Israel Shipyards’ first report as a public company shows revenues of NIS 765.3 million against the background of growth in cement and port activity; the company participates in the process of privatizing Haifa Port together with DP WORLD from Dubai
Israel Shipbuilding Industries Ltd. today reported its results for 2020. It should be noted that the company first issued its shares on the Tel Aviv Stock Exchange in September 2020, so this is the first annual financial report that the company publishes as a public company.
Revenues in 2020 increased by 3.2% to NIS 76.3.3 million, compared with NIS 741.3 million in the previous year. In the cement sector, revenues grew by 45.7% to NIS 413.4 million, compared with NIS 283.8 million in 2019. The increase in revenues in this segment is attributable to an increase in the quantity sold, which was slightly offset by a decrease in the average price per tonne.
EBITDA in the cement segment grew by approximately 55.6% to approximately NIS 61.8 million (profit margin of approximately 15%), compared with approximately NIS 39.8 million in 2019 (profit margin of approximately 14%). The increase in profitability was affected by a decrease in the average cost per tonne, a decrease in the cost of the raw material, a decrease in the hourly rate and a decrease in the cost of transportation, as well as as a result of the spread of fixed expenses over a larger quantity.
In the port sector, revenues increased by 18.9% to NIS 152.3 million, compared with a total of NIS 128.1 million in 2019. The increase in revenues is mainly due to a 44% increase in cargo unloading, compared to the same period last year, mainly due to the use of another platform. By the company to a customer operating in the gas field and temporarily returned for use by the company as of April 2020, offsetting the average revenue per ton of discharge, mainly in light of the product mix.
EBITDA in the segment increased by approximately 78.2% to approximately NIS 43.6 million (profit rate of approximately 29%), compared with approximately NIS 24.5 million in the corresponding period last year (profit margin of approximately 19%).
In the shipyard sector, which is a project sector in nature, revenues amounted to NIS 154.3 million, compared with NIS 267.1 million in 2019. The decrease in shipyard revenues is mainly due to project completion and delay in entry of new projects, which led to a decrease in work performed in the period.
EBITDA in the shipyard segment grew by 64.9% to NIS 38.4 million (profit rate of 25%), compared with NIS 23.3 million in the corresponding period last year (profit rate of 9%).
The company’s revenues in the fourth quarter amounted to NIS 209 million, compared with NIS 233 million in the corresponding quarter last year. The decrease in revenues is mainly due to a decrease in revenues from the shipyard sector, along with an increase, as stated in revenues from the cement and port sectors.
In 2020, the company recorded a 17% increase in net profit to NIS 79.4 million (NIS 70.7 million attributed to shareholders), compared to a net profit of NIS 67.8 million (NIS 59.9 million attributed to shareholders) in 2019.
EBITDA in the fourth quarter increased by 27.6% to NIS 40.6 million, compared with NIS 31.8 million in the fourth quarter of 2019. Throughout the year, EBITDA increased by 32% to NIS 159.4 million, compared to NIS 121.1 million. In 2019, thanks to improved profitability in the three operating segments.
Simultaneously with the publication of the reports, the company updates that the company’s board of directors has decided to expand its activities to the gypsum products sector.
The company is considering establishing an innovative plant for the production of gypsum products and gypsum boards as well as strategic collaborations in Israel and abroad in the new field of activity, and intends to work to formulate a strategic plan in the field of activity.
Zvika Schechterman, CEO of Israel Shipbuilding Industries: “The results we present today illustrate the group’s operational flexibility, which supports our ability to operate efficiently and maximize our revenues and profits. Over the past year we have increased the fleet of cement carriers to three ships (in addition to increasing the fleet of ships accumulating in two more ships). Owning these advanced ships ensures independence, efficiency and low transport prices, regardless of the transport prices in the shipping industry.
In the shipyard sector, we announced last November the completion of significant $ 128 million negotiations on an agreement for the production and sale of vessels to the country in Asia, which is expected to support the continued growth of the subsidiary, Israel Shipyards in the coming years.
Beyond that, we are currently working on the development of a number of significant growth engines, including the construction of silos for nuclei and entry into the field of bitumen. In addition, we announced today that the company’s board of directors has made a decision to expand its activities in the field of gypsum products. In addition, we are participating in the privatization of Haifa Port together with our partners, DP WORLD from Dubai, from a strategic vision. Centrality – Global connectivity, a bridge to the Middle East and high technological efficiency. “