NCSP Group approves development strategy through 2018
Novorossiysk Commercial Sea Port Group (NCSP Group) announces that on 7 November 2013 the Board of Directors of PJSC NCSP approved the NCSP Group development concept through 2018.
NCSP Group’s new development concept consists of several large-scale undertakings:
· To revise the Group’s investment programme through 2020 (the Master Plan);
· To develop port capacities based on long-term market research,
· To implement a long-term planning and financial modelling system based on forecasted costs and long-term liabilities;
· To develop a programme to increase labour efficiency;
· To implement a system of corporate and production policies and regulations; and
· To create an effective system of internal controls and reporting.
The Group also plans to modernise its organisational structure and implement an improved corporate governance system that encompasses the entire Group of companies. The functional management system will be built around Directorates responsible for specific business functions.
The development concept through 2018 will be based on detailed preparation of core investment projects, including:
· Modernisation of container terminals at PJSC NCSP, OJSC NLE and LLC Baltic Stevedore Company;
· Reconstruction of the Sheskharis oil terminal;
· Construction of a mineral fertilizer transhipment complex;
· Repairs and upgrades to PJSC Novorossiysk Shipyard and PJSC NCSP universal cargo areas; and
· Expansion of the port fleet and development of existing production facilities.
NCSP Group CEO Yuri Matvienko said: “Each of these projects will be subject to a careful, comprehensive analysis. We are introducing strict project management procedures at the Group, and we will focus on improving efficiency as well as lowering cost of services. In order to achieve a high return on investments and maximise the benefits of the port’s strategic strengths, the new strategy will require thorough development of projects from the point of view of marketing as well as market trends with regards to development of port capacities”.
NCSP Group is the largest port operator in Russia and the third-largest in Europe, in terms of cargo turnover. NCSP shares are traded on Russia's Moscow Exchange (ticker: NMTP) and on the London Stock Exchange in the form of GDRs (ticker: NCSP). 50.1% shares of PJSC “NCSP” belong to Novoport Holding Ltd, the beneficial owners of which are OJSC “Transneft” and Summa Group. NCSP Group cargo turnover in 2012 totalled 159 million tonnes. Consolidated revenue according to IFRS in 2012 totalled USD 1,034 million and EBITDA was USD 591.5 million. NCSP Group consolidates the following companies: PJSC “Novorossiysk Commercial Sea Port”, LLC “Primorsk Trade Port”, PJSC “Novorossiysk Grain Terminal”, OJSC “Novorossiysk Ship Repair Yard”, OJSC “NCSP Fleet”, OJSC “NLE”, OJSC “IPP”, LLC “Baltic Stevedore Company”, and CJSC “SFP”.