Global Ports Investments announces its operational results and publishes its consolidated financial statements for 2020
Global Ports Investments PLC today announces its operational results and publishes its consolidated financial statements for the year ended 31 December 2020.
Consolidated revenue increased by 6.2% to USD 384.4 million; excluding the impact of VSC transportation services, like-for-like revenue declined by 8.2% driven by a decrease in both Consolidated Container and Non-Container Revenue.
Like-for-like Revenue per TEU decreased by 13% to USD 155.1 as a result of depreciation of the Russian Rouble against US dollar, the growing share of full export containers in Group throughput, and additional free storage days and other incentives provided by the Group to its clients in order to support them on the back of the global and local macroeconomic turmoil following the COVID-19 outbreak. Like-for-like Revenue per TEU adjusted for FX decreased by 2.7%.
Operating profit increased by 8.7% to USD 157.4 million.
In response to COVID-19 conditions, cost control measures were implemented to manage and reduce the Group's cost base. Like-for-like Total Operating Cash Costs were successfully and safely reduced by 9.7% to USD 113.2 million despite the healthy growth in both container and non-container throughput.
Adjusted EBITDA decreased by 7.6% to USD 209.7 million as cost control improvements and volume growth could not offset the decline in Revenue per TEU and US dollar equivalent of Russian Rouble nominated bulk handling tariffs due to the depreciation of the Russian Rouble as a result of COVID-19. Profitability was nonetheless maintained with like-for-like Adjusted EBITDA Margin of 65.2%.
The Group’s capital expenditure in 2020 was USD 33.9 million and focused on planned maintenance projects, scheduled upgrades of existing container handling equipment and customer service improvement initiatives.
The Group generated a healthy USD 157.1 million of Free Cash Flow (-1.1% compared to 2019) demonstrating the resilience of the business model.
The Group reduced Net Debt by USD 134.9 million over the year and continues to prioritise deleveraging over dividend distribution.
In line with the Group’s focus on deleveraging, Net Debt to Adjusted EBITDA decreased from 3.3x as of 31 December 2019 to 2.9x as at the end of the reporting period, achieving the lowest level since 2012.
Albert Likholet, CEO of Global Ports, commented: “I believe that both the Company and the Russian market have successfully met the challenges so far presented to all of us by the events of 2020. Despite supply chain disruptions, reshuffling of vessels calls, strong macro headwinds, and high FX volatility, the market finished the year broadly flat.
Global Ports’ 2020 results, in turn, prove that we are on the right track with our strategy implementation. We outperformed the Russian container market for the third year in a row and achieved double digit growth in bulk cargo handling. We also ensured strong cost control, resulting in consistent Free Cash Flow generation and further strong deleverage. Net Debt was reduced by almost USD 135 million, while Net debt to Adjusted EBITDA declined to the lowest level in 8 years, proving the resilience of the business and supporting the path towards resumption of dividends once deleveraging targets achieved.
Although containerised export remains strong and we are seeing some encouraging signs of growth in containerised imports towards the end of 2020, the market continues to be highly competitive and the outlook is still far from certain. Thus, we remain fully mobilised, committed to our strategy of driving productivity and innovation across our operations and remaining relentlessly focused on our clients, maintaining their loyalty and trust by providing the highest service standards in the industry”.