Piraeus Port swings to profit in H1 -CEO
Greece's largest port, Piraeus (OLP) turned to profit in the first half and expects to finish the year in the black despite the economic downturn, its chief executive said on Tuesday.
"Turnover in the first six months of the year was up 25-30 percent," OLP CEO Nikos Anastassopoulos told Reuters in an interview. "The first half is positive with after-tax results slightly in the black."
He said strikes over the privatisation of the port's container business had not been repeated this year, and the company had cut costs to weather the decline in economic activity and shipping.
Piraeus Port, one of the largest in the Mediterranean, suffered losses of 4.3 million euros ($6.15 million) in the same period last year as workers refused to work overtime, opposing a 3.4 billion euro deal with China's Cosco Pacific, the world's fifth-largest port operator.
Cosco Pacific clinched a deal to upgrade and run cargo facilities at Piraeus for 35 years, seeking to turn it to a commercial gateway to southeast Europe. It will take over in October, Anastassopoulos said.
The CEO said he expects 2009 to be profitable despite a drop in transit cargo. OLP has frozen cargo rates to stay competitive as some shippers turned to other European ports because of last year's labour action.
"We estimate full-year results will be profitable, around 2008 levels," Anastassopoulos said. "Turnover for 2009 is seen growing by up to 17 percent".
OLP, 74 percent state owned, will go ahead with a 160 million euro upgrade of its other cargo pier, expected to be completed by May 2010, in line with a five-year business plan.
Anastassopoulos said OLP also plans to upgrade its passenger port, which it sees facing problems in the next 10 years due to increased traffic. But such action will depend on its main shareholder, and whether financing will be available.
OLP shares have gained 51.7 percent since the start of the year, outperforming a 39 percent rise in the Athens bourse's benchmark stock index. The shares trade about 15 times estimated 2009 earnings, compared with a multiple of 13 for the pan-European sector of marine ports, according to Reuters Estimates.
"Turnover in the first six months of the year was up 25-30 percent," OLP CEO Nikos Anastassopoulos told Reuters in an interview. "The first half is positive with after-tax results slightly in the black."
He said strikes over the privatisation of the port's container business had not been repeated this year, and the company had cut costs to weather the decline in economic activity and shipping.
Piraeus Port, one of the largest in the Mediterranean, suffered losses of 4.3 million euros ($6.15 million) in the same period last year as workers refused to work overtime, opposing a 3.4 billion euro deal with China's Cosco Pacific, the world's fifth-largest port operator.
Cosco Pacific clinched a deal to upgrade and run cargo facilities at Piraeus for 35 years, seeking to turn it to a commercial gateway to southeast Europe. It will take over in October, Anastassopoulos said.
The CEO said he expects 2009 to be profitable despite a drop in transit cargo. OLP has frozen cargo rates to stay competitive as some shippers turned to other European ports because of last year's labour action.
"We estimate full-year results will be profitable, around 2008 levels," Anastassopoulos said. "Turnover for 2009 is seen growing by up to 17 percent".
OLP, 74 percent state owned, will go ahead with a 160 million euro upgrade of its other cargo pier, expected to be completed by May 2010, in line with a five-year business plan.
Anastassopoulos said OLP also plans to upgrade its passenger port, which it sees facing problems in the next 10 years due to increased traffic. But such action will depend on its main shareholder, and whether financing will be available.
OLP shares have gained 51.7 percent since the start of the year, outperforming a 39 percent rise in the Athens bourse's benchmark stock index. The shares trade about 15 times estimated 2009 earnings, compared with a multiple of 13 for the pan-European sector of marine ports, according to Reuters Estimates.
