APM Terminals posts record results for 2011
APM Terminals, the Hague-based global port operator has announced performance results for 2011. A revenue growth of 10% year-on-year and an EBITDA of USD 1,059 million makes APM Terminals’ result for 2011 “the strongest ever”, according to CEO Kim Fejfer, the Company news release said.
Net operating profit after tax was USD 649 m. Profits of USD 793 m in 2010 were heavily influenced by extraordinary items incl. divestment gains. The profit in 2011 before gains and special items was USD 611 m, 24% higher than the previous year.
Even better: The return on invested capital – ROIC, often described by APM Terminals’ top exec as the most important single key figure for the port operator – reached 13.1%. This is a significant leap in profitability from 2010 where the return percentage was 10.4% when corrected for divestment gains and special items.
“This shows that APM Terminals is tracking well towards our long term goal of being the best and most profitable global port operator in the world. Profitability is our license to grow,” stated Mr. Fejfer in a comment on the annual results.
And growth is key for the independent port and inland services operator. Most industry analysts forecast a large need for additional port capacity over the next decade, and Mr. Fejfer is eager to secure the lion’s share of global growth opportunities.
“If there were such a thing as a “market share” for expansion, we believe that APM Terminals would be the #1 global port operator in 2011 in that category. We committed more than 3 billion USD to infrastructure development and facility expansion in 2011 and expect to do something similar in 2012,” added Fejfer.
Net operating profit after tax was USD 649 m. Profits of USD 793 m in 2010 were heavily influenced by extraordinary items incl. divestment gains. The profit in 2011 before gains and special items was USD 611 m, 24% higher than the previous year.
Even better: The return on invested capital – ROIC, often described by APM Terminals’ top exec as the most important single key figure for the port operator – reached 13.1%. This is a significant leap in profitability from 2010 where the return percentage was 10.4% when corrected for divestment gains and special items.
“This shows that APM Terminals is tracking well towards our long term goal of being the best and most profitable global port operator in the world. Profitability is our license to grow,” stated Mr. Fejfer in a comment on the annual results.
And growth is key for the independent port and inland services operator. Most industry analysts forecast a large need for additional port capacity over the next decade, and Mr. Fejfer is eager to secure the lion’s share of global growth opportunities.
“If there were such a thing as a “market share” for expansion, we believe that APM Terminals would be the #1 global port operator in 2011 in that category. We committed more than 3 billion USD to infrastructure development and facility expansion in 2011 and expect to do something similar in 2012,” added Fejfer.
During 2011, APM Terminals secured 5 new locations as a result of the company's active portfolio development efforts: Poti in Georgia, Moin in Costa Rica, Callao in Peru, Gothenburg in Sweden and Lazaro Cardenas in Mexico. These complement the project pipeline of Santos, Brazil; Rotterdam, Netherlands; Wilhelmshaven, Germany and Vado, Italy. APM Terminals has recently also announced upcoming investments in Izmir, Turkey.
The total amount of containers handled – weighted with ownership share – increased by 8% on a like-for-like basis and reached 33.5 million TEU.
“And yes - gaining market share is also a long-term ambition for us, but we are only interested in sustainable and profitable growth, not just growth for it’s own sake,” says Fejfer, who also hopes to offer customers a more stable service level during 2012: “We are very humble about the fact that although financial performance went well some of our customers’ experience has been more mixed as operations in container terminals in North Africa and the Middle East were negatively influenced by unrest related to the Arab Spring during 2011.”
APM Terminals is part of the global shipping and energy conglomerate A.P. Moller-Maersk, and the customer base consists of more than 60 shipping lines. Volumes from customers outside the ownership sphere increased by 11% year-on-year and now constitute 46% of volumes handled.
“2011 was also the year where we developed and implemented a new corporate visual identity to enhance the APM Terminals brand as a truly independent company. We will continue to diversify our client portfolio in the upcoming years,” added Mr. Fejfer.
Highlights:
• Number of containers handled increased by 7% compared to 2010. On a like-for-like basis, volumes increased by 8%.
• Revenue of USD 4.7bn was 10% above the level of 2010.
• The customer portfolio was further expanded and share of volumes from customers outside the ownership sphere increased to 46% (44%).
• Net operating profit after tax was USD 649m.
• Profit, excluding sales gains and impairment losses, etc. was USD 611m, 24% higher than in 2010.
• Cash flow from operating activities was USD 912m (USD 845m).
• Return on invested capital (ROIC) reached 13.1% (16.0% and 10.4% excluding divestment gains and other special items).
APM Terminals is the world’s leading port and inland operator with 55 operating port facilities in 36 countries and providing Inland Services operations in over 150 locations in 46 countries.