Shaul Schneider, Chairman of the Board of Directors, stated: “The financial results of the third quarter indicate the Company's success in generating significant revenues, while maintaining profitability even in a challenging macro environment and in competition with private ports, while giving priority to security needs at the expense of business activity. The Company's employees mobilized in an exemplary manner to maintain the functional continuity of the Israeli economy."
Nissan Levy, CEO of the Port of Ashdod, stated: “The port is returning to profitability. The operating profit in this quarter reflects a significant improvement in business results, and quarterly revenues and operating profit are even higher than their average level in 2023, before the Swords of Iron war. We are gearing up for the possibility of rapid growth in the short term and are in the midst of a staff recruitment drive in order to provide an appropriate solution and excellent service to our customers. This is an opportunity to thank the employees of the Port of Ashdod, whose hard work made the good results of the quarter possible."
Dudi Amsalem, Minister of Regional Cooperation and Commissioner of the Companies Authority, stated: “I am happy to see how the Port of Ashdod continues to flourish and succeed, even in these difficult and complex times. There is no doubt that the Ashdod Port Company is an example of responsible and successful activity by a Government company. This is an impressive report that demonstrates the Company's financial might, national resilience and praiseworthy profitability. I once again salute all the managers, all the employees and all those involved in this important work. I am proud of our national port, which continues to present remarkable results and impressive performance throughout the year."
Key Financial Results:
Revenue turnover in the third quarter of the year amounted to NIS 277 million, an increase of 12% compared to the previous quarter in which revenues amounted to NIS 247 million. Revenues in this quarter are the highest in each of the quarters this year and in 2023.
The port presents an operating profit of NIS 34 million in this quarter, after several quarters with an operating loss, which resulted from the effects of the Swords of Iron war.
Revenue turnover for the first nine months of 2024 amounts to NIS 738 million, a decrease of only 8%, compared to NIS 798 million in the first nine months of 2023. This decrease is due to the effects of the Swords of Iron war, in the two quarters preceding this quarter.
The net profit for the first nine months of 2024 is NIS 33 million, compared to a net profit of NIS 45 million in the first nine months of 2023.
Equity as of September 30, 2024 amounted to NIS 2,627 million, compared to NIS 2,764 million as of September 30, 2023, due to the distribution of a dividend to the State.
The operating loss for the first nine months of 2024, due to the impact of the war, was NIS 3 million, compared to an operating profit of NIS 71 million in the first nine months of 2023, and in fact, in this quarter, almost all of the operating loss of the first half of the year was erased.
EBITDA for the first nine months of 2024: NIS 91 million, compared to NIS 169 million in the first nine months of 2023.
EBITDA for this quarter – NIS 66 million.
Net financing income for the first nine months of 2024 is NIS 40 million, compared to net financing income of NIS 26 million in the first nine months of 2023.
Net profit for the first nine months of 2024 amounted to NIS 33 million, compared to a net profit of NIS 45 million [in the corresponding period the previous year].
All items as detailed below are affected by the Swords of Iron war:
The operating profit line before other expenses amounted to a cumulative loss of NIS 3 million, compared to operating profit before other expenses which amounted to NIS 71 million in the corresponding period the previous year.
In the last quarter, an operating profit of NIS 34 million was recorded, which offset most of the loss recorded in the first half of this year.
Other expenses in the first nine months of 2024 amounted to approximately NIS 23 million, compared to approximately NIS 45 million in the corresponding period the previous year.
Other expenses in the corresponding period include the impact of a voluntary retirement plan, while other expenses in the current period include, inter alia, the impact of a master agreement for the company's employees.
Financing income in the first nine months of 2024 amounted to NIS 44 million, compared to financing income of NIS 28 million in the corresponding period the previous year, due to the relative robustness demonstrated by the capital market despite the macro effects of the war.
Key Figures for the Third Quarter of 2024
During the third quarter of 2024, a net profit of NIS 60 million was recorded, as stated, compared to a loss of NIS 26 million in the corresponding period the previous year.
Operating profit before other expenses in the third quarter of 2024 amounted to NIS 34 million, compared to operating profit before other expenses of approximately NIS 12 million in the corresponding period the previous year.
Other income in the third quarter of 2024 amounted to approximately NIS 1 million, compared to other expenses of approximately NIS 43 million in the corresponding period the previous year and includes the impact of a voluntary retirement plan.
Financing income, net in the third quarter of 2024, amounted to NIS 33 million, influenced by positive returns on funds managed in the capital market. Compared to financing income, net of approximately NIS 1 million in the third quarter of 2023.
The port's financial results are attributed to all port activity; the container, vehicle, general cargo, bulk and passenger ship sectors.
In the container sector – the volume of containers loaded and unloaded at the port, in the first nine months of 2024, amounted to 505,000 containers, compared to 526,000 containers in the corresponding period the previous year. A decrease of 4% compared to an 11% decrease in Israel's total activity. In the last quarter, imports to Israel recovered and the company maintained a market share of over 40%.
In the vehicle sector – in the first nine months of 2024, approximately 82,000 vehicles were unloaded at the port, compared to approximately 111,000 vehicles in the corresponding period the previous year. The volume of unloading was significantly affected by the decline in imports, the closure of the Port of Eilat, and storage restrictions set by the Shipping Authority.
Bulk sector – in the first nine months of 2024, 6,922,000 tons of bulk were unloaded and loaded (excluding fuel transported by sea carriers), compared to 6,778,000 tons in the corresponsing period the previous year.
During this period, there was an increase in the import of grain products and, conversely, a decrease in the import of whole grains. A significant recovery has not yet been observed in the construction sector.
The volume of general cargo amounted to 709,000 tons compared to 807,000 tons in the corresponding period the previous year, a decrease of approximately 12%.
During this period, the downward trend in the amount of general cargo imported into Israel continued, mainly due to a decrease in imports of metals and wood, which constitute a major component of the general cargo sector.
The decrease is due to high exchange rates and interest rates, as well as a slowdown due to the Swords of Iron war.
Notwithstanding the above stated, the port increased its market share.
Passenger ships – The Swords of Iron war halted activity in this area at this stage and the port is gearing up to resume it.
However, starting at the end of September, Israeli passenger ships were diverted from the north to the port of Ashdod and the port quickly geared up to provide this service due to the security situation in the north.