Global Ports slashes net debt by 49% to $33.8m
Global Ports Investments PLC (“the Company” and, together with its subsidiaries and joint ventures, “Global Ports” or “the Group”), the leading container terminal operator servicing Russian cargo flows (LSE ticker: GLPR) today announced its interim results for the six months ended 30 June 2012, the Group's press release said.
In the first six months of 2012 Global Ports increased its container throughput volumes in the Russian Ports Segment in line with the Russian container market. This performance coupled with a number of successful initiatives aimed at improving operational efficiency as well as foreign exchange rate effect positively impacted the Group's EBITDA margin by 71 basis points to 56.5%.
Group financial and operational highlights
Global Ports becomes a partnership of APM Terminals and N-Trans in Russia, CIS and the Baltics1 Global Ports maintained its 30%* market share2 of overall container throughput through the Russian Federation ports,
Global Ports’ Russian Ports segment container throughput increased 6% year on year to approximately 709 thousand* TEUs (twenty-foot equivalent units) in the first six months 2012.
Adjusted EBITDA Margin up to 56.5%* compared to 55.8%* in the first six months of 2011 with adjusted EBITDA broadly unchanged year on year at USD 145 million.
Net Debt reduced by 49% to USD 33.8 million* at 30 June 2012 compared to USD 66.0 million* at the end of 2011. Net Debt to Adjusted LTM EBITDA was only 0.1x* at 30 June 2012 compared to 0.2x* at the end of 2011.
The Board of Directors has approved distribution of an interim dividend payment of USD 47 million or USD 0.30 per GDR.
Global Ports continues its investment program, CAPEX on a cash basis was USD 34.5 million on the back of continuing investments in capacity expansion, equipment renewal, and improvement of the services rendered to clients.
Global Ports’ Oil Products Terminal segment in the first half of 2012 delivered a stable financial performance with a modest increase of Revenue per CBM of Storage of 2% compared to the second half of 2011.
Nikita Mishin, Chairman of the Board of Directors of Global Ports, commented:
“I am pleased to announce that in the first half of 2012, the Group increased its profitability, maintained its leading position in the Russian container market, and generated a high return on capital employed. We continue to expand our business and will commission more than twenty per cent of additional container capacity in the first half of 2013.
The long-term prospects for the container market in Russia post-WTO access are considered extremely promising, and I believe that Global Ports, with its combination of well-invested assets in the right locations, has all the necessary components to be able to maximize the opportunities for growth that the market offers.
In addition, we very much welcome APM Terminals as another major shareholder alongside N-Trans. With their the support we look forward to even more efficient development and deployment of new capacity along with containerising Russian trade further”.