REG - Globaltrans Inv PLC - Interim Results 2014 <Origin Href="QuoteRef">GLTRq.L</Origin> - Part 2

Globaltrans InvestmentAnnouncement

29/10/2014 07:21

- Part 2: For the preceding part double click  ID:nRSB5647Qa 

       100%      
 
 
As of 30 June 2014 the Group's leverage remained at a comfortable level with a
ratio of Net Debt to Adjusted EBITDA (for the last twelve months) of 1.5x*. 
 
The currency structure of the Group's indebtedness was further improved with
Russian Rouble-denominated borrowings accounting for 96% of the Group's debt
portfolio as of 30 June 2014, compared to 94% as of the end of 2013. 
 
The carrying amounts were denominated in the following currencies as of 30
June 2014. 
 
                 as of                   
                 30 June 2014  %         
                 USD mln       of Total  
 Russian Rouble  961.6         96%       
 US Dollar       38.2          4%        
 
 
The weighted average effective interest rate was 9.5%* at 30 June 2014
compared to 9.1% as of the end of 2013, reflecting an increase in the market
interest rates, as well as a further increase in the share of Russian Rouble
denominated debt in the Group's borrowings. 
 
The share of borrowings with a fixed interest rates increased to 88%* at 30
June 2014 compared to 87%* at the end of 2013. 
 
The Group has a comfortable maturity profile, supported by the Group's solid
cash flow generation, available cash and cash equivalents, as well as undrawn
committed credit facilities in amount of USD 195.4 million. The Group is
currently considering financing options with a number of banks who have
expressed interest in providing financing to the Group. 
 
The following table gives the maturity profile of the Group's borrowings
(including accrued interest of USD 11.6 million*) as of 30 June 2014. 
 
                                                            as of         
                                                            30 June 2014  
                                                            USD mln       
 July - December 2014                                       153.5*        
 2015                                                       540.6*        
 2016-2019                                                  305.7*        
 Total                                                      999.8         
 Cash generated from operations for the last twelve months  603.2*        
 Cash and cash equivalents                                  124.0         
 Undrawn committed credit facilities                        195.4         
                                                                            
 
 
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 2014
and 2013 and prepared in accordance with International Accounting Standard 34
"Interim Financial Reporting" as adopted by the European Union. 
 
The Group's condensed consolidated interim financial information (unaudited)
as at and for the six months ended 30 June 2014 and 2013 along with selected
historical financial and operational information are available at Globaltrans'
corporate website (www.globaltrans.com). 
 
The condensed consolidated interim financial information (unaudited) is
presented in US Dollars, which the Group's management believes to be better
understood by the principal users of the financial statements. The Functional
Currency of the Company, its Cypriot subsidiaries and its Russian subsidiaries
is the Rouble. The Company's Estonian and Finnish subsidiaries have the Euro
as their Functional Currency and the Company's Ukrainian subsidiary has the
Ukrainian Hryvnia as its Functional Currency. The balance sheets of the
Group's companies which have currencies other than the US Dollar as their
functional currency are translated into US Dollars, at the exchange rate
prevailing at the date of the relevant balance sheet, whereas income and
expense items are translated into US Dollars at the average monthly exchange
rates using the official exchange rates of the central bank of the country of
registration of each entity, which approximate the exchange rate existing at
the date of the transactions, in accordance with IAS 21 ''The Effects of
Changes in Foreign Exchange Rates''. All resulting foreign currency exchange
rate differences are recognised in other comprehensive income. 
 
Certain comparable financial and operational information included in this
announcement has been re-presented for the six months ended 30 June 2013 to
conform to changes in the presentation of operations with Engaged Fleet for
the six months ended 30 June 2014. 
 
Certain financial information which is derived from management accounts is
marked in this announcement with an asterisk {*}. 
 
In this announcement the Group has used certain non-GAAP financial information
(not recognised by EU IFRS or IFRS) as supplemental measures of the Group's
operating performance. 
 
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");
OJSC Russian Railways ("RZD") and Federal Tariff Service of Russian Federation
("FST"). 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 interim financial information reported under EU IFRS, which are
available the Globaltrans' corporate website www.globaltrans.com. 
 

------------------------------------------------------------END-------------------------------------------------------------- 
 
ANALYST AND INVESTOR CONFERENCE CALL 
 
The release of the Group's financial and operational results will be
accompanied by an analyst and investor conference call hosted by Sergey
Maltsev, Chief Executive Officer and Alexander Shenets, Chief Financial
Officer. 
 
Date: Tuesday, 2 September 2014 
 
Time: 14.00 London / 9.00 New York (EDT) / 17.00 Moscow 
 
To participate in the conference call please dial one of the following numbers
and ask to be put through to the "Globaltrans" call: 
 
UK toll free:       0808 109 0700 
 
International:     +44 (0) 20 3003 2666 
 
As there will be simultaneous translation for the first part of the call
(slide presentation), you should state whether you prefer to listen in English
or Russian. During the Q&A session, all participants will hear both
languages. 
 
There will also be a webcast of the call available through the Globaltrans
website (www.globaltrans.com). Please note that this will be a listen-only
facility. 
 
ENQUIRIES 
 
Globaltrans Investor Relations 
 
Mikhail Perestyuk 
 
+357 25 503 153 
 
irteam@globaltrans.com 
 
For international media 
 
StockWell Communications 
 
Laura Gilbert / Zoë Watt 
 
+44 20 7240 2486 
 
globaltrans@stockwellgroup.com 
 
NOTES TO EDITORS 
 
Globaltrans is a leading private freight rail transportation group with
operations in Russia, the CIS and the Baltic countries. The Group's main
business is the provision of freight rail transportation services. Globaltrans
provides services to more than 500 customers and its key customers include a
number of large Russian industrial groups in the metals and mining and the oil
products and oil sectors. 
 
The Group has a Total Fleet of about 65 thousand units of rolling stock with
an average age of 8.4 years15. Universal gondola cars and rail tank cars
constitute the backbone of the Group's fleet. About 93% of the Total Fleet is
owned by the Group. In the first six months of 2014 the Group's Freight Rail
Turnover (including Engaged Fleet) was 80.6 billion tonnes-km. The Group's
Market Share was 8.4% of overall Russian freight rail transportation volumes. 
 
Globaltrans' global depositary receipts (ticker symbol: GLTR) have been listed
on the Main Market of the London Stock Exchange since May 2008. Globaltrans
was the first freight rail transportation group with operations in Russia to
have an international listing. 
 
To learn more about Globaltrans, please visit 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 (gains)/losses on borrowings and other
liabilities", "Net foreign exchange transaction (gains)/gains on cash and cash
equivalents and other monetary assets", "Share of profit/(loss) of
associates", "Other gains - net" and "(Gain)/loss on sale of property, plant
and equipment. 
 
Adjusted EBITDA Margin (a non-GAAP financial measure) is calculated as
Adjusted EBITDA divided by Adjusted Revenue. 
 
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". 
 
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 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 or Engaged Fleet). 
 
Dividend Pay-out Ratio calculated as a share of Profit for the year
attributable to owners of the Company. 
 
EBITDA (a non-GAAP financial measure) represents "Profit for the year" before
"Income tax expense", "Finance costs - net" (excluding "Net foreign exchange
transaction (gains)/losses on borrowings and other liabilities" and "Net
foreign exchange transaction (gains)/losses on cash and cash equivalents and
other monetary assets"), "Depreciation of property, plant and equipment",
"Amortisation of intangible assets", "Impairment of property, plant and
equipment" and "Impairment of intangible assets". 
 
Engaged Fleetis 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 and Engaged
Fleet. 
 
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 or Engaged Fleet). 
 
Free Cash Flow (a non-GAAP financial measure) is calculated as "Net cash from
operating activities" (after "Changes in working capital" and "Tax paid") less
"Purchases of property, plant and equipment" (which includes maintenance
CAPEX) and "Interest paid". 
 
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
includes volumes transported by the Engaged Fleet, unless otherwise stated. 
 
Functional Currency is defined as the currency of the primary economic
environment in which the entity operates. The functional currency of the
Company, its Cyprus and Russian subsidiaries is the Russian Rouble. The
Estonian and Finnish subsidiaries have the Euro as their functional currency.
The Ukrainian subsidiary of the Company has the Ukrainian Hryvnia as its
functional currency. 
 
Imputed Consolidated Net Profit is based on the Consolidated Financial
Statements and calculated according to the following formula: "NP = NPcons -
Adjcons", where "NP" is the imputed consolidated net profit; "NPcons" is
consolidated net profit of the Group attributable to the owners of the Group
as shown in the Consolidated Financial Statements for the past financial year;
"Adjcons" are non-cash adjustments determined by the Board including but not
limited to: (i) negative goodwill; (ii) non-cash results of mergers,
acquisitions and disposals of shares of Group subsidiaries, joint-ventures or
associates; (iii) share of profit of associates; and (iv) the results of the
issuing, amortisation and the revaluation of guarantees. Consolidated
Financial Statements mean the Group's consolidated financial statements
prepared in accordance with the International Financial Reporting Standards as
adopted by the EU. 
 
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. 
 
Leased-in Fleetis defined as rolling stock fleet leased-in under operating
leases, including both railcars and locomotives. 
 
Leased-out Fleetis defined as rolling stock fleet leased out to third parties
under operating leases. 
 
Market Shareis calculated using the Group's own information as the numerator
and information published by Rosstat as the denominator. The Group's Market
Share is calculated as a percentage of the overall Russian freight rail
transportation volume and includes volumes transported by Engaged Fleet. 
 
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 recoverable", less the sum of
the current portions of "Trade payables to third parties", "Trade payables to
related parties", "Advances from third parties for transportation services",
"Advances from related parties for transportation services", "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" and "(Gain)/loss on sale of property,
plant and equipment". 
 
Total Operating Non-Cash Costs (a non-GAAP financial measure) include line
items such as "Depreciation of property, plant and equipment", "Amortisation
of intangible assets", "Impairment charge for receivables" and "(Gain)/loss on
sale of property, plant and equipment". 
 
Other Operating Cash Costs (a non-GAAP financial measure) include line items
such as "Operating lease rentals - office", "Auditors' remuneration",
"Advertising and promotion", "Communication costs", "Information services",
"Taxes (other than income tax and value added taxes)" and "Other expenses". 
 
Owned Fleet is defined as the rolling stock fleet owned and leased in under
finance lease as at the end of the reporting period. It includes railcars and
locomotives 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 or Engaged Fleet) in the relevant period. 
 
Total Empty Run Ratio is calculated as total kilometres travelled empty
divided by the total kilometres travelled loaded by the 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 or Engaged Fleet) in the
relevant period. 
 
Total Fleet is defined as the total rolling stock owned and leased in under
finance and operating leases as at the end of period. It includes railcars and
locomotives 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
includes volumes transported by Engaged Fleet, unless otherwise stated. 
 
FOOTNOTES 
 
1.    The Group's financial performance in the first six months of 2014 was
affected by a 13% depreciation compared to the same period the previous year
in the average exchange rate of the Russian Rouble (Functional Currency of the
Company, its Cyprus and Russian subsidiaries) against the US Dollar (the
Group's financial information presentation currency). The 30 June 2014 period
end exchange rate of the Russian Rouble against the US Dollar weakened by 3%
compared to the end of 2013. 
 
2.    Free Cash Flow (a non-GAAP financial measure) is calculated as "Net cash
from operating activities" (after "Changes in working capital" and "Tax paid")
less "Purchases of property, plant and equipment" (which includes maintenance
CAPEX) and "Interest paid". 
 
3.    Including RN Holding (former TNK-BP). 
 
4.    Estimated by Globaltrans. May differ from estimations or information
available from the other sources. Estimated as a percentage of the total fleet
of railcars in Russia as of the end of 2013. 
 
5.    As of 30 June 2014. 
 
6.    Includes "Infrastructure and locomotive tariffs: loaded trips" for the
six months ended 30 June 2014 of USD 331.5 million (H1 2013: USD 397.3
million) and "Services provided by other transportation organisations" of USD
49.8 million (H1 2013: USD 82.2 million). 
 
7.    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)". 
 
8.    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. 
 
9.    USD 6,000. 
 
10.   USD 15,000. 
 
11.   USD 14,000. 
 
12.   USD 19,000. 
 
13.   USD 19,000. 
 
14.   Net Cash inflows (outflows) from borrowings and financial leases defined
as a balance between the following line items: "Proceeds from borrowings",
"Repayments of borrowings" and "Finance lease principal payments". 
 
15.   Average age of the Group's Owned Fleet as of 30 June 2014. 
 
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. 
 
This information is provided by RNS
The company news service from the London Stock Exchange