Global Ports Investments PLC announced its operational results and publishes its interim condensed consolidated financial information (unaudited) for the six month period ended 30 June 2018.
The growth of the Russian container market continued in the first half of 2018, with a 12% increase in volumes to 2.43 million TEU. This trend was principally driven by continuing growth in imports due to healthy consumer demand, along with the increased containerisation of exports.
During the first half of 2018 the Group continued to implement its strategy of harnessing the recovery of the container market, developing additional revenue streams, improving operational efficiency, maximising free cash flow generation, and conducting ongoing deleveraging.
The growth of Global Ports’ Consolidated Marine Container Throughput accelerated to 15.9% year-onyear in the first half of 2018 outpacing the market. The Group also continued to deliver strong growth in bulk throughput posting a 21.6% year-on-year increase in Consolidated Marine Bulk Throughput in the first half of 2018.
As a result, Revenue increased by 7.9% to USD 175.3 million. Gross profit increased by 26.8% to USD 104.7 million and Adjusted EBITDA grew by 11.8% to USD 108.7 million*, driven by strict cost control.
The Group’s Net Debt1 was reduced by a further USD 38.5 million* over the period with Net Debt to LTM Adjusted EBITDA decreasing to 3.9x* as of 30 June 2018 from 4.3x* as at the end of 2017.
Group financial and operational highlights for the six months ended 30 June 2018
- The Russian container market continued its recovery in the first half of 2018, resulting in 12% volume growth for the period. Total Russian container market throughput reached 2.43 million TEU.
- The Group’s Consolidated Marine Container Throughput increased 15.9% to 681 thousand TEU in the first half of 2018 compared to 587 thousand TEU in the same period of 2017. The growth rate of the Group’s Consolidated Marine Container Throughput outpaced that of the Russian container market.
- The Group focused on increasing bulk cargo volumes to improve utilisation rates at its terminals.
As a result, Consolidated Marine Bulk Throughput increased by 21.6% to 1.6 million tonnes in the first half of 2018, driven by growth in bulk cargoes at PLP and ULCT as well as in coal handling at VSC.
- Revenue in the first half of 2018 increased by 7.9% to USD 175.3 million compared to USD 162.5 million in the first half of 2017. This was driven by a 2.9% increase in Consolidated Container Revenue and a 25.6% growth in non-container revenue. The growth in Consolidated Container Revenue was driven by a 15.9% increase in Consolidated Marine Container Throughput.
This was partially offset by an 11.2% decline in Revenue per TEU. Only a low single digit percentage of the reduction in Revenue per TEU was attributable to change in tariffs, and the remainder is largely attributable to lower share of imports and the change in customer and service mix.
- The Group continued to exert a strict control over costs. Total Operating Cash Costs increased by only 2.2% during the reporting period despite double digit growth in throughput of both container and non-container cargoes. FX adjusted Total Operating Cash Costs2 increased by around 5.1%.
- Gross Profit in the first half of 2018 increased 26.8% to USD 104.7 million* or by 11% adjusted for impairments that took place in the first half of 2017.
- Adjusted EBITDA in the first half of 2018 increased 11.8% to USD 108.7 million* mainly due to growth in throughput and strict control over cash costs.
- Adjusted EBITDA margin improved by 213 basis points from 59.9% in the first half of 2017 to 62.0%* in the first half of 2018.
- Operating profit in the first half of 2018 stood at USD 90.2 million, 6.4x higher than the first half of 2017. This substantial increase was driven both by the growth in Gross profit and the fact that 1H 2017 was negatively impacted by one-off non-cash items of USD 11.4 million.
Read the full report here.