29th May 2008 12:54
Press Release
Financial results for the 1st quarter of 2008
May 29, 2008
Novorossiysk Commercial Sea Port (LSE: NCSP, RTS: NMTP, MICEX: NMTP) ("NCSP") announces its consolidated unaudited financial results for the three months to 31st March 2008, in accordance with International Financial Reporting Standards.
Full consolidated unaudited financial statements for the three months to 31st March 2008 are available on NCSP's web-site: http://www.nmtp.info/
Key financial indicators for the period
|
|
1st quarter of 2007 |
1st quarter of 2008 |
|
|
Revenue |
$ mln, |
93,536 |
151,628 |
|
EBITDA |
$ mln. |
41,574 |
95,669 |
|
Net profit |
$ mln. |
12,155 |
56,296 |
Mr. Igor Vilinov, CEO of NCSP, said: "Key financial indicators continued to grow in the first quarter of 2007. Revenue reached $151,6 million in comparison with the same period last year, EBITDA grew to $95,7 million, net profit increased to 56,3 million (consolidated unaudited financial results). An important growth factor for the company in the first quarter of 2008 was the commissioning of new transshipment facilities in late 2007, including container, timber, bunkerage and grain terminals.
As a result of corporate strategy focused on increasing the share of high-profit cargoes in the port's turnover, the share of containers increased from 4% to 6%, oil products - from 11% to 14%, ferrous metals - from 11% to 12% and timber - from 1% to 2%, as well as the attraction of a new cargo - imported cement. The first quarter results also demonstrate further increase of the company's operating efficiency".
Growth Factors in the 1st quarter of 2008
Increasing share of high-profit cargoes in the 1st quarter of 2008 (in comparison with the 1st quarter of 2007):
Share of containers grew from 4% to 6%
Share of diesel fuel grew from 8% to 10%
Share of fuel oil grew from 3% to 4%
Share of ferrous metals grew from 11% to 12%
Share of timber grew from 1% to 2%
A new cargo appeared - imported cement
Effect from commissioning of new port complexes (NLE Container and Timber Terminals, IPP Bunkerage Complex, NZT Grain Terminal)
Decrease of discounts for clients
Scheduled tariff increase
Technical modernization: purchase and commissioning of new equipment
Increase in labor productivity (the indicator of labor productivity increased 7% in comparison with the1st quarter of 2007).
Key events and transactions in the 1st quarter of 2008
During the 1st quarter of 2008 NCSP continued to execute its investment program to 2012 aimed at modernization and port capacity increase.
In January 2008 Novoroslesexport (NCSP's subsidiary) has passed a complex certification of the Integrated Management System (ISO - ISO 9001:2000 "Quality Management Systems. Requirements," ISO 14001:2004 "Environmental Management Systems Requirements and Management Applications," and OHSAS 18001:1999 "Occupational Health and Safety Management Systems," as well as the IQNet International Certificate in Quality).
In March 2008 container handlers Reachstaker and container cranes RTG and RMG were commissioned on Novoroslesexport container terminal
In February 2008 NCSP consolidated 100% stock of the "Baltic Stevedore Co." by acquisition of the remaining 50% stock of the "Baltic Stevedore Co." (BSC), which specializes on container cargo and is the first project of NCSP in the Northwestern basin.
Increase of high-profit cargoes turnover:
1) Turnover of containers in the 1st quarter of 2008 grew to 85 thousand TEU, up 60% year-on-year (53 thousand TEU in the 1st quarter of 2007)
2) Turnover of diesel fuel increased 16,25% to 1857 thousand tons, turnover of fuel oil increased 27,56% to 704 thousand tons, UAN - 31,67% to 211 thousand tons, timber - 15% to 298 thousand tons (all data is given in comparison with the 1st quarter of 2007).
Key growth factors for the company:
New terminals are built and the existing facilities are expanded:
Containers: BSC (Baltic Stevedoring Company), NCSP, NLE (Novoroslesexport)
Oil products
Crude oil
Dry bulk imports
Scheduled tariff increase
Acquisitions of new core assets
Acquisitions of subsidiaries' minority packages
Increase in cargo turnover volumes through participation in the development of the Novorissiysk Transport Hub
NCSP
Novorossiysk Commercial Sea Port (NCSP) is Russia's largest sea port operator by cargo turnover, according to Association of Sea Ports. NCSP`s total cargo turnover in 2007 amounted to 79,4 mln. tons, according to consolidated results. NCSP is listed on London Stock Exchange and Russian stock exchanges RTS and MICEX. In 2007 NCSP had revenues of $483,4 mln. with EBITDA of $227,9 mln. and net profit of $93,7 mln. (consolidated results).
NCSP is the largest stevedore company of port Novorossiysk, a multi-purpose deep-water port complex located on the Black Sea, which provides year-round navigation. The port is a key Southern gateway for import and export of a wide range of cargoes (including oil, oil products, timber, grain, fertilizers, ferrous metals, containers, automobiles and general cargo). In 2007 NCSP has transshipped about 96% of all port Novorossiysk cargo.
NCSP owns the following stevedore companies: NZT Grain Terminal, NSRZ Ship Repair Yard, NCSP Fleet, NLE Timber & Container Terminal, IPP, Baltic Stevedore Co.
For further information:
Tel.: + 7 (495) 783-5434
APPENDIX
Public JOINT STOCK COMPANY
NOVOROSSIYSK COMMERCIAL SEA PORT AND SUBSIDIARIES
Condensed CONSOLIDATED INCOME STATEMENT
FOR THE THREE MONTHS ENDED 31 March 2008 and 2007 (UNAUDITED)
(in thousands of US Dollars, except earnings per share)
|
Three months ended |
Three months ended |
|||
|
Notes |
31 March 2008 |
31 March 2007 |
||
|
Revenue |
3 |
151,628 |
93,536 |
|
|
|
||||
|
Cost of services |
4 |
(75,083) |
(51,042) |
|
|
|
||||
|
GROSS PROFIT |
76,545 |
42,494 |
||
|
Selling, general and administrative expenses |
5 |
(14,521) |
(14,025) |
|
|
|
||||
|
OPERATING PROFIT |
62,024 |
28,469 |
||
|
Interest income |
987 |
70 |
||
|
Finance cost |
6 |
(8,247) |
(10,600) |
|
|
Foreign exchange gain |
20,714 |
6,045 |
||
|
Other income/ (expenses), net |
7 |
(100) |
(5,650) |
|
|
PROFIT BEFORE INCOME TAX |
75,378 |
18,334 |
||
|
|
||||
|
INCOME TAX |
8 |
(19,082) |
(6,179) |
|
|
|
||||
|
PROFIT FOR THE PERIOD |
56,296 |
12,155 |
||
|
Attributable to: |
||||
|
Equity shareholders |
53,254 |
11,511 |
||
|
Minority interest |
3,042 |
644 |
||
|
56,296 |
12,155 |
|||
|
Weighted average number of common shares outstanding |
19,259,815,400 |
19,072,719,190 |
||
|
Earnings per share, basic and diluted (US Dollars) |
0.0028 |
0.0006 |
Public JOINT STOCK COMPANY
NOVOROSSIYSK COMMERCIAL SEA PORT AND SUBSIDIARIES
Condensed CONSOLIDATED BALANCE SHEET
AT 31 March 2008 and 2007 (UNAUDITED)
(in thousands of US Dollars)
|
Notes |
31 March 2008 |
31 December 2007 |
||
|
ASSETS |
||||
|
NON-CURRENT ASSETS: |
||||
|
Property, plant and equipment |
10 |
779,677 |
755,451 |
|
|
Goodwill |
511,556 |
490,077 |
||
|
Mooring rights and other intangible assets |
15,599 |
14,836 |
||
|
Investments in securities and other financial assets |
16,049 |
15,863 |
||
|
Non-current VAT recoverable |
598 |
998 |
||
|
Spare parts |
6,477 |
6,585 |
||
|
Deferred tax assets |
3,084 |
3,078 |
||
|
1,333,040 |
1,286,888 |
|||
|
CURRENT ASSETS: |
||||
|
Inventories |
11 |
16,162 |
7,875 |
|
|
Trade and other receivables |
12 |
98,954 |
71,185 |
|
|
Investments in securities and other financial assets |
8,569 |
3,999 |
||
|
Cash and cash equivalents |
13 |
80,347 |
66,660 |
|
|
204,032 |
149,718 |
|||
|
TOTAL ASSETS |
1,537,072 |
1,436,606 |
||
|
EQUITY AND LIABILITIES |
||||
|
EQUITY: |
||||
|
Share capital |
14 |
10,471 |
10,471 |
|
|
Share premium |
14 |
10,063 |
10,063 |
|
|
Foreign currency translation reserves |
113,366 |
80,045 |
||
|
Retained earnings |
672,796 |
630,650 |
||
|
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT |
806,696 |
731,229 |
||
|
|
||||
|
MINORITY INTEREST |
43,724 |
38,883 |
||
|
TOTAL EQUITY |
850,420 |
770,112 |
||
|
NON-CURRENT LIABILITIES: |
||||
|
Long-term debt |
15 |
519,841 |
508,189 |
|
|
Retirement benefit obligation |
80,493 |
8,181 |
||
|
Deferred tax liabilities |
8,456 |
77,304 |
||
|
608,790 |
593,674 |
|||
|
CURRENT LIABILITIES: |
||||
|
Short-term debt |
24,922 |
30,426 |
||
|
Trade payables |
15 |
18,594 |
17,481 |
|
|
Other payables and accruals |
16 |
34,346 |
24,913 |
|
|
77,862 |
72,820 |
|||
|
TOTAL EQUITY AND LIABILITIES |
1,537,072 |
1,436,606 |
public JOINT STOCK COMPANY
NOVOROSSIYSK COMMERCIAL SEA PORT AND SUBSIDIARIES
Condensed consolidated statement of cash flows
FOR THE THREE MONTHS ENDED 31 March 2008 and 2007 (UNAUDITED)
(in thousands of US Dollars)
|
Notes |
|
Three months ended 31 March 2008 |
|
Three months ended 31 March 2007 |
||
|
Cash flows from operating activities |
|
|||||
|
Cash generated from operations |
|
55,765 |
41,801 |
|||
|
Income tax paid |
|
(13,972) |
(5,312) |
|||
|
Interest paid |
|
(4,621) |
(11,164) |
|||
|
|
|
|||||
|
Net cash generated by operating activities |
|
37,172 |
25,325 |
|||
|
|
|
|||||
|
Cash flows from investing activities |
|
|||||
|
Proceeds from disposal of property, plant and equipment |
|
69 |
1,596 |
|||
|
Payments for property, plant and equipment |
|
(15,202) |
(12,689) |
|||
|
Payments for securities and other financial assets |
|
(2,780) |
- |
|||
|
Proceeds from disposal of short term investments |
|
- |
6,322 |
|||
|
Payment for minority interest acquisition |
|
(11,108) |
- |
|||
|
|
|
|||||
|
Net cash used in investing activities |
|
(29,021) |
(4,771) |
|||
|
|
|
|||||
|
Cash flows from financing activities |
|
|||||
|
Proceeds from long-term borrowings |
|
4,948 |
7,056 |
|||
|
Repayments of long-term borrowings |
|
(2,079) |
(15,052) |
|||
|
Proceeds from short-term borrowings |
|
- |
494 |
|||
|
Repayments of short-term borrowings |
|
(278) |
(380) |
|||
|
Treasury shares purchased |
|
- |
(802) |
|||
|
Repayments of obligations under finance leases |
|
(304) |
(206) |
|||
|
|
|
|||||
|
Net cash from/(used in) financing activities |
|
2,287 |
(8,890) |
|||
|
|
|
|||||
|
Net decrease in cash and cash equivalents |
|
10,438 |
11,664 |
|||
|
|
|
|||||
|
Cash and cash equivalents at the beginning of the period |
|
66,660 |
37,037 |
|||
|
Effect of translation into presentation currency |
|
3,249 |
596 |
|||
|
|
|
|||||
|
Cash and cash equivalents at the end of the period |
|
80,347 |
49,297 |
|||
Related Shares:
Pjsc Novor. S