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30 Sep 2008 08:59
Press Release
NCSP Announces First Half 2008 Financial Results
September 30, 2008
PJSC Novorossiysk Commercial Seaport (LSE: NCSP, RTS & MICEX: NMTP) announces unaudited consolidated financial results for the first six months of 2008 to International Financial Reporting Standards (IFRS).
PJSC NCSP financials for the first half of 2008 are posted on the company web site under http://nmtp.info/en/ncsp/investors/
Financial highlights for H1 2008 (USD thousand)
|
Indicator |
H1 2008 |
H1 2007 |
H1 2008 / H1 2007 % |
|
Revenue |
314 662 |
197 932 |
59.0% |
|
Gross profit |
136 558 |
86 337 |
58.2% |
|
EBITDA |
183 357 |
89 892 |
104.0% |
|
EBITDA margin |
58.27% |
45.42% |
|
|
Operating profit (EBIT) |
102 276 |
55 772 |
83.4% |
|
Net financial costs |
15 553 |
24 313 |
-36.0% |
|
Profit before tax |
110 183 |
41 092 |
168.1% |
|
Net profit |
84 542 |
28 543 |
196.2% |
|
Net profit margin |
26.9% |
14.4% |
|
|
Profit per share (common and diluted), USD |
0.41 |
0.15 |
178.1% |
|
Cash flow per share, USD |
0.0042 |
0.0031 |
37.7% |
|
Investment* |
47.88 |
28.23 |
69.6% |
|
Cargo turnover (Mln tonnes) |
39.2 |
39.0 |
0.4% |
|
Net debt |
478 722 |
479 502 |
-0.2% |
|
ROA (adjusted for year) |
13.3% |
7.2% |
|
|
ROE (adjusted for year) |
23.3% |
9.2% |
|
|
Net debt / EBITDA (adjusted for year) |
1.31 |
2.67 |
-51.1% |
* According to management accounting.
Igor Vilinov, CEO of NSCP, said in comment to the financial results for the first half of 2008: "In the reporting period we were able to achieve increased profitability - net profit grew from 28.5 Mln USD to 84.5 Mln USD. The return on equity (ROE) also increased substantially from 9.2% to 23.3%. This was possible largely due to the consolidation of the stevedore business. Company management sees the progressive increase in the share of high-margin cargo in the overall cargo turnover as a result of the investment program underway as the basis for maintaining profitability in the foreseeable future."
"Amid a drop in liquidity on global financial markets the strong financial stability of the company's business model is underpinned by its favorable debt structure, in which short-term debt made up only 7.6% as of mid-2008. Debt shrank by 0.7% in the first half of the year to 529.8 million USD. Spending to service the debt dropped from 24.3 million USD to 15.6 million USD. The company in the first half did not assume new borrowing and the investment program was financed out of company funds," Igor Vilinov added.
Company Development in H1 2008
Revenue Growth Factors
A combination of factors contributed to NCSP Group's revenue growth by 59% from 197.93 Mln in the first half of 2007 to 314.66 Mln USD in the first six months of 2008, including growth in additional services, launch of new projects, increased tariffs and an increase in the share of highly profitable cargo in overall cargo turnover.
As a result of stevedore companies consolidation in 2006, NCSP was able to increase additional services for clients, including complex transport-expediting services, cargo storage, sale of separation materials, and other port services. Company revenue in the first half of 2008 grew by 33.80 Mln USD from this business segment only.
The introduction of new container, petroleum product and grain loading capacity was an important factor in revenue growth, boosting revenue by another 25.04 Mln USD.
NCSP has also added 28.28 Mln USD to its revenues from continuous replacement of low profit cargo with more profitable cargo, while increase in overall cargo turnover was insignificant.
The increase in tariffs for stevedore services in August and December 2007 enabled NCSP in the first half of 2008 to generate 29.61 Mln USD in additional revenue.
Increase in Share of High-Margin Cargo
A number of positive changes occurred in revenue structure in the first half of the year amid an insignificant increase in cargo turnover (according to management accounting):
Share of revenue from container handling grew from 6.0% to 9.6% amid increase in cargo turnover to 188.4 thousand TEU;
The share of revenue from diesel fuel transshipment grew to 14.5% from 10.4% in the first half of 2007. Diesel fuel loading totaled 4.1 Mln tonnes;
The share of revenue from ferrous metals handling grew to 18.7% from 16.0% in the same period last year. Ferrous metals handling volumes reached 4.6 Mln tonnes;
Revenue from cement handling in the first half of 2008 reached 3.3% of total revenue, which is up sharply from 0.2% in the same period last year. Cement handling totaled 737.8 thousand tonnes;
As a result of an increase in revenue from other kinds of cargo, the share of income on crude oil handling in total revenue dropped from 35.6% to 30.9%.
Investment program
According to management accounting, total investment since the inception of NCSP's investment program totaled some 290 Mln USD, including 47.9 Mln USD in the first half of 2008.
The Novorossiysk grain terminal (OJSC NGT) was fully launched in the first half of 2008. Investment in the project totaled 82.6 Mln USD.
Construction of a light petroleum products terminal is being completed by OJSC IPP, a subsidiary of NCSP. The new terminal will be launched in test mode in early October. It will have capacity for 1 million tonnes of petroleum products per annum. Investment in the project totaled 22.0 Mln USD at the end of the reporting period, or 62% of project cost.
A container terminal is being built by BSC Ltd., a subsidiary of NCSP, in Baltiisk port of Kaliningrad region, under confirmed business plan. Two Liebherr LHM-400 mobile cranes were purchased for the terminal in August 2008 for more than 5 million euros.
Reconstruction of the Sheskharis oil terminal also continued in the first half of 2008. Investment totaled 71.2 Mln USD at the end of the period or 55% of project cost. The project is scheduled for completion in 2010.
Other projects under NCSP investment program are going according to plan with pre-design and design work in progress.
INVESTOR CONFERENCE CALL
Conference call with NCSP management devoted to NCSP's first half 2008 financial results will be held on:
October 1, at 17:00 Moscow time, 14:00 London time, 8:00 New York time.
Participants: Vladimir Kayashev, Vice-President for Strategy; Tatiana Chibinyaeva, Vice-President for Finance; Roman Zinovyev, Vice-President for Corporate Finance and Investor Relations.
Access numbers and pass-codes:
Please dial in 10-15 minutes before the call starts.
From Russia +7 (495) 981 08 73
From UK +44 129 631 75 00
From US +1 718 354 11 75
Give operator meeting title or enter pass-code.
Meeting title NCSP Consolidated Financial Results for H1 2008
Pass-code 178 069
Media representative are welcome to join as listeners.
A replay of the conference call will be available at NCSP web-site (www.nmtp.info) under Press-Center/News.
For more information please contact:
Tel.: + 7 (495) 783 5434
IR@nmtp.info
PR@nmtp.info
About NSCP
According to the Association of Sea Ports, PJSC Novorossiysk Commercial Sea Port is the largest Russian port operator in terms of cargo turnover. NCSP consolidated cargo turnover in 2007 totaled 79.4 million tonnes. OJSC NCSP is listed on the London Stock Exchange and Russia's RTS and MICEX. In 2007 NCSP's earnings for 2007 totaled US$ 483.4 million, EBITDA -- US$ 227.9 million, and net profit -- US$ 93.7 million (according to consolidated financial statements under IFRS).
NCSP group includes the six stevedoring companies: OJSC NSCP, OJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Shipyard, OJSC NCSP Fleet, OJSC Novoroslesexport, OJSC IPP, and Baltic Stevedoring Company Ltd.
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