) and EBITDA of $26 million (-25%).

This week, the company also announced that it had closed the process to purchase 21 tugs from the Brazilian company Starnav, which includes 19 vessels currently in operation and two in the final phase of construction. The deal is valued at $198 million.