Consolidated Income Sigdo Koppers (SK) increased 2.3% compared to September 2017, reaching US $ 1,678.4 million, in line with higher sales levels in the industrial estate, which was explained by higher physical sales at Enaex and in Magotteaux.
Consolidated EBITDA was established in September 2018, which reached US $ 211.3 million, 5.9% higher than the same period the previous year. These results are associated with better operating results in Magotteaux and Fepasa, and better performance in the SK Comercial leasing and distribution business.
On the other hand, Net Profit reached US $ 45.9 million, which was an 11.5% decline in connection with the third quarter of 2017, mainly due to losses recorded in Sigdo Koppers Engineering and Construction, which came from jobs at the Talara refinery in Peru. This also has an effect on increasing the effective tax rate, because the deferred tax associated with these losses in Talara is not recorded.
The results of its subsidiary Sigdo Koppers showed mixed results highlighting better performance in Magotteaux, and higher sales levels in the engine distribution business in Chile, offset by negative performance from the Engineering and Construction business due to problems in operations in Peru and lowering profits in products SK Inversiones Automotrices from lower margins and exchange rate conditions in the car sales business.
Performance of subsidiaries
SK Engineering and Construction (ICSK)
This subsidiary registered 13.2 million working hours (17%), in line with the highest level of projects provided. On the other hand, pro-forma EBITDA from ICSK showed a loss of COP 4.396 million, which was a poor outcome of 252% compared to the third quarter of last year. These operational losses are mostly related to losses from projects at the Talara refinery in Peru. As such, ICSK showed a net loss of $ 9.504 million (-US $ 15 million), which showed worse results for CLP $ 8,228 million in connection with September 2017. These losses also increased because deferred taxes related to losses were not recorded. at Talara. The backlog to 3Q-18 reached US $ 589 million which was a fall of US $ 39 million compared to June this year (the Talara project output represented US $ 47 million from a lower Backlog).
Windows Port (PVSA)
PVSA transfers a total of 4.3 million tons (+ 3%), highlighting higher transfers of coal and grain. Fepasa for its portion carrying 823 million Ton-Km (+ 14.8%), highlighted the increase in copper concentrate transportation.
As such, Puerto Ventanas's consolidated EBITDA reached US $ 33.9 million, which is a
13% increase, as a result of better operational performance of Fepasa subsidiaries. For the parts, the
Puerto Ventanas Consolidated Net Income reached US $ 14.2 million, which is a
Down 8% compared to September 2017.
Enaex achieved sales of 671 thousand tons of explosives (+ 7%), thanks to higher services
rock fragmentation in Brazil. Enaex's Consolidated EBITDA reached US $ 119.5 million
up to the third quarter, it showed a slight decline of 0.8%, mainly explained by lower yields from the rock fragmentation service area in Chile.
For its share, Enaex Net Profit reached US $ 55.6 million, which is a 5% decrease
about September 2017.
Magotteaux achieved sales of US $ 528 million (+ 6%) online with higher physical sales (+ 1%)
especially in the Casting business. Magotteaux's EBITDA reached US $ 45.8 million in the third quarter, 25% more than in September 2017, explained by a recovery in operating margins. Thus, Magotteaux obtained a Net Profit of US $ 10.9 million, which means a 58% increase compared to September 2017.
SK commercial (SKC)
SK Comercial has revenues of US $ 193 million (+ 1.3%), which are driven by the area
machine sales. EBITDA reached US $ 25.6 million, showing growth of 49% compared to that
up to the same period 2017. In September 2018, SKC presented a Net Profit of US $ 1.2 million,
mainly explained by the slight recovery of the engine market in Chile, along with
extraordinary profits from the sale of a plot of land in the SKC restructuring process. The machinery rental market in Peru is still very contracted.
SKBergé / SK Automotive Investments (SKIA)
SKBergé recorded sales of 68,773 units, representing an increase of 19% compared to September 2017. Growth in sales was proven to be good in Chile (+ 28%) and abroad (+ 8%). Apart from the above, SK Inversiones Automotive recorded a net profit of $ 10,157 million (US $ 17 million), which was lower than that obtained in the same period of 2017 (CLP -26%), products from operating and operating margins were more low. losses due to differences in exchange rates (strong devaluation of Argentine Peso in the second and third quarters of 2018).