APM Terminals posts Q2 2013 results
APM Terminals posts Q2 2013 results, said in the company's press release. The profit for Q2 2013 of USD 179m was an improvement of USD 19m compared to Q2 2012. The volumes were at the same level as last year, with most terminals in Europe and North America recording decreased volume, offset by continued positive developments in high growth markets. MarKet DevelopM ent. The global container terminal market measured in TEU increased by 4% during Q2 2013, and has grown by 3% in the six months to June 2013 (Drewry). The number of containers handled by APM Terminals (measured in crane lifts and weighted with APM Termi - nals’ ownership interest) was unchanged at 9.1m TEUs compared to Q2 2012. Volumes from customers outside the Group grew by 7% in the first half of 2013 and reached 50% (47%). p ortfolio Develop M ents In May, APM Terminals opened the 600 metres re-con - structed quay in Monrovia, Liberia. The re-construction was completed on time and within budget.
APM Terminals’ engagement in Monrovia is part of a strategic focus on supporting high growth markets in Africa with improved port infrastructure. In Q1 2013, a memorandum of Understanding was signed stating the intention to sell a 24% share of APM Terminals Zeebrugge. The transaction is now expected to be finalized during Q3 2013. Construction of the jointly owned Brasil Terminal Portu - ario in Santos, Brazil has been completed, but start of operations has been held back as the authorities have delayed issuing the operating license. Operations are expected to commence during Q3 2013. Global Ports, the leading operator of container terminals in Russia and in which APM Terminals holds a 37.5% co-controlling share, are in discussions with a competing operator, NCC, about a possible acquisition. There is no certainty as to the outcome of these discussions.
Global Ports received Maersk Line’s Triple-E vessel Mærsk Mc-Kinney Møller when calling the container terminal in Vostochny, Russia on July 6, the only port in Russia cer ti - fied to handle the vessels. 18,000+ TEU vessels will reshape the port industry, driven by the need for higher productivity, larger cranes, more yard space and emphasis on transhipment hub ports. APM Terminals is well-positioned in the market to serve this new generation of vessels, with the largest number of transhipment hubs on the Asia–Europe trade along with modern cranes and new port developments such as Rotterdam Maasvlakte II. Equally important, the intro - duction of 18,000+ TEU vessels creates a cascade effect of larger vessels into other trade lanes. f inancial perfor M ance APM Terminals delivered an increased profit of USD 179m (USD 160m) and a return on invested capital of 12.8% (14.3%).
Revenue increased by 1.9% mainly caused by higher con - struction revenue on behalf of certain concession gran - tors also reducing the EBITDA margin. The profit from associated companies and joint ventures mainly located in high growth markets increased significantly compared to last year. The invested capital increased to USD 5.6bn (USD 4.4bn). The increase reflects the continued high investment level in APM Terminals and notably the acquisition of a 37.5% co-controlling share of Global Ports Investments PLC, Russia in November 2012. Operational cash flow was USD 241m (USD 265m) and cash flow used for capital expenditure was USD 212m (USD 63m). s afety perfor M ance The lost time incidents frequency (LTIF) for the last four quarters was 2.07 (2.93) per million working hours. APM Terminals has continued focus on eliminating accidents and advancing the safety management culture.