Last checked at 30 Jun 2010 13:00
Press-release
NCSP Group Consolidated Financial Results for Three Months 2010
30 June 2010
Novorossiysk Commercial Sea Port (LSE: NCSP, RTS and MICEX: NMTP) announces interim condensed consolidated financial results (unaudited) for the three months ended 31 March 2010 in accordance with International Financial Reporting Standards (IFRS).
The full text of interim condensed consolidated financial statements (unaudited) for the three months ended 31 March 2010 of the NCSP Group are available on the Group's website at: http://nmtp.info/en/ncsp/investors/
Key financial indicators of the Group (USD '000)
|
| 3 months 2010 | 3 months 2009 | Change % |
| Revenue | 175,515 | 157,130 | 11.70% |
| Gross Profit | 116,265 | 112,625 | 3.23% |
| EBITDA Adjusted* | 121,384 | 114,197 | 6.29% |
| Operating Profit | 104,468 | 101,647 | 2.78% |
| Finance Costs | (6,776) | (8,970) | (24.46%) |
| Net Profit | 83,941 | 33,732 | 148.85% |
| Net Profit Adjusted* | 82,442 | 75,386 | 9.36% |
| Earnings per share, basic and diluted, USD | 0.0043 | 0.0016 | 168.75% |
| Investments* (excluding maintenance CAPEX) | 4,707 | 1,618 | 190.91% |
| Cargo turnover* (thousand tons) | 21,504.7 | 20,937.4 | 2.71% |
| Net debt* | 47,425 | 127,943 | (62.93%) |
| Net Debt* / EBITDA Adjusted* (annualized) | 0.10 | 0.28 | (65.13%) |
* The amount is either a non-IFRS measure or according to management reporting data
Commenting on NCSP Group financial results for the three months of 2010, PJSC NCSP Chairman of the Board Alexander Ponomarenko said: «Rebound of container traffic in Q1 2010 supported by growing exports of ferrous metals, grain, and timber, compensated for the negative effect of currency exchange rates volatility and secured positive growth rates of financial indicators in the reporting period».
Revenue
NCSP Group consolidated revenue for three months of 2010 increased by $18.4 million reaching $175.5 million total. This 11.7% gain in the Group's consolidate revenue for the first three months of 2010 versus the first three months of 2009 comes as balance of various factors at play.
| in thousand USD | 3 months 2010 | 3 months 2009 | Change, % |
| Total, including: | 175,515 | 157,130 | 11.7% |
| Stevedoring services | 138,766 | 118,289 | 17.3% |
| Additional port services | 21,926 | 25,510 | -14.0% |
| Fleet services | 12,242 | 11,355 | 7.8% |
| Ship repair services | 3 | 57 | -94.7% |
| Other | 2,578 | 1,919 | 34.3% |
Revenue from stevedoring services (transshipment of liquid, bulk, general and container cargo, including bunkering) in the reporting period grew by $20.5 million (17.3%). Growth of cargo turnover and structural changes in the cargo mix, including increase of grain volumes by 134.9* thousand tons, ferrous metals by 304.1* thousand tons, containers by 25.5* thousand TEU, and timber by 188.5* thousand cubic meters, generated $13.3* million of additional revenue, which fully offsets a decrease of iron ore revenue due to a drop in volumes. Revenue from bunkering operations increased by $7.2* million in Q1 2010 versus same period last year due to increase of bunkering fuel prices (both purchase and resale price).
Revenue from additional port services (forwarding, storage, customs documentation, repacking, etc) for the first three months of 2010 dropped by $3.6 million (14.0%), which is due largely to shorter storage times of cargo like containers and ferrous metals at the port. On the other hand, the shortening of storage times creates potential for increasing the throughput capacity of the port.
Revenue from fleet services in the reporting period increased by $0.9 million (7.8%) thanks to growth in volumes of these services.
Revenue from ship repair services in the first three months of 2010 was insignificant due to the fact that works for external clients, executed during the reporting period, will be completed later.
In Q1 2010 revenue from other services (rental services, external sales of electric power and utility services) denominated in rubles increased by $0.7 million (34.3%) in dollar terms, mostly due to changes in the exchange rate of the presentation currency.
Cost of production
The full cost of production (cost of services + selling, general and administrative expenses) totaled $71.2 million for the three months of 2010 versus $55.4 million for the same period of 2009.
The key factors contributing to a growth in the full cost of production for the Group were:
- Growing prices for fuel oil and diesel fuel, procured for bunkering operations of the Group, caused the cost of production to increase by $6.6* million;
- Appreciation of the Russian ruble against the representation currency (US dollar) in Q1 2010 versus Q1 2009 increased the full cost of production by another $6.2* million;
- Increase of the depreciation charge and maintenance CAPEX on equipment installed under Phase 1 of the Group's investment program has also contributed $3.0* million to cost of production growth.
EBITDA Adjusted
In order to provide comparability of the data for Q1 2010 and Q1 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 three months of 2010 comprised $121.4* million versus $114.2* million for the same period last year.
Positive dynamics of EBITDA adjusted was formed by a complex of positive and negative factors:
- Changes in the cargo mix and growth in volumes resulted in an $11.0* million gain in EBITDA adjusted in the reporting period;
- Growing volumes of bunkering services increased EBITDA adjusted by another $0.6* million;
- A decrease in volumes of additional port services reduced EBITDA adjusted by $2.4* million;
- Foreign exchange differences (appreciation of the Russian ruble against the US dollar (the representation currency) in Q1 2010 as compared to Q1 2009), as well as growth in the total cost of production (mostly increase in maintenance CAPEX) conditioned the decrease of EBITDA Adjusted by another $2.1* million.
Adjusted Net Profit
In order to provide comparability of the data for Q1 2010 and Q1 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 $82.4* million versus $75.4* million in Q1 2009.
Credit burden and net debt
NCSP Group debt on loans and other borrowing totaled $455.7 million as of 31 March 2010, of which the current portion of long-term loans due within 12 months from the reporting date comprised $134.6 million. Group's short-term debt increased due to the upcoming scheduled repayment of the $118.0 million syndicated loan facility in July this year. In the reporting period NCSP Group neither attracted new debt, nor refinanced existing loans.
Net debt as of the reporting date totaled $47.4* million, taking into account the monetary resources at the company's disposal:
§ Cash and cash equivalents - $145.1 million;
§ Deposits maturing in more than three but less than 12 months - $263.2 million.
Thus the Net debt to EBITDA adjusted ratio comprised 0.10* by the end of Q1 2010.
As at 31 March 2010, the average effective borrowing rate was 6.64% per annum versus 6.67% per annum as at 31 December 2009.
The Group's borrowings as of 31 March of 2010 are repayable as follows:
| in thousand USD | Capital element | Contractual interest liability |
| Total, of which: | 455,683 | 50,857 |
| Due within three months | 8,123 | 12,623 |
| Due from three to six months | 118,436 | 1,102 |
| Due from six to 12 months | 8,015 | 12,181 |
| Between 1 to 2 years | 23,124 | 22,247 |
| Between 2 to 5 years | 297,985 | 2,704 |
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