David Amsalem, Minister of Regional Cooperation and Commissioner of the Companies Authority: “Ashdod Port Company is an example of a government company showing responsible, impressive activity. Despite these complex times, the company knows how to maintain financial stability, resilience and profitability. I salute all managers, employees and people engaged in this important work. I am proud of our national port, presenting year-round quality outcomes and impressive performance. "
Shaul Schneider, Chairman of Ashdod Port Board of Directors: “The Iron Swords War detrimentally impacted the port's activity while simultaneously intensifying competition in the industry. As a national port, we are required during war to provide a broad response for the economy and the country's needs without exercising considerations of profit and loss, which directly influences financial outcomes. Aware of this responsibility, we uphold it in the best way possible. The Board of Directors additionally approved the transfer of a dividend amounting to approximately NIS 270 million to the State. This move reflects the port company's financial robustness and its ability to cope with complex crises."
Eli Bar Yosef, Acting CEO of the Ashdod Port Company: “The Ashdod Port Company presents profitability from ongoing business activity in 2023. We see the impact of the Iron Swords War on the fourth quarter of the year, whereas the first nine months of the year prior to the outbreak of the war were characterized by growth in the automotive sectors, distribution, passenger activity, and good preservation of container activity. These achievements enabled us to close the year profitably despite the war, and distribute dividends to the country as we have done consistently since 2009. Port employees continue providing excellent service to importers and exporters and are well prepared for the economy's return to growth in the short term."
Ashdod Port Company approves the 2023 Financial Statements
● Net profit for 2023 totaled NIS 39 million compared to a NIS 251 million loss in 2022.
● Revenue turnover for 2023 totaled NIS 1,003 million compared to NIS 1,213 million in 2022, a 17% drop due to increased competition and the Iron Swords War.
● 2023 equity stands at NIS 2,760 million compared to NIS2,702 million for the same period last year.
● Operating profit for 2023 stood at NIS 38 million compared to 2022's NIS 197 million.
● EBITDA for 2023 totaled NIS 168 million compared to NIS 313 million in 2022, the decrease due to both competition and war.
● Net financing income for 2023: NIS. 56 million compared to net financing expenses in 2022 of NIS 104 million.
● Company rating: ilAA+/Stable. Rating ratification dated 28 September 2023.
● Dividend to the State: NIS 28.8 million due to total profit and NIS 150 million from the cumulative profit; ratification of a previously announced NIS 90 million dividend.
Key Data for 2023
The 2023 net profit totaled NIS 39 million including one-time expenses of approximately NIS 42 million (and in terms of net profit, approximately NIS 32 million) compared to a loss of NIS 251 million (including one-time expenses of some NIS 390 million, and in terms of net profit approximately NIS 300 million) in the same period last year.
2023 operating profit before other expenses, affected by the Iron Swords War and continuing competition, amounted to NIS 38 million compared to NIS 197 million for the same period last year.
The other 2023 expenses totaled some NIS 42 million compared to some NIS 390 million for the same period last year. For both periods, the expenses relate to the company's preparations for competition.
Net financing income for 2023 totaled NIS 56 million compared to net financing expenses of NIS 104 million for the same period last year. The company's investment portfolio and financing expenses were affected by stabilization of the interest rate and inflation.
The port's financial outcomes relate to all port operations; container segments, vehicles, general cargo, distribution, and passenger ships.
Regarding the container sector: the volume of containers loaded and unloaded in the port in 2023 totaled 669,000 compared to 865,000 for the same period last year. The decline is due to the Iron Swords War in Q4, and anticipated increase in competition.
Regarding the automotive sector: in the first nine months of 2023 some 111,000 vehicles were unloaded in the port compared to some 91,000 for the same period last year, an increase of about 22%. The upswing was the result of increased demand and the arrival of lines from the east to a direct Ashdod port clerk. The Iron Swords War caused vehicle ferries to be diverted to the north, such that during Q4 2023, almost no vehicles were unloaded at the Ashdod port. The port is nonetheless ready for the immediate return of vehicle clerks, currently taking place.
The distribution sector was influenced by the operation of the new grains conveyor belt as the port focuses on improving outputs.
2023 saw a sharp increase in quantities of grain, most of which is transported on the new grain conveyor, amounting to 1.2 million tons compared to 460,000 tons for the same period last year. By contrast, a decrease was registered in grain products activity of 57,000 tons in 2023 compared to 361,000 tons in 2022, as well as a 14% decrease in cement imports due to the war. In total, 8,822,000 tons (excluding fuel transported by marine connections) for distribution were loaded and unloaded compared to 8,222,000 tons for the same period last year, an increase of 7%.
Overall cargo volumes totaled 974,000 tons compared to 1,738,000 tons for the same period last year, a significant decrease of 44%. The decrease stems from the impact of lower general cargo volumes imported to Israel, further exacerbated by the war; from the indirect effect of decrease in container transportation prices; as well as from increased competition.
The passenger (cruise) ships sector returned to activity in 2022 with high demand for ship clerks in Ashdod port. During the first nine months of 2023 alone, some 52,000 passengers passed through the port. The Iron Swords War halted this activity but the port remains at the ready to renew it. During Q4 2023 no passenger ships visited the port due to the war.