News

17 July 2020

Global Ports Investments PLC H1 and Q2 2020 Operational 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 for H1 and Q2 2020.


H1 and Q2 2020 Operational results are also available at Investor page of Global Ports website www.globalports.com/en/investors/

Highlights

  • The Russian container market declined by 6.1% in 2Q 2020, compared to 2Q 2019, resulting in a 2.4% decline in 1H 2020 vs. 1H 2019, as growth of containerised export (y-o-y growth of 1.6% and 7.5% in 2Q20 and 1H20 respectively) was not sufficient to offset the decline of containerised import (y-o-y decline of 11.8% and 6.6% in 2Q20 and 1H20 respectively), as a result of the global and local macroeconomic impact of the COVID-19 outbreak.

  • The Group continued to outperform the market, with Consolidated marine container throughput up 5.5% to 380 thousand TEU in 2Q20, versus a 6.1% decline in the Russian container market over the same period. In addition, 1H20 Consolidated marine container throughput increased by 8.4% to 774 thousand TEU against the container market decline of 2.4% over the same period.

  • As a result of the Group’s efforts to increase productivity and customer service standards, the Group outperformed the market in both key basins where its terminals are located. Consolidated marine container throughput of the Group’s terminals located in the Baltic Basin increased by 1.4% in 2Q20 against a market decline of 16.2% in the same region, while Consolidated marine container throughput of the Group’s terminal located in the Far Eastern Basin increased by 17.0% in 2Q20 against a market growth of 9.2%.

  • Consolidated marine bulk throughput increased by 2% y-o-y to 1.17 million tonnes in 2Q20, with 1H20 growth of 12% y-o-y as coal handling at ULCT was in the early ramp-up stage in 1Q 2019 resulting in elevated y-o-y growth rates in 1Q20.

  • Car and high and heavy Ro-ro handling declined by 48% and 9% respectively y-o-y in 2Q20, reflecting the slowdown in Russian consumer demand.

Outlook

  • The rapid growth of containerised export has shifted the market towards an import-export balance, that increases market resilience and limits volatility – both trends were clearly seen in 1H2020 when the market demonstrated more steadiness than in 2009 and 2015. However, in 2Q20 we saw a decline in full container import and decelerating growth rates in full export on the back of the global and local macroeconomic turmoil following COVID-19 outbreak. We expect high volatility and this challenging environment to continue in 2H20 with low visibility of trends.

  • The growth of containerised export, on the back of the decline in containerised import, is having a negative impact on the mix of prices and services provided by the Group. When combined with the depreciation of the rouble, the Group now expects a high single-digit to low double-digit decline in revenue per TEU in 2020.

  • The Group remains focused on improving the quality of our services across every aspect of our activity.



Q2 2020 Q2 2019 Change
H1 2020 H1 2019 Change
Abs %
Abs %

 Global Ports Consolidated Results











Consolidated Marine Container Throughput (kTEU) 380 360 20 6%
774 714 60 8%
FCT 151 158 -8 -5%
322 320 1 0%
PLP 105 92 13 14%
213 168 44 26%
VSC 112 96 16 17%
213 197 16 8%
ULCT 13 14 -2 -12%
27 29 -2 -8%
Non-containerised cargo








Ro-ro (thousand units) 5 5 0 -9%
9 10 -1 -8%
Cars (thousand units) 16 30 -14 -48%
34 55 -22 -39%
Bulk cargo (thousand tonnes) 1 169 1 144 25 2%
2 197 1 963 234 12%

Joint ventures
Containerised cargo, kTEU








Finnish Ports 26 29 -3 -11%
51 56 -5 -10%
Yanino (inland terminal) 22 34 -12 -35%
46 62 -17 -27%
Bulk cargo throughput, thousand tonnes








Moby Dik 62 39 23 58%
118 57 61 106%
Yanino 64 118 -54 -46%
142 218 -76 -35%











Russian Container Market, kTEU











Total Market 1 219 1 298 -79 -6.1%
2 481 2 543 -62 -2.4%
Baltics (incl. Kaliningrad) 582 696 -113 -16.3%
1 217 1 340 -123 -9.2%
Northern Ports 34 33 1 1.8%
73 71 1 1.8%
South 193 194 -1 -0.7%
416 405 12 2.9%
Far East 410 376 35 9.2%
775 727 48 6.6%


Global Ports Investments PLC

Global Ports Investments PLC is the leading operator of container terminals in the Russian market by capacity and container throughput[1].

Global Ports’ terminals are located in the Baltic and Far East Basins, key regions for foreign trade cargo flows. Global Ports operates five container terminals in Russia (Petrolesport, First Container Terminal, Ust-Luga Container Terminal[2] and Moby Dik[3] in the Russian Baltics, and Vostochnaya Stevedoring Company in the Russian Far East) and two container terminals in Finland[4] (Multi-Link Terminals in Helsinki and Kotka). Global Ports also owns inland container terminal Yanino Logistics Park[5] located in the vicinity of St. Petersburg.

Global Ports’ revenue for 2019 was USD 361.9 million and Adjusted EBITDA was USD 226.9 million. Consolidated Marine Container Throughput was 1,439 thousand TEU in 2019.

Global Ports’ major shareholders are Delo Group, one of the largest private transportation and logistics holding companies in Russia (30.75%), and APM Terminals B.V. (30.75%), whose core expertise is the design, construction, management and operation of ports, terminals and inland services. APM Terminals operate a terminal network of 74 terminals globally. 20.5% of Global Ports shares are traded in the form of global depositary receipts listed on the Main Market of the London Stock Exchange (LSE ticker: GLPR).

For more information, please see: www.globalports.com

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