Global Ports Investments PLC announces its operational results for 1Q 2020.
Highlights
- Russian container market increased 1.3% in the period to 1,262 thousand TEU, with full export container handling growth of 14.3%, and full import container handling decline of 1.1%
- The Group continued to outperform the market, with Consolidated marine container throughput up 11% to 394 thousand TEU, versus 1.3% growth in the Russian container market over the same period
- Consolidated marine container throughput of the Group’s terminals located in the Baltic Basin, increased by 16% against a market decline of 1.6% in the same region. This outperformance was a result of the Group’s efforts to increase productivity and customer service standard
- Consolidated marine container throughput of the Group’s terminals located in the Far East was flat in the period (compared to Far Eastern market growth of 3.8%). As a result of measures taken to replicate the Baltics success at Far East, VSC’s share of throughput by Russian terminals in the Far East increased by 290 basis points in 1Q20 compared to 4Q19
- Consolidated bulk throughput of 1.028 million tonnes (+26% y-o-y) was driven mainly by coal handling at ULCT, which was in early ramp-up stage in 1Q 2019
- Car and high and heavy Ro-ro handling declined by 29% and 6% respectively y-o-y in 1Q20, reflecting the slowdown in Russian consumer demand for imported cars
In the current environment the Company underlines, that Global Ports terminals are considered «critical infrastructure» to the Russian Federation. All terminals (quay, yard and gates) remain 100% operational to service vessels and to handle cargoes. Focusing first on our workforce, we recommended that office workers worked from home, where possible, to keep them and their families healthy and safe. The Group’s employees are trained and empowered with work-from-home solutions to ensure that the Group continues to deliver the same high-quality service. For those employees undertaking day-to-day operational work and duties in the Group’s terminals, additional precautions were taken, such as improved hygiene measures and restricted access for visitors, as well as taking all necessary measures to ensure the absolute safety of Group’s operational personnel.
Vladimir Bychkov, CEO of Global Ports Management, commented: «We delivered strong operational results in the first quarter of 2020, continuing to outperform the market which was a result of our ongoing efforts to improve quality of our services across every aspect of our activity.
However, historically the Russian container market has tended to react to macro headwinds and we are yet to see the impact of the weakening of the Russian ruble against US dollar on the market. And although the market is now in a much stronger and less volatile position than in 2015 following strong export growth in the last several years, clearly, the next several months are going to be more volatile.
In the short term, we have mobilised fast to counter the potential threat posed by COVID-19. Our actions are focused on three clear objectives: protecting the health and safety of our staff and their families; preserving the continuity of our operations and minimising disruption to our customers’ supply chains; and managing our costs to drive cash generation. At this stage, it is not possible to predict the full commercial impact of COVID-19 on our business».
|
Q1 2020 |
Q1 2019 |
Change |
||
|
Abs |
% |
|||
|
Global Ports Consolidated Results |
||||
|
Consolidated Marine Container Throughput (kTEU) |
394 |
354 |
40 |
11% |
|
FCT |
171 |
162 |
9 |
6% |
|
PLP |
108 |
76 |
31 |
41% |
|
VSC |
101 |
101 |
0 |
0% |
|
ULCT |
14 |
15 |
0 |
-3% |
|
Non-containerised cargo |
||||
|
Ro-ro (thousand units) |
4 |
5 |
-1 |
-6% |
|
Cars (thousand units) |
18 |
25 |
-7 |
-29% |
|
Bulk cargo, incl. coal (thousand tonnes) |
1 028 |
819 |
209 |
26% |
|
Joint ventures |
||||
|
Containerised cargo, kTEU |
||||
|
Finnish Ports |
25 |
27 |
-2 |
-8% |
|
Yanino (inland terminal) |
24 |
29 |
-5 |
-18% |
|
Bulk cargo throughput, thousand tonnes |
||||
|
Moby Dik |
56 |
18 |
38 |
213% |
|
Yanino |
78 |
101 |
-23 |
-23% |
|
Russian Container Market, kTEU |
||||
|
Total Market |
1,262 |
1,245 |
17 |
1.3% |
|
Baltics (incl. Kaliningrad) |
635 |
645 |
-10 |
-1.6% |
|
Northern Ports |
38.5 |
37.8 |
0.7 |
1.9% |
|
South |
224 |
211 |
13 |
6.2% |
|
Far East |
364 |
351 |
13 |
3.8% |