More cash – and simultaneously less debt
Valenciaport’s consolidated annual results for 2018 underline the maritime region’s stable course. The hub operator Valenciaport runs the ports of Valencia, Sagunto and Gandía in the area. Although profits stayed largely stable they can be considered relatively solid, taking the overall tariff reduction efforts as well as debt repayments into account.
Port tariffs adjusted
Spain’s central Mediterranean region of Valencia, which considers it container port to be the closest rival for its national competitor Algeciras, closed 2018 with sales of just over EUR 138 million. This represented a decrease of almost 1% compared to 2017. This difference is not due to lower volumes or throughput, however, but rather to a reduction in charges per vessel (T1) as well as of passage fees (T2).
Despite this decrease, profits before tax amounted to approximately EUR 33.7 million, which is about 4.7% higher than in the previous year. At EUR 36 million the gateways’ operating results were slightly higher. The hubs’ ebitda reached almost EUR 82 million, and cash flow exceeded the threshold of EUR 72 million.
Built-in debt cap
As far as debts are concerned, Valenciaport is sticking to its policy of reducing the amount it owes. In 2018 its debt fell below EUR 400 million for the first time – to EUR 399.4 million, to be precise. This represents progress compared to the previous year’s debts of EUR 430 million, and even more so when compared with the historic high of more than EUR 600 million in 2011. The port nevertheless plans to stick to its modernisation strategy; it has opted for a longer investment horizon. Its business plan envisages investments of more than EUR 800 million from 2020 to 2028. According to port authority president Aurelio Martínez, its debt limit is nevertheless expected to remain below EUR 600 million – “even in the most unfavourable scenario.”
