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Industrials
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Mid Cap
Market Cap £453.9m
Enterprise Value £1.03bn
Revenue £277.3m
Position in Universe 539th / 1819

Global Ports Inv - Q1 2020 Operating results

Mon 20th April, 2020 7:00am
RNS Number : 1171K
Global Ports Investments PLC
20 April 2020
 

For immediate release                                                                                                                    20 April 2020

Global Ports Investments PLC
Q1 2020 Operating results

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) today announces its operational results for 1Q 2020.

Highlights

●       Russian container market increased 1.3% in the period to 1,262 thousand TEU, with full export container handling growth of 14.3%, and full import container handling decline of 1.1%

●       The Group continued to outperform the market, with Consolidated marine container throughput up 11% to 394 thousand TEU, versus 1.3% growth in the Russian container market over the same period

●       Consolidated marine container throughput of the Group's terminals located in the Baltic Basin, increased by 16% against a market decline of 1.6% in the same region. This outperformance was a result of the Group's efforts to increase productivity and customer service standards

●       Consolidated marine container throughput of the Group's terminals located in the Far East was flat in the period (compared to Far Eastern market growth of 3.8%). As a result of measures taken to replicate the Baltics success at Far East, VSC's share of throughput by Russian terminals in the Far East increased by 290 basis points in 1Q20 compared to 4Q19

●       Consolidated bulk throughput of 1.028 million tonnes (+26% y-o-y) was driven mainly by coal handling at ULCT, which was in early ramp-up stage in 1Q 2019

●       Car and high and heavy Ro-ro handling declined by 29% and 6% respectively y-o-y in 1Q20, reflecting the slowdown in Russian consumer demand for imported cars

●       In the current environment the Company underlines, that Global Ports terminals are considered "critical infrastructure" to the Russian Federation. All terminals (quay, yard and gates) remain 100% operational to service vessels and to handle cargoes. Focusing first on our workforce, we recommended that office workers worked from home, where possible, to keep them and their families healthy and safe. The Group's employees are trained and empowered with work-from-home solutions to ensure that the Group continues to deliver the same high-quality service. For those employees undertaking day-to-day operational work and duties in the Group's terminals, additional precautions were taken, such as improved hygiene measures and restricted access for visitors, as well as taking all necessary measures to ensure the absolute safety of Group's operational personnel.

Vladimir Bychkov, CEO of Global Ports Management, commented:

"We delivered strong operational results in the first quarter of 2020, continuing to outperform the market which was a result of our ongoing efforts to improve quality of our services across every aspect of our activity.

However, historically the Russian container market has tended to react to macro headwinds and we are yet to see the impact of the weakening of the Russian ruble against US dollar on the market. And although the market is now in a much stronger and less volatile position than in 2015 following strong export growth in the last several years, clearly, the next several months are going to be more volatile. 

In the short term, we have mobilised fast to counter the potential threat posed by COVID-19. Our actions are focused on three clear objectives: protecting the health and safety of our staff and their families; preserving the continuity of our operations and minimising disruption to our customers' supply chains; and managing our costs to drive cash generation. At this stage, it is not possible to predict the full commercial impact of COVID-19 on our business".

 

 

Q1 2020

Q1 2019

Change

Abs

%

 

 

 

 

 

Global Ports Consolidated Results

 

 

 

 

 

 

 

Consolidated Marine Container Throughput (kTEU)

394

354

40

11%

FCT

171

162

9

6%

PLP

108

76

31

41%

VSC

101

101

0

0%

ULCT

14

15

0

-3%

Non-containerised cargo

 

 

 

 

Ro-ro (thousand units)

4

5

-1

-6%

Cars (thousand units)

18

25

-7

-29%

Bulk cargo, incl. coal (thousand tonnes)

1 028

819

209

26%

 

 

 

 

 

Joint ventures

 

 

 

 

 

 

 

 

 

Containerised cargo, kTEU

 

 

 

 

Finnish Ports

25

27

-2

-8%

Yanino (inland terminal)

24

29

-5

-18%

Bulk cargo throughput, thousand tonnes

 

 

 

 

Moby Dik

56

18

38

213%

Yanino

78

101

-23

-23%

 

 

 

 

 

Russian Container Market, kTEU

 

 

 

 

 

 

 

 

 

Total Market

1,262

1,245

17

1.3%

Baltics (incl. Kaliningrad)

635

645

-10

-1.6%

Northern Ports

38.5

37.8

0.7

1.9%

South

224

211

13

6.2%

Far East

364

351

13

3.8%

 

ENQUIRIES

Global Ports Investor Relations

Mikhail Grigoriev / Tatiana Khansuvarova

+7 (812) 677 15 57

+7 916 991 73 96

Email: ir@globalports.com

Global Ports Media Relations

Maria Kobzeva

+7 (812) 677 15 57

E-mail: media@globalports.com

Teneo

 

Zoë Watt / Douglas Campbell

+44 20 7260 2700

E-mail: globalports@teneo.com

NOTES TO EDITORS

Global Ports Investments PLC

Global Ports Investments PLC is the leading operator of container terminals in the Russian market by capacity and container throughput[1].

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 terminal Yanino Logistics Park[5] located in the vicinity of St. Petersburg.

Global Ports' revenue for 2019 was USD 361.9 million and Adjusted EBITDA was USD 226.9 million*. Consolidated Marine Container Throughput was 1,439 thousand TEU in 2019.

Global Ports' major shareholders are Delo Group, one of the largest private transportation and logistics holding companies 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 operate a global terminal network of 78 operating port facilities, giving the company a global presence in 58 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. Any forward-looking statement is based on information available to Global Ports as of the date of the statement and, other than in accordance with its legal or regulatory obligations, Global Ports does not intend or undertake to update or revise these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements involve known and unknown risks and Global Ports wishes to caution you that these statements are only predictions and that actual events or results may differ materially from what is expressed or implied by these statements. 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. All written or oral forward-looking statements attributable to Global Ports are qualified by this caution.

 

[1] Company estimates based on 2019 throughput and the information published by the Association of Sea Commercial Ports ("ASOP").

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

[3] In which CMA Terminals currently has a 25% effective ownership interest.

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

[5] In which CMA Terminals currently has a 25% effective ownership interest.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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