Brazil: LLX Posts Results and Highlights New Controlling Shareholders

LLX announced financial results for the third quarter of the year. A highlight in the company announcement was the conclusion of negotiations with US-based EIG Group which, through a R$ 1.3 billion capital increase, became the new controlling shareholders of the company.

Another headline in the announcement was the extension of short-term debt and a new R$ 900 million loan from Bradesco and Santander.

“EIG offers LLX much more than capital and funding; it further enhances discipline with controls and an internally focused working methodology geared towards planning, carrying out, monitoring and delivering works. The restructuring of the Company has significantly enhanced its capital structure and created a new perspective and new management model introduced by the new controlling shareholders, EIG,” said the Company’s Chief Financial Officer and current interim Chief Executive, Eugenio Figueiredo.

The company also emphasized that the primary goal for the quarter was to meet its commitments to customers. “We remain determined to deliver the necessary infrastructure so our Açu Superport customers can start operating before the end of this year,” the executive said.

From July to September this year R$ 545 million was invested in Açu Superport, which LLX is building in São João da Barra (RJ). The project received investment of R$ 4.7 billion from the start of the venture in 2007 to September 2013.

Headlines for the quarter

Important progress was made throughout the third quarter on the construction of Açu Superport. Development of the port’s offshore iron ore terminal, TX1, by LLX Minas-Rio saw significant progress and the first iron ore shipment is forecast to take place in the second half of 2014. The ship loader is also in the final stages of erection.

The construction work around TX2 was another priority during the quarter and included the erection of a transmission line and pile driving for construction of the customer wharf. Further milestones forecast for the following months include completion of dredging work, removal of the embankments and further construction of the breakwater.

Investment

From July to September 2013 LLX Minas-Rio, a joint venture of LLX Logística (51%) and Anglo Ferrous Brasil (49%), which is investing in the development of the iron ore terminal, invested a total of R$ 301.3 million toward building the breakwater of TX1 and the 138-kV transmission line that will connect the Campos substation to Açu Superport.

From 2007 to September this year alone LLX Minas-Rio invested approximately R$ 2.5 billion (including capitalized interest).

LLX Açu, which is responsible for handling other goods, invested R$ 244.1 million in the third quarter of 2013. This was used in dredging the canal and building the breakwater for the onshore terminal (TX2), building wharves along the customer and LLX terminals and erecting the 345 kV transmission line. LLX Açu is forecast to invest a total of R$ 1.190 billion this year.

From 2007 to September this year alone LLX Açu invested approximately R$ 2.2 billion (including capitalized interest).

Financial results

From July to September 2013, LLX reported net revenue of R$ 14.8 million from renting land to its clients OSX, ENEVA, Technip, NOV, Intermoor and Wartsilla. Revenue was lower in the quarter than in the same period the previous year due to non-recurring revenue earned in 2012, including under the contract with Subsea 7 that has now been terminated.

The Company closed the third quarter of 2013 with a balance of cash and cash equivalents of R$ 99 million compared with R$ 326 million in the same period last year. The company’s financing amounted to R$ 2.24 billion, including principal and interest.

Administrative expenses amounted to R$ 53.4 million compared with R$ 38.3 million in the same period of 2012. The primary expenses were personnel, third-party services and shared services.

Net consolidated financial income for the period was R$ 600 thousand and financial expense was R$ 17.8 million, largely consisting of interest payments on bank loans. Net losses for the period were R$ 38.5 million.

Press Release, November 15, 2013

 

Share this article

Follow Dredging Today

Events>

<< Jan 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

3rd International Congress Hydraulic Engineering Structures and Dredging

Russia’s leading maritime industry Media Group PortNews (www.portnews.ru) holds a traditional annual Congress “Hydraulic Engineering Structures and Dredging” in Moscow. 

The two-day Congress includes the 7th International Forum of Dredging Companies and the 3rd Technical Conference “Modern Solutions for Hydraulic Engineering”.

Infrastructure development is among the real sources of Russia’s economy growth. Construction of port facilities and new hydraulic engineering structures on the country’s inland waterways constitute an essential part of all infrastructure projects. It is important to take into account the best international practices to implement these projects effectively.

The program of the Congress will be devoted to the latest technologies for dredging and hydraulic engineering works. Speakers and delegates will refer to real projects to discuss specifics features of dredging works, as well as dedicated fleet and equipment involved.

To learn more about event, please, contact the organizing committee: snitko@portnews.ru

read more >

Jobs>

Dredging jobs in Abu Dhabi at NMDC

National Marine Dredging Company “NMDC” aims to be the largest dredging player in the Arab’s Gulf region...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of DredgingToday.com, you'll reach countless professionals in the sector. For more information, click below....

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of DredgingToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply