Pjsc Novor. S Regulatory News (NCSP)

Press-release

NCSP Group's 2015 Cargo Turnover reached 139.7 mln tonnes

with Record Growth of 6.5% year-on-year

27.01.2016

NCSP Group (LSE: NCSP, MOEX: NMTP) hereby reports, that its consolidated cargo turnover for the 12 months of 2015 has increased by 8.6 million tonnes or 6.5% versus that of 2014, and reached 139.7 million tonnes.

Commenting on the results, CEO of PJSC NCSP Sultan Batov said: «In 2015 we managed to overcome the negative trend of recent years and achieve 6.5% year-on-year growth, which makes it the best growth rate for the last seven years, and beats the 2009 record by 0.5 percent points.

This achievement became possible to a large degree thank to the transshipment equipment modernization program implemented over the last two years. We have intensified cargo operations at all stages and created capacity headroom, while improved client service and commercial department's efforts helped to attract new volumes. We shall continue to do our best to consolidate this progress».

Transshipment of liquid cargo increased by 6.5 mln tonnes, or 6.4% year-on-year, to 108 million tons; bulk cargo volumes were up by 0.3 mln tonnes or 2.2% year-on-year and amounted to 12.6 million tons; general cargo grew 2 mln tonnes or 17% year-on-year up to 13.9 mln tonnes; container cargo fell by 0.3 million tonnes or 4.9% year-on-year and amounted to 5.2 mln tonnes.

NCSP Group's consolidated cargo throughput was growing 0.8 percent points faster than the industry in 2015. Group's liquid cargo growth rate outpaced the industry by 0.4 percent points, while dry cargo (bulk, general, and containers) were growing 1.5 percent points faster, than the industry, according to ASOP.

In terms of specific cargoes best growth rates were shown by: ore cargoes - 31.2% year-on-year and 20.4 percent points ahead of the industry; ferrous metals and pig iron - 22.3% year-on-year and 10.1 percent points on top of the industry; non-ferrous metals - 17.4% year-on-year and 6.7 percent points better than industry; oil products - 14.8% year-on-year and 11.1 percent points faster than industry, according to ASOP.

Group's container traffic reduced by 4.9% year-on-year in tonnes, which is 9.5 percent points less than the industry's total decrease, according to ASOP.

NCSP Group's market share in 2015 amounted to 20.6% of Russian seaports' total turnover, including 29.6% of liquid cargo, and 10.1% dry cargo, according to ASOP.

NCSP Group's market share in the transshipment of certain cargoes at Russian seaports in 2015 were as follows: 44.7% of ferrous metals; 37.2% of crude oil; 34.3% of non-ferrous metals; 32.8% of ore cargoes; 21.8% of of oil products; 19.5% of grain; and 13.0% of containers, according ASOP.

Compared to 2014 NCSP Group increased its market share in transshipment of ore cargoes by 5 percent points, in the transshipment of ferrous and nonferrous metals by 4 percent points each, in the transshipment of fertilizers and containers by 1.4 and 1.2 percentage points respectively.

Liquid cargo

In 2015 NCSP Group transshipped 108 028 thousand tonnes of liquid cargo, which is by 6.4% or 6 529 thousand tonnes more, than that of 2014.

Crude oil volumes exceeded the last year's level by 2 427 thousand tonnes or 3.3% and comprised 75 207 thousand tonnes.

Oil products volumes have increased by 4 104 thousand tonnes or 14.8% year-on-year and reached 31 889 thousand tonnes. New volumes from Antipinsky refinery recently connected to Sever pipeline drove the growth at Primorsk, among other factors. Growing production and export from a few refineries in the South of Russia, as well as newly contracted volumes of vacuum gasoil, supported the growth at Novorossiysk.

Volumes of UAN and seed oils comprised 715 and 217 thousand tonnes respectively.

Bulk cargo

In 2015 volumes of bulk cargo increased 2.2% year-on-year and amounted to 12 565 thousand tonnes, including: 6 716 thousand tonnes of grain; 1 141 thousand tonnes of chemical cargo; 932 thousand tonnes of sugar; 2 222 thousand tonnes or iron ore and ore concentrate, and 1 555 thousand tonnes of coal.

Transshipment of grain in 2015 reduced by 719 thousand tonnes. Grain volumes were negatively affected by the export restrictions introduced by the Russian government early in 2015, and by overstocking of silo bins with wheat till may 2015, when export duties were reduced, as well as by the instability in Egypt in the second half of the year, leading to delays in ships' loading and issuance of letters of credit.

While total volumes of grain at Russian seaports increased by 4.5 million tonnes, some 3.2 million tonnes of that increase are attributed to new stevedoring companies in the Black and Azov sea basin, unaccounted for in 2014, according to ASOP.

Volumes of chemical cargoes was up by 347 thousand tonnes or 43.6% yar-on-year, thanks to fivefold increase in transshipment of sulphur up to 700 thousand tonnes, which compensated the reduction of ammonium fertilizers to 206 thousand tonnes.

Transshipment of iron ore and ore concentrate increased by 529 thousand tonnes or 31.2% year-on-year, which three times faster than the industry's average growth. Growth was driven by Metalloinvest volumes, which resumed shipments and increased exports following its production capacity expansion, as well as by the concentration of Russian cargo at Russian ports, and market appeal of Russian commodities growing on the back of ruble depreciation.

Volumes of coal have increased by 354 thousand tonnes or 29.5% year-on-year, also supported by ruble depreciation and better market for Russian exports.

General cargo

Transshipment on general cargo in 2015 increased by 2 021 thousand tonnes or 17.0% year-on-year and comprised 13 907 thousand tonnes.

Volumes of ferrous metals and pig iron grew by 2 132 thousand tonnes or 22.3% year-on-year, which is 10.1 percent points ahead of the industry, and reached 11 679 thousand tonnes. Attractive pricing of Russian metals drove demand in the Mediterranean and enabled export to new destinations in South America and Asia. Most large exporters including EVRAZ, Metalloinvest, and MMK increased their shipments.

Handling of non-ferrous metals increased by 179 thousand tonnes or 17.4% year-on-year, outpacing the industry by 6.7 percent points, and reached 1 206 thousand tonnes. Growth was mostly driven by deliveries from the CIS countries.

Volumes of timber, perishable, and other cargo in 2015 comprised 666 thousand tonnes, 179 thousand tonnes, and 177 thousand tonnes respectively.

Containers

NCSP Group's container traffic in 2015 totaled 5 190 thousand tonnes and 476 thousand TEU. Volumes reduced 4.9% year-on-year in tonnes, three times less than the industry's total drop, and 25.6% year-on-year in TEU.

NCSP Group's Cargo Turnover for January-December 2015, in thousand tonnes

Data on other Russian ports' turnover in 2015 is quoted according to ASOP report (Russian only): http://www.morport.com/rus/news/document1751.shtml

About NCSP Group

NCSP Group is the largest port operator in Russia and the third-largest in Europe, in terms of cargo turnover. NCSP shares are traded on Russia's Moscow Exchange (ticker: NMTP) and on the London Stock Exchange in the form of GDRs (ticker: NCSP). NCSP Group cargo turnover in 2014 totalled 131 million tonnes. Consolidated revenue to IFRS in 2013 totalled USD 928 million and EBITDA was USD 510 million. NCSP Group consolidates the following companies: PJSC Novorossiysk Commercial Sea Port, LLC Primorsk Trade Port, PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Ship Repair Yard, OJSC NCSP Fleet, OJSC NLE, OJSC IPP, CJSC Baltic Stevedore Company, and CJSC SFP.

Contacts

Kristina Senko, Public Relations: KSenko@ncsp.com

Mikhail Shchur, Investor Relations: MShchur@ncsp.com