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Re: FAS statement

3 Apr 2017 17:05

RNS Number : 4365B
Global Ports Investments PLC
03 April 2017
 

 

 

For immediate release 3 April 2017

 

 

Global Ports Investments PLC

 

Re: FAS statement

Global Ports Investments PLC ("Global Ports" or the "Company", together with its subsidiaries and joint ventures, the "Group" or the "Global Ports Group"; LSE ticker: GLPR) informs that today the Russian Federal Antimonopoly Service (FAS) issued a release stating that it has sent orders to the Group's FCT, VSC and PLP terminals requiring them:

- to transfer to the federal budget RUB 4.17 billion, in the case of FCT, RUB 1.27 billion, in the case of PLP, and RUB 1.6 billion, in the case of VSC, such amounts being the income, according to FAS, the relevant terminal derived from the activity in question;

- to set "economically justified" rouble-denominated terminal handling charges (THC[1]).

 

At present, none of the terminals has received the official orders of FAS.

In line with the statement made on 24th of March 2017 Global Ports believes that it has behaved appropriately in relation to competition regulation and intends to challenge the finding and the orders in court. While court proceedings are ongoing, the FAS decision will not be enforced and the amounts referred to above will not become payable.

Global Ports has always offered market driven, competitive prices for its services in a market with significant available capacity. Since the beginning of the year, Global Ports has provided its clients with additional commercial incentives as well as introduced rouble-based pricing for services offered to Russian freight forwarders.

The Russian container terminals market is highly competitive with capacity utilisation at the lowest levels in more than a decade. Capacity utilisation - which indicates the amount of capacity within ports that is actually being used - was at around 50% at the end of 2016, down from 74% in 2013. This shows the significant increase in the level of spare capacity in ports, which is still the case today, resulting in continued fierce competition for business and ongoing downward pressure on prices.

 

ENQUIRIES

Global Ports Investor Relations

Mikhail Grigoriev / Yana Gabdrakhmanova

+7 495 989 4769

Email: ir@globalports.com

Global Ports Media Relations

Anna Vostrukhova

+7 495 989 4769

E-mail: media@globalports.com

Teneo Blue Rubicon

Laura Gilbert / Sabine Pirone

+44 20 7260 2700

E-mail: globalports@teneobluerubicon.com

NOTES TO EDITORS

Global Ports Investments PLC is the leading operator of container terminals in the Russian market.

Global Ports' terminals are located in the Baltic and Far East Basins, key regions for foreign trade cargo flows. Global Ports operates five container terminals in Russia (Petrolesport, First Container Terminal, Ust-Luga Container Terminal[2] and Moby Dik[3] in the Russian Baltics, and Vostochnaya Stevedoring Company in the Russian Far East) and two container terminals in Finland[4] (Multi-Link Terminals in Helsinki and Kotka). Global Ports also owns inland container terminals Yanino Logistics Park[5] and Logistika-Terminal, both located in the vicinity of St. Petersburg, and has a 50% stake in the major oil products terminal AS Vopak E.O.S.[6] in Estonia.

Global Ports' Revenue for 2016 was USD 331.5 million and Adjusted EBITDA was USD 224.3 million*. Consolidated Marine Container Throughput was 1,128 thousand TEU* in 2016.

Global Ports' major shareholders are Transportation Investments Holding Limited (operating under the brand name of N-Trans), one of the largest private transportation and infrastructure groups in Russia (30.75%), and APM Terminals B.V. (30.75%), whose core expertise is the design, construction, management and operation of ports, terminals and inland services. APM Terminals operates a global terminal network of 73 ports and 140 inland services facilities, giving the company a global presence in 69 countries. 20.5% of Global Ports shares are traded in the form of global depositary receipts listed on the Main Market of the London Stock Exchange (LSE ticker: GLPR).

For more information please see: www.globalports.com

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 Global Ports. 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. Global Ports wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Global Ports 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 Global Ports, including, among others, general political and economic conditions, the competitive environment, risks associated with operating in Russia and market change in the industries Global Ports operates in, as well as many other risks related to Global Ports and its operations.


[1] THC is the key component of revenues from container handling, and is charged for container movements from the vessel to trucks or railcars (or vice versa) within the terminal.

[2] In which Eurogate currently has a 20% effective ownership interest. 

[3] In which Container Finance currently has a 25% effective ownership interest. 

[4] In each of which Container Finance currently has a 25% effective ownership interest. 

[5] In which Container Finance currently has a 25% effective ownership interest. 

[6] In which Royal Vopak currently has a 50% effective ownership interest. 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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