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17.04.2013 NCSP Group EBITDA increased 7.4% y-o-y in 2012

NCSP Group (LSE: NCSP, Moscow Exchange: NMTP) today reports its audited consolidated IFRS financial results for the full year ended 31 December 2012.

 

2012 Operating and Financial Highlights

 

·         The Group’s total cargo turnover in the reporting period increased by 1.9 mln tonnes, or 1.2%, year-on-year (y-o-y) reaching 159 mln tonnes;

·         Revenue for 2012 amounted to US$ 1,034 mln;

·         EBITDA* increased by 7.4% y-o-y from US$ 550.1 mln in 2011 to US$ 591.5 mln in 2012;

·         EBITDA margin improved from 52.5% for 2011 to 57.2% for 2012;

·         Investments under the Group’s development programme amounted to US$ 89.3 mln****;

·         Gross debt decreased by 10% from US$ 2,506 mln to US$ 2,262 mln as of 31 December 2012;

·         Net debt*** / LTM EBITDA declined from 3.4x on 31 December 2012.

 

US$ mln or %, unless stated otherwise

2012

2011

Change, %

Revenue

1,033.7

1,049.5

(1.5%)

Cost of services

435.7

495.4

(12.1%)

SG&A

87.5

78.2

12.0%

EBITDA

591.5

550.3**

7.4%

EBITDA Margin (%)

57.2%

52.5%

4.8,..

Profit

316.0

130.3

142.5%

Investments (CAPEX)****

89.3

115.6

(22.8%)

 

30 December 2012

31 December 2011

 

Gross debt

2,262

2,506

(10%)

Net debt***

2,019.0

2,378.7

(15.1%)

Net debt to EBITDA

3.4

4.3x

-

* EBITDA is calculated as profit for the period before finance costs, income tax and D&A, impairment of goodwill, PP&E write-offs, interest income and foreign exchange gain/(loss), net.

** 2011 EBITDA was recalculated in accordance with debt covenants

*** Net debt is calculated as Total debt less Cash & cash equivalents.

**** Management accounts.

 

NCSP Group Acting CEO Yuriy Matvienko said: “In 2012 the Group faced exceptionally difficult market and weather conditions, including several long storms and flooding in the Krasnodar region.  Nonetheless we were able to not just maintain, but to increase cargo handling.  This had a positive impact on our financial results, including strong EBITDA growth.”

 

FY 2012 Operational Highlights

 

Total cargo turnover for 2012 increased by 1.2% year-on-year and amounted to 158.9 mln tonnes.  In certain cargoes like oil products, ferrous metals and grain the Group’s volumes grew at a faster pace than the market.  In August 2012 NCSP Group began handling coal, one of the fastest-growing cargoes by volume in the Russian market, thus further diversifying its cargo base.  The universal nature of the Groups assets helped to mitigate the negative effects of volatile global markets, and to compensate for declines in volumes of certain cargoes by increasing handling of others experiencing stronger demand.

 

 

 

 

FY 2012 Financial Results

 

Revenue in the reporting period was US$ 1,033.7 mln.  One of the main factors driving revenue performance was the decrease in volumes of fuel purchased and resold for bunkering operations, as well as a decrease in revenues from oil handling by US$ 6.7 mln as a result of a reduction in volumnes by 2.6 mln tonnes.

 

This decrease was partly compensated by growth in revenue from handling of ferrous metals, oil products and containers, which increased y-o-y by US$ 14.7 mln, US$ 7.4 mln and US$ 7.4 mln, respectively.  The lifting of the grain export embargo from July 2011 also supported y-o-y performance, with grain handling revenue up US$ 30.9 mln in 2012.

 

US$ mln or %

2012

2011

Change, %

Revenue

1,033.7

1,049.5

(1.5%)

of which 

Stevedoring services

827.9

857.5

(3.4%)

Additional port services

89.9

83.6

7.1%

Fleet services

100.9

92.9

8.6%

Other

15.0

15.5

(3.0%)

 

During 2012 the Group’s cost of services declined by US$ 60 mln, or 12.1%, y-o-y.  The decline in cost of services was primarily driven by a US$ 72 mln decrease in fuel costs due to the reduction of bunkering operations. 

 

SG&A costs amounted to US$ 87.5 mln, increasing 12.0% y-o-y. The increase was primarily driven by personnel expenses after the implementation of a new remuneration plan.

 

In 2012, EBITDA increased to US$ 592 mln from US$ 551 mln for 2011.  EBITDA margin grew to 57% from 52% a year ago, primarily due to growth in high margin cargos and increased capacity.

 

The main contributor to EBITDA growth was a US$ 45 mln effect from increased cargo handling.  EBITDA as a result of changes to bunkering margins amounted to US$ 4.4 mln. The positive impact on EBITDA from growth in additional port services was US$ 13.7 mln. The addition of new capacities also increased EBITDA by US$ 11.9 mln. Net changes to cost of services (excluding bunkering and grain) had a negative effect of US$ 33.5 mln on EBITDA.

 

Strong EBITDA performance drove net profit up to US$ 316 mln for 2012. The effect of the strengthening of the Russian rouble against US dollar during 2012 on the Group’s assets and liabilities denominated in foreign currency resulted in a foreign exchange gain of US$ 130 mln for the reporting period (vs. a foreign exchange loss of US$ 168 mln in 2011).

 

NCSP Group’s gross debt decreased to US$ 2,262 mln as at 31 December 2012 from US$ 2,506 mln as at 31 December 2011. The Groups net debt/EBITDA ratio reached 3.4x as of 31 December 2012, substantially down from 4.3x as of the beginning of 2012, which is fully in line with the obligations to the financial covenants in the Groups loan agreements

 

The Group’s 2012 audited IFRS financial statements can be downloaded from the NCSP Group website:
http://www.nmtp.info/upload/iblock/23d/NCSP_FRS_Cons_FS%2012_ENG.pdf

 


 

Conference call and webcast

 

NCSP Group will host a conference call and webcast for investors & analysts today

17 April 2013 at 17:00 Moscow time (14:00 London / 09:00 New York).

 

The call will be hosted by:

  • Acting CEO Yuriy Matvienko
  • First Deputy CEO Marat Shaydaev
  • Deputy CEO for Finance and Economics German Kachan
  • Advisor for the Director of the Moscow Representative Office Evgeniya Tyrikova
  • Investor Relations Director Mikhail Shchur

 

Consecutive translation into Russian and English will be provided during the call.

 

Webcast link: http://www.media-server.com/m/p/cb6btpx4

 

Conference call dial-ins:

 

+7 499 272 4337                    Moscow

+44 (0) 20 3003 2666            London

+1 646 843 4608                    New York

 

Toll Free:

8 10 8002 490 2044               Russia (Moscow only)

0808 109 0700                                   UK

1 866 966 5335                                  USA

 

Conference call name: NCSP Full Year 2012 IFRS Results

 

Conference call password: Novorossiysk

 

AboutNCSPGroup

 

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). 50.1% shares of PJSC “NCSP” belong to Novoport Holding Ltd, the beneficial owners of which are OJSC Transneft and Summa Group. NCSP Group cargo turnover in 2011 totalled 157 million tonnes. Consolidated revenue according to IFRS totalled $1,050 million and EBITDA was $550 million, in 2011. 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.

 

Contacts:

Kristina Senko, Public Relations; KSenko@ncsp.com

Mikhail Shchur, Investor Relations; MShchur@ncsp.com

 

 

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