2015 Third-Quarter Results Include:
Income of $794.0 million, an increase of 9.2% compared to the 2015 second quarter
Free cash flow of $112.6 million in third quarter and $271.2 million year to date
Maritime fleet utilization at 90.0 percent
Grupo TMM, S.A.B. (OTC PINK: GTMAY) (BMV: TMM A) “TMM” or the “Company”), a Mexican maritime transportation and logistics Company, reported today its financial results for the third quarter and first nine months of 2015.
MANAGEMENT OVERVIEW
José F. Serrano, chairman and chief executive officer of Grupo TMM, said, “TMM continues its efforts to strengthen its balance sheet through strict cost controls and planned capitalization, which will allow the Company to continue operating its services in both national and international markets with the highest quality.”
Mr. Serrano concluded, “With over 60 years of experience, Grupo TMM provides a dynamic combination of maritime transport, port management and logistics services through its branch offices and subsidiaries with both current customers and as a new member of the Energy Reform industry.”
THIRD-QUARTER AND FIRST NINE MONTHS OF 2015 OPERATING AND FINANCIAL RESULTS
Compared to the same period last year, consolidated revenues in the 2015 third quarter increased 9.2 percent mainly due to higher revenues in the Maritime segment, and to a lesser extent, in the Ports and Terminals segment. First nine-month 2015 consolidated revenues increased 13.4 percent due to higher revenues in Maritime segment partially offset by lower revenues in Ports and Terminals segment.
Consolidated operating income in the third quarter of 2015 decreased $2.4 million, or 2.4 percent, compared to the same period of 2014, excluding the disposal of an asset for $237.0 million in the third quarter of 2014. In the nine-month period, consolidated operating income increased $35.5 million, or 11.7 percent, compared to the first nine months of 2014, excluding the sale of the Palenque tanker for $63.6 million in the second quarter of 2015.
Third-quarter 2015 consolidated EBITDA was $280.4 million compared to $255.4 million for the same period last year. In the 2015 nine-month period, consolidated EBITDA was $838.4 million compared to $755.5 million for the same period of 2014. The comparison in both periods does not include the sale of the Palenque tanker in the second quarter of 2015 and the disposal of an asset in the third quarter of 2014.
Free cash flow for the third quarter of 2015 was $112.6 million compared to $71.7 million in the same period last year. For the first nine months of 2015, free cash flow was $314.4 million compared to $186.1 million in the same period last year. The comparison in both periods does not include the sale of the Palenque tanker in the second quarter of 2015 and the disposal of an asset in the third quarter of 2014.
Compared to the same period last year, Maritime revenues grew $53.2 million, or 8.2 percent, in the 2015 third quarter mainly due to 26.8 percent higher revenues in chemical tankers attributable to improved average freight rates, as well as a 25.1 increase in product tankers revenues mainly due to 100.0 percent fleet utilization. Maritime revenues improved $273.7 million, or 15.1 percent, in the 2015 first nine months compared to the same period last year mainly due to a 19.4 percent increase in chemical tankers revenues due to improved average freight rates, as well as a 19.0 percent increase in offshore
segment revenues and a 10.9 percent improvement in product tankers revenues due to better fleet utilization and efficiency in both segments.
Third-quarter 2015 Maritime operating profit decreased 12.3 percent to $119.9 million from $136.7 million in the 2014 period mainly due to increased operating costs in the offshore segment for the hire of two vessels in U.S. dollars, higher fuel costs at harbor tugs, and a 3.5 percent increase in consideration for the extension of tugs vessel service in Manzanillo. During the first nine months of 2015 Maritime operating income decreased 1.8 percent to $395.9 million from $402.9 million in the same period of 2014 mainly due to the sale of the Palenque tanker for $63.6 million in the 2014 period. Excluding the sale, operating income would have increased 14.0 percent to $459.5 million in the 2015 nine-month period. The 2015 period also benefitted from a better mix in average rates in chemical tankers and offshore vessels, product tankers utilization improving to 100.0 percent, partially offset by a decrease in the amount and type of work performed in the shipyard, as well as increased costs in harbor tugs.
Third-quarter 2015 Maritime EBITDA increased 3.8 percent to $297.3 million compared to $286.5 million in the same period of 2014. The Maritime EBITDA margin in the third quarter of 2015 was 42.3 percent. During the first nine months of 2015, Maritime EBITDA increased 17.2 percent to $984.0 million compared to $839.9 million in the same period of 2014. The Maritime EBITDA margin in first nine months of 2015 was 47.3 percent.
Ports and Terminals revenues increased 24.0 percent in the 2015 third quarter to $72.6 million mainly attributable to higher revenues in the Tampico and Tuxpan terminals due to an increase in the volume of steel and gravel, partially offset by lower revenues at Acapulco due to a lower number of transported cars. Comparing the first nine months of 2015 to same period last year, Ports and Terminals revenues decreased 1.7 percent to $207.1 million mainly due to a lower number of cars transported in Acapulco, as well as a decrease in automotive segment revenues, partially offset by higher revenues in the intermodal terminal and container maintenance and repair.
Third-quarter 2015 Ports and Terminals operating income increased $6.7 million to $7.0 million compared to $0.3 million in the same period 2014, mainly due to improved volumes at the Tampico and Tuxpan terminals. First nine-month 2015 Ports and Terminals operating income decreased 2.3 percent to $25.9 million compared to $26.5 million in first nine months of 2014 due to higher costs for the container maintenance and repair and intermodal segments, as well as lower revenues at Acapulco, partially offset by improved results at the Tampico Maritime Terminal and Agencies.
Ports and Terminals EBITDA in the third quarter of 2015 increased $6.6 million to $10.5 million compared to $3.9 million in same period of 2014. Ports and Terminals EBITDA margin was 14.5 percent in the third quarter of 2015. During first nine months of 2015 Ports and Terminals EBITDA was $37.4 million compared to $ 37.3 million in the same period last year. Ports and Terminals’ EBITDA margin in the first nine months of 2015 was 18.1 percent.
