Port of Rotterdam reports financial result for H1 2014
The Port of Rotterdam Authority’s turnover in the first half of 2014 increased by € 8.6 million compared to the first half of 2013, the company said in its press release. The net result slightly increased (by € 1.8 million) in comparison to the first half of 2013. The impact of the increase in turnover is somewhat damped by the increase in depreciation and interest charges. The cash flow in the first half of t he year was negative. Total investments are expected to drop from € 263 million in 2013 to approximately € 203 million in 2014, and as such fall back to the level prior to the construction of the Maasvlakte 2. One of the largest investments in recent years in existing port area, the widening of the Amazonehaven, was commissioned in 2014.
Turnover in the first half of 2014 increased by € 8.6 million compared to the first half of 2013. This is primarily due to an increase in revenues from contracts (+5%), particularly for sites on the Maasvlakte 2. In addition, the port dues (0%) stayed the same due to a small increase in throughput combined with a moderate pricing policy. Operating expenses, on a half-yearly basis, are slightly lower than in 2013 (€ 9.6 million) primarily due to lower personnel (-4%) and operating expenses (-9%). This is offset by higher depreciation and financial expenses. The higher depreciation is due to the high investment volume in prior years. The increase in financial expenses is primarily due to a decrease in the capitalisation of interest during construction compared to last year due to the commissioning of the Maasvlakte 2. Preparation costs were incurred for the new participating interest in Brazil (€ 4 million) which, among other things, caused the result from participating interests in the first half of 2014 to become negative. Together these developments caused the net result in 2014 to increase somewhat in comparison to the first half of 2013 (€ 1.8 million). The development of the result is in line with expectations and provides the solid financial basis required to be able to realise investment ambitions and meet commitments.
Due to the construction of the Maasvlakte 2, the Port of Rotterdam Authority’s level of investment has been very high in recent years, particularly in 2010 - 2013. Total investments are expected to drop from € 263 million in 2013 to approximately € 203 million in 2014. This brings the investment level back to what it was prior to the construction of the Maasvlakte 2. Widening of the Amazonehaven, approximately € 200 million, one of the largest investments in the existing Rotterdam area was fully completed for use in April 2014. The Port Authority’s goal is to continue to invest vigorously in the port area.
A healthy cash flow is needed to be able to meet commitments and to continue to be able to invest in the port's infrastructure. Due to a growth in the operating result the operating cash flow has increased (€ 177.2 million) in the first half of 2014. Payments related to investment (€ 99.3 million) and the dividend (€ 87.4 million) constitute the largest part of the cash flow from investing activities and financing activities in the first half of 2014. On balance, the total cash and cash equivalents have decreased in comparison to the beginning of the financial year (€ 27.6 million). In the first half of 2013 there was an increase (€ 69.4 million) which was primarily due to the drawdown of a loan in the amount of € 450 million. A large part of this amount at the time was used for investments. In addition a repayment (€ 295 million) has been made of contribution received in 2011 and 2012 of the State. The cash flow is expected to improve in the second half of 2014 in comparison to the first half of 2014.