REG-Global Ports Holding PLC Trading Statement for the six months to 30 September 2023
10/11/2023 07:15
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Global Ports Holding PLC (GPH)
Trading Statement for the six months to 30 September 2023
10-Nov-2023 / 07:00 GMT/BST
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Global Ports Holding Plc
Trading Statement for the six months to 30 September 2023
Global Ports Holding Plc ("GPH" or "Group"), the world's largest
independent cruise port operator, today issues a trading update for the
interim period six months to 30 September 2023.
Key Financials & 6 months 6 months YoY 3 Months 3 Months YoY
KPI ended ended ended ended
Highlights1,6 Change Change
30-Sept-23 30-Sept-22 30-Sept-23 30-Sept-22
Passengers (m 6.7 4.4 54% 3.6 2.6 39%
PAX) 2
Total Revenue 105.6 118.3 -11% 52.2 72.6 -28%
($m)
Adjusted Revenue 95.9 64.1 50% 52.6 37.0 42%
($m) 3
Segmental EBITDA 67.6 44.0 54% 37.4 26.9 39%
($m) 4
Adjusted EBITDA 64.1 40.4 59% 35.6 25.0 42%
($m)5
Segmental EBITDA 70.4% 68.7% 71.0% 72.7%
Margin (%)
Adjusted EBITDA 66.9% 63.0% 67.6% 67.7%
Margin (%)
30-Sept-23 31-Mar-23
Gross Debt 736.5 672.4 10%
(IFRS) ($m)
Gross Debt ex
IFRS 16 Leases 676.7 612.3 11%
($m)
Net Debt ex IFRS 558.3 494.0 13%
16 Leases ($m)
Cash and Cash 118.4 118.3 0%
Equivalents ($m)
Notes
1. All $ refers to United States Dollar unless otherwise stated
2. Passenger numbers refer to consolidated and managed cruise port
portfolio, hence it excludes equity accounted associates La Goulette,
Lisbon, Singapore and Venice.
3. Adjusted Revenue is calculated as Total Revenue excluding IFRIC-12
construction revenue
4. Segmental EBITDA includes the EBITDA from all equity consolidated
ports and the contribution from management agreements, plus the
pro-rata Net Profit of equity-accounted associates La
Goulette, Lisbon, Singapore and Venice
5. Adjusted EBITDA calculated as Segmental EBITDA less unallocated
(holding company) expenses
6. Difference may arise due to rounding
Key Financials and KPIs
• Cruise passenger volumes rose 54% for the 6M period ending 30 Sept
2023 compared to the 2023 H1 Reporting Period. In the second quarter
to 30 Sept 2023, cruise passenger volumes increased by 39% compared to
Q1 ending 30 June 2023
• Cruise calls increased by 15% compared to H1 2023, which indicates
that the main driver of the YoY growth in passenger volumes was the
significant increase in occupancy levels, which have now returned to
above 100% across our network
• Adjusted Revenue was USD 95.9 million, an increase of 50% on the USD
64.1m in the 2023 H1 Reporting Period. This growth was driven by the
higher number of cruise calls and passenger volumes across all our
regions
• Total consolidated revenues, including IFRIC-12 construction revenues,
were USD 105.6m compared to USD 118.3m in the 2023 H1 Reporting
Period. This decrease reflects the impact of lower construction
activities at Nassau Cruise Port where the major construction works
have come to an end during the interim period
• Segmental EBITDA for the 6M period was USD 67.6m compared to USD 44.0m
in the 2023 H1 Reporting Period. Adjusted EBITDA was USD 64.1m
compared to USD 40.4m in the 2023 H1 Reporting Period
Operating Highlights
The strong trading experienced in the first quarter to 30 June 2023,
continued throughout the second quarter of our fiscal year 2024. Our
cruise ports, after a relatively quiet summer 2022, experienced a
significant pick-up in activity throughout the summer 2023 cruise season,
which can be seen in the particularly strong growth rates in passenger,
revenue and EBITDA in our West Med & Atlantic and Central Med Regions
during the first half.
We completed our transformational investment into Nassau Cruise Port
during the interim reporting period. Our investment has created a world
leading cruise port that has set a new standard for investment into cruise
port infrastructure globally. During the reporting period we also started
operations at Prince Rupert Cruise Port, Canada, which is included in the
Americas Segmental financials for the first time.
Ege Port extension
At the start of the interim reporting period, GPH agreed to extend its
concession agreement for Ege Port, Kusadasi, adding 19 years to this
concession which now ends in July 2052. As part of the agreement, Ege Port
paid an upfront concession fee of TRY 725.4 million (USD 38 million at the
prevailing exchange rate at the time of payment). In addition, Ege Port
has committed to invest an amount equivalent to 10% of the upfront
concession fee within the next five years to improve and enhance the
cruise port and retail facilities at the port, and will pay a variable
concession fee equal to 5% of its gross revenues during the extension
period starting after July 2033.
A capital increase at Ege Port funded the upfront concession fee. This
capital increase was provided by GPH only. As a result, GPH's equity stake
in Ege Port has increased to 90.5% (from 72.5%).
This up-front concession fee and related expenses were financed by partial
utilisation of the USD 75 million growth facility provided by Sixth Street
shortly before the end of the fiscal year 2023. As part of this
additional USD 38.9 million drawdown, GPH issued further warrants to Sixth
Street, representing an additional 2.0% of GPH's fully diluted share
capital.
St Lucia concession
During the interim reporting period we signed a 30-year concession with a
10-year extension option for Saint Lucia Cruise Port. As part of this
concession, GPH will invest in a material expansion and upgrade of the
cruise port facilities. This investment will allow the port to handle the
largest cruise ships in the global cruise fleet, increasing the port's
capacity. In the 12 months to 31 March 2023, St Lucia welcomed c590k
passengers (2019 calendar year c790k), the completion of the extended pier
and upgrading the facilities are expected to lead to a rise in passenger
volumes to over 1m in the medium term. GPH will also invest in
transforming the retail experience, continuing our commitment to driving
significant economic benefits for the local population, this investment
will include an exciting new space for local vendors.
Bremerhaven concession
We were also awarded a 10-year port concession agreement, with a potential
5-year extension option, by bremenports on behalf of the city of Bremen
regarding the operations at Bremerhaven Cruise Port. The cruise facilities
at the port are currently undergoing a multimillion-euro investment by the
local authorities, which once completed will expand and renew the port
facilities. In 2022, Bremerhaven Cruise Port welcomed over 230k
passengers, with over 90% of these being homeport passengers. The location
of the port means it is ideally located for Scandinavian and Baltic Sea
itineraries. GPH will take over operations of the port in the first
quarter of calendar year 2025.
Increase in ownership at Barcelona and Malaga Cruise Ports
Shortly after the end of the interim reporting period, GPH purchased from
the minority shareholder its 38% holding in Barcelona Port Investments
S.L. (BPI), taking GPH’s holding in BPI to 100%. The transaction terms are
confidential, however, the purchase price is below USD 20 million.
As a result of this transaction, GPH’s indirect holding in Creuers De Port
de Barcelona S.A (Creuers) has increased to 100%, which increases GPH’s
interest in both Barcelona Cruise Port and Malaga Cruise Port to 100% from
62%. In addition, GPH’s effective interest in SATS-Creuers Cruise Services
PTE. LTD (Singapore Cruise Port) rises to 40% from 24.8% and the effective
interest in Lisbon Cruise Port LD (Lisbon Cruise Port) rises from 46.2% to
50%.
Segmental 6 months 6 months YoY 3 Months 3 Months YoY
Financials & ended ended ended ended
KPIs Change Change
30-Sept-23 30-Sept-22 30-Sept-23 30-Sept-22
Americas
Passengers (m) 2.2 1.6 37% 1.1 0.9 26%
Adjusted Revenue 22.8 14.8 54% 10.7 7.6 40%
($m)
Segmental EBITDA 14.3 9.5 50% 6.4 5.2 22%
($m)
EBITDA Margin 62.8% 64.6% 60.1% 68.9%
(%)
West Med &
Atlantic
Passengers (m) 2.2 1.3 74% 1.1 0.8 44%
Adjusted Revenue 24.2 16.1 50% 13.2 10.0 33%
($m)
Segmental EBITDA 20.0 11.3 77% 10.9 7.5 46%
($m)
EBITDA Margin 82.6% 69.7% 82.6% 75.1%
(%)
Central Med
Passengers (m) 1.2 0.7 71% 0.8 0.5 61%
Adjusted Revenue 15.4 10.0 55% 9.1 5.9 55%
($m)
Segmental EBITDA 8.3 6.1 35% 4.8 3.8 26%
($m)
EBITDA Margin 53.6% 61.5% 53.1% 65.1%
(%)
East Med &
Adriatic
Passengers (m) 1.0 0.7 41% 0.6 0.5 32%
Adjusted Revenue 25.3 17.4 45% 15.0 10.5 43%
($m)
Segmental EBITDA 21.4 14.7 45% 13.1 9.1 44%
($m)
EBITDA Margin 84.6% 84.7% 87.4% 86.7%
(%)
Other
Adjusted Revenue 8.3 5.8 42% 4.7 3.1 54%
($m)
Segmental EBITDA 3.7 2.4 54% 2.2 1.2 73%
($m)
EBITDA Margin 44.0% 40.5% 45.6% 40.6%
(%)
Unallocated (3.4) (3.6) -5% (1.8) (1.8) (1)%
(HoldCo)
Group
Passengers (m) 6.7 4.4 54% 3.6 2.6 39%
Adjusted Revenue 95.9 64.1 50% 52.6 39.1 41%
($m)
Adjusted EBITDA 64.1 40.4 59% 35.6 25.0 42%
($m)
EBITDA Margin 66.9% 63.0% 67.6% 64.0%
(%)
Balance Sheet
At 30 September 2023, IFRS gross debt was USD 736.5m (Ex IFRS-16 Finance
Leases Gross Debt: USD 676.7m), compared to gross debt at 31 March 2023 of
USD 672.4m (Ex IFRS-16 Finance Leases Gross Debt: USD 612.3m). Net debt Ex
IFRS-16 finance leases of USD 558.3m compared to USD 494.0m as at 31 March
2023. At the end of September 2023, GPH had cash and cash equivalents of
USD 118.4m, compared to USD 118.3m at 31 March 2023 and USD 64.0m at 30
June 2023.
In July 2023, GPH issued 5,144,445 new ordinary shares at 206.5 pence each
to its largest shareholder, Global Yatirim Holding A.S. (“GIH”), in
satisfaction of USD 13.8 million of GPH’s debt owed to GIH under a
facility agreement.
At the end of the H1 2024 interim period GPH issued USD 330 million of
secured private placement notes (“Notes”) to insurance companies and
long-term asset managers at a fixed coupon of 7.87%. The Notes received an
investment grade credit rating from two rating agencies and will fully
amortize over 17 years, with a weighted average maturity of c13 years.
Over 90% of GPH’s gross debt is now fixed and close to 90% of GPH’s gross
debt is made up of the investment grade rated Notes and the ring-fenced
project financed issuance for Nassau Cruise Port.
The majority of the proceeds were used to repay in full the outstanding
senior secured loan from Sixth Street (including the portion drawn at the
end of fiscal year 2023 for the Ege Port extension), plus early repayment
fees and accrued interest. The balance of proceeds from the Notes will
primarily be used to fund further Caribbean expansion and the payment of
transaction costs.
This financing generates material savings of cash interest expenses and
creates a stable, long-term funding base for the Group. Further, it
secures the financing of our growth pipeline.
The main driver for the change in Gross Debt is the refinancing of Sixth
Street loan with the Notes. The USD 330 million Notes includes reserves
and cash expected to be deployed as equity contribution for near-term
growth projects, hence outstanding debt has increased compared to the
Sixth Street loan with approximately USD 255 million of nominal
outstanding.
This excess refinancing amount also impacted the outstanding cash (less
transaction costs and early prepayment fees). Besides the refinancing, the
other major impact to cash was the aforementioned extension of Ege Port
concession for c. USD 38 million at the start of the interim period
whereas the drawdown of the debt to finance this extension was completed
shortly before the end of the fiscal year 2023.
Outlook
Fiscal years 2024 and 2025 Outlook
GPH provided a detailed outlook statement, including our 2024 expectations
for passenger volumes in the announcement of our full-year results for the
Reporting Period ended 31 March 2023, released on 10 July 2023.
Our current expectations for passenger volumes for the 2024 Reporting
Period (12 months to 31 March 2024) is ahead of this guidance, driven
primarily by the faster than expected recovery in occupancy rates in the
first half.
This outperformance in occupancy and the continued strong trading means
that we now expect to welcome at least 12.5m passengers across our
consolidated and managed ports in the 12 months to 31 March 2024, compared
to an initial expectation of 11.8 million.
In calendar year 2024 available berths across the global cruise fleet are
expected to reach all-time highs, propelling the industry to exciting new
record highs. The major cruise lines have reported strong booking trends
for summer 2024 and they “see no signs of demand slowing”.
Long-term outlook
The long-term outlook for the cruise industry remains positive.
Long-established demand and supply trends have re-established themselves
as key drivers of growth in the industry, with passenger volumes by the
end of 2027, expected to be 45% higher than pre-Covid levels.
This strong level of industry growth means there is a need for significant
levels of investment in cruise port infrastructure in order to meet the
needs of both the growing number of cruise ships and the growing size of
cruise ships as well as the increased demand from passengers for an
improved cruise port experience.
This growth is creating exciting opportunities for cruise ports but also
presents potential risks, as cruise ports will face substantial challenges
to meet the demands and needs of the evolving industry. GPH's significant
experience and know-how in port and destination development and global
cruise port operations, honed from our experience worldwide, means we are
well-positioned to play a primary role in both the investment and industry
growth in the years ahead.
GPH will release interim financial results for the six months to 30
September 2023 in mid-December 2023.
CONTACT
For investor, analyst and financial For trade media enquiries:
media enquiries:
Investor Relations Global Ports Holding
Martin Brown Ceylan Erzi
Telephone: +44 (0) 7947 163 687 Telephone: +90 212 244 44 40
Email: Email:
1 martinb@globalportsholding.com 2 ceylane@globalportsholding.com
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ISIN: GB00BD2ZT390
Category Code: TST
TIDM: GPH
LEI Code: 213800BMNG6351VR5X06
Sequence No.: 283958
EQS News ID: 1770149
End of Announcement EQS News Service
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References
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1. mailto:martinb@globalportsholding.com
2. mailto:ceylane@globalportsholding.com
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