Santos Brasil - FY17 Update - Share Price Stays Afloat, While Its Market Dominance Gets Chipped Away

Santos Brasil: 1Q18 Update: Market Share on the Rise – Is It Enough to Push up the Stock Price?

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Equity Bottom-Up

Santos Brasil Participacoes Sa. / Equity Bottom-Up

Santos Brasil Participacoes Sa. (STBP11 BZ)

<p style="text-align: justify;"><strong>Dismal results: </strong>Moderating macroeconomic headwinds failed to revive Santos Brasil’s fortunes, with the latest 2Q17 earnings suggestive of another year in the red. Quarterly losses widened from BRL 5.7m to BRL 20.7m as the EBITDA dived 71.7% to BRL 4.3m. Had it not been for labour indemnity charges that reimbursed Santos Brasil BRL 9.3m, the largest terminal operator in Brazil would have been in the negative EBITDA territory of BRL 4.9m.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/031/998/original/Santos%201.jpg?1503296286" class="editor-image img-responsive" data-smartkarma-image-id="31998"></figure><div class="content-caption">Revenue and profitability under pressure</div><p style="text-align: justify;"><strong>Volume slippage to a</strong>…</p>

Dismal results: Moderating macroeconomic headwinds failed to revive Santos Brasil’s fortunes, with the latest 2Q17 earnings suggestive of another year in the red. Quarterly losses widened from BRL 5.7m to BRL 20.7m as the EBITDA dived 71.7% to BRL 4.3m. Had it not been for labour indemnity charges that reimbursed Santos Brasil BRL 9.3m, the largest terminal operator in Brazil would have been in the negative EBITDA territory of BRL 4.9m.Revenue and profitability under pressureVolume slippage to a…

Santos Brasil 2Q17 – Market Share Loss Amid Intense Competition