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Global Ports Investments PLC announces 2019 Interim Results
2019 Interim Results
Global Ports Investments PLC (“Global Ports” or the “Company”, together with its subsidiaries and joint ventures, the “Group” or the “Global Ports Group”; LSE ticker: GLPR) today announces its operational results and publishes its interim condensed consolidated financial information (unaudited) for the six month period ended 30 June 2019.
Certain financial information which is derived from the management accounts is marked in this announcement with an asterisk {*}. Information (including non-IFRS financial measures) requiring additional explanation or terms which begin with capital letters and the explanations or definitions thereto are provided at the end of this announcement.
For the full version of the 2019 Interim Results announcement please click here.
1H 2019 RESULTS SUMMARY
- Revenue up 3.4% to USD 181.2 million (+6.5% like-for-like[1])
- Adjusted EBITDA of USD 116.0 million (+6.7% y-o-y)
- Adjusted EBITDA margin improved to 64% (+201 bp)
- Profit for the period of USD 36.2 million (loss of USD 3.3 million in 1H 2018)
- Free Cash Flow increased 2.4% to USD 74.4 million
- Consolidated marine container throughput up 4.9% to 714 thousand TEU against 4.7% growth in Russian container market in the same period
- Consolidated bulk throughput of 1,963 thousand tonnes (+22.9%)
- Net Debt to Adjusted EBITDA decreased to 3.5x (-0.1x compared to 31 December 2018)
Vladimir Bychkov, CEO of Global Ports Management, commented:
“Global Ports has delivered a solid performance in the first half. Both the container and non-container segments of our businesses are performing well, resulting in steady growth and enabling us to continue deleveraging.
“We continue to see rapid growth of containerised export. In the first half of 2019, full dry container export exceeded full dry container import by 13% in the Big Port of Saint-Petersburg – an exceptional result in a market that was completely import-driven only a few years ago. We are very excited to see this trend as it reduces volatility in the market, improves capacity utilisation, and opens up additional opportunities for well-equipped large specialised terminals with good railway infrastructure, such as ourselves. Accordingly, in the first half of the year, we have focused on offering our clients excellent productivity at our terminals and unrivalled customer service to ensure that we’re well placed to benefit from this trend. These areas will remain our key priorities going forward.
“We approach the second half of the year with cautious optimism. While we see some cooling down in the growth rates of import, we expect to see further growth in full container export, which will provide further support to the market.”
Group financial and operational highlights for the six months ended 30 June 2019
Unless otherwise stated, all comparisons below are for the six month period corresponding to 1H 2019 with comparisons to 1H 2018.
Operational Highlights
- The Russian container market grew 4.7% in the first half of 2019 driven by the growth of full container export of 7.7% and supported by growth in full container import of 2.7%, resulting in total Russian container market throughput of 2.54 million TEU.
- The Group’s Consolidated Marine Container Throughput increased 4.9% to 714 thousand TEU.
- Consolidated Marine Bulk Throughput increased by 22.9% to 1.96 million tonnes driven by growth in bulk cargoes at PLP and ULCT.
Financial Highlights
- Consolidated revenue increased by 3.4% to USD 181.2 million. 1H 2018 consolidated revenues included revenues of USD 5.2 million* attributable to Logistika Terminal (LT[2]), which was consolidated in 1H 2018. Excluding the impact of LT, like-for-like revenue grew by 6.5% driven by an increase in both container and non-container revenue.
- In line with the statement made in March 2019, like-for-like Revenue per TEU decreased by 1.9% to USD 182.9*.
- Gross profit increased 5.6% to USD 110.5 million.
- Adjusted EBITDA increased by 6.7% to USD 116 million* mainly due to the growth in throughput and strict cost control.
- Adjusted EBITDA margin expanded by 201 bp from 62.0%* in the first half of 2018 to 64.0%* in the first half of 2019.
- Profit before income tax for the six month period was USD 55.8 million compared to a Loss before income tax of USD 0.2 million in the first half of 2018. This was mainly driven by the depreciation of the Russian rouble in the first half of 2018 which resulted in a loss on revaluation of US dollar-denominated borrowings (from Group and non-Group entities) due to the Group’s Russian subsidiaries having the Russian rouble as their functional currency.
- The Group’s capital expenditure was USD 5.7 million and was focused on planned maintenance projects, scheduled upgrades of existing container handling equipment and customer service improvement initiatives. Total maintenance CAPEX for 2019 is expected to remain in line with the Group’s mid-term guidance of USD 30-35 million per annum.
- The Group reduced Net Debt by USD 1.8 million* over the six month period. As a result of the adoption of IFRS 16 standards, the Group recognised USD 23.4 million* of lease liabilities into Total and Net Debt as at 30 June 2019. Adjusted for IFRS 16, Net Debt decreased by USD 25.2 million* to USD 755.2 million*. The Group continues to prioritise deleveraging over dividend distribution.
- Net Debt to Adjusted EBITDA decreased from 3.6x* to 3.5x*.
- In April 2019 the Group sold its stake in the VEOS, the oil products terminal, to Liwathon. As a result of this transaction the Group reported USD 11.8 million proceeds in the Statement of Cash Flow and a loss of USD 33.5 million in Other gain-losses in the Profit & Loss Statement that was reclassified from the currency translation reserve. This is the amount related to VEOS that was previously recognised in other comprehensive income and accumulated in the equity.