GLPR.L Regulatory News (GLPR)

For immediate release 12 September 2011

Global Ports Investments PLC

Interim Results for the six months ended 30 June 2011

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 its interim results for the six months ended 30 June 2011.

Certain financial and operational 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 defining is marked with initial capital letters and the explanations or definitions thereto are provided at the end of this announcement.

SUMMARY

In the first six months of 2011 Global Ports outperformed the overall Russian container market, capturing a significant part of the incremental market growth. This was driven by completed investments ensuring availability of capacity to meet market demand along with a number of commercial initiatives. This strong operational performance was successfully converted into an excellent set of first-half financial results.

Group financial highlights

§ First-half consolidated revenue rose 57% period on period to USD 259.7 million reflecting strong growth in container handling throughput, improved average pricing as well as changes in the mix of services provided;

§ Strict cost management and significant operating leverage resulted in Group costs increasing significantly less than the increase in revenues with the total cost of sales, selling and administrative expenses up just 28% period on period to USD 144.9 million;

§ Adjusted EBITDA climbed 82% period on period to USD 145.0* million;

§ Adjusted EBITDA Margin reached 56%* compared to 48%* in the first six months of 2010;

§ Profit for the period almost doubled to USD 82.4 million. Earnings per share [1] were USD 0.17 in the first six months of 2011 compared to USD 0.09 in the same period the previous year;

§ ROCE increased to 21%* in the first six months of 2011 compared to 9%* in the same period the previous year;

§ CAPEX on a cash basis increased by USD 37.4 million period on period to USD 49.1 million reflecting accelerated investments in capacity expansion;

§ The Group continued to deleverage with Net Debt down 52% to USD 66.5* million at 30 June 2011 compared to USD 139.9* million at the end of 2010. Net Debt to LTM Adjusted EBITDA was only 0.2x* at 30 June 2011 compared to 0.7x* at the end of 2010;

§ On the basis of strong financial results, the Board of Directors approved the distribution of an interim dividend of USD 28.2 million [2] for the first six months of 2011 (USD 0.18 per GDR).

Operational highlights

§ Global Ports' Russian Ports segment delivered record growth in Gross Container Throughput, up 71% period on period to approximately 69* thousand TEUs in the first six months of 2011, significantly outperforming the overall Russian market:

Ø Container Throughput in the Russian Federation Ports rose 42% period on period to approximately 2.2 million TEUs in the first six months of 2011 driven by deferred consumer demand and ongoing economic recovery;

Ø Global Ports' market share [3] of overall Container Throughput in the Russian Federation Ports rose to 30%* in the first six months of 2011 from 25%* in the same period in 2010.

§ Global Ports' Oil Products Terminal segment's Gross Throughput remained steady period on period at 8.8* million tonnes in the first six months of 2011 despite the facility being increasingly refocused on value-added services rather than simple throughput.

Nikita Mishin, Chairman of the Board of Directors of Global Ports, commented:

"Having successfully completed the London IPO of Global Ports in June this year, I am delighted we are able to deliver such an impressive set of operational and financial results in our first reporting period as a public company. Our well-timed capacity expansion and our premium service offering, combined with strong customer demand, enabled us to significantly outperform the market and gain market share. A nearly two-fold increase in our profits was the result of a record performance from our operations and careful cost management. With our high-quality customer base, diversified business profile, strong balance sheet and clear, focused expansion programme, we are well positioned to continue this growth and to strengthen our market leadership."

OUTLOOK

While there is uncertainty about the outlook for the global economy, Global Ports has a track record of having successfully navigated the recent financial crisis. With a market-leading position in one of the world's key developing economies, Global Ports is on solid footing to capitalise on growth opportunities going forward, particularly in the under-penetrated and fast-growing Russian container market.

Global Ports, owning well invested terminals, consolidated its market-leading position in Russian container handling during the first six months of 2011. In addition to having available capacity for container handling volume growth in 2011 and 2012, the Group has secured future expansion potential which will be developed subject to market demand.

Downloads 

Interim condensed consolidated financial information (unaudited) for the six month period ended 30 June 2011 is available for viewing at www.globalports.com.

[1] Basic and diluted earnings per share for profit attributable to the owners of the Company during the period.

[2] Calculated excluding USD 25 million already paid in June 2011. Each GDR represents an interest in three ordinary shares.

[3] Market share calculated as Global Ports' Russian Ports segment's Gross Container Throughput in corresponding period divided by Container Throughput in the Russian Federation Ports in the same period. Sourced from ASOP ("Association of Sea Commercial Ports", www.morport.com).

GROUP FINANCIAL PERFORMANCE

FIRST-HALF FINANCIAL RESULTS SUMMARY

The following table sets forth the Group's key financial information for the six months ended 30 June 2011and 2010.

Revenue

The Group's revenue in the first six months of 2011 rose 57% or USD 94.1 million to USD 259.7 million compared to the same period of the previous year. This increase was driven primarily by the Russian Ports segment reflecting a significant rise in container handling throughput.

In the first six months of 2011 the Russian Ports segment contributed 66% of Group revenue, with the Oil Products Terminal segment and Finnish Ports segment accounting for 30% and 4% respectively.

The following table sets out the Group's revenue by operating segments adjusted for the effect of proportionate consolidation.

The Group's revenue is discussed in greater detail in the Analysis by Operating Segment section that follows.

Cost of sales

The Group's cost of sales in the first six months of 2011 increased by 25% or USD 25.0 million to USD 123.3 million compared to the same period of the previous year, driven largely by increased staff costs, transportation expenses and fuel, electricity and gas expenses.

In particular, staff costs increased due to growth in the variable part of salaries as a result of increased throughput, higher number of key personnel as well as wage inflation - factors which were partially offset by increased outsourcing of auxiliary personnel. The increase in transportation expenses resulted largely from growth in container throughput in the Russian Ports segment. Fuel, electricity and gas expenses increased due to higher average utilities' prices and increased throughput in the Russian Ports segment.

Administrative and selling expenses

The Group's total administrative and selling expenses in the first six months of 2011 increased by 45% or USD 6.7 million to USD 21.6 million compared to the same period of the previous year driven primarily by staff costs, legal, consulting and other professional services expenses. In particular, staff costs increased mainly due to general increases in wages and salaries as well as a higher number of employees. The rise in legal, consulting and other professional services expenses primarily reflects expenses associated with the Initial Public Offering and listing of Global Depositary Receipts of the Company on the London Stock Exchange in June 2011.

Operating Profit

The majority of key cost items grew less than the overall increase in business volumes reflecting continued strong cost control and significant operating leverage. As a result, operating profit increased by 113% period on period to USD 116.0 million during the first six months of 2011.

Finance income / (costs) - net

In the first six months of 2011 the Group recorded net finance income of USD 2.8 million compared to a net finance loss of USD 6.0 million in the same period of the previous year. This was principally due to:

§ An increase in net foreign exchange gains on borrowings and other financial items of USD 7.3 million compared to the same period last year, primarily reflecting appreciation of the Russian rouble against the US dollar;

§ A decrease in interest expenses of USD 1.1 million, arising from a lower overall level of indebtedness and lower average interest rates in the first six months of 2011 compared to the same period of the previous year.

Profit before income tax

Profit before income tax increased 145% or USD 70.2 million to USD 118.8 million compared to the same period the previous year, due to the factors discussed above.

Income tax expense

Income tax expense rose from USD 7.2 million in the first six months of 2010 to USD 36.4 million in the first six months of 2011, an increase of USD 29.3 million or 407%. This was in large part driven by (i) a non-recurring deferred tax charge on the Oil Products Terminal segment's distributable retained earnings due to change in management's intentions concerning payment of the future dividends and (ii) an increase in profit before income tax as described above.

Profit for the period

Profit for the period increased 99% or USD 41.0 million to USD 82.4 million compared to the same period of the previous year due to the factors described above.

Adjusted EBITDA (Non-IFRS financial measure)

The Group's Adjusted EBITDA increased 82% to USD 145.0* million compared to the first six months of 2010 reflecting the strong growth in revenues and strict cost management as described above.

The Group's profitability improved with the Adjusted EBITDA Margin increasing to 56%* compared to 48%* in the first six months of the previous year reflecting implemented cost control measures as well as the significant operating leverage of the Group's business.

Liquidity and capital resources

The Group's liquidity needs arise primarily in connection with the capital investment programmes of each of its operations as well as their operating costs. In the period under review, the Group's liquidity needs were met primarily by revenues generated from operating activities as well as through borrowings. The management of the Group expects to fund its liquidity requirements in both the short and medium term with cash generated from operating activities, borrowings and the proceeds from the Initial Public Offering.

Cash Flows

[4] USD 26,000.

[5] "Other" represents the sum of the following IFRS line items: "proceeds from sale of property plant and equipment", "loans granted to related parties", "loans granted to third parties", "loan repayments received from related parties", "interest received from third parties, bank balances and deposits".

[6] Defined as the balance between "proceeds from borrowings", "repayments of borrowings" and "finance lease principal payments to third parties".

Net cash from operating activitiesrose from USD 63.5 million in the first six months of 2010 to USD 114.7 million in the first six months of 2011, an increase of USD 51.2 million or 81%. This was primarily driven by the strong performance of the underlying business.

Net cash used in investing activitiesincreased USD 26.9 million or 369% period on period to USD 34.2 million in the first six months of 2011, reflecting accelerated investments in the expansion of the Group's terminal capacity and the purchase and renovation of equipment. In addition, the Group acquired a leasehold title to a plot of land adjacent to the existing terminal sites (reflected in purchases of intangible assets).

Net cash from financing activitiesamounted to USD 24.7 million in the first six months of 2011. This consisted primarily of the following:

§ Net proceeds from the issue of shares of USD 96.6 million;

§ Net cash outflows from borrowings and financial leases [7] of USD 31.5 million reflecting mainly cash outflow from repayment of borrowings and finance lease principal payments, offset in part by proceeds from borrowings;

§ Interest paid of USD 10.5 million;

§ Dividends paid to non-controlling interests of USD 5.0 million;

§ Dividends paid to the owners of the Company of USD 25.0 million.

[7] Defined as the balance between "proceeds from borrowings", "repayments of borrowings" and "finance lease principal payments (to third parties)".

Capital expenditures (on a cash basis)

The Group's capital expenditures on a cash basis in the first six months of 2011 were USD 49.1 million, increasing by USD 37.4 million compared to the same period the previous year, reflecting the accelerated expansion of its terminal facilities and the purchase and renovation of equipment.

The Russian Ports segment's capital expenditures on a cash and 100% basis increased by USD 32.1 million period on period to USD 46.0 million in the first six months of 2011 and were primarily used to finance construction of a new reefer container yard and a new customs inspection zone at PLP, construction of the railway in VSC, infrastructure construction projects in PLP and the purchase of new handling equipment.

The Oil Products Terminal segment's capital expenditures on a cash and 100% basis remained broadly flat at USD 6.8 million in the first six months of 2011, down USD 0.2 million compared to the same period of the previous year. The majority of investments were used to finance the construction of a truck loading rack, start of construction of new additional railcar unloading facilities and construction of additional pipelines.

The Finnish Ports segment's capital expenditures on a cash and 100% basis rose USD 0.6 million period on period to USD 0.7 million in the first six months of 2011, reflecting primarily the purchase of handling equipment and of spare parts for handling equipment.

Capital resources

The Group's financial indebtedness consisted of bank borrowings, loans from third parties and finance lease liabilities in an aggregate principal amount of USD 222.0 million at 30 June 2011, representing an increase of USD 15.3 million or 7% compared to the end of 2010.

As at 30 June 2011, the Group had USD 155.5 million in cash and cash equivalents.

The Group's Net Debt declined by USD 73.5 million or 52% to USD 66.5* million at 30 June 2011 compared to the end of 2010. Net Debt to LTM Adjusted EBITDA ratio decreased to 0.2x* at 30 June 2011 compared to 0.7x* at the end of 2010.

The Group's weighted average effective interest rate was 6.1%* as at 30 June 2011 compared to 6.9%* as at 31 December 2010.

As at 31 December 2010 and 30 June 2011, the carrying amounts of the Group's borrowings were denominated in the following currencies.

The following table sets forth the maturity profile of the Group's borrowings (including finance leases) as at 30 June 2011.

ANALYSIS BY OPERATING SEGMENTS

The following table sets forth the Group's key operational information for the six months ended 30 June 2011and 2010.

[8] Gross Throughput is shown on a 100% basis for each terminal, including terminals held through joint ventures and proportionally consolidated.

[9] Excluding the container throughput of the Group's inland container terminal, Yanino, which was 16* thousand TEUs in the first six months of 2010 and 39* thousand TEUs in the first six months of 2011.

[10] Excluding the bulk cargo throughput of the Group's inland container terminal, Yanino, which was 75* thousand tonnes in the first six months of 2010 and 107* thousand tonnes in the first six months of 2011.

Russian Ports segment

Operational performance

During the first six months of 2011, the Group's Russian Ports segment significantly outperformed the market, with container throughput growing at a faster rate delivering increases in market share. For the overall Russian container market, there was strong growth in the first six months of 2011 with Container Throughput in the Russian Federation Ports increasing by 42% period on period to approximately 2,221 thousand TEUs. This performance reflects certain catch up effects as well as the recovery of the Russian economy. Russian GDP grew 3.7% [11] in the first six months of 2011 compared to the same period of the previous year.

In comparison, the Group's Russian Ports segment's container terminals reached a Gross Container Throughput of approximately 669* thousand TEUs in the first six months of 2011, which represented growth of 71% period on period well ahead of the overall Russian market. As a result, the Group's container terminals market share [13] of the overall Container Throughput in the Russian Federation Ports grew from 25%* in the first six months of 2010 to 30%* in the same period of 2011.

Gross Container Throughput increased across all the Group's terminals with both PLP and Moby Dik (located in the Baltic Sea Basin) delivering a 77% and 78% increase respectively, and VSC (located in the Far East Basin) posting a 55% increase. Along with traffic growth as part of the commercial campaign in late 2010 the Group achieved price increases for container handling and storage. As a result revenue growth has outperformed the throughput growth dynamics.

The container capacity utilization [14] of the Russian Ports segment improved to 69%* in the first six months of 2011.

The strong performance was driven primarily by significant investments made into capacity expansion in 2008-2011 enabling the Group to capture a significant part of the market growth and win market share. In addition, the Group retained its strong customer focus, implementing a number of commercial initiatives in order to improve its positioning and customer segmentation, including, but not limited to:

§ PLP attracted new weekly services from global liner operators including CMA CGM, MSC and OOCL. In addition, PLP handled the only two regular mainline services calling at St. Petersburg being the ECUBEX service from South America and the MARUS service from Morocco both of which are heavily involved in the lucrative reefer sector of the business.

§ Moby Dik attracted two new services from Unifeeder and Maersk Line.

§ VSC continued to enjoy strong support for its dedicated block train services to Western Siberia, Urals and central Russia and has attracted new direct services from mainland China by Sasco and Maersk Line.

Traditional Ro-Ro and cars throughput increased 74% and 90% respectively in the first six months of 2011 compared to the same period last year driven by growth in the construction and agriculture sectors and a very strong rebound in passenger car sales in Russia. As a part of the long-term development plan to focus on containerised cargo, handling of dry bulk cargo and refrigerated bulk cargo declined 21% and 53% respectively. In 2010 PLP commissioned a new container yard for refrigerated containers, which will be further expanded in the course of 2011.

The inland container terminal Yanino continued expanding its customer base and increasing throughput, recording growth with container throughput up 148% and gross bulk cargo throughput up 43% compared to the same period the previous year. The regular block train service to PLP and Moscow is now being offered to the Group's customers.

[11] Source: Rosstat

[12] Ministry of Economic Development

[13] Market share calculated as Global Ports' Russian Ports segment' Gross Container Throughput in corresponding period divided by Container Throughput in the Russian Federation Ports in the same period. Sourced from ASOP ("Association of Sea Commercial Ports", www.morport.com).

[14] Container capacity utilization is defined as annualized container throughput for the corresponding period (for the half-year period, container throughput in first six month of respective year multipled by two) divided by annual container handling capacity for the period. It excludes the Group's inland container terminal, Yanino.

Financial performance

The Russian Ports segment consists of the Group's 100% interest in PLP, 75% interest in VSC (with DP World having 25% interest), 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.

Revenue

The Russian Ports segment's revenue increased 87% or USD 82.7 million period on period to USD 177.9 million in the first six months of 2011.

Revenue from container handling, the key revenue driver for the segment contributing 77% of segment revenue in the first six months of 2011, increased by 90% period on period to USD 136.5* million. This reflected strong growth in container throughput across all terminals as well as an increase in the average price and mix of these services.

Other revenue, accounting for 23% of the segment's revenue, increased 78% period on period to USD 41.5* million supported by an increase in Ro-Ro cargo and car handling throughput along with increased prices for these services.

The following table sets forth the components of the Russian Ports segment's revenue for the six months of 2011 and 2010.

Total cost of sales, administrative, selling and marketing expenses

The Russian Ports segment's total cost of sales, administrative, selling and marketing expenses increased 34% period on period to USD 92.0 million in the first six months of 2011 reflecting significantly higher throughput which was partially offset by continued cost control.

The 5% appreciation of the average exchange rate of the Russian rouble against the US dollar additionally increased the US dollar value of the segment's costs denominated primarily in Russian roubles.

In particular, staff costs, accounted for 35% of the segment's total cost of sales, administrative, selling and marketing expenses in the first six months of 2011, up 40% or USD 9.0 million period on period to USD 31.7 million primarily due to growth in the variable parts of salaries as a result of increased throughput, wage inflation and an increase in the rate of unified social tax in Russia, offset in part by a reduction in the number of employees arising from the staff optimisation measures.

Depreciation of property, plant and equipment, accounted for 23% of the segment's total cost of sales, administrative, selling and marketing expenses in the first six months of 2011, up 10% or USD 1.9 million period on period to USD 21.2 million due to new property, plant and equipment put into operation.

Transportation expenses accounted for 7% of the segment's total cost of sales, administrative, selling and marketing expenses in the first six months of 2011, up 105% or USD 3.5 million period on period at USD 6.7 million, primarily due to the increase in throughput, increased railway operation of VSC and inflation.

Fuel, electricity and gas, contributed 6% of the segment's total cost of sales, administrative, selling and marketing expenses in the first six months of 2011, up 78% or USD 2.5 million period on period to USD 5.7 million, primarily due to the increased throughput and higher prices for these supplies.

Total Other Operating Expenses(non-IFRS financial measure) aggregating other operational cost items, accounted for 29% of the segment's total cost of sales, administrative, selling and marketing expenses in the first six months of 2011, up 33% or USD 6.5 million period on period.

Adjusted EBITDA (Non-IFRS financial measure)

The segment's Adjusted EBITDA increased 124% to USD 110.8* million compared to the first six months of 2010 reflecting the factors described above.

The segment's profitability improved with the Adjusted EBITDA Margin increasing to 62%* compared to 52%* in the first six months of the previous year which reflects in particular significant operating leverage in the segment's business and implemented cost control measures.

Oil Products Terminal segment

Operational performance

The Gross Throughput of this segment remained steady period on period at 8.8* million tonnes in the first six months of 2011. At the same time VEOS handled a broader range of oil products including VGO and jet fuel. VEOS continued to convert its business model from a simple throughput terminal to a sophisticated hub terminal, increasing its focus on service offerings which add more value to clients rather than on simple throughput. These services include segregated unloading and storage allowing clients to store different fuel grades and blend them at the right time to the right blend thereby attracting the highest value in the market at a given time. VEOS continued to be the terminal of choice for leading oil majors and traders with its reliable and consistent performance providing many oil refineries a secure export outlet along with the opportunity to accept VLCCs calls.

Improved terminal infrastructure resulting from the ongoing CAPEX programme enabled a higher level of interconnectivity, expanding the range and level of terminal services.

Financial performance

The Oil Products Terminal segment consists of the Group's 50% ownership interest in VEOS (in which Royal Vopak currently has a 50% effective ownership interest). The results of the Oil Products Terminal segment are proportionally consolidated, but are included in the segment figures and discussion below on a 100% basis.

Revenue

Oil Products Terminal segment's revenue increased 21% or USD 26.4 million period on period to USD 154.6 million in the first six months of 2011 on the back of steady volumes. This was primarily driven by increased diversification of cargoes as well as clients driving an increase in average pricing. Appreciation of the average exchange rate of Euro against US dollar of 6% in the first six months of 2011 contributed as well to the revenue growth as the bulk of the VEOS revenues are Euro denominated.

Total cost of sales, administrative, selling and marketing expenses

The Oil Products Terminal segment's total cost of sales, administrative, selling and marketing expenses increased 13% or USD 9.4 million period on period to USD 84.3 million in the first six months of 2011 primarily due to an increase in major cost items as well as a 6% average appreciation of the Euro against the US dollar in the period, which increased the US dollar value of the segment's costs denominated primarily in Euros.

In particular, Staff costs, accounted for 16% of the segment's total cost of sales, administrative, selling and marketing expenses in the first six months of 2011, and was up 16% or USD 1.9 million period on period to USD 13.3 million partly due to an increase in wages and salaries as well as higher number of employees.

Transportation expenses accounted for 44% of the segment's total cost of sales, administrative, selling and marketing expenses in the first six months of 2011, up 6% or USD 2.2 million period on period to USD 37.0 million.

Fuel, electricity and gas, contributed 18% of the segment's total cost of sales, administrative, selling and marketing expenses in the first six months of 2011, up 18% or USD 2.2 million period on period to USD 15.0 million, due in part to an increase in average prices for fuel and electricity.

Depreciation of property, plant and equipment, responsible for 12% of the segment's total cost of sales, administrative, selling and marketing expenses in the first six months of 2011, rose 16% or USD 1.4 million period on period to USD 9.7 million, due in part to new property, plant and equipment commissioned in 2010.

Total Other Operating Expenses (non-IFRS financial measure) aggregating other operational cost items, accounted for 11% of the segment's total cost of sales, administrative, selling and marketing expenses in the first six months of 2011, up 23% or USD 1.7 million period on period.

Adjusted EBITDA (Non-IFRS financial measure)

The segment's Adjusted EBITDA increased 29% to USD 81.3* million compared to the first six months of 2010 reflecting the factors described above.

The segment's profitability improved with the Adjusted EBITDA Margin rising to 53%* compared to 49%* in the first six months of the previous year reflecting continued cost controls and the significant operating leverage in the segment's business.

Finnish Ports segment

Operational performance

The Gross Container Throughput of the Finnish Port segment declined 7% primarily due a decline in the overall Finnish market. Revenue rose 9% due to management efforts to attract other cargoes to the terminal, namely Ro-Ro and bulk cargoes.

Financial Performance

The Finnish Ports segment consists of MLT Kotka, MLT Helsinki, and three container depots in Finland (in each of which Container Finance currently has a 25% effective ownership interest). The results of the Finnish Ports segment are proportionally consolidated, but are included in the segment figures and discussion below on a 100% basis.

Revenue

Finnish Ports revenue increased 9% or USD 1.3 million period on period to USD 15.7 million in the first six months of 2011, largely reflecting increased Ro-Ro and bulk pipe cargo handling along with the appreciation in the period of the average exchange rate of Euro against US dollar of 6%.

Total cost of sales, administrative, selling and marketing expenses

The Finnish Ports segment's total cost of sales, administrative, selling and marketing expenses increased 10% or USD 1.4 million period on period to USD 15.2 million in the first six months of 2011 primarily due to the appreciation of the Euro against the US dollar, which increased the US dollar value of the segment's Euro denominated costs, as well as an increase in staff costs (with increased wages and salaries offset in part by a decrease in the number of employees as a result of staff optimization measures), higher fuel, electricity and gas costs (with the rise in average prices for fuel and electricity) and growth in the depreciation of property, plant and equipment (due to the appreciation of the Euro against the US dollar).

 Adjusted EBITDA (Non-IFRS financial measure)

The segment's Adjusted EBITDA increased 15% to USD 2.3* million compared to the first six months of 2010 reflecting the factors described above.

The segment's profitability improved with the Adjusted EBITDA Margin increasing to 15%* in the first six months of 2011 compared to 14%* in the first six months of the previous year reflecting the continued cost control.

PRESENTATION OF INFORMATION

Unless stated otherwise all financial information presented in this announcement is derived from the interim condensed consolidated financial information (unaudited) of Global Ports Investments PLC ("the Company" and, together with its subsidiaries and joint ventures, "Global Ports" or "the Group") for the six months ended 30 June 2011 and prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union applicable to interim financial reporting (International Accounting Standard 34 "Interim Financial Reporting"). The Group's interim condensed consolidated financial information for the six months ended 30 June 2011 is available at the Group's corporate website (www.globalports.com).

The financial information is presented in US dollars, which is the functional currency of the Company and certain other entities in the Group. The functional currency of the Group's operating companies for the periods under review was (a) for the Russian Ports segment, the Russian rouble, (b) for Oil Products Terminal segment, the Estonian kroon (until 31 December 2010) and the Euro (from 1 January 2011), and (c) for the Finnish Ports segment, the Euro.

Certain financial information which is derived from management accounts is marked in this announcement with an asterisk {*}.

In this announcement the Group has used the certain non-IFRS financial information (not recognised by EU IFRS or IFRS) as supplemental measures of the Group's operating performance.

Information (including non-IFRS financial measures) requiring additional explanation or defining is marked with initial capital letters and the explanations or definitions are provided at the end of this announcement.

Rounding adjustments have been made in calculating some of the financial and operational information included in this announcement. As the result, numerical figures shown as totals in some tables may not be exact arithmetic aggregations of the figures that precede them.

Market share data has been calculated using the information published by the Association of Sea Commercial Ports ("ASOP"), www.morport.com.

OTHER

Pursuant to Article 2.1(i)(ii) of the Transparency Directive (2004/109/EC) and Rule 6.4.2 of the Disclosure and Transparency Rules of the UK Financial Services Authority, the Company confirms that it has chosen the United Kingdom as its Home State.

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ANALYST AND INVESTOR CONFERENCE CALL

The release of the first-half financial and operational results will be accompanied by an analyst and investor conference call hosted by Alexander Nazarchuk, Chief Executive Officer and Oleg Novikov, Chief Financial Officer.

Date: Monday, 12 September 2011

Time: 14.00 UK time / 09.00 East coast time (EDT) / 17.00 Moscow time

To participate in the conference call, please dial one of the following numbers and ask to be put through to the "Global Ports" call:

UK toll free: 0808 109 0700

International: +44 203 003 2666

Webcast facility: There will also be a webcast of the call, available through the Global Ports website (www.globalports.com). Please note that this will be a listen-only facility.

ENQUIRIES

Global Ports Investor Relations

Priit Pedaja

Sergey Stikharev

+357 25 503 163

Email: irteam@globalports.com

Global Ports Media Relations

Anna Vostrukhova

+357 25 503 163

E-mail: media@globalports.com

Holloway & Associates

Laura Gilbert

+44 20 7240 2486

NOTES TO EDITORS

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 the Russian Federation ports and 25% of the total exports of fuel oil from the former Soviet Union countries in the first six months of 2011 (according to publicly available information). Global Ports' terminals are located in the Baltic and Far East Basins, key gateways that collectively handled 82% of Russian container cargo in the first six months of 2011. Global Ports operates three container terminals in Russia (Petrolesport, Moby Dik in St. Petersburg and Vostochnaya Stevedoring Company in the Vostochny Port) and two container terminals in Finland (Multi-Link Helsinki and Multi-Link Kotka). Global Ports also includes an oil terminal Vopak E.O.S. in Estonia and Yanino an inland container terminal located in the vicinity of St. Petersburg.

Global Ports' consolidated revenue for the six months ended 30 June 2011 was USD 259.7 million (up 57% period-on-period). Adjusted EBITDA for the six months ended 30 June 2011 was USD 145.0* million (up 82% on the six months ended 30 June 2010).

The Group's Russian Ports segment handled a total container throughput of approximately 669* thousand TEUs in the first six months of 2011 (excluding Yanino), a 71% increase on the first six months of 2010.

Global Ports' global depositary receipts (ticker symbol: GLPR) are listed on the Main Market of the London Stock Exchange since June 2011.N-Trans group, one of the largest private transportation and infrastructure groups in Russia, is a key shareholder of Global Ports.

To learn more on Global Ports, please visit www.globalports.com.

DEFINITIONS

Terms that require definitions are marked with capital letters in this announcement and definitions of which are provided below in alphabetical order:

Adjusted EBITDA (a non-IFRS financial measure) is defined as profit for the period before income tax expense, finance income/(costs) - net, 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.

Adjusted EBITDA Margin (a non-IFRS financial measure) is calculated as Adjusted EBITDA divided by revenue, expressed as a percentage.

Baltic Sea Basin: the geographic region of northwest Russia, Estonia and Finland surrounding the Gulf of Finland on the eastern Baltic Sea, including St. Petersburg, Tallinn, Helsinki and Kotka.

Container Throughput in the Russian Federation Ports is defined as total container throughput of the ports located in the Russian Federation excluding transit cargo volumes. Respective information is sourced from ASOP ("Association of Sea Commercial Ports", www.morport.com).

Far East Basin: the geographic region of southeast Russia, surrounding the Peter the Great Gulf, including Vladivostok and the Nakhodka Gulf, including Nakhodka on the Sea of Japan.

Finnish Ports segment consists of two terminals in Finland, MLT Kotka and MLT Helsinki (in port of Vuosaari), and three container depots (in each of which Container Finance currently has a 25% effective ownership interest). The financial results of the Finnish Ports segment are proportionally consolidated.

Functional Currency is defined as the currency of the primary economic environment in which the entity operates. The functional currency of the Company and certain other entities in the Group is US dollars. The functional currency of the Group's operating companies for the periods under review was (a) for the Russian Ports segment, the Russian rouble, (b) for Oil Products Terminal segment, the Estonian kroon (until 31 December 2010) and the Euro (from 1 January 2011), and (c) for the Finnish Ports segment, the Euro.

Gross Container Throughputrepresents total container throughput of a Group's terminal or a Group's operating segment shown on a 100% basis. For the Russian Ports segment it excludes the container throughput of the Group's inland container terminal, Yanino.

Gross Throughput is throughput shown on a 100% basis for each terminal, including terminals held through joint ventures and proportionally consolidated.

LTM Adjusted EBITDA (a non-IFRS financial measure) represents Adjusted EBITDA for the last twelve months.

Net Debt (a non-IFRS financial measure) is defined as a sum of current borrowings and non-current borrowings, less cash and cash equivalents and bank deposits with maturity over 90 days.

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 interim condensed consolidated financial information for the six months ended 30 June 2011.

Russian Ports segment consists of the Group's 100% interest in PLP, 75% interest in VSC (with DP World having 25% interest), 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.

ROCE (Return on capital employed, a non-IFRS financial measure) is defined as operating profit for the last twelve months divided by the sum of Net Debt and total equity, averaged for the beginning and end of the last twelve month period.

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 VEOS (in which Royal Vopak currently has a 50% effective ownership interest). The financial results of the Oil Products Terminal segment are proportionally consolidated.

TEU is defined as twenty-foot equivalent unit, which is the standard container used worldwide as the uniform measure of container capacity; a TEU is 20 feet (6.06 metres) long and eight feet (2.44 metres) wide and tall.

Total Other Operating Expenses (a non-IFRS financial measure) includes the following IFRS line items - "amortisation of intangible assets", "repair and maintenance of property, plant and equipment" and "other operating expenses".

VEOS 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 VEOS. The remaining 50% ownership interest is held by Royal Vopak. The results of VEOS have been proportionally consolidated in the Group's interim condensed consolidated financial information for the six months ended 30 June 2011.

VLCC is defined as very large crude carrier: a ship that can carry up to two million barrels of crude oil and has a maximum deadweight size of 300,000 metric tonnes.

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 75% effective ownership interest in VSC. The remaining 25% ownership interest is held by DP World. The results of VSC have been fully consolidated in the Group's interim condensed consolidated financial information for the six months ended 30 June 2011.

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.