GLOBAL PORTS APPROVES 2013 CAPEX AND ANNOUNCES SPECIAL DIVIDEND
Global Ports Investments PLC ("the Company" and, together with its subsidiaries and joint ventures, "Global Ports" or "the Group"), the leading container terminal operator serving Russian cargo flows (LSE ticker: GLPR) today announces that the Board of Directors ("the Board ") has approved the Group's capital expenditure (CAPEX) program for 2013 and resolved to recommend payment of a special dividend in February 2013 subject to approval at an Extraordinary General Meeting of shareholders ("EGM").
The Group's unconsolidated CAPEX for 2013 on a 100% and cash basis is expected to be USD 139 million. For the Russian Ports segment, CAPEX on a 100% and cash basis is expected to exceed USD 120 million in 2013 and will include:
· further investment in PLP infrastructure to lay the groundwork for the next phase of capacity expansion. This includes reconstruction and expansion of PLP's internal railway infrastructure and road system (including the inter-terminal access road to the Western High Speed Diameter), the addition of further electricity capacity, and engineering work on infrastructure, parking and the repairs area for the port's machinery;
· further upgrading of the existing heavy Ro-Ro and car handling terminal at PLP. The terminal is experiencing strong client demand, with the utilisation rate for the heavy Ro-Ro facilities at 73% during the first half of 2012. By continuing to upgrade the terminal, the Group will increase the level of service for its clients, enhance flexibility in Ro-Ro and cars handling as well as improve the safety of the operations;
· other projects aimed at facilitating further bulk cargo turnover growth and container throughput as well as increasing the bulk containerisation level; and
· the replacement of equipment, the reconstruction of rail tracks and maintenance at VSC.
For the Oil Products Terminal segment, CAPEX for 2013 on a 100% basis will be USD 18 million and will primarily consist of investments related to an increased amount of railway logistics services provided by Vopak E.O.S. to its clients, further improvement of interconnectivity of terminal facilities and other investments focused on maintenance, reliability and safety of the Group's operations.
Taking into account the approved CAPEX program, the Group's current liquidity position and low leverage, the Board has resolved to recommend a special dividend of USD79.9 million equal to USD 0.17 per share (both ordinary and ordinary non-voting) or USD 0.51 per GDR. The payment of the special dividend is expected to take place by the end of February 2013 subject to approval at the EGM. The dividend record date and ex-dividend date will be set later this month.
Considering the current high profitability and strong cash generation along with the established target gearing ratio of 1.5-2.0 times Net Debt/EBITDA, the Company envisages further enhanced dividend payments in the next 12 to 18 months subject to market developments and the external growth opportunities that may arise.
Nikita Mishin, Chairman of Global Ports, commented:
"Our high profitability and healthy cash flow generation, along with our moves towards a more efficient capital structure, enable us to pay higher dividends to our shareholders without compromising our ability to pursue growth for the future. Global Ports has made significant investments in its terminals in recent years and will soon commission additional capacity in Petrolesport which will increase the Group's container capacity in the Russian Ports segment by 20%. This investment has allowed the Company not only to strengthen its leading position in the fast-growing Russian container market but also to create sufficient reserve capacity to accommodate expected new container volumes without the need for significant additional investment in 2013. Therefore in the coming year we will be able to focus on investment in other areas of our operations while we lay the foundations for the next phase of container capacity development."
Global Ports Investments PLC is the leading operator of container terminals in the Russian market. Global Ports accounts for 30% of the total container volumes in Russian ports and 23% of the total exports of fuel oil from the former Soviet Union countries.
Global Ports' terminals are located in the Baltic and Far East Basins, key regions for foreign trade cargo flows. Global Ports operates three container terminals in Russia (Petrolesport and Moby Dik in St. Petersburg, Vostochnaya Stevedoring Company in the Vostochny Port) and two container terminals in Finland (Multi-Link Terminal Helsinki and Multi-Link Terminal Kotka). Global Ports group also includes Yanino Logistics Park located in the vicinity of St. Petersburg and a major oil terminal, Vopak E.O.S., in Estonia.
Global Ports' consolidated revenue for the six months ended 30 June 2012 was USD 255.7 million. Adjusted EBITDA for the year six months ended 30 June 2012 was USD 145 million.
The Group's Russian Ports segment handled a total container throughput of approximately 709 thousand TEUs in the first half of 2012 (excluding Yanino).
N-Trans group, one of the largest private transportation and infrastructure operators in Russia, owns 37.5% of Global Ports. APM Terminals also owns a 37.5% stake in Global Ports. Headquartered in The Hague, Netherlands, APM Terminal's core expertise is the design, construction, management and operation of ports, terminals and inland services with a Global Terminal Network of 56 operating port facilities and 155 Inland Services operations, giving APM Terminals a global presence in 64 countries.
In June 2011 Global Ports listed its GDRs on the Main Market of the London Stock Exchange (LSE ticker: GLPR).
Terms that require definitions are marked with capital letters in this announcement and definitions are provided below in alphabetical order:
PLP includes Petrolesport OAO, Farwater ZAO and various other entities (including some intermediate holdings) that own and manage a container terminal in St. Petersburg port, North-West Russia. The Group owns a 100% effective ownership interest in PLP. The results of PLP have been fully consolidated in the Group's report and consolidated financial statements for the year ended 31 December 2011.
Russian Ports segment consists of the Group's 100% interest in PLP, 100% interest in VSC, and 75% interest in Moby Dik and Yanino (in each of which Container Finance currently has a 25% effective ownership interest). The financial results of Moby Dik and Yanino are proportionally consolidated and the financial results of VSC are fully consolidated.
Ro-Ro, roll on-roll off: cargo that can be driven into the belly of a ship rather than lifted aboard. Includes cars, buses, trucks and other vehicles.
Oil Products Terminal segment consists of the Group's 50% ownership interest in Vopak E.O.S. (in which Royal Vopak currently has a 50% effective ownership interest).
Vopak E.O.S. includes AS V.E.O.S. and various other entities (including an intermediate holding) that own and manage an oil products terminal in Muuga port near Tallinn, Estonia. The Group owns a 50% effective ownership interest in Vopak E.O.S.. The remaining 50% ownership interest is held by Royal Vopak. The results of Vopak E.O.S. have been proportionally consolidated in the Group's report and consolidated financial statements for the year ended 31 December 2011.
VSC includes Vostochnaya Stevedoring Company OOO and various other entities (including some intermediate holdings) that own and manage a container terminal in Vostochny port near Nakhodka, Far-East Russia. The Group owns a 100% effective ownership interest in VSC.
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