Sotrapil's Revenue and Volumes Slightly Increase in Q2 2024
In the second quarter of 2024, Sotrapil's transportation revenue experienced a slight increase of 1.1%, reaching 3,897 Mtnd. Similarly, the quantities transported also saw a 1.0% increase, totaling 415,975 m3. The Bizerte-Radès pipeline continued to show lower volumes (365,176 m3, generating revenue of 3,322 Mtnd), while the Jet A1 Radès-Tunis Carthage pipeline saw higher quantities (50,800 m3, with revenue of 0,442 Mtnd).
First Half of 2024: Revenue Down 10.1%
Despite the slight increase in Q2, Sotrapil's overall revenue for the first half of 2024 decreased by 10.1%, reaching 7,249 Mtnd. This decline is attributed to a 10.9% decrease in transported quantities, totaling 772,034 m3. The decrease in volumes is mainly due to the Bizerte-Radès pipeline (-13.4%, to 684,247 m3), which was affected by the suspension of sulfur-free diesel transportation starting in November 2023, as part of maintenance works on storage tanks at the Bizerte refinery. On the other hand, the Jet A1 pipeline saw an improvement in volumes (+14.3%, to 87,710 m3), benefiting from increased traffic at Tunis-Carthage Airport.
Operating Results and Financials
The company's semi-annual operating results did not benefit from a positive litrage position, with a negative balance of -0.361 Mtnd, compared to 2,001 Mtnd in the first half of 2023. Operating expenses totaled 5,017 Mtnd, up from 4,718 Mtnd the previous year. Financial products stood at 2,833 Mtnd. These factors indicate a decrease in net income for the first half of 2024, but this is not a cause for concern. The company has a solid business model, with a recurrent dividend distribution (1,400 Tnd/action for the 2023 fiscal year), making it an attractive investment opportunity for passive investors.
