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02.12.2014 NCSP Group Consolidated Financial Results to IFRS for Q3 2014

Novorossiysk Commercial Sea Port Group (NCSP Group or the Group) (LSE: NCSP, Moscow Exchange: NMTP) today announces its consolidated financial results to IFRS for the nine months ending 30 September 2014.

Conference call and webcast for investors and analysts will be held on 2 December 2014 at 17:00 Moscow time (14:00 London / 09:00 New York). See end of announcement for details. Media are welcome to participate in listen only mode.

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.

Groups 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 NCSPs CEO Sultan Batov commented on Groups financial result for Q3 2014:

«NCSP Groups 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 Groups 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».

Keu operating and financial metrics for 9 months 2014

(in million $, unless otherwise indicated)

9 months 2014

9 months 2013

Cargo turnover, million tonnes*

101.0

106.5

Revenue (total)

746.9

691.4

from stevedoring services

591.1

546.0

from additional port services

79.4

63.1

from fleet services

63.1

70.2

Other

13.3

12.1

Cost of sales

303.0

318.5

SG&A

50.1

56.6

EBITDA*

450.8

379.7

EBITDA margin (%)*

60.4%

54.9%

Profit for the period

10.1

101.8

NCSP Groups consolidate financial information to IFRS for 9M 2014 can be downloaded from the Groups website at http://nmtp.info/en/holding/investors/reporting/msfo/


Revenue

NCSP Groups 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 $3.2 million.

Costs

Groups 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.

EBITDA

Groups 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.

Profit for the period

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 Groups financial obligations nominated in foreign currency as a result of their revaluation 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.


About NCSP Group

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.


Contacts

Kristina Senko, Public Relations; KSenko@ncsp.com

Mikhail Shchur, Investor Relations; MShchur@ncsp.com

Conference call and webcast for investors and analysts

Conference call and webcast for investors and analysts will be held on 2 December 2014 at 17:00 Moscow time (14:00 London / 09:00 New York).

Media are welcome to participate in listen only mode.

The call will be hosted by:

  • Sultan Batov, CEO of PJSC NCSP
  • German Kachan, Chief Accountant of PJSC NCSP
  • Evgeniya Tyurikova, Advisor to Director of PJSC NCSP Moscow Office
  • Mikhail Shchur, Investor Relations Director, PJSC NCSP

The call will be in Russian, with simultaneous translation in English on a separate line.


Name of call: NCSP Group Financial Results for 9 months 2014

Webcast link: https://engage.vevent.com/rt/nmtp~20141202

(English only. Use this link for pre-registration.)

Russian call conference ID: 44335394

English call conference ID: 44374211

Conference call dial-ins:

Russia +7 499 6771036

UK +44 (0) 0844 4933800

US +1 631 510 7498

International +44 (0) 1452 555566


* Management accounts

 

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