The listed Israel Shipbuilding Industries Company reported its results for the fourth quarter and for 2022, according to which the company recorded an increase in profit and revenue.
In the top line, revenues in 2022 grew by about 56.2% to about 1.48 billion shekels, compared to about 945.1 million shekels in 2021. The increase is due to growth in revenues in the shipyard sector, the building materials sector and the maritime transport sector.
In the shipyard sector, revenues in 2022 doubled to approximately NIS 450 million, compared to approximately NIS 227.3 million in 2021. The increase in income is mainly due to an increase in the scope of the works carried out and also as a result of leasing ships on a financial lease to a customer in Africa for which an income of approximately NIS 85 million was recognized. The sector’s profits grew by about 44.3% to about NIS 58.8 million, compared to about NIS 40.8 million in 2021.
The shipyards say that the results of the activity reflect the strategy led by Eitan Zucker in recent years to expand the range of products and the basket of solutions sold by Israel Shipyards, through the design of new and advanced vessels alongside successful collaborations with other manufacturers.
In the construction materials sector, revenues grew by approximately 53.7% to approximately NIS 695.2 million, compared to approximately NIS 452.2 million in 2021. The increase in the sector’s revenues is due to an increase in sales prices compared to 2021, and also as a result of Eyal Hecht’s activities to expand the sector’s activities and the product portfolio, in particular through investment in three companies in the field of construction materials, carried out in the past year. The effect of the acquisitions, through the consolidation for the first time of the activities of the companies Prima Cement and Onat Cement, contributed to the sector’s results. The sector’s profits increased by about 23.6% to about NIS 62.6 million, compared to about NIS 50.7 million the previous year.
In the maritime transport sector, revenues in the period grew by approximately 86.5% to approximately NIS 153.8 million, compared to approximately NIS 82.5 million in 2021. The increase in the turnover of the sector is due to an increase in sea freight prices. The segmental profit jumped by about 147% to about NIS 65.1 million, compared to about NIS 26.3 million in 2021.
In the port sector, revenues in the period amounted to approximately NIS 169 million, compared to approximately NIS 182.7 million in 2021. The change is due to lower availability of the wharf, which was used last year mainly to support gas operations. The sector’s profits amounted to approximately NIS 47 million, compared to approximately NIS 57.7 million in 2021.
The company’s operating profit in 2022 increased by approximately 34.2% to approximately NIS 178.1 million, compared to approximately NIS 132.7 million in 2021.
The EBITDA in the period increased by about 34.6% to about NIS 250 million, compared to about NIS 185.7 million in 2021.
In the period, the company recorded financing expenses, net of approximately NIS 26.3 million, compared to financing income, net of approximately NIS 3.7 million in 2021. This is due to the effects of the exchange rate on foreign exchange balances as well as an increase in interest expenses in the group.
In 2022, the company recorded an increase of approximately 34.9% in the net profit attributable to the shareholders in 2022 to approximately NIS 126.4 million, compared to approximately NIS 93.7 million in 2021.
The company’s equity, as of December 31, 2022, increased to a total of approximately NIS 864.1 million (of which approximately NIS 857.2 million is attributed to the shareholders).
The backlog of orders in the shipyard sector as of December 31, 2022 stands at approximately NIS 608 million, compared to a backlog of approximately NIS 964 million at the end of 2021, as a result of progress in the performance of works at the shipyard.
In the fourth quarter of 2022, revenues increased by approximately 39.8% to approximately NIS 378 million, compared to approximately NIS 270.3 million in the corresponding quarter in 2021. The increase is mainly due to the construction materials sector.
The company’s operating profit in the quarter amounted to approximately NIS 34.6 million, compared to approximately NIS 43.2 million in the corresponding quarter of 2021. The decrease is mainly due to an increase in administrative and general expenses, mainly due to the consolidation of the results of the companies Prima Cement and Onat Cement.
The company’s EBITDA in the quarter amounted to approximately NIS 57.4 million, compared to approximately NIS 56.6 million in the corresponding quarter in 2021.
The company recorded financing expenses, net in the quarter of approximately NIS 5.7 million, compared to financing income, net of approximately NIS 1.2 million in the corresponding quarter in 2021.
In the fourth quarter of 2022, the company recorded a net profit attributable to shareholders in the amount of approximately NIS 27.9 million, an increase of approximately 5% compared to approximately NIS 26.6 million in the corresponding quarter last year.
Zvika Shechterman, CEO of Israel Shipyard Industries: “We are concluding the year 2022 with excellent performance in all of the company’s core areas. Revenues grew to a record of about NIS 1.48 billion and alongside it the EBITDA also climbed to a record of about NIS 250 million. During the past year, the activity cycle of the shipyard sector doubled and at the same time we continued to implement the company’s strategy to diversify its areas of activity, while leveraging our geographic location on the waterfront as a platform for establishing strong activity anchors. Among other things, during the year we acquired the companies Prima Cement and Onat Cement, and the results of their activities were reflected in the second half of the year. At the same time, we continued to invest a lot of effort in promoting the construction of new strategic infrastructures that will serve the company to expand its activities in the coming years, such as the silo project, which is expected to be one of the most advanced and efficient in the world, to enable the company to operate in a new field of activity and contribute to its performance in the coming years, and additional investments such as the investment in a bitumen import facility. Looking ahead, we intend to continue working to expand the company’s activities and establish additional growth engines for the years to come.”