01.12.2015 Management’s discussion and analysis of NCSP Group’s Consolidated Financial Results to IFRS for 9 months 2015
NCSP Group (LSE: NCSP, MoEx: NMTP) hereby releases a summary of management’s discussion and analysis of Group’s consolidated financial results to IFRS for the 9 months 2015, as presented at the conference call for investors and analysts held on December 1, 2015 at 17:00 Moscow time.
NCSP Group’s consolidated revenue for 9M 2015 amounted to $655 mln versus $747 mln for 9M 2014 despite sustainable volume’s growth and material improvement in crude oil volumes.
Group’s costs (COS plus SG&A) did not change materially in rubles, but reduced 41% year-on-year in dollar term due to ruble depreciation.
Group’s EBITDA in the reporting period grew by $37.6 mln* or 8.3% year-on-year and reached $488.4 mln*, while EBITDA margin increased by 14.2 percent points and reached 75%*.
Net income for 9M 2015 totaled $156.6 mln versus $10.1 mln same time last year.
Thus NCSP Group maintains fundamentally strong financial performance, including growing EBITDA and margins, as well as low leverage.
Key drivers of revenue reduction were: the decrease in volumes of crude oil, grain, and containers, FX losses from ruble nominated revenue, and the drop in bunkering volumes.
Stevedoring revenue accounted for most of the decrease and reduced by $83 mln or 14% year-on-year.
Revenue from additional port services, fleet services, and other revenue reduced by $9 mln combined.
Due to changes in cargo mix and volumes Group’s stevedoring revenue reduced by $3.7 mln.
Due to changes in tariffs and ruble depreciation stevedoring revenue decreased by $23.3* million.
Bunkering revenues, which are part of stevedoring revenue, reduced by $56.3* mln on the back of decreasing fuel prices, and volume’s drop down to 190* thousand tonnes for 9M 2015 from 229* thousand tonnes for 9M 2014.
Group’s revenue broken down by cargo types changed as follows.
Group’s revenue from crude oil handling reduced by $10.5* mln or 7.0%* year-on-year due to ruble depreciation and volumes’ drop by 800 thousand tonnes or 1.4% year-on-year.
Group’s revenue from oil products handling reduced by $11.8* mln or 9.7%* year-on-year due to ruble depreciation despite volumes’ growing by 2.3. mln tonnes or 11% year-on-year.
Grain handling revenue is down $15.2 mln or 22.6% year-on-year as volumes dropped 11% year-on-year.
Groups revenue from transshipment of ferrous metals and pig iron increased by $14.8* mln or 24%* in line with volumes’ growth.
Group’s revenue from container cargo reduced by $8.1* mln or 16%* year-on-year, due to volumes decrease by 139* thousand TEU or 28%* year-on-year.
Revenue from other cargo grew $3.8* mln combined.
Group’s EBITDA for 9M 2015 grew by $37.6 mln* or 8.3% year-on-year and reached $488.4 mln*, while EBITDA margin increased by 14.2 percent points and reached 75%*.
Changes in revenue from certain cargoes contributed $31.1* mln to EBITDA increase.
Decrease of bunkering volumes reduced EBITDA by $6.8* million.
Due to decrease in revenue from additional port services, fleet services, and other revenue EBITDA was reduced by $5.3* million.
Foreign exchange gain brought EBITDA up by $18.6* million.
Profit for the period
Russian ruble depreciated against US dollar by 10.7 rubles in Q3 2015, which produced a material effect on Group’s net income for 9M 2015.
This depreciation led to charging a foreign exchange loss in the amount of $262 mln on the Group’s dollar nominated debt, versus foreign exchange gain accounted for in 6M 2015.
Hence, NCSP Group’s net income comprised $156.5 mln for 9M 2015 versus $250.3 mln for 6M 2015.
NCSP Group’s key operating and financial indicators
* Management accounts
NCSP Group’s consolidated financial information according to IFRS for 9M 2015 can be downloaded from the Group’s website at: http://nmtp.info/en/holding/investors/reporting/msfo/
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 totalled 131 million tonnes. Consolidated revenue to IFRS in 2014 totalled 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, OJSC NCSP Fleet, OJSC NLE, OJSC IPP, CJSC Baltic Stevedore Company, and CJSC SFP.
Kristina Senko, Public Relations; KSenko@ncsp.com
Mikhail Shchur, Investor Relations; MShchur@ncsp.com