Francisco Pérez Mackenna, Director General of Quiñenco, said the results confirm the company's strategy is correct. "This has been a time of advances and positive messages, among which I highlighted the deal made by CCU in Argentina, CSAV and Hapag-Lloyd's rebound and the introduction of Enex in the US market. We will continue to grow, grow up in Chile and explore business opportunities abroad," he said.
In the first nine months of 2018 Quiñenco recorded a net profit of 153,832 million pesos, an increase of 135% over the same period in 2017.
This is explained by the consortium established by Andrniko Luksić Abaroa, mainly due to the recovery of CSAV and the one-time profits earned by the CCU following a deal that resulted in the termination of the Budweiser license in Argentina.
Firstly, the company Compañía Sudamericana de Vapores (CSAV) lifted the accounting loss for 2017 due to the dilution of Hapag-Lloyd after the merger with the United Arab Emirates (UASC). In September this year, thanks to the good operation, the German shipping company announced positive results in the difficult circumstances of the container shipping industry.
Quiñenco's earnings before the 3rd quarter of 2018 were also significant for the increase in CCU's profits. Although this is largely due to the $ 153.496 million one-off profit reported by this company as a transaction that ended the Budweiser license in Argentina, it is also worth highlighting good performance in Chilean and international business segments, the latter with a 25% increase.
For its part, the Banco de Chile reported a profit of $ 433.350 million, maintaining a similar level in the prior period. The Bank's operating income growth of 7%, which was determined by both client income and the positive impact of inflation during the period, was offset by higher expenses and credit risk, mostly one-off. It is important to note that the bank's accumulated net profit will allow it to pre-pay 100% of the subordinated debt to the central bank maintained by the SM Chile. The final payment should be made at the end of April 2019, 17 years before the original deadline, in order to terminate this obligation.
With regard to the SM SAAM single profit recorded last year from the sale of its minority shareholding in Tramars, it explains that the contribution of this subsidiary to the holding's output will decrease by 38% in 2018. However, with regard to Continuous operations, the Terminal Port segment has been performing well, with more activity in most of them, while the Logistics segment is recovering, especially in the third quarter.
In the energy sector, Enex has achieved a good performance, with an EBITDA increase of 11% on the basis of increasing sales and a better margin in service stations and the lubrication channel, as well as the beneficial effect on stock sales, which is historically cost-effective in view of price increases. Thus, net profit increased by 13%.
An important milestone for Quiñenco's internationalization strategy last week, Enex began operating on the US market by purchasing 38 network centers for the Road Ranger network, which is on the main roads that they join the Texas state of the Midwest. The deal, which reached $ 289 million, has an interesting growth potential.
Another extraordinary international scale was the opening of the Invexans branch in London, Invexans Limited, whose aim was to explore new business opportunities and focus on parent company investments, especially in Europe and other countries. Recently, Invexans reported that in the United Kingdom, its subsidiary has invested in the French company Nexans, which currently reaches 28.39% of the shares issued by the company. The French multinational report does not report the results in the third quarter of the year.
The strategy works
Along with the September scores, Quiñenko's head Francisco Pérez Mackenna said they confirmed that the company's strategy was correct. "This has been a time of advances and positive messages, among which I highlighted the deal made by CCU in Argentina, CSAV and Hapag-Lloyd's rebound and the introduction of Enex in the US market. We will continue to grow, grow up in Chile and explore business opportunities abroad," he said.