Global Ports reports 2012 Full Year results
Global Ports Investments PLC, the leading container terminal operator servicing Russian cargo flowstoday announces its full year results for the financial year ended 31 December 2012, the company reports.
In 2012 Global Ports increased its container throughput volumes in the Russian Ports segment by 8% . Growth in the Russian Ports segment , strict cost control and improved efficiency as well as the positive foreign exchange rate effect all positively impacted the Group's Adjusted EBITDA margin which expanded by 109 basis points to 57.4%. The Group's Adjusted EBITDA increased 2% to USD 288 million.
Global Ports became a partnership between APM Terminals and N - Trans in Russia, the CIS and the Baltic States . Global Ports maintained its leading position in the Russian container market with 29 .5 % market share 1 of overall container throughput through Russian Federation ports . The Group ’s Russian Ports segment container throughput increased 8 % year on year to approximately 1,4 50 thousand* TEUs (twenty - foot equivalent units) in 2012. Total Operating Cash Costs declined 2.4% to USD 214 million mainly due to strict cost control and improved efficiency in the Russian Ports’ segment, a decline in expenses in other segments as well as a positive foreign exchange rate effect.
The Group's Adjusted EBITDA Margin increased to 5 7 . 4 % compared to 5 6.3 % in 2011 with Adjusted EBITDA up by 2% to USD 288 million. Net Profit Adjusted for I mpairment increased 17 % to USD 171.2 million. Net cash from operating activities increased 9% to USD 252 million. Net Debt to Adjusted EBITDA was 0.8x at 3 1 December 2012 leaving sufficient headroom for the target gearing ratio of 1.5 x - 2 x to be reached by balancing further expansion with dividend distribution. CAPEX on an accrued basis was USD 110.9 million. CAPEX on a cash basis was USD 79.8 million . Investments were made to enable capacity expansion (the construction of 400 thousand TEUs of capacity at Petrolesport), for equipment renewal, and to improve the services rendered to clients.
On the basis of the improved financial results and strong balance sheet of the Group, the Board of Directors is recommending an additional dividend payment of USD 37.6 million or USD 0.24 per GDR 1 Market share calculated as Global Ports’ Russian Ports segments’ Gross Container Throughput in corresponding period divided by Container Throughput in the Russian Federation Ports in the same period. Source: ASOP. 2 subject to shareholder approval at the Annual General Meeting. This together with a dividend payment of USD 47 million or USD 0.30 per GDR in September 2012 results in a total regular dividend for the year 2012 at USD 0.54 per GDR (USD 84.6 million) .
Taking into account the CAPEX program, the Group's liquidity position and low leverage, the Board recommended a special dividend in December 2012 for the total amount of USD 79.9 million (USD 0.51 per GDR) which was paid in February 2013 . In 2012 Global Ports increased to 100% the Group’s ownership interest in VSC, one of the key gateways for Russian container transport in the Far East of Russia.
Nikita Mishin, Chairman of Global Ports, commented: “It has been a positive year for the Russian container market and for Global Ports which remains the undisputed leader in this industry with a close to 30% market share. The Group increased its profitability and operational efficiency, and successfully bal anced its investment in further expansion with distributions to shareholders. Importantly, we were also able to increase the Adjusted EBITDA margin in this period by 109 basis points. We continued to invest in our operations, expanding capacity at PLP as well as consolidating ownership of VSC, one of the Group's key assets and an important gateway for Far East trade. Russia remains a bright spot in the context of the global container industry with a 2012 growth rate more than double that of the global ave rage. With APM Terminals now a key shareholder, working in partnership with N - Trans, Global Ports is even better positioned to maintain its leading position in the growing Russian container market.”
Kim Fejfer, Vice Chairman of Global Ports, commented: “As a new strategic partner APM Terminals are pleased with Global Ports’ result as well as the positive outlook for the future. The Russian market continues to grow much faster than the global container market and is even outperforming other high growth ma rkets such as India, Brazil and China. When we combine Global Ports strong position with the global expertise that APM Terminals as an independent leading port operator can provide to the partnership we can boost the Group’s position with the world’s major shipping lines and further expand capacity in this exciting region.”