Last checked at 29 Sep 2010 08:00
NCSP Group Consolidated Financial Results for Six Months 2010
29 September 2010
Novorossiysk Commercial Sea Port (LSE: NCSP, RTS and MICEX: NMTP) announces interim condensed consolidated financial results (unaudited) for the six months ended 30 June 2010 in accordance with International Financial Reporting Standards (IFRS).
The full text of interim condensed consolidated financial statements (unaudited) for the six months ended 31 March 2010 of the NCSP Group are available on the Group's website under Investor Relations at: http://nmtp.info/en/holding/investors/reporting/msfo/
Key financial indicators of the Group (USD '000)
|
| 6 months 2010 | 6 months 2009 | Change % |
| Revenue | 348 267 | 334 169 | 4.2% |
| Gross Profit | 230 099 | 231 338 | (0.5%) |
| EBITDA Adjusted* | 245 411 | 235 522 | 4.2% |
| Operating Profit | 212 834 | 205 800 | 3.4% |
| Finance Costs | (14 137) | (16 272) | (13.1%) |
| Net Profit | 155 559 | 128 900 | 20.7% |
| Net Profit Adjusted* | 168 972 | 154 470 | 9.4% |
| Earnings per share, basic and diluted, USD | 0.0078 | 0.0065 | 20.0% |
| Investments* (including maintenance CAPEX and VAT) | (43 985) | (15 773) | 178.9% |
| Net debt* | (1 848) | 187 295 | - |
| Cargo turnover* (thousand tons) | 42 148.5 | 43 273.3 | (2.6%) |
* The amount is either a non-IFRS measure or according to management reporting data
Revenue
NCSP Group consolidated revenue for six months of 2010 reached $348 267 thousand, exceeding result for the same period last year by 4.2% ($14 098 thousand).
| in thousand USD | 6 months 2010 | 6 months 2009 | Change, % |
| Total, including: | 348 267 | 334 169 | 4.2% |
| Stevedoring services | 273 668 | 256 060 | 6.9% |
| Additional port services | 45 106 | 50 102 | (10.0%) |
| Fleet services | 23 592 | 23 728 | (0.6%) |
| Ship repair services | 631 | 292 | 116.1% |
| Other | 5 270 | 3 987 | 32.2% |
Revenue from stevedoring services (transshipment of liquid, bulk, general and container cargo, including bunkering) in the reporting period grew by $17 608 thousand (6.9%). More than a half of this increase ($9 564 thousand) was contributed by changes in the cargo mix and increased revenues from growing volumes of containers (up by 68.2%), timber cargo (up by 33.5%), bulk mineral fertilizers (up by 47.2%), and grain (up by 2.1%). Remaining part of the total revenue increase ($8 044 thousand) was contributed by higher sale prices and growing volumes in the Group's bunkering business.
Revenue from additional port services (forwarding, storage, customs documentation, repacking, etc) for the first six months of 2010 dropped by $4 996 thousand (10.0%), which is due to shorter storage times and smaller volumes of cargo stored at the port.
Revenue from fleet services in the reporting period was practically maintained at the level of the same period of last year.
Revenue from ship repair services in the first six months of 2010 more than doubled compared to that of the same period last year and totaled $631 thousand thanks to completion of some ship-repair orders for external clients.
In the first half of 2010 revenue from other services (rental services, external sales of electric power and utility services) nominated in rubles increased by $1 284 thousand (32.2%) in dollar terms thanks to positive FX differences and tariff growth.
Cost of services and SG&A
NCSP Group cost of services under IFRS totaled $118 168 thousand for the six months of 2010 versus $102 831 thousand for the same period of 2009.
The key factors affecting Group's cost of services in the first half of 2010 versus same period of 2009 were:
- Growing prices and volumes of fuel oil and diesel fuel procured for bunkering operations of PJSC Fleet of NCSP (OJSC IPP was not buying any fuel in the first half of 2010 and only transshipped third-party volumes of bunkering fuel), caused the cost of services to increase by $7 505 thousand* in H1 2010;
- Appreciation of the Russian ruble against the representation currency (US dollar) in H1 2010 versus H1 2009 increased the cost of services in dollar terms by $7 298* thousand;
- Changes in other cost items (including higher power and utility costs, as well as repair and maintenance expenses, partially offset by a reduction in pension liabilities according to new actuarial calculations) adder another $534 thousand to Group's total cost of services.
Selling, general, and administrative expenses of NCSP Group in the reporting period totaled $17 208 thousand versus $25 413 thousand for the same period of 2009.
SG&A reduction in the reporting period was conditioned by reversal of loss in the amount of $8 456 thousand (recognized in the year ended 31 December 2009) from elimination of advances for tugboat purchase issued to Henford Logistics Ltd.
On 29 June 2010 PJSC Fleet of NCSP acquired 80% of Henford Logistics Ltd. which acted as tugboat purchasing agent for a subsidiary of NCSP Group - Longbranch Shipping Enterprises Ltd. This acquisition subsequently resulted in reversal of loss recognized earlier.
EBITDA Adjusted
In order to provide comparability of the data for H1 2010 and H1 2009, the calculation of EBITDA for both periods was adjusted for exchange rate differences on assets and liabilities nominated in foreign currency, which result from the fluctuations of the ruble-dollar exchange rates, and for interest income on deposits.
EBITDA adjusted for the six months of 2010 comprised $245 411* thousand versus $235 522* thousand for the same period last year.
The key factors affecting Group's EBITDA Adjusted dynamics in the first half of 2010 versus same period of 2009 were:
- Changes in the cargo mix (mainly growth in container volumes) resulted in an $8 461* thousand gain in EBITDA Adjusted;
- Higher bunkering revenues increased EBITDA Adjusted by $1 374* thousand;
- Decrease in volumes of additional port services reduced EBITDA Adjusted by $3 298* thousand;
- Group's cost optimization efforts resulted in $3 352* thousand increase of EBITDA Adjusted.
Adjusted Net Profit
In order to provide comparability of the data for H1 2010 and H1 2009, the calculation of the net profit for both periods has to be adjusted for foreign exchange gains/losses and their effect on the profit tax.
Taking into account the above, adjusted net profit in the reporting period totaled $168 972* thousand versus $154 470* thousand in H1 2009.
Credit burden and net debt
NCSP Group debt on loans and other borrowings totaled $446 998 thousand as of 30 June 2010, of which the current portion of long-term loans due within 12 months from the reporting date comprised $131 834 thousand, including the $118 million syndicated loan facility actually repaid in full on 17 July 2010.
As of reporting date cash resources at NCSP Group's disposal totaled $448 846 thousand:
- Cash and cash equivalents - $109 103 thousand;
- Deposits maturing in more than three but less than 12 months - $339 743 thousand.
Thus, as of reporting date cash resources available to NCSP Group exceed its debt by $1 848 thousand.
As of 30 June 2010, the average effective borrowing rate was 6.61% per annum versus 6.67% per annum as at 31 December 2009.
The Group's borrowings as of 30 June of 2010 are repayable as follows:
| in thousand USD | Capital element | Contractual interest liability |
| Total, of which: | 446 998 | 45 445 |
| Due within three months | 121 804** | 1 001 |
| Due from three to six months | 2 576 | 11 294 |
| Due from six to 12 months | 7 463 | 11 803 |
| Between 1 to 2 years | 315 164 | 21 347 |
** This amount includes $118 million syndicated loan facility, fully repaid on 17 July 2010.
Investment Program Implementation
In the reporting period NCSP Group continued to implement its investment program aimed at construction of new, and expansion of existing stevedoring facilities.
According to management accounts, in the first six months of 2010 investments totaled $43 985* thousand versus $15 773 thousand in the first half of 2009. That includes:
- Maintenance CAPEX $13 318* thousand in H1 2010 versus $12 131 thousand in H1 2009;
- Investment in construction of new stevedoring capacity $30 667* thousand in H1 2010 versus $3 642* thousand in H1 2009.
About NCSP Group
Novorossiysk Commercial Sea Port is the largest Russian port operator in terms of cargo turnover. Group's consolidated cargo turnover in 2009 totaled 86.5 million tons. Consolidated revenue to IFRS in 2009 totaled $675.1 million and net profit $252.2 million.
NCSP shares are traded on Russia's RTS and MICEX exchanges (NMTP) and on the London Stock Exchange (NCSP) in the form of GDRs (1 GDR representing 75 shares).
NCSP Group includes the following stevedore companies: PJSC NCSP, PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Shipyard, PJSC NCSP Fleet, OJSC Novoroslesexport, OJSC IPP, and Baltic Stevedoring Company Ltd.
For more information please contact:
Tel.: +7 (495) 783-5434; IR@nmtp.info