LONDON (Alliance News) - Global Ports Holding PLC on Friday reassured investors about its exposure to Turkey's currency crisis as it posted narrowed loss for the first half of the year.
Global Ports which has investments in four ports in Turkey, and said only the costs from the ports are generated in Turkish lira, while revenue is in euros.
"Despite significant volatility in Turkish lira during this period, business has not been affected because we are a global business with over 95% of revenues in hard currency," the company explained.
Global Ports went on to add despite the volatility in the Turkish currency, the effect on its earnings has been "immaterial", as 51% of its revenue for the first half had been generated in euros and 49% in dollars, with "negligible amounts in Turkish lira".
The Turkish currency plunged last week after the US imposed tariffs on Turkish steel and aluminium imports. The trade tensions between the two countries are currently ongoing with both exchanging new threats of sanctions on Friday.
US President Donald Trump imposed the sanctions after taking issue with the continued detention in Turkey of American pastor Andrew Brunson, who faces 35 years in prison on espionage and terror-related charges.
Turning to interim results, for the six months to June 30 the port operator reported a USD2.1 million pretax loss, narrowed compared to USD6.5 million a year ago. The loss was mainly due to a USD16.0 million amortisation expense in relation to port operation rights, Global Ports explained.
Total revenue increased to USD56.6 million from USD49.7 million last year. At constant currency, revenue was up to USD53.4 million, the company said.
Cruise revenue increased by 21% to USD22.4 million from USD18.5 million a year ago, while revenue in the company's Commercial division was up 9.3% to USD34.2 million from USD31.3 million.
In Cruise, the company reported passenger growth of 6.2% year-on-year with 1.6 million passengers handled in the half-year period, on the back of a strong performance from the Barcelona and Malaga ports, which delivered more than half of the division's revenue at USD13.3 million.
Earnings before interest, taxes, depreciation and amortisation jumped 20% to USD36.1 million from USD29.9 million in the comparative year ago period.
Global Ports declared an interim dividend of 27.9 cents per share in respect of the first-half, in line with last year's interim dividend, which was declared in sterling at 21.6 pence.
Global Ports said current trading has been in line with management views and it now expects to deliver annual results towards the upper end of its "mid to high single digit organic growth" in revenue and consolidated Ebitda.
Additionally, the company said it expects to report a profit in 2019.
Global Ports shares were trading up 3.3% at 506.00p each on Friday.
Global Ports (GPH)