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08.06.2015 NCSP Group Consolidated Financial Results for Q1 2015: Net Profit $71 million

NCSP Group (LSE: NCSP, MoEx: NMTP) today announces consolidated financial results for the three months ended 31 March 2015 prepared according to International Financial Reporting Standards (IFRS).

Conference call for investors and analysts will be held on 08.06.2015 at 15:00 Moscow time (13:00 GMT, 8:00 New York). Media may participate in listen-only mode.

NCSP Group revenue for the first three months of 2015 totaled $219.8 million versus $255.4 million in Q1 2014.

Group’s EBITDA in the reporting period increased by 11.0%* or $16.7 million* reaching $168.4 million.* EBITDA margin rose to 76.6%.*

In Q1 2015 NCSP Group recorded net profit of $71 million versus net loss of $32.2 million same time last year.

CEO of PJSC NCSP Sultan Batov commented on the Groups results for Q1 2015:

«Among many factors which played a part in forming our Q1 financial results I wish to underscore these:

Through operative management of cargo flows we earned extra $7.1 million* of stevedoring revenue;

The timely adjustment of Novorossiysk Grain Terminal ruble tariff to and the increase of PTP crude tariff from 79 to 99 rubles per ton from the beginning of 2015 enabled us to offset some of the negative effect of exchange rate fluctuations and to improve profitability of operations».


Key Financial and Operating Metrics of NCSP Group in Q1 2015/2014

(in thousands of U.S. dollars, unless otherwise indicated)

Q1 2015

Q1 2014

Revenue

219 834

255 436

Stevedoring services

167 295

200 880

Additional port services

29 161

27 868

Fleet services

20 872

22 643

Other

2 506

4 045

Cost of sales

(55 124)

(106 712)

SG&A

(8 875)

(16 094)

Foreign exchange loss, net

(53 734)

(135 885)

EBITDA*

168 376

151 676

EBITDA Margin(%)*

76.6%

59.4%

Profit (loss) for the period

71 001

(32 192)

31.03.2015

31.12.2014

Debt (including financial lease obligations)

1 737 651

1 741 365

Cash and cash equivalents

401 957

310 723

Net debt *

1 335 694

1 430 642

Net debt/LTM EBITDA*

2.28

2.51

Q1 2015

Q1 2014

Cargo turnover (thousand tonnes)*

35625.7

33620.3


NCSP Groups consolidated financial information under IFRS for Q1 2015 is available at the Groups website at http://nmtp.info/en/holding/investors/reporting/msfo/

Revenue

NCSP Groups consolidated revenue for the three months of 2015 comprised $219.8 million, which is $35.6 million less, than same period of 2014.

Major decrease was recorded in stevedoring revenue, which reduced by $33.6 million and comprised $167.3 million for the reporting period. Many factors contributed to that including these:

- Growth in volumes of certain cargoes while reduction in other resulted in the total increase of stevedoring revenue by $7.1 million*;

- Changes in cargo handling tariffs were negatively offset by ruble exchange rate weakening resulting in a total decrease of stevedoring revenue by $12.3 million*;

- Decrease of bunkering operations involving purchase and resale of fuel and fluctuations of fuel prices together reduced bunkering revenue, which is part of stevedoring revenue, by $28.4 million*.

Revenue from additional port services increased by 4.6% or $1.3 million.

Revenue from fleet services reduced by 7.8% or $1.8 million.

Other revenue reduced by 38% or $1.5 million.


Cost of sales and SG&A

Groups cost of sales and SG&A in the reporting period reduced by 48.3% and 44.9% year-on-year respectively in line with the weakening of Russian ruble to US dollar. In ruble terms COS and SG&A reduced by 8.1% and 1.9% year-on-year respectively.


EBITDA

Groups EBITDA increased by 11%* and $16.7 million* in Q1 2015 reaching $168.4 million*, while EBITDA margin grew by 17.2* percent point up to 76.6%*.

Due to increase in volumes and revenue from certain cargoes NCSP Group EBITDA grew by $30.9 million* in Q1 2015.

Reduction of bunkering volumes, combined changes in revenue from additional port, fleet, and other services, as well as exchange rate differences, all had a negative effect on EBITDA in the amount of $4.6 million*, $1.2 million*, and $8.4 million* respectively.


Profit for the period

In the first quarter of 2015 NCSP Group recorded net profit of $71 million versus net loss of $32.2 million same time last year.


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 2014 totaled 131 million tonnes. Consolidated revenue to IFRS in 2014 totaled USD 956 million and EBITDA was USD 569 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, PJSC NCSP Fleet, OJSC NLE, OJSC IPP, LLC 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 & analysts

Conference call and webcast for investors & analysts will be held on 8 June 2015 at 15:00 Moscow time (13:00 GMT / 8:00 am New York).

The call will be held in Russian, English translation available on a separate line.

Webcast and slide-show are available in English only.

Media are welcome to join the call in listen-only mode.

The call will be hosted by:

Sultan Batov, CEO of PJSC NCSP

German Kachan, Chief Accountant of PJSC NCSP

Mikhail Shchur, Investor Relations Director, PJSC NCSP


Call title: NCSP GROUP Q1 2015 FINANCIAL RESULTS

Russian call ID: 60577644

English call ID: 60572754

Dial-in numbers:

Russia +7 499 6771036

UK +44 (0) 0844 4933800

US +1 631 510 7498

Other +44 (0) 1452 555566

English only webcast & slide-show link: https://engage.vevent.com/index.jsp?eid=2965&seid=54

* Management accounts

 

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