QUIÑENCO’S NET INCOME AMOUNTS TO Ch$65,456 MILLION AS OF SEPTEMBER 2017
- During the first nine months of the year, the growth in results of the operating companies Nexans, Banco de Chile, CCU and SM SAAM was particularly noteworthy.
- The negative accounting impact on CSAV of its dilution in Hapag-Lloyd after the merger with UASC was reflected in Quiñenco’s profit, which showed a 37% decrease as compared to the same period in the previous year.
Santiago, November 27, 2017. Most of Quiñenco’s operating companies obtained positive results during the first nine months of the year, allowing the Company to reach a net income of Ch$65,456 million as of September, representing a 37% decrease as compared to the same period in 2016.
This decrease is mainly explained by Compañía Sudamericana de Vapores (CSAV), whose accumulated results were significantly affected by the accounting loss of US$155 million related to the dilution in Hapag-Lloyd after its merger with United Arab Shipping Company (UASC), pursuant to IFRS standards. In spite of this particular effect, it is worth noting that the German shipping company reversed the losses reported during the previous year, and obtained net income of US$5 million income as of September, 2017 and of US$56 million during the third quarter as a result of the growth in transported volumes, slightly higher rates, synergies and cost savings.
Banco de Chile, on the other hand, showed a 1.3% increase in net income during the first nine months of the year, up to over Ch$430,000 million, mainly resulting from a 21% decrease in the loan loss allowances and lower operating expenses, which offset lower non-client related operating revenues.
CCU reached a 17.7% increase in net income and 17.2% growth in EBITDA, reflecting better performance of the Chile and International Business segments based on higher volumes, margins and efficiencies.
Although the French multinational Nexans does not report financial statements as of September, the positive improvements recorded during the first semester with a net profit of 91 million euros continued significantly driving Quiñenco’s consolidated results. Sales reported during the third quarter of 2017 by Nexans show an organic growth of 6.7%, reflecting good performance of the high voltage submarine transmission segment.
On the other hand, SM SAAM contributed with 17% growth in net income, resulting mainly from the gain obtained from the sale of its share in Tramarsa (Peru). Regarding its business segments, the addition of Puerto Caldera in Costa Rica and a good performance at Guayaquil in Ecuador, partially offset the lower results of Chilean ports and the logistics and tug boat divisions.
Enex’s revenues grew 11% as compared to the first nine months of the previous year given the increase in the level of fuel prices and a total dispatched volume of 2,750 thousand cubic meters, very similar to the previous period. Nevertheless, the final result was affected by greater depreciation of fixed assets, together with higher expenses at sales points and stable gross income.
It is worth mentioning that recently Quiñenco slightly increased its stake in CSAV to 56.2%, through the capital increase successfully completed by said company last week. The shipping company raised US$294 million through the subscription of all 6,100 million issued shares. The proceeds were used to finance the company’s participation in the capital increase carried out by Hapag-Lloyd, thus achieving a 25% share.
After reporting results, the Chief Executive Officer of Quiñenco, Francisco Pérez Mackenna, highlighted “the strength of Quiñenco and its operating companies, which has been confirmed by the trust the market has placed in them”. “Our long term strategy allows us to look at the future with positive perspectives to grow and continue developing our businesses” he said.
Quiñenco is one of the largest and most diversified business conglomerates in Chile, with consolidated assets of approximately US$58.1 billion. It participates in leading companies of the financial, beverage and food, manufacturing, energy, transport and port services sectors that in all employ approximately 65 thousand people in Chile and abroad. For further information visit www.quinenco.cl.