REG-Global Ports Holding PLC Trading Statement for the three months to 30 June 2023

Global Ports HoldingAnnouncement

18/08/2023 07:15

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   Global Ports Holding PLC (GPH)
   Trading Statement for the three months to 30 June 2023

   18-Aug-2023 / 07:00 GMT/BST

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   Global Ports Holding Plc

   Trading Statement for the three months to 30 June 2023

   Global  Ports  Holding  Plc  ("GPH"  or  "Group"),  the  world's   largest
   independent cruise port operator,  today issues a  trading update for  the
   period from 1 April to 30 June 2023.

                                 3 months ended 3 months ended
   Key Financials & KPIs1          30 June 2023                YoY Change (%)
                                                  30 June 2022
   Passengers (m PAX) 2                     3.1            1.7      76%
   Total Revenue ($m)                      53.4           45.7      17%
   Adjusted Revenue ($m) 3                 43.3           27.1      60%
   Segmental EBITDA ($m) 4                 30.2           17.1      76%
   Adjusted EBITDA ($m) 5                  28.6           15.4      86%
                                                                      
   Segmental EBITDA Margin (%)            69.7%          63.2%        
   Adjusted EBITDA Margin (%)             66.0%          56.7%        
                                                                      
                                   30 June 2023  31 March 2023        
   Gross Debt (IFRS)                      665.7          672.4      -1%
   Gross Debt ex IFRS 16 Finance          604.8          612.3      -1%
   Lease
   Net Debt ex IFRS 16 Finance            540.8          494.0       9%
   Lease
   Cash and Cash Equivalents               64.0          118.3      -46%

    

   Notes                         

    1. All $ refers to United States Dollar unless otherwise stated
    2. Passenger  numbers  refer  to   consolidated  and  managed   portfolio
       consolidation perimeter; hence it  excludes equity accounted ports  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, the  pro-rata  Net  Profit of  equity-accounted  associates  La
       Goulette, Lisbon,  Singapore, and  Venice, and  the contribution  from
       management agreements.
    5. Adjusted  EBITDA  calculated  as  Segmental  EBITDA  less  unallocated
       (holding company) expenses.
    6. Passenger  numbers  refer  to   consolidated  and  managed   portfolio
       consolidation perimeter, hence it excludes equity accounted  associate
       ports La Goulette, Lisbon, Singapore and Venice.

   Key Financials and KPIs

     • Cruise passenger volumes for the 3M period ending 30 June 2023 were
       3.1m rising 76% compared to the comparable period last year and were
       17% ahead of the 2019 levels (adjusted for Nassau and Antigua
       passengers prior to GPH handover).
     • Occupancy levels returned faster than expected to pre-pandemic levels,
       with an occupancy rate across our ports in June 2023 of 108%.
     • Adjusted revenue rose 60% to USD 43.3m, reflecting the strong growth
       in passenger volumes.
     • Total consolidated revenues, including the impact of IFRIC-12
       Construction revenues, were USD 53.4m compared to USD 45.7m in the
       comparable period.
     • Segmental EBITDA rose strongly to USD 30.2m from USD 17.2m in the
       comparable period.

          • Adjusted EBITDA was USD 28.6m a significant increase on the USD
            15.4m in the comparable period.

    

   Mehmet Kutman, Co-Founder, Chief Executive Officer and Chairman, said:

   "GPH has had a strong start to the 2024 financial year, and I am delighted
   with the trading performance across our port network.

   I am excited about the  prospects for considerable further organic  growth
   from our  current  port  network,  and  the  current  strong  pipeline  of
   opportunities to grow the number of ports in our network."

   Record performance 

   Trading across all regions has been positive. Those ports that had a more
   muted summer 2022 season have, as expected, experienced a pick-up in
   trading and our call reservations point towards continued strong
   performance for the remainder of the fiscal year to March 2024.

   At the start of the quarter, Nassau Cruise Port successfully refinanced
   its local bond, resulting in a reduction in the fixed coupon to 6.0% (from
   8.0%) and a reduction in the annual interest payment by USD 2.0 million
   despite an increase in the nominal outstanding amount to USD 145 million
   (from USD 134.4 million). The maturity date of 2040 remains unchanged, as
   does the principal repayment schedule, which is ten equal annual payments
   from June 2031. The bond remains non-recourse to GPH or any other Group
   entity.

   At the start of the quarter, GPH agreed to extend its concession agreement
   for Ege Port, Kusadasi, extending this concession from July 2033 to 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 has issued further warrants to Sixth
   Street, representing an additional 2.0% of GPH's fully diluted share
   capital.

   After the end of the quarter, 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. 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.

    

   Regional Breakdown    3 months ended 3 months ended YoY Change
                              30-Jun-23      30-Jun-22        (%)
                                                                 
   Americas                                                      
   Adjusted Revenue ($m)           12.1            7.2        69%
   Segmental EBITDA ($m)            7.9            4.3        84%
   EBITDA Margin (%)              65.2%          60.0%           
   Passengers (m)                  1.16           0.78        48%
                                                        
   West Med & Atlantic                                  
   Adjusted Revenue ($m)           10.9            6.2        77%
   Segmental EBITDA ($m)            9.0            3.8       139%
   EBITDA Margin (%)              82.5%          61.0%           
   Passengers (m)                  1.06           0.47       123%
                                                        
   Central Med                                          
   Adjusted Revenue ($m)            6.3            4.1        55%
   Segmental EBITDA ($m)            3.4            2.3        49%
   EBITDA Margin (%)              54.4%          56.5%           
   Passengers (m)                  0.49           0.26        91%
                                                        
   East Med & Adriatic                                  
   Adjusted Revenue ($m)           10.3            6.9        49%
   Segmental EBITDA ($m)            8.3            5.6        47%
   EBITDA Margin (%)              80.5%          81.6%           
   Passengers (m)                  0.39           0.24        59%
                                                        
   Other                                                
   Adjusted Revenue ($m)            3.6            2.8        29%
   Segmental EBITDA ($m)            1.5            1.1        34%
   EBITDA Margin (%)              41.9%          40.5%           
                                                        
   Unallocated (HoldCo)                                 
   Adjusted EBITDA ($m)           (1.6)          (1.8)        -9%
                                                        
   Group                                                
   Adjusted Revenue ($m)           43.3           27.1        60%
   Adjusted EBITDA ($m)            28.6           15.4        86%
   EBITDA Margin (%)              66.0%          56.7%           
   Passengers (m)                  3.10           1.76        76%

    

   Balance Sheet

   At 30 June 2023, IFRS gross debt was USD 665.7m (Ex IFRS-16 Finance Leases
   Gross Debt: USD 604.8m),  largely unchanged 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 rose  to USD 540.8m from USD 494.0m  as
   at 31  March  2023. At  the  end  of June  2023,  GPH had  cash  and  cash
   equivalents of USD 64.0m, a reduction from USD 118.3m at 31 March 2023.

   The main driver for the increase in net debt and decrease in cash was  the
   USD c38m upfront concession fee paid for the extension at Ege Port and the
   continued investment activity in Nassau Cruise Port with USD c7m of  capex
   and a  significant  reduction in  trade  payables of  USD  c7m,  primarily
   related to contractor payments in Nassau.

   Outlook

   GPH provided a detailed outlook statement, including our 2024 expectations
   for passenger volumes in  our full-year results  for the Reporting  Period
   ended 31 March 2023, released on 10 July 2023.

   The faster recovery in occupancy rates has resulted in the run rate for
   passenger volumes for the 2024 Reporting Period (12 months to 31 March
   2024) currently being ahead of this guidance.

   The 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. By the end of 2027, passenger volumes are 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  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  this  investment  and
   industry growth in the years ahead.

    

   CONTACT                                        
   For investor, analyst  and financial  media   For trade media enquiries:
   enquiries:
   Investor Relations                            Global Ports Holding
   Martin Brown                                  Ceylan Erzi
   Telephone: +44 (0) 7947 163 687               Telephone: +90 212 244 44 40

    

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          GB00BD2ZT390
   Category Code: TST
   TIDM:          GPH
   LEI Code:      213800BMNG6351VR5X06
   Sequence No.:  265427
   EQS News ID:   1706357


    
   End of Announcement EQS News Service

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