Novorossiysk Commercial Sea Port Group (“NCSP Group” or the “Group”) (LSE: NCSP, Moscow Exchange: NMTP) today reports its condensed consolidated IFRS financial results for three months ended 31 March 2013.
|
US$ ths or %, unless stated otherwise |
1Q 2013 |
1Q 2012 |
|
Revenue |
239,420 |
274,678 |
|
Cost of services |
(106,135) |
(108,223) |
|
SG&A |
(18,289) |
(18,321) |
|
Operating profit |
115,134 |
148,127 |
|
EBITDA |
137,291 |
174,110 |
|
EBITDA Margin (%) |
57.3% |
63.4% |
|
Foreign exchange gain / (loss) |
(41,526) |
197,301 |
|
Profit for the period |
37,787 |
252,848 |
|
Investments (СapEx)* |
16,721 |
10,390 |
|
|
31 March 2013 |
31 December 2012 |
|
Gross debt |
2,235,682 |
2,261,962 |
|
Net debt |
1,922,633 |
2,019,383 |
|
Net debt to LTM EBITDA |
3.47x |
3.41x |
* Management accounts.
Total cargo turnover for January-March 2013 was 37 million tonnes, compared to 41 million tonnes for the first three months of 2012.
Crude oil and grain volumes both declined significantly year-on-year, down 4,466 thousand tonnes and 2,140 thousand tonnes, respectively. Crude oil declined as volumes were allocated to new terminals, while grain exports came to a halt due to the poor crop in 2012.
The Group partially compensated these declining volumes with oil products, which increased in 1Q 2013 by 1,810 thousand tonnes, or 36%, year-on-year, primarily due to new volumes from the Novorossiysk Fuel Oil Terminal that was launched in 2012. Other increases came from coal handling, which totalled 296.5 thousand tonnes in 1Q 2013, and ferrous metals handling increased by 275 thousand tonnes y-o-y in the reporting period.
1Q 2013 Financial Results
|
US$ ths |
1Q 2013 |
1Q 2012 |
|
Stevedoring services |
184,302 |
219,020 |
|
Fleet services |
26,124 |
26,342 |
|
Additional port services |
24,806 |
25,488 |
|
Other |
4,188 |
3,828 |
|
TOTAL Revenue |
239,420 |
274,678 |
Revenue in the reporting period was US$ 239.4 million, compared to US$ 274.7 million in 1Q 2012. The main factor influencing the change in revenue was the significant change in cargo volumes.
Lower crude oil and grain volumes in 1Q 2013 caused year-on-year declines in revenue from stevedoring services of US$ 11.8 million and US$ 36.1 million, respectively. Other cargoes and services has a positive effect of US$ 13.2 million on stevedoring revenue compared to 1Q 2012. Revenue from additional port services, fleet services and other services did not change significantly.
NCSP Group’s 1Q 2013 EBITDA was US$ 137.3 million. The primary reason for the year-on-year decline in EBITDA was weaker stevedoring services revenue due to lower volumes of crude oil and grain, which brought EBITDA down by US$ 33.8 year-on-year.
The Group’s profit for 1Q 2013 was US$ 37.8 million. Profit for the period was significantly affected by the weakening of the Russian rouble to the US dollar, which caused a foreign exchange loss related to the Group’s foreign-currency denominated debt of US$ 41.5 million. On the contrary in Q1 2012 the Group enjoyed a foreign exchange gain in the amount of US$ 197.3.
Group’s debt decreased to US$ 2 236 million as of 31 March 2013 from US$ 2 262 million at beginning of the year.