NCSP Group posts Q3 consolidated revenue of $288 million
Novorossiysk Commercial Sea Port Group (“NCSP Group” or the “Group”) (LSE: NCSP, MICEX: NMTP) has announced its unaudited consolidated financial results for nine months ended 30 September 2011 in accordance with International Financial Reporting Standards (IFRS).
Third quarter 2011 highlights:
· Group’s total cargo turnover in the reporting quarter amounted to 40.4 million tons which is 2% higher relative to the second quarter of 2011;
· Lifting of the grain export ban from July 1, 2011 had the largest impact on the Group’s turnover growth in the third quarter of 2011;
· Q3 ’11 revenue increased by 10% vs Q2 ’11 to $288 million;
· Q3 ’11 gross profit increased by 31% vs Q2 ’11 to $162 million;
· EBITDA of $160 million is 28% higher than in Q2 ‘11.
· Q3 ’11 EBITDA margin increased to 56% from 48% in Q2 ’11;
· Group's net debt as of the end of the third quarter amounted to $2 473 million, which represents a $74 million decrease compared to the end of the second quarter of 2011.
Nine months of 2011 highlights:
· Group’s total cargo turnover in the nine months of 2011 amounted to 117.2 million tons, which is 1.0% higher than in the nine months of 2010*;
· 9m ’11 revenue of $782 million represents a 57%** increase vs 9m of ‘10;
· 9m ‘11 gross profit of $401 million exceeds 9m ’10 gross profit by 25%**;
· EBITDA increased to $404 million or by 17%** compared to the same period of 2010;
· 9m ’11 net profit amounted to $32.2 mln.
· Net profit for 9m ‘11 according to IFRS was impacted by such non-cash items as foreign exchange loss attributed to recalculation of USD-nominated liabilities (loan raised for acquisition of PTP and Eurobonds) due to depreciation of the Russian ruble against US dollar and effect of translation to presentation currency.
Capital Expenditure.
NCSP Group continued implementation of its investment program, aimed at construction of new and reconstruction of existing stevedoring capacities.
During the first nine months of 2011, according to the Group’s management accounts, capital expenditure totaled $87.5 million*** (including VAT) versus $80.6 million*** in the same period of 2010.
Deputy CEO for marketing and sales of PJSC NCSP Rado Antolovic commented:
“In the third quarter of 2011 NCSP Group achieved both revenue growth and increase in profitability through strong operating results and cost control.
The Group posted record quarterly volumes for grain after export ban removal.
It is also worth noting that the new management team during the nine months of 2011 in a highly competitive market achieved stable volumes of crude oil transshipment, growth in oil products, as well as in iron ore, nonferrous metals and containers which resulted in an increase on the revenue side.”
Deputy CEO for Finance and Economy of PJSC NCSP Andrei Bubnov commented:
"We are conducting a complex of measures aimed at reducing expenses, which resulted in cost of services decrease of 8% in the third quarter over the second quarter, while SG&A expenses decreased by 17%.
The Group continues to actively invest in modernization of production facilities, implementing its program for capital construction and repairs."
About NCSP Group
Novorossiysk Commercial Sea Port is the largest Russian port operator and the 3rd operator in Europe in terms of cargo turnover. NCSP shares are traded on Russia's MICEX exchange (NMTP) and on the London Stock Exchange in the form of GDRs (NCSP).
Third quarter 2011 highlights:
· Group’s total cargo turnover in the reporting quarter amounted to 40.4 million tons which is 2% higher relative to the second quarter of 2011;
· Lifting of the grain export ban from July 1, 2011 had the largest impact on the Group’s turnover growth in the third quarter of 2011;
· Q3 ’11 revenue increased by 10% vs Q2 ’11 to $288 million;
· Q3 ’11 gross profit increased by 31% vs Q2 ’11 to $162 million;
· EBITDA of $160 million is 28% higher than in Q2 ‘11.
· Q3 ’11 EBITDA margin increased to 56% from 48% in Q2 ’11;
· Group's net debt as of the end of the third quarter amounted to $2 473 million, which represents a $74 million decrease compared to the end of the second quarter of 2011.
Nine months of 2011 highlights:
· Group’s total cargo turnover in the nine months of 2011 amounted to 117.2 million tons, which is 1.0% higher than in the nine months of 2010*;
· 9m ’11 revenue of $782 million represents a 57%** increase vs 9m of ‘10;
· 9m ‘11 gross profit of $401 million exceeds 9m ’10 gross profit by 25%**;
· EBITDA increased to $404 million or by 17%** compared to the same period of 2010;
· 9m ’11 net profit amounted to $32.2 mln.
· Net profit for 9m ‘11 according to IFRS was impacted by such non-cash items as foreign exchange loss attributed to recalculation of USD-nominated liabilities (loan raised for acquisition of PTP and Eurobonds) due to depreciation of the Russian ruble against US dollar and effect of translation to presentation currency.
Capital Expenditure.
NCSP Group continued implementation of its investment program, aimed at construction of new and reconstruction of existing stevedoring capacities.
During the first nine months of 2011, according to the Group’s management accounts, capital expenditure totaled $87.5 million*** (including VAT) versus $80.6 million*** in the same period of 2010.
Deputy CEO for marketing and sales of PJSC NCSP Rado Antolovic commented:
“In the third quarter of 2011 NCSP Group achieved both revenue growth and increase in profitability through strong operating results and cost control.
The Group posted record quarterly volumes for grain after export ban removal.
It is also worth noting that the new management team during the nine months of 2011 in a highly competitive market achieved stable volumes of crude oil transshipment, growth in oil products, as well as in iron ore, nonferrous metals and containers which resulted in an increase on the revenue side.”
Deputy CEO for Finance and Economy of PJSC NCSP Andrei Bubnov commented:
"We are conducting a complex of measures aimed at reducing expenses, which resulted in cost of services decrease of 8% in the third quarter over the second quarter, while SG&A expenses decreased by 17%.
The Group continues to actively invest in modernization of production facilities, implementing its program for capital construction and repairs."
About NCSP Group
Novorossiysk Commercial Sea Port is the largest Russian port operator and the 3rd operator in Europe in terms of cargo turnover. NCSP shares are traded on Russia's MICEX exchange (NMTP) and on the London Stock Exchange in the form of GDRs (NCSP).
50.1% shares of PJSC "NCSP" belongs to Novoport Holding Ltd, beneficiaries owners of which are JSC “Transneft” and Ziyavudin Magomedov (Summa Group). NCSP Group consolidated cargo turnover in the nine months of 2011 totaled 117.2 million tons, and consolidated revenue to IFRS for the nine months of 2011 totaled $782 million and EBITDA of $404 million. NCSP Group combines the following stevedore companies: OJSC Novorossiysk Commercial Sea Port, PJSC Primorsk Trade Port (since 2011), PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Shipyard, PJSC Fleet of NCSP, OJSC NLE, OJSC IPP, and Baltic Stevedoring Company Ltd.
