NCSP’s cargo turnover up 2.8% in Jan-Sep 08 as share of high-margin cargo grows
PJSC Novorossiysk Commercial Sea Port (LSE: NCSP, RTS & MICEX: NMTP) released consolidated operating results for 9 months of 2008. The group’s cargo turnover amounted to 60,335.8 thousand tons, which represents 2.8% growth against 9 months of 2007.
«By the end of 9 months the cargo turnover increased by 1,635.4 thousand tons», said Igor Vilinov, CEO of NCSP, commenting on the operating results. «In the third quarter we managed to fully offset the decrease in transshipment of certain types of cargo that occurred in the first half of 2008. Commissioning of new facilities for transshipment of grain, containers and petroleum products has been major growth for 9 months of 2008.»
The share of containers in the overall cargo turnover of the group has increased from 4.4% in 9 months of 2007 to 6.5% for the same period of 2008, as container handling volumes reached 281.1 thousand TEU. Revenue from container handling in the reporting period reached 9% of the group’s total revenues.
Grain handling volumes in third quarter of 2008 have more than tripled compared to first half of 2008 and reached 2 501.5 thousand tons, since export duties were lifted in third quarter of 2008. At the same time grain handling volumes in third quarter of 2008 have increased 1.6 times against same period last year. Since August 2008 newly commissioned Novorossiysk Grain Terminal has reached its designed capacity, in August and September 2008 it handled 482.8 thousand tons and 551.5 thousand tons of grain respectively.
Handling of petroleum products – another priority for the group – increased from 6,883.3 thousand tons for nine months of 2007 to 7,951.6 thousand tons for the same period in 2008, offsetting 3% decline in crude oil.
In the beginning of 2008 NCSP begun handling imported cement, which totaled 974.6 thousand tons for 9 months of 2008. This made up for the lack of exported cement volumes and resulted in almost threefold increase in cement handling against same period last year.
In line with its strategy to optimize cargo traffic NCSP increases handling of high-margin cargo against shrinking share of less profitable cargo, i.e. iron ore and ore concentrate (decreased by 77.8%), as well as scrap metal (decreased by 74.0%).
The highest increase in cargo handling volumes was demonstrated by a number of NCSP’s subsidiaries: PJSC Novorossiysk Grain Terminal (from 92 thousand tons for 9 months of 2007 to 1,640.7 thousand tons for 9 months of 2008), OJSC Novoroslesexport (from 2,060.2 to 2,811.5 thousand tons), OJSC IPP (from 3,605.5 thousand tons to 4,514 thousand tons), and Baltic Stevedoring Company LLC (from 607.1 thousand tons to 886 thousand tons). This substantial growth resulted from completion of major investment projects: specialized grain terminal of PJSC Novorossiysk Grain Terminal, container terminal of OJSC Novoroslesexport, and OJSC IPP terminal for transshipment of bunker fuel.
NCSP group includes the six stevedoring companies: PJSC NSCP, PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Shipyard, PJSC NCSP Fleet, OJSC Novoroslesexport, OJSC IPP, and Baltic Stevedoring Company Ltd.