REG - Globaltrans Inv PLC - Interim 2017 Results <Origin Href="QuoteRef">GLTRq.L</Origin> - Part 2

Globaltrans InvestmentAnnouncement

29/08/2017 07:08

- Part 2: For the preceding part double click  ID:nRSc0907Pa 

amount of RUB 20,485 million (including
accrued interest of RUB 45 million*). 
 
The Group's Net Debt was held relatively steady at RUB 11,712 million* as of
30 June 2017, a 2% increase from the level of Net Debt at the end of 2016. 
 
The Group's leverage further improved with a ratio of Net Debt to Adjusted
EBITDA for the twelve months ended 30 June 2017 of 0.5x*, compared with 0.7x*
at the end of 2016. 
 
The following table sets out the details on the Group's total debt, Net Debt
and Net Debt to Adjusted EBITDA at 30 June 2017 and 2016, and reconciliation
of Net Debt to Total debt. 
 
                              As of             As of     Change  
                              31 December 2016  30 June           
                                                2017              
                              RUB mln           RUB mln   %       
 Total debt                   16,292            20,485    26%     
 Minus                                                            
 Cash and cash equivalents    4,773             8,773     84%     
 Net Debt                     11,519*           11,712*   2%      
 Net Debt to Adjusted EBITDA  0.7x              0.5x 10           
 
 
Rouble-denominated borrowings accounted for 100% of the Group's debt portfolio
as of the end of 30 June 2017. The Russian rouble is the functional currency
of the Company. 
 
The weighted average effective interest rate further reduced to 9.96%* as of
30 June 2017 compared to 11.01%* as of the end of 2016 on the back of
continued improvement in conditions in the Russian financial market. The vast
majority of the Group's debt had fixed interest rates as of 30 June 2017. 
 
The Group has a balanced maturity profile, supported by the Group's strong
cash flow generation, available cash and cash equivalents, as well as undrawn
credit facilities 11  in the amount of RUB 16,700 million as of 30 June 2017. 
 
The following table gives the maturity profile of the Group's borrowings
(including accrued interest of
RUB 45 million*) as of 30 June 2017. 
 
                                                          As of         
                                                          30 June 2017  
                                                          RUB mln       
 Q3 2017                                                  1,918*        
 Q4 2017                                                  1,839*        
 Q1 2018                                                  1,812*        
 Q2 2018                                                  1,817*        
 H2 2018                                                  3,400*        
 2019                                                     6,337*        
 2020-2022                                                3,362*        
 Total                                                    20,485        
 Free Cash Flow for the twelve months ended 30 June 2017  13,583*       
 Cash and cash equivalents                                8,773         
 Undrawn credit facilities12                              16,700        
                                                                          
 
 
PRESENTATION OF INFORMATION 
 
The financial information presented in this announcement is derived from the
condensed consolidated interim financial information (unaudited) of
Globaltrans Investment PLC ("the Company" or, together with its subsidiaries,
"Globaltrans" or "the Group") as at and for the six months ended 30 June 2017
and 2016 and prepared in accordance with International Accounting Standard 34
"Interim Financial Reporting" as adopted by the European Union. The condensed
consolidated interim financial information should be read in conjunction with
the consolidated Management report and consolidated financial statements for
the year ended 31 December 2016, which have been prepared in accordance with
International Financial Reporting Standards as adopted by the European Union
and the Cyprus Companies Law, Cap. 113. 
 
The Group's condensed consolidated interim financial information (unaudited)
as at and for the six months ended 30 June 2017 and 2016 along with selected
historical financial and operational information are available at Globaltrans'
corporate website (www.globaltrans.com). 
 
The presentation currency of the Group's consolidated financial statements is
Russian rouble ("RUB"). 
 
In this announcement, the Group has used certain measures not recognised by EU
IFRS or IFRS (referred to as "non-GAAP measures") as supplemental measures of
the Group's operating performance. The management believes that these non-GAAP
measures provide valuable information to readers, because they enable them to
focus more directly on the underlying day-to-day performance of the Group's
business. 
 
The Company also reports certain operational information to illustrate the
changes in the Group's operational and financial performance during the
reporting periods. 
 
Certain financial information which is derived from management accounts is
marked in this announcement with an asterisk {*}. 
 
Information (non-GAAP and operating measures) requiring additional explanation
or defining is marked with initial capital letters and the explanations or
definitions are provided at the end of this announcement. 
 
Rounding adjustments have been made in calculating some of the financial and
operational information included in this announcement. As a result, numerical
figures shown as totals in some tables may not be exact arithmetic
aggregations of the figures that precede them. 
 
The Group has obtained certain statistical, market and pricing information
that is presented in this announcement on such topics as the Russian freight
rail transportation market and related subjects from the following third-party
sources: Federal State Statistics Service of Russian Federation ("Rosstat"),
JSC Russian Railways ("RZD") and the Federal Antimonopoly Service ("FAS"). The
Group has accurately reproduced such information and, as far as it is aware
and is able to ascertain from information published by such third-party
sources, no facts have been omitted that would render the reproduced
information inaccurate or misleading. The Group has not independently verified
this third-party information. In addition, the official data published by
Russian governmental agencies may be substantially less complete or researched
than that of more developed countries. 
 
All non-GAAP financial and operational information presented in this
announcement should be used only as an analytical tool, and investors should
not consider such information in isolation or in any combination as a
substitute for analysis of the Group's consolidated financial statements and
condensed consolidated interim financial information reported under EU IFRS,
which are available the Globaltrans' corporate website www.globaltrans.com. 
 
DEFINITIONS 
 
Terms that require definitions are marked with capital letters in this
announcement and their definitions are provided below in alphabetical order: 
 
Adjusted EBITDA (a non-GAAP financial measure) represents EBITDA excluding
"Net foreign exchange transaction gain/(losses) on borrowings and other
liabilities", "Net foreign exchange transaction gain/(losses) on cash and cash
equivalents and other monetary assets", "Share of profit/(loss) of associate",
"Other gains - net", "Net (gain)/loss on sale of property, plant and
equipment", "Impairment of property, plant and equipment", "Impairment of
intangible assets", "Loss on derecognition arising on capital repairs" and
"Reversal of impairment of intangible assets". 
 
Adjusted EBITDA Margin (a non-GAAP financial measure) is calculated as
Adjusted EBITDA divided by Adjusted Revenue. 
 
Adjusted Profit Attributable to Non-controlling Interests (a non-GAAP
financial measure) is calculated as "Profit attributable to non-controlling
interests" less share of "Impairment of property, plant and equipment" and
"Impairment of intangible assets" attributable to non-controlling interests. 
 
Adjusted Revenue (a non-GAAP financial measure) is calculated as "Total
revenue" less the following "pass through" items "Infrastructure and
locomotive tariffs: loaded trips" and "Services provided by other
transportation organisations". 
 
Attributable Free Cash Flow (a non-GAAP financial measure) means Free Cash
Flow less Adjusted Profit Attributable to Non-controlling Interests. 
 
Average Distance of Loaded Trip is calculated as the sum of the distances of
all loaded trips for a period divided by the number of loaded trips for the
same period. 
 
Average Number of Loaded Trips per Railcar is calculated as total number of
loaded trips in the relevant period divided by Average Rolling Stock
Operated. 
 
Average Price per Trip is calculated as Net Revenue from Operation of Rolling
Stock divided by the total number of loaded trips during the relevant period
in the respective currency. 
 
Average Rolling Stock Operated is calculated as the average weighted (by days)
number of rolling stock available for operator services (not including rolling
stock in maintenance, purchased rolling stock in transition to its first place
of commercial utilisation, rolling stock leased out, Engaged Fleet, platforms
and tank containers used in petrochemical business). 
 
EBITDA (a non-GAAP financial measure) represents "Profit for the period"
before "Income tax expense", "Finance costs - net" (excluding "Net foreign
exchange transaction gain/(losses) on borrowings and other liabilities" and
"Net foreign exchange transaction gain/(losses) on cash and cash equivalents
and other monetary assets"), "Depreciation of property, plant and equipment"
and "Amortisation of intangible assets". 
 
Engaged Fleet is defined as rolling stock subcontracted or otherwise engaged
from a third-party rail operator for a loaded trip from the point of
origination to the cargo's destination, at which point the railcar is then
released to such third-party. 
 
Empty Run or Empty Runs means movement of railcars without cargo for the whole
or a substantial part of the journey. 
 
Empty Run Costs (a non-GAAP financial measure meaning costs payable to RZD for
forwarding empty railcars) is derived from management accounts and presented
as part of the "Infrastructure and locomotive tariffs: empty run trips and
other tariffs" component of "Cost of sales" reported under EU IFRS. Empty Run
Costs do not include costs of relocation of rolling stock to and from
maintenance, purchased rolling stock in transition to its first place of
commercial utilisation, rolling stock leased in or leased out, Engaged Fleet,
platforms and tank containers used in petrochemical business. 
 
Empty Run Ratio is calculated as the total of empty trips in kilometres by
respective rolling stock type divided by total loaded trips in kilometres of
such rolling stock type. Empty trips are only applicable to rolling stock
operated (not including rolling stock in maintenance, purchased rolling stock
in transition to its first place of commercial utilisation, rolling stock
leased out, Engaged Fleet, platforms and tank containers used in petrochemical
business). 
 
Free Cash Flow (a non-GAAP financial measure) is calculated as "Cash generated
from operations" (after "Changes in working capital") less "Tax paid",
"Interest paid", "Purchases of property, plant and equipment" (which includes
maintenance CAPEX), "Purchases of intangible assets" and "Acquisition of
subsidiary undertakings - net of cash acquired". 
 
Freight Rail Turnover is a measure of freight carriage activity over a
particular period calculated as the sum of tonnage of each loaded trip
multiplied by the distance of each loaded trip, expressed in tonnes-km. It
excludes performance of petrochemical tank container segment. 
 
Infrastructure and Locomotive Tariffs - Other Tariffs (a non-GAAP financial
measure) is presented as part of the ''Infrastructure and locomotive tariffs:
empty run trips and other tariffs'' component of "Cost of sales" reported
under EU IFRS. This cost item includes the costs of relocation of rolling
stock to and from maintenance, transition of purchased rolling stock to its
first place of commercial utilisation, and relocation of rolling stock in and
from lease operations as well as other expenses including the empty run costs
attributable to the petrochemical tank container business. 
 
Leased-in Fleet is defined as fleet leased-in under operating leases,
including railcars, locomotives and petrochemical tank containers. 
 
Leased-out Fleet is defined as fleet leased out to third parties under
operating leases (excluding platforms and tank containers used in
petrochemical business). 
 
Leverage Ratio (a non-GAAP financial measure) means the ratio of Net Debt on
the last day of a particular financial period to Adjusted EBITDA in respect of
that financial period. 
 
Net Debt (a non-GAAP financial measure) is defined as the sum of total
borrowings (including interest accrued) less "Cash and cash equivalents". 
 
Net Revenue from Engaged Fleet (a non-GAAP financial measure) represents the
net sum of the price charged for transportation to clients by the Group
utilising Engaged Fleet less the loaded railway tariff charged by RZD
(included in the EU IFRS line item "Infrastructure and locomotive tariffs:
loaded trips") less the cost of attracting fleet from third-party operators
(included in the EU IFRS line item "Services provided by other transportation
organisations"). 
 
Net Revenue from Operation of Rolling Stock (a non-GAAP financial measure) is
defined as the sum of "Revenue from railway transportation - operators
services (tariff borne by the Group)" and "Revenue from railway transportation
- operators services (tariff borne by the client)" less "Infrastructure and
locomotive tariffs: loaded trips", "Services provided by other transportation
organisation" and Net Revenue from Engaged Fleet. 
 
Net Working Capital (a non-GAAP financial measure) is calculated as the sum of
the current portions of "Inventories", "Current income tax assets", "Trade
receivables - net", "Prepayments - third parties", "Prepayments - related
parties", "Other receivables - net", and "VAT and other taxes recoverable",
less the sum of the current portions of "Trade payables to third parties",
"Trade payables to related parties", "Advances from third parties", "Advances
from related parties", "Accrued expenses", "Other payables to third parties",
"Other payables to related parties" and "Current tax liabilities". 
 
Total Operating Cash Costs (a non-GAAP financial measure) represent operating
cost items payable in cash and calculated as "Total cost of sales, selling and
marketing costs and administrative expenses" less the "pass through" items:
"Infrastructure and locomotive tariffs: loaded trips" and "Services provided
by other transportation organisations" and non-cash items: "Depreciation of
property, plant and equipment", "Amortisation of intangible assets",
"Impairment charge for receivables", "Impairment of property, plant and
equipment", "Net (gain)/loss on sale of property, plant and equipment" and
"Loss on derecognition arising on capital repairs". 
 
Total Operating Non-Cash Costs (a non-GAAP financial measure) include cost
items such as "Depreciation of property, plant and equipment", "Amortisation
of intangible assets", "Loss on derecognition arising on capital repairs",
"Impairment charge for receivables", "Impairment of property, plant and
equipment" and "Net (gain)/loss on sale of property, plant and equipment". 
 
Other Operating Cash Costs (a non-GAAP financial measure) include cost items
such as "Advertising and promotion", "Auditors' remuneration", "Communication
costs", "Information services", "Legal, consulting and other professional
fees", "Rental of tank containers", "Operating lease rentals - office", "Taxes
(other than income tax and value added taxes)" and "Other expenses". 
 
Owned Fleet is defined as the fleet owned and leased in under finance lease as
at the end of the reporting period. It includes railcars, locomotives and
petrochemical tank containers, unless otherwise stated, and excludes Engaged
Fleet. 
 
Share of Empty Run Kilometres paid by Globaltrans is defined as the percentage
of empty run kilometres paid by Globaltrans divided by the total amount of
empty run kilometres incurred by the fleet operated by Globaltrans (not
including relocation of rolling stock to and from maintenance, purchased
rolling stock in transition to its first place of commercial utilisation, and
rolling stock leased out, Engaged Fleet, platforms and tank containers used in
petrochemical business) in the relevant period. 
 
Total Empty Run Ratio is calculated as total kilometres travelled empty
divided by the total kilometres travelled loaded by the rolling stock fleet
operated by Globaltrans (not including the relocation of rolling stock to and
from maintenance, purchased rolling stock in transition to its first place of
commercial utilisation, or rolling stock leased out, Engaged Fleet, platforms
and tank containers used in petrochemical business) in the relevant period. 
 
Total Fleet is defined as the fleet owned and leased in under finance and
operating leases as at the end of reporting period. It includes railcars,
locomotives and petrochemical tank containers, unless otherwise stated, and
excludes Engaged Fleet. 
 
Transportation Volume is a measure of freight carriage activity over a
particular period, measuring weight of cargo carried in million tonnes. It
excludes the performance of petrochemical tank container segment. 
 
LEGAL DISCLAIMER 
 
Some of the information in this announcement may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Globaltrans. You can identify forward-looking statements by
terms such as 'expect', 'believe', 'anticipate', 'estimate', 'intend', 'will',
'could', 'may' or 'might', the negative of such terms or other similar
expressions. Globaltrans wishes to caution you that these statements are only
predictions and that actual events or results may differ materially.
Globaltrans 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 Globaltrans, including, among others, general economic conditions, the
competitive environment, risks associated with operating in Russia, rapid
technological and market change in the industries Globaltrans operates in, as
well as many other risks specifically related to Globaltrans and its
operations. 
 
 1  Transportation Volumes of respective cargoes excluding Engaged Fleet.
Metallurgical cargoes including ferrous metals, scrap metal and ores. 
 
 2  Net Debt to Adjusted EBITDA for the twelve months ended 30 June 2017. 
 
 3  Includes "Infrastructure and locomotive tariffs: loaded trips" for H1 2017
of RUB 11,193 million (H1 2016: RUB 10,538 million) and "Services provided by
other transportation organisations" of RUB 1,617 million (H1 2016: RUB 1,574
million). 
 
 4  Defined as the sum of the following EU IFRS line items: "Railway
transportation - operator's services (tariff borne by the Group)" and "Railway
transportation - operator's services (tariff borne by the client)". 
 
 5  Under contracts where the RZD tariff is borne by the Group, the Group has
a contractual relationship with the client. The Group sets the terms of the
transactions, such as selling and payment terms and in some cases, bears
credit risk and controls the flow of receipts and payments. 
 
 6  A block train consists of Group-operated rolling stock bound for one
destination. 
 
 7  The cost of each major periodic capital repair (including the replacement
of significant components) is recognised in the carrying amount of the
relevant item of rolling stock repaired and separately depreciated.
Simultaneously, the carrying amount of the repaired rolling stock that is
attributable to the previous periodic capital repair and/or significant
component replacement, if any, is derecognised and debited in "Cost of sales"
in the income statement as "Loss on derecognition arising on capital repairs"
for the period during which the repair was carried out. 
 
 8  Net Cash inflows (outflows) from borrowings and financial leases defined
as the balance between the following line items: "Proceeds from borrowings",
"Repayments of borrowings" and "Finance lease principal payments". 
 
 9  Including assets under construction. 
 
 10  Net Debt to Adjusted EBITDA for the twelve months ended 30 June 2017. 
 
 11  Including the unissued registered RUB denominated exchange-traded bonds
in the amount of RUB 15,000 million. 
 
This information is provided by RNS
The company news service from the London Stock Exchange