IFRS net profit of Novorossiysk Commercial Sea Port up 52.5% to $128.9 mln in H1 09

Novorossiysk Commercial Sea Port (LSE: NCSP, RTS and MICEX: NMTP) announces interim condensed consolidated financial results (unaudited) for the six months ended 30 June 2009 in accordance with International Financial Reporting Standards (IFRS).

NCSP Group revenues increased by USD 19.5 million and reached USD 334.2 million in the first half of 2009. The Group’s consolidated revenues grew by 6.2 percent against the first half of 2008 being affected by a number of positive and negative developments.

  
Growing cargo traffic and changes in the cargo mix were the key revenue drivers bringing it up by USD 50.2 million*. Thus, in H1 2009 versus comparative period last year grain volumes increased more than fourfold exceeding 10 percent of the Group’s total cargo turnover. Growth of iron ore and ore concentrate on 1.5 million tonnes has also contributed substantially to Group‘s revenue increase.

  
The increase in additional port services over the reporting period, including cargo storage and other services, added USD 3.5 million* of extra revenues compared to the first half of 2008.

  
Revenues from bunkering fuel sales declined as a result of almost double decrease of oil product prices in dollar terms in the first half of 2009 versus same period last year, which reduced Group’s consolidated revenues by USD 34.2 million while corresponding reduction in bunkering operations costs. At the same time the margin on bunkering fuel buy-and-sell operations remained at the last year’s level.

In order to ensure the comparability of the data for 2008 and 2009, the calculation of EBITDA for both periods was adjusted to the exchange rate differences resulted from Russian ruble versus US dollar exchange rate fluctuations. Hence, the adjusted EBITDA for the first half of 2009 amounted to USD 240.4 million* versus USD 161.1 million* in the first half of 2008. 
The largest contribution to the increase in the adjusted EBITDA over the reporting period came from the growth of cargo traffic and changes in the cargo mix. Together, these factors led to USD 41.4 million* increase in adjusted EBITDA in the first half of 2009 compared to the same period in 2008.