30th Apr 2008 12:17
PJSC Novorossiysk Comm. Sea Port30 April 2008 Press Release Results for the twelve months to 31st December 2007 April 30, 2008 Novorossiysk Commercial Sea Port (LSE: NCSP, RTS: NMTP, MICEX: NMTP) ("NCSP")announces its consolidated audited financial results for the twelve months to31st December 2007, in accordance with International Financial ReportingStandards. Full consolidated audited financial statements for the twelve months to 31stDecember 2007 are available on NCSP's web-site: http://www.nmtp.info/ Key financial indicators for the period 2006 2007 Change Revenue $ mln. 277,277 483,380 74,33 % Gross Profit $ mln. 104,380 227,671 118,12 % Operating Profit $ mln. 70,401 154,573 119,56 % EBITDA $ mln. 119,075 227,915 91,4 % EBITDA margin % 42,9 47,2 ----------- Net Profit $ mln. 44,089 93,674 112,47% Total Cargo Turnover mln. tons 80,926 79,303 -2,01% Mr. Igor Vilinov, CEO of NCSP, said: I am happy to announce that the financialresults of NCSP for the 12 months of 2007 are in line with our expectationsshowing significant improvement in our key financial indicators. In comparisonto last year, revenue grew 74,33%, net profit is up 112,47%, operating profitgrew 119,56%, EBITDA showed an increase of 91,4% while EBITDA margin grew from42,9% to 47,2%. The results demonstrate successful growth of the company and confirm theeffectiveness of the strategy being implemented by NCSP's management - capacitygrowth through the development of world class facilities, focus on highlyprofitable cargo and efficiency increase through the consolidation synergies andimplementation of new terminals. Successful November listing of ordinary shares in Moscow and GDRs in London hassubsequently raised NCSP's profile. In 2007, the company achieved significantprogress in increasing the efficiency of its operations by concentrating onfurther integration and consolidation of assets, as well as improving corporategovernance with the purpose of increasing capitalization, investmentattractiveness and transparency . Growth Factors * Consolidation of five stevedoring companies of the Novorossiysk Port in 2006 (Novoroslesexport, IPP, NZT, NSRZ, NCSP Fleet) whose financial results began to affect the consolidated reporting of OAO "NCSP" in 3Q2006, as well as the purchase of 50% of shares in "Baltic Stevedore Co." and 15,04% of NSRZ in May 2007. * Establishment of new tariffs for services of the port in connection with the realization of investment program aimed at modernization and port capacity increase * Commissioning of new port complexes (NZT Grain Terminal, NLE Container and Lumber Terminals, IPP Bunkerage Complex) * Technical modernization (purchase and commissioning of new equipment) * Introduction of an effective system of cost control * Increase of labor productivity * Improvement of debt quality and access to international capital markets Development of the Company in 2007 1) During the first 9 months of 2007 NCSP has continued to execute its $700+million investment program aimed at modernization and port capacity increase. As of 31st December 2007 the following high-performance projects have beencompleted: * Construction of a new grain terminal (NZT) with overall capacity of 4 million tons of grain per year. Transshipment of cargoes began on the 29th August 2007. Total investment - approximately $82,6 million * Construction of a new bunkerage complex (IPP) with overall capacity of 648,000 tons per year. The complex was commissioned on the 1st of October 2007. Total investment - approximately $19,8 million * Reconstruction of the container terminal (Novoroslesexport) with the aim of increasing the capacity from 60 thousand TEU to 350 thousand TEU. Total investment - approximately $86,4 million * Reconstruction of the lumber terminal (Novoroslesexport) with the aim of increasing the capacity from 2.2 million cubic meters to 3 million cubic meters. Total investment - approximately $14,8 million Purchase of high-efficiency equipment (as of 12 December 2007): * Five new specialized container handlers Reachstaker manufactured by Ferrari company, with a loading capacity of 45 tons each, which is used in container transportation within the territory of the terminal and their warehousing stacks * Crane equipment manufactured by ZPMC company for container terminal of Novoroslesexport: two STS container reloaders, two rubber-tired gantry cranes RTG and rail-mounted gantry cranes RMG 2) Eurobonds issue * In May 2007 NCSP placed 5-year Eurobonds for a total of $300 million at 7% annually. * Release of security, upgraded level of unsecured debt from 4.3% up to 87% 3) Offering of ordinary shares and GDRs * In November 2007 NCSP carried out an offering of ordinary shares on RTS, MICEX and GDRs on LSE having placed 19.38% of stock at the top of the price range - $0.256 for one share and $19.2 for a GDR (one GDR represents 75 shares) * The capitalization of NCSP based on the offering price totaled $4.9 billion. Global coordinators, co-lead managers and bookrunners were Morgan Stanley and Troika Dialog 4) Scheduled tariff increase 5) Increase in labor productivity * In 2007, the indicator of labor productivity increased 7% in comparison with the previous year due to an increase of automation of operations and the introduction of new technologies that allowed for the reduction of unskilled labor 6) Optimization of cargo turnover through a shift to highly profitable cargoes(as of 31 December 2007): * The volume of grain turnover in 2007 reached a record level of 5,808 thousand tons, demonstrating a more than 42% growth year-on year (4,084 thousand tons in 2006) * The volume of turnover of containers in 2007 grew to 3,495 thousand tons or 250 thousand TEU, demonstrating growth of more than 63% (2,143 thousand tons in 2006) Outlook The investment program of NCSP, focused on the modernization and growth of theport capacities, will promote the growth of profitability and stock price of thecompany. The management of NCSP positively estimates the prospects of the development ofthe Russian economy and sees great potential for escalating the turnover ofgoods and increase in the assortment and quality of rendered services. Theprospects of growth of cargo traffic in the regions the company operatessupports NCSP's intentions to continue a sustainable growth with focus on highlyprofitable cargoes. Key growth factors for the company: * Construction of new terminals and the increase in existing capacities in the processing of following cargoes: • Containers - BSK, NCSP, NLE • Oil products • Crude oil • Dry imported bulk cargoes * Scheduled increase in tariffs * Purchase of new assets * Purchase of minority stakes in subsidiaries Realization of the corporate strategy within growing volumes of Russia'sinternational sea trade will allow the company to become, in the near term, oneof the leading ports in Europe by volumes of transferred cargoes and operatingefficiency. Events after reporting date Novorossiysk Commercial Sea Port consolidated 100% stock of the "BalticStevedore Co.", which specializes on container cargo. The transaction has been effected as part of NCSP's strategy aimed at enhancingcompany's presence in the northwestern region and shipment of highlyremunerative cargo. Consolidation of 100% stock of "Baltic Stevedore Co." shallmaximize the efficiency of company management and implementation of the programon increasing its cargo turnover up to 300,000 TEU by 2010. Conference Call NCSP will be holding a telephone conference call today at 17:00 Moscow time(London - 14:00, New York - 9:00), to discuss these results. To take part in the call, please dial: * Russia +7 495 981 08 73 * United Kingdom +44 207 740 9501 * USA +1 718 354 1175 Pin-code for participants: 989 523 Live Meeting web conference link: https://www.livemeeting.com/cc/btconferencing_eventsssl3/join?id=K5213650&role=attend&pw=989523A If the meeting link above does not work, please use the following: Web conference link: https://www.livemeeting.com/cc/btconferencing_eventsssl3 Web conference meeting ID: K5213650 Attendee meeting key: 989523A A Recording of the conference call and an investor presentation will also beavailable on NCSP's web-site (www.nmtp.info) in the section "Press-center". NCSP NCSP operates primarily at the Port of Novorossiysk (the "Port"), amulti-purpose, yearround, deep-water port located on the Russian shore of theBlack Sea which has geographic, topographic and infrastructure advantages incomparison to ports and potential port sites in the Black Sea-Azov basin. ThePort is Russia's largest sea port in terms of cargo turnover volume according tothe Association of Russian Sea Ports, and Europe's fifth largest commercial seaport by cargo volume in 2005, according to Global Insight/ISL. NCSP is a key Southern gateway for the import and export of a wide range ofcargoes to and from the Russian economy (including oil, oil products, timber,grain, fertilizers, ferrous metals, containers, automobiles and general cargo).NCSP handles approximately 20% by volume of cargoes shipped through Russian seaports according to the Association ofRussian Sea Ports. During 2006, NCSP consolidated its shareholdings in the majority of otheroperators and stevedores in the Port. For further information: IR Director Tel.: + 7 (495) 783-5434 [email protected] PR Director Tel.: + 7 (495) 783-5434 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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