The Israel Shipbuilding Industries Company today reported its results for the third quarter and the first nine months of 2021. The company first issued its shares on the Tel Aviv Stock Exchange in September 2020.
Revenues for the quarter increased by about 13.8% to about234.6 NIS million, compared with NIS 206.1 million in the corresponding quarter last year. In the shipyard sector, revenues increased by 10.5% to NIS 52.3 million, compared with NIS 47.3 million in the corresponding period last year. The increase in revenues from the shipyard segment is due to an increase in the volume of projects under construction compared to the corresponding period last year.
In the port sector, revenues increased by 13.5% to NIS 45.2 million, compared with NIS 39.8 million in the corresponding quarter last year. The increase in revenues is due to a change in the product mix and an increase in cargo unloading compared to the corresponding period last year.
In the cement sector, revenues rose to NIS 114.8 million in the quarter, compared with NIS 112.3 million in the corresponding quarter last year. The increase in turnover in the cement sector is due to an increase in the quantity sold compared to the corresponding quarter last year. The decrease in profitability is due to an increase in the cost of the average raw material per ton as well as an increase in the cost of transportation, while the average selling price remains almost unchanged.
The company’s operating profit grew by 34.7% to NIS 33.2 million, compared with NIS 24.7 million in the corresponding quarter last year. The company ended the third quarter of 2021 with an increase of 41.3% in net profit to NIS 26.2 million (NIS 23.8 million attributable to shareholders), compared to a net profit of NIS 18.5 million (NIS 16.4 million attributable to shareholders In the corresponding quarter last year.
The backlog of orders in the shipyard sector as of September 30, 2121 increased to NIS 824.4 million, compared with a backlog of NIS 262 million at the end of 2020. As of the publication of the report, the backlog of orders increased to NIS 867 million.
Zvika Schechterman, CEO of Israel Shipbuilding Industries: “We conclude the third quarter with growth and a sharp increase of over 40% in net profit, results that reflect the steps we have taken to streamline operations and maximize operational flexibility, combined with the surge in maritime transport. Our activity diversification strategy is proving itself and enabling the company to enjoy consistent long-term growth.
In the cement sector, we worked to increase our holdings in the two companies under our control, Cement and Isco, a move that would allow us to enjoy a larger share of cement operating profits, which is a significant growth engine for the company, while the cement industry enjoyed increased demand and accelerated growth.
In the port activity sector, we continue to present world-class efficiency, which is reflected in the volume of cargo unloading per ton in relation to the size of the port, and we continue to operate in a ’24/7 format, with maximum occupancy, to help the economy cope with congestion at Israeli ports. This was reflected in both an increase in the volume of activity and an increase in profitability.
“World transport prices continue to provide a strong boost to our activity in the field of maritime transport, in which we currently operate a fleet that includes 9 ships, including a ship with a capacity of about 37.5 thousand tons. In addition, we own 4 ships dedicated to transporting cement, of which 3 ships are used by the subsidiary Cement and another ship, which operates to transport cement for third parties.
In the shipyard sector, we continued to increase our order backlog, by receiving new orders from the Ministry of Defense and from customers in the international markets. The backlog has increased to over NIS 800 million.
These days we continue to develop the company’s growth engines, including the construction of the silo facility for the absorption of nuclear cargo, entry into the areas of bitumen and gypsum, as well as our participation in the tender for the privatization of Haifa Port together with our partner DP WORLD From Dubai. At the same time, we are working in all sectors of activity to locate new deals to establish the company’s continued growth. “
The company’s total revenues in the first nine months of 2021 increased by 21.3% to NIS 674.8 million, compared with NIS 556.3 million in the corresponding period last year. The increase in revenue is due to an increase in the shipyard segment, mainly as a result of signing an agreement with a customer, an increase in the cement segment as a result of an increase in the quantity sold, an increase in the other segment and the port activity.
Operating profit increased by 15.6% to NIS 89.5 million, compared with NIS 77.5 million in the corresponding period last year. The net profit in the first nine months of 2021 increased by 20.1% to NIS 71.6 million, compared with NIS 59.6 million in the corresponding period last year.