Ashdod Port Company is publishing its financial
results for the third quarter of 2023 and the first nine months of 2023. The
results refer to the period preceding the current war, Operation Iron Swords,
which has had many implications for the Israeli economy.
The net profit during the first nine months of 2023 was about 45 million
shekels, including one-time expenses of about 45 million shekels (in net profit
terms, about 35 million shekels), compared to losses of about 285 million
shekels, including one-time expenses of about 390 million shekels (in net
profit terms, about 300 million shekels) during the same period last year.
Turnover during the first nine months of 2023 was about 798 million shekels,
due to the impact of competition, compared to about 919 million shekels in the
first nine months of 2022.
Operating profit, before miscellaneous expenses, during the first nine months
of 2023 was about 71 million shekels, due to the impact of competition,
compared to about 150 million shekels in the same period las year.
Miscellaneous expenses during the first nine months of 2023 were about 45
million shekels, compared to about 390 million shekels in the same period last
year. In both periods miscellaneous expenses entail the company’s preparations
for competition.
EBITDA during the first nine months of 2023 was about 169 million shekels,
compared to 238 million shekels in the first nine months of 2022. The drop is
related to the increase in competition in the industry.
Financing revenue during the first nine months of 2023 was about 26 million
shekels, compared to financing expenses of 100 million shekels in the first
nine months of 2022. The company’s investment portfolio and financing expenses
were impacted by stabilization of interest and inflation. The company’s equity
during the first nine months of 2023 was about 2,764 million shekels, compared
to 2,665 million shekels in the same period last year.
The company’s rating is ilAA+/Stable, as confirmed on September 28, 2023.
Main data from the third quarter of 2023
The net loss in the third quarter of 2023 was about 26 million shekels. After
deducting one-time expenses there was a net profit of about 7 million shekels,
compared to a loss of about 7 million shekels in the same period last year, due
to financing expenses. The net profit was impacted by competition and by
improving our financing revenue. Operating profit, before deducting
miscellaneous expenses, was about 12 million shekels in the third quarter of
2023, compared to about 31 million shekels in the same period last year.
Operating profit was impacted by the increased competition.
Dudi Amsalem, Minister of Regional Cooperation, who is responsible for the
Companies Authority: “I would like to congratulate the managers and employees of
Ashdod Port for their amazing work and wonderful results, which speak for
themselves. Ashdod Port has a critical and significant role, especially in
wartime, to strengthen the Israeli economy, and they are clearly doing an
outstanding job, as seen in the company’s high rating. We salute the managers
and employees for these achievements! I hope to see the Port continue to grow
and flourish in quieter times as well”.
Shaul Schneider, Chairman of the Board of Ashdod Port: “We are summarizing the
results of our activity in the first nine months, prior to Operation Iron
Swords, to establish our market share in a super-competitive era. We entered
this challenging period for the Israeli economy in a strong position. Maalot
even confirmed our high rating recently. Since the war broke out, we have made
all the necessary adjustments and are paying close attention to the war’s
impact on our company.
As Israel’s national port, the economic gateway to the country, we have a
critical role in strengthening the economy and keeping it moving forward. Our
work is of national significance, and we are working tirelessly to maintain
continuous supply of goods for the economy during this challenging time. We are
making sure to provide the highest level of service despite the security
situation. We would like to send our support to the security forces who are
working day and night to protect the State of Israel. We send our condolences
to the families of those murdered and those who fell in battle, and they are
constantly in our thoughts. We send wishes for a speedy recovery to the
wounded, and together with all of Israel, we hope for the swift return of all
of the kidnapped and the hostages. We look forward to better days ahead”.
Eli Bar-Yosef, Acting CEO of Ashdod Port: “The business infrastructure that we
built together with the Port’s experienced team of workers, has allowed us to
effectively compete with private ports, while maintaining our customer base and
profitability. We are committed to continue to guarantee the port’s continuous
activity, while doing our best to improve so that we can respond to business
challenges and keep the Israeli economy running at this difficult time”.
The Port’s financial results include all port activity – containers, vehicles,
general cargo, bulk, and passenger ships. During the first nine months of 2023
there was an increase in competition, due to the establishment of private
ports, which have become more prominent players in the market. At the same
time, there was a drop in the scope of activity for some of the cargo; while we
improved our customer service in terms of storage and other services.
In the container sector – the scope of containers that were loaded and unloaded
at the port, during the first nine months of 2023, reached about 526 thousand
containers compared to about 672 thousand containers during the same period
last year. The drop is the result of the impact of increased competition and a
drop in demand.
In the vehicle sector – during the first nine months of 2023 about 111 thousand
vehicles were unloaded at the port, compared to about 91 thousand vehicles
during the same period last year, an increase of about 22%. This is a result of
an increase in demand and the impact of new shipping lines from the east
directly calling Ashdod Port. The war has caused roll-on/roll-off ships to
switch to the ports in the north.
Bulk sector – it was impacted by operating the new seed uploader, with port
focusing on improving production. During the first nine months of 2023, there
was an increase in the quantity of grain (about 820 thousand tons of seeds that
passed through the uploader during the first nine months of 2023, compared to
about 170 thousand tons during the same period last year.) On the other hand,
there was a drop in the activity of grain products at a rate of about 84%, with
a total of 6,779 thousand tons of bulk cargo compared to about 6,326 tons in
the same period last year (an increase of 7%).
The scope of general cargo was about 563 thousand tons, compared to 969
thousand tons in the same period last year, a drop of 41.9%. This is due to a
drop in the scope of general cargo imported to Israel, indirectly impacted by
the drop in container shipping prices, as well as the increase in competition.
The passenger (cruise) ship sector began operating again in 2022, with high
demand for ships calling Ashdod Port. During the first nine months of 2023,
about 52,000 passengers arrived at the port. When the war broke out, this
sector stopped operating and the port is looking forward to renewing this
activity.
