Navigator’s profit rises 52% to 114 million by September – Industry

Navigator generated a profit of 114.2 million euros in the first nine months of this year, showing an increase of 51.8% over the same period in 2020.

The pulp and paper producer indicated in a statement that the trading volume increased by 7.3% to 1119.7 million euros through September, “with increased paper volumes to compensate for the lower prices,” he explained, noting that despite the recovery in prices. The period average is still 0.5% below the 2020 average price.

Paper sales accounted for about 73% of the total, pulp 10%, tissues 9%, and energy sales of 8%, the group adds, stressing that “after a first quarter marked by new waves of infection from Covid-19 and periods of confinement in most of the group’s major markets, We have seen a gradual reopening of economies and a recovery in demand for paper.”

By September, Navigator had reached an EBITDA of 246 million euros, an increase of 16.9% over the same period last year.

In the paper segment, the group highlights an increase of 16% in the quantities sold, reaching 1,081 thousand tons, although the sales value was conditioned by the price level, showing a growth of about 15% in the period.

In pulp, sales were 207 thousand tons, 30% lower than the first nine months of 2020, a period during which the group benefited from a greater amount of pulp available for sale as a result of less integration in paper, compared to the stops. Some machines due to the pandemic and stock layoffs,” he explains.

He also says, “The rebound in pulp prices verified since the beginning of the year has allowed to mitigate the decline in volumes and the value of sales in this period was about 4% lower than the nine months of 2020.”

In the textile trade, sales were 77.8 thousand tons, 2% lower than the previous year, with the average sales price above 1%, with the sales value in line with 2020.

Total electricity sales amounted to 96 million euros up to September, which is a 12% decrease compared to the same period of the previous year, which was explained by the group with “increased self-consumption in Setúbal, due to a transformer failure, which since the beginning of the year prevents the purchase of external energy ” .

Squeeze costs through 2022

Over the nine months, the group highlighted the positive development of production costs of around €13 million, “mainly due to efficiency improvements in terms of specific consumption”.

However, he says he expects “strong cost pressures in the fourth quarter, which are expected to continue into 2022.” He asserts, “There has been a recent decline in many commodities, mainly due to increased costs of logistics, energy and carbon dioxide.”

With regard to logistics, he says that “despite the difficult moment we are going through, both in terms of pricing and in terms of resource availability, Navigator has been able to maintain its 100% activity and operate without any interruption in upstream and downstream supplies.”

Until September, the group reduced operating costs by 3 million euros compared to the same period in 2020, as personnel and maintenance costs registered an opposite development, increasing by 16% and 8%, respectively.

Net interest-bearing debt fell to 596.9 million euros. The investment amounted to 51.8 million, below the 69.7 million recorded in the first nine months of 2020.