NCSP Group’s net profit down 10 times to $10.1 mln in Jan-Sep’14
Novorossiysk Commercial Sea Port Group today announces its consolidated financial results to IFRS for the nine months ending 30 September 2014.
NCSP Group’s consolidate revenue for 9 months 2014 increased by $55.5 million or 8.0% year-on-year and reached $746.9 million.
Cost of sales in the reporting period reduced by $15 million or 4.8% year-on-year, while SG&A decreased 11.6% year-on-year.
Group’s EBITDA for 9 month 2014 increased by $71.1 million or 18.7% year-on-year up to $450.8 million. EBITDA margin improved by 5.5 percent points up to 60.4% versus that of the same period last year.
PJSC NCSP’s CEO Sultan Batov commented on Group’s financial result for Q3 2014:
«NCSP Group’s financial performance has been outpacing operating results since the beginning of 2014 thanks to a diversified cargo mix and a strong marketing power to attract new volumes.
Growing volumes of oil products, grain, ferrous metals, and containers translated into increase in revenue from these cargoes by 17.5%; 121.4%; 9.7%, and 19.6% respectively. This offsets the drop on crude oil revenue and other negative factors and brings up Group’s total revenue by 8.0% and EBITDA by 18.7% year-on-year.
Revenue and EBITDA were also supported by increase of loading tariffs for crude oil, oil products, containers, coal, and metals».
NCSP Group’s consolidated revenue for 9 months 2014 increased by $55.5 million or 8.0%. year-on-year reaching up to $746.9 million.
Revenue from stevedoring services increased by $45.0 million or 8.2% year-on-year to $591.1 million. Revenue from additional port services was up $16.3 million or 25.8% year-on-year on the back of growing volumes of containers and metals. Revenue from fleet services was down by $7.1 million or 10.1% year-on-year; other revenue increased by $1.3 million or 10.9% year-on-year.
Grain volumes more than doubled in the reporting period versus same time last year, which increased stevedoring revenue by $36.7 million.
Increase of oil products’ volumes by 12.8% year-on-year alongside with a tariff increase at PJSC NCSP translated into $16.3 million or 17.5% year-on-year increase in revenue from this cargo.
Drop in volumes by 12.3 million tonnes caused crude oil revenues to contract by $24.8 million.
Container traffic increased 8.5% and 15.1% year on year in TEU and tonnes respectively, which boosted container revenue by $8.1 million or 19.6% year-on-year, with additional support from higher tariff and growing share of loaded containers.
Revenue from ferrous metals increased by $5.4 million or 9.7% year-on-year in line with volumes’ growth. Revenue from other cargo was up $3.3 million.
Group’s cost of sales in the reporting period reduced by 4.8% year-on-year or $15.4 million. SG&A were down 11.6% year-on-year or $6,6 million.
Group’s EBITDA for 9 months 2014 increased by 18.7% or $71.1 million versus same period last year and reached $450.8 million. EBITDA margin improved by 5,5 percent points up to 60.4%.
EBITDA increase of $68.2 million was contributed by growth in stevedoring revenue driven by higher volumes and bigger share of high-margin cargoes in the cargo mix, as well as by certain tariff increases.
Increase and revenue from additional port services and decrease of fleet services revenue combined added another $6.1 million to EBITDA.
On the other hand, change to loss versus profit from Novorossiysk Fuel Oil Terminal same period last year reduced EBITDA by $3.2 million.
NCSP Group recorded profit for the period of 9 months 2014 in the amount $10.1 million versus $101.8 million for 9 months 2013.
Decrease of net profit was caused by non-monetary expense on foreign exchange rate loss in the amount of $286.4 million, charged on Group’s financial obligations nominated in foreign currency as a result of their reevaluation at the ruble exchange rate at the beginning and at the end of the reporting period.
The $1 950 million Sberbank loan represents major source of foreign exchange gains or losses for the Group.
In the reporting period Russian ruble to US dollar exchange rate increased from
32.7 rubles as of 31.12.2013 to 39.4 rubles as of 30.09.2014.
NCSP Group is the largest port operator in Russia and the third-largest in Europe, in terms of cargo turnover. NCSP shares are traded on Russia's Moscow Exchange (ticker: NMTP) and on the London Stock Exchange in the form of GDRs (ticker: NCSP). NCSP Group cargo turnover in 2013 totalled 141 million tonnes. Consolidated revenue to IFRS in 2013 totalled USD 928 million and EBITDA was USD 510 million. NCSP Group consolidates the following companies: PJSC Novorossiysk Commercial Sea Port, LLC Primorsk Trade Port, PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Ship Repair Yard, OJSC NCSP Fleet, OJSC NLE, OJSC IPP, CJSC Baltic Stevedore Company, and CJSC SFP.
