Maritime Shows Strength at Grupo TMM - Analyst Blog
26 Octubre 2012 - 7:58AM
Zacks
Maritime Shows Strength at Grupo TMM
By Ken Nagy, CFA
On October 25, 2012 Grupo TMM
(GTMAY) released results for its third quarter and nine
months ended September 30, 2012. The Company reported mixed results
for the quarter due to lower tariffs and lower utilization at the
product tanker segment and reduced operations at Acapulco.
Despite the global downturn in this industry,
the Company secured three new vessel contracts during the quarter,
totaling $30 million in revenue and demonstrating the irrepressible
nature of the Company’s Maritime division.
Likewise, the Maritime division’s buoyancy was further verified by
its strong and growing backlog of $175.6 million to date, which is
up from a backlog of $167.6 million as of June 30, 2012.
The Company’s third quarter performance resulted in a 3.1
percent year over year decrease in consolidated revenue, with
revenue decreasing $2.2 million to $66.7 million from $68.8 million
for the three months ended September 30, 2011.
Yet Maritime segment revenue improved $142,000 or 0.3 percent year
over year to $44.6 million for the three months. The improvement
was primarily a result of improvements at all divisions except for
product tankers, which was negatively impacted by one unemployed
vessel, by lower year over year average daily tariffs as well
as by two less vessels in operation, that were lease in the third
quarter of 2011.
For the first nine months of 2012, Maritime revenue fell 1.4
percent year over year to $125.9 million. The decrease in year to
date Maritime revenue was mainly driven by revenue losses at
product and chemical tankers.
Utilization at the offshore segment continued its upward trend
at 89 percent, improving sequentially from 88.5 percent for the
second quarter and jumping to 90.1 percent during the first nine
months of 2012, up from 83.3 percent for the comparable period of
2011.
Third quarter 2012 consolidated EBITDA was $23.7
million, improving by 26.1 percent year over year from $18.8
million in the same period of last year.
Consolidated EBITDA for the first nine months of 2012 was $55.2
million, a decline of 10.2 percent compared to $61.5 million for
the comparable period of 2011.
It should be noted that while the Company’s Maritime segment’s
third quarter EBITDA was $21.1 million and unchanged from the 2011
third quarter, the division continues to generate competitive
EBITDA margins.
As of September 30, 2012, Grupo TMM’s total net debt was $760
million compared to $675.4 million as of December 31, 2011. The
book value of the Company's Trust Certificates debt increased $62.9
million from December 31, 2011, as a result of a 7.7 percent
appreciation of the peso against the dollar in the first nine
months of 2012.
Furthermore, only $17.1 million or 2.1 percent of Grupo TMM’s total
debt of $832.7 million is short term.
Similarly, Grupo TMM’s free cash flow for the three months ended
September 30, 2012 was $8.0 million.
Management believes that the future holds profitable opportunities
for Grupo TMM and expects to reach an agreement for the financing
of the development of a container terminal at Tuxpan before year
end.
The container terminal at the Port of Tuxpan, Veracruz will meet
increasing demand for capacity in the Gulf of Mexico, taking
advantage of organic growth in the Mexican market.
Additionally, the Company is currently working on a potential joint
venture with an international shipyard, which would provide the
necessary capabilities to build vessels at its own shipyard at the
port of Tampico, positioning TMM in a new niche market of building
vessels, for the Company or for third parties, both of which would
significantly grow revenue and profit base in the longer term.
Please visit Ken Nagy's coverage page at scr.zacks.com to access a
free copy of the full research report.
GRUPO TMM SAB (GTMAY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Grupo TMM (PK) (USOTC:GTMAY)
Gráfica de Acción Histórica
De Sep 2024 a Oct 2024
Grupo TMM (PK) (USOTC:GTMAY)
Gráfica de Acción Histórica
De Oct 2023 a Oct 2024