• Home
  • News
  • Expert RA lowers credit rating on Global Ports Investments Plc to ‘ruAA-’
  • 2022 May 17 11:43

    Expert RA lowers credit rating on Global Ports Investments Plc to ‘ruAA-’

    Expert RA has lowered its non-financial company credit rating on Global Ports Investments Plc to ‘ruAA-’ with ‘developing’ implications. Previously, the company was rated ‘ruAA/ stable’, according to the agency’s statement.

    Global Ports Investments PLC is the leading operator of container terminals in the Russian market by capacity and container throughput. Global Ports’ terminals are located in the Baltic and Far East Basins. Global Ports’ key assets include First Container Terminal (annual capacity based on capacity of storage facilities – 915,000 TEUs) and Petrolesport (350,000 TEUs) at Great Port of Saint-Petersburg as well as Vostochnaya Stevedoring Company at Vostochny Port. The Group also controls Ust-Luga Container Terminal (235,000 TEUs) at the port of Ust-Luga.  Some assets of the Group are owned through joint control. In partnership with CMA Terminals, the Group runs container terminal Moby Dik (275,000 TEUs) in Kronshtadt where container handing stopped in 2020, two Multi-Link Terminals in Finland (420,000 TEUs) and container terminal Yanino Logistics Park located in the Leningrad Region.

    The Agency’s analysis is still based on the Group’s IFRS report. The Group’s debt portfolio has no subordinated debt obligations. Its circulating Eurobonds in the amount of some USD 300 million, issued by Global Ports (Finance) Plc, are secured by the guarantees of the Group’s key operating companies and Global Ports Investments Plc. Exchange-traded Ruble bonds issued at the level of First Container Terminal JSC and Vostochnaya Stevedoring Company LLC, in their turn, are secured by offers from the Group’s parent company, Global Ports Investments Plc.

    The Group’s rating downgrade should be attributed to due to the dwindling prospect for the development of RF transport industry and container handling in ports in particular, which will entail a significant decrease of business (mainly in the Baltic Basin), both in volume and monetary results of 2022. The change in outlook takes into account the possibility for further deterioration in the operating and macroeconomic environment, which can lead to business reduction exceeding that expected by the Agency, as well as a potential change of the Group's controlling owner, which may also induce the risk of the Group's operating and financial strategy revision.

    The Agency’s assessment of the Group's business risk profile is still positive. With its activities in the transport infrastructure segment, the Group operates in the conditions of high entry barriers. Container handling in the Baltic Basin is almost fully concentrated in Great Port of Saint-Petersburg which features limited prospects for capacity expansion of new or existing players due to the port’s physical limits set by its water front location within the city. Capacity expansion of the Far East Basin terminals is also limited, hence their moderate competition with new coal terminals for the territory. The Agency’s assessment of the Group's competitive position is positive as its high market share, sufficiently diversified cargo base and presence in two of the three key container handling regions ensures smooth servicing of trade operations throughout the territory of Russia. In 2021, the group showed an increase of container handling by 2.8%, year-on-year, to 1.576 million TEUs while all ports of the Russian Federation demonstrated a growth of 7.1%. In the Far East Basin, it rose by 14.7% nearly equal to the general market dynamics in the region (+14%). In the Baltic Basin, it fell by 2.2% with the market fall having decreased by 3.7%. As a rule, exporters’ requirements on capacity and technical equipment of terminals are high and that is the Group’s competitive advantage. Although the Group demonstrated good performance in 2021, the Agency takes into account global supply chain disruption and problems with empty containers turnover. Therefore, the Agency expects that trade restrictions caused by the sanctions, both imposed and being discussed, as well as the rejection of international container line operators to call at Russian seaports in the Baltic and the Azov-Black Sea basins will result in essential decrease of container handling at Russian terminals, and at the Group’s terminals, in particular. In 2021, the Group’s terminals in Great Port of Saint-Petersburg and in Ust-Luga accounted for 67% of the total container throughput. In 2022, the Group’s key terminal (in terms of volumes) will be VSC in Vostochny Port while ports of the Baltic Basin are to see a traffic decrease of over 60%, the Agency expects.

    The Agency continues to positively assess the Group’s financial profile. The Group follows a conservative financial policy and aims at reduction of its debt burden. In 2021, that aim was achieved in principle – as of 31 December 2021, the net debt to EBITDA ratio for 2021 was 1.9, according to the Agency's calculations. EBITDA interest cost coverage amounted to 4.7. Despite the achievement of debt targets allowing for payment of dividends, no dividends will be distributed for 2021. That, along with limited capital expenditures of primarily supportive nature, will support the anticipated liquidity.

    Qualitative assessment of liquidity is hindered by the potential need for partial refinancing in 2023, when Eurobonds of $300 mln are mature. The Agency notes that the Group's financial profile is unlikely to deteriorate significantly despite the loss of a significant part of cargo turnover with its reduced debt and a credit portfolio where fixed rate bonds are prevailing. The Group still runs the currency risk with an essential share of foreign currency debt partially offset by natural hedging – contracts accounting for over a half of revenues foresee indexation of tariffs in case of ruble/dollar exchange rate change by 5-10-15%. After repayment of the Eurobonds in 2023, the Group is going to transit to ruble borrowings. Strengthening of the ruble versus the presentation currency (USD) also has an impact on the Group's estimated financial performance.

    The block of corporate risks is still assessed positively and features a high-quality corporate governance system, a high level of information transparency and strategic support. The Agency recognizes that the decision of one of the Group’s two largest shareholders to sell a 30.75-pct stake may lead to a change in control over the Group, consequent change of its operation and financial strategies as well as the debt burden increase as a consequence of this.

    According to the IFRS consolidated financial statements of Global Ports Investments Plc for the financial year ended 31 December 2021, the company’s assets as of 31.12.2021 totaled $1.44 billion, capital – $499 million, revenue for 2021 was USD 502 million, net profit – $144 million.




2022 June 28

18:07 Maersk plans to order more methanol-fueled ships - BusinessKorea
17:40 Green Marine Europe attracts 13 ship owners and 323 certified vessels
17:37 Russian President signs law on presence of foreign-flagged ships on Russia' s inland water ways
17:22 Russia wants Barentsburg food supplies shipped via mainland Norway - The Barents Observer
17:20 European Energy signs contract with Port Esbjerg to deliver green hydrogen
17:14 Wan Hai Lines awarded “Container Shipping Line of The Year - Far East Trade Lane”
17:06 Liquid Wind announces plans for its second electrofuel facility to be established in Sundsvall
16:49 Borr Drilling enters into letter of intent for the sale of three jack-ups
16:13 European Council agrees on higher targets for renewables and energy efficiency
16:11 New port to be built in Dagestan
15:45 Iceberg halts Norwegian Cruise sailing after ship hits growler - NZME
15:02 HPC Hamburg Port Consulting signs contract for pre-feasibility study of Cigading Port development
14:58 duisport and Port of Amsterdam join forces in development of green hydrogen value chain and hinterland network
14:30 Four missile boats of Project 22800 under construction at Amur Shipyard
13:48 Vladimir Putin signs law on Rosatom’s authority to manage navigation on the Northern Sea Route
13:24 Neste invests € 1,9 billion in renewable products refinery in Rotterdam
12:34 First hybrid RTGs to Africa delivered by Konecranes
12:29 Russian Union of Industrialists and Entrepreneurs suggests postponing crab auctions until 2035
11:46 Reconstruction of port Korsakov on Sakhalin to begin in 2023
11:10 Batumi International Container Terminal welcomes new Asia-Europe multimodal service
09:32 Russia's financial operations with unfriendly countries plunged by about 80%
09:15 Crude oil futures are rising
09:01 MABUX: Global bunker indices do not have firm trend on June 28
08:16 Thirteen killed, 251 injured by gas leak at Jordan's port of Aqaba - Al Jazeera

2022 June 27

18:37 Port of Rotterdam appoints new representative in China
18:13 BW Energy signs agreement to acquire the FPSO Cidade de Vitoria, currently producing on the Golfinho field
18:07 Boskalis vessels switch to green shore power facility in Rotterdam in co-development with Port of Rotterdam Authority and Eneco
17:58 Rosmorport provides continuous ferry traffic on the Ust-Luga - Baltiysk line
17:30 FSRU contract Höegh LNG with AIE in Australia confirmed
17:02 Investigation into ammonia leak on Spanish tuna vessel begins in Seychelles - Seychelles News Agency
16:27 World’s first climate-neutral container handling facility recertified
15:58 Russia, India, China, Brazil and RSA to sign agreement on cooperation in customs area
15:45 Inmarsat and Thetius report explores human element in maritime digitalisation
15:45 Asia coal prices hit record on hot global competition for fuel - Bloomberg
15:21 Vestdavit to deliver telescopic davit for Danish Navy
14:27 Nuclear-powered container ship Sevmorput leaves for its first subsidized coastwise voyage to Petropavlovsk-Kamchatsky
14:06 Bureau Veritas completes new study on ammonia as fuel
14:02 BW LPG completes dual-fuel retrofits
13:33 Hydrographic Company holds tender for dredging of Utrenny terminal’s water area
13:15 Nakilat and Keppel to provide after-sales technical support for ballast water treatment systems in Qatar
12:30 Matson signs contract for ME-GI retrofit
12:14 International taskforce established to drive forward the development of Clean Energy Marine Hubs
12:01 Port Tanjung Pelepas turns to AI-powered management system
11:29 Seanergy Maritime acquires a modern Capesize vessel
11:02 Chernomorneftegaz platform in Black Sea shelled by Ukrainian troops
10:29 Sevmash lays down manned underwater vehicle of Project 03660 Jason
10:29 Dongwon Global Terminal selects CyberLogitec’s terminal operating system
10:03 The Getting to Zero Coalition convenes to develop action plan for maritime decarbonization
09:43 Metal structures and general cargo to be delivered by MV Kholmogory on its first voyage to Kaliningrad Region
09:21 Oil prices decrease after a growth on June 24
08:58 MABUX: Bunker prices may increase on June 27

2022 June 26

15:18 BW LPG carriers completed DF retrofits at Yiu Lian Dockyards in Shenzhen, China
13:42 Aegean Shipping accepts delivery of its first of four Aframax tankers
12:14 Large-scale offshore tender sets TenneT on course to deliver 2030 offshore expansion targets
11:03 KHI delivers bulk carrier PHILHOKUSAI

2022 June 25

15:07 The Getting to Zero Coalition convenes to develop action plan for maritime decarbonization
14:31 Manor Marine to build two Hybrid CTVs for Manor Renewable Energy with Chartwell Marine
13:04 ČEZ Group becomes first Czech company to have climate targets validated
10:13 FSL Trust agrees to sell one chemical tanker

2022 June 24

18:37 OneSea Energy B.V. and Subsea 7 conclude an MOU on collaboration in offshore hydrogen production