13 Dec 2013 07:00
For immediate release 13 December 2013
Global Ports Investments PLC
Global Ports approves 2014 CAPEX
Global Ports Investments PLC ("Global Ports" or the "Company", together with its subsidiaries and joint ventures, the "Group"; LSE ticker: GLPR) announces that the Board of Directors ("the Board") has approved the Group's capital expenditure (CAPEX) program for 2014.
Driven by the pending acquisition of NCC Group Limited, previously announced on 2 September 2013, following the completion of which significant additional capacity will be provided, the Group has been able to optimise its CAPEX plan. The Group's consolidated CAPEX for 2014 is expected to be about USD 36 million on a cash basis. Approximately 90% of CAPEX is expected to be spent in the Russian Ports segment and will include:
· Investments in both equipment replacement and in the yard storage area to ensure continuous reliable service levels and to create additional capacity in VSC. It is expected that VSC will be able to increase capacity to 650 thousand TEU or by 100 thousand TEU during the second half of 2014;
· Reconstruction of rail tracks and the acquisition of 76 flat cars to support the rapidly growing block train service organised by VSC;
· Further investment in PLP infrastructure to lay the groundwork for the next phase of capacity expansion including the reconstruction and expansion of PLP's internal railway infrastructure and road system, further upgrade of its electricity capacity and engineering work on infrastructure; and
· A further upgrade of the existing heavy Ro-Ro and car handling terminal at PLP.
ENQUIRIES
Global Ports Investor Relations
Mikhail Grigoriev
+357 25 503 163
Email: ir@globalports.com
Global Ports Media Relations
Anna Vostrukhova
+357 25 503 163
E-mail: media@globalports.com
StockWell Communications
Laura Gilbert/ Zoe Watt
+44 20 7240 2486
E-mail: globalports@stockwellgroup.com.
NOTES TO EDITORS
Global Ports Investments PLC is the leading operator of container terminals in the Russian market.
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 Nakhodka) and two container terminals in Finland (Multi-Link Terminals Helsinki and Multi-Link Terminals Kotka). Global Ports Group also owns 75% in Yanino Logistics Park, located in the vicinity of St. Petersburg, and a 50% share in the major oil product terminal, AS Vopak E.O.S., in Estonia.
Global Ports' consolidated revenue1 for the first six months 2013 was USD 249,135 thousand. Adjusted EBITDA2 for the first six months of 2013 was USD 137,709 thousand. The Russian Ports segment handled a total container throughput of approximately 707 thousand TEUs in the first six months of 2013 (excluding Yanino).
Global Ports major shareholders are Transportation Investments Holding Limited (operating under the brand name of N-Trans), one of the largest private transportation and infrastructure groups in Russia (37.5%), and APM Terminals B.V., whose core expertise is the design, construction, management and operation of ports, terminals and inland services with a global terminal network of 64 operating port facilities and 165 Inland Services operations, giving APM Terminals a global presence in 68 countries (37.5%). The remaining 25% of Global Ports shares are in public hands and held in the form of global depositary receipts listed on the Main Market of the London Stock Exchange (LSE ticker: GLPR).
On 2 September 2013, Global Ports announced that it had entered into binding arrangements to acquire (subject to certain conditions) 100% of the share capital of NCC Group Limited. NCC Group Limited, together with its subsidiaries, is an operator of two marine container terminals in the Russian Baltic basin and one in-land container facility in Leningrad region.
For more information please see: www.globalports.com.
LEGAL DISCLAIMER
Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" or the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions and that actual events or results may differ materially. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia and market change in the industries the Company operates in, as well as many other risks specifically related to the Company and its operations, including the completion of the acquisition of the NCC Group and the Company's ability to realise the benefits of that acquisition.
1 According to the interim condensed consolidated financial information of Global Ports as at and for the six months ended 30 June 2013.
2Adjusted EBITDA is defined as profit for the period before income tax expense, finance costs, finance income, depreciation of property,
plant and equipment, amortisation of intangible assets, other gains/(losses)-net, impairment charge of property, plant and equipment and impairment charge of goodwill.