14th Oct 2008 09:23
Press Release
NCSP's Cargo Turnover Increased by 2.8% over 9 Months of 2008 as Share of High-Margin Cargo Grows
October 14, 2008
PJSC Novorossiysk Commercial Sea Port (LSE: NCSP, RTS & MICEX: NMTP) released consolidated operating results for 9 months of 2008. The group's cargo turnover amounted to 60,335.8 thousand tons, which represents 2.8% growth against 9 months of 2007.
«By the end of 9 months the cargo turnover increased by 1,635.4 thousand tons», said Igor Vilinov, CEO of NCSP, commenting on the operating results. «In the third quarter we managed to fully offset the decrease in transshipment of certain types of cargo that occurred in the first half of 2008. Commissioning of new facilities for transshipment of grain, containers and petroleum products has been major growth for 9 months of 2008.»
The share of containers in the overall cargo turnover of the group has increased from 4.4% in 9 months of 2007 to 6.5% for the same period of 2008, as container handling volumes reached 281.1 thousand TEU. Revenue from container handling in the reporting period reached 9% of the group's total revenues.
Grain handling volumes in third quarter of 2008 have more than tripled compared to first half of 2008 and reached 2 501.5 thousand tons, since export duties were lifted in third quarter of 2008. At the same time grain handling volumes in third quarter of 2008 have increased 1.6 times against same period last year. Since August 2008 newly commissioned Novorossiysk Grain Terminal has reached its designed capacity, in August and September 2008 it handled 482.8 thousand tons and 551.5 thousand tons of grain respectively.
Handling of petroleum products - another priority for the group - increased from 6,883.3 thousand tons for nine months of 2007 to 7,951.6 thousand tons for the same period in 2008, offsetting 3% decline in crude oil.
In the beginning of 2008 NCSP begun handling imported cement, which totaled 974.6 thousand tons for 9 months of 2008. This made up for the lack of exported cement volumes and resulted in almost threefold increase in cement handling against same period last year.
In line with its strategy to optimize cargo traffic NCSP increases handling of high-margin cargo against shrinking share of less profitable cargo, i.e. iron ore and ore concentrate (decreased by 77.8%), as well as scrap metal (decreased by 74.0%).
The highest increase in cargo handling volumes was demonstrated by a number of NCSP's subsidiaries: PJSC Novorossiysk Grain Terminal (from 92 thousand tons for 9 months of 2007 to 1,640.7 thousand tons for 9 months of 2008), OJSC Novoroslesexport (from 2,060.2 to 2,811.5 thousand tons), OJSC IPP (from 3,605.5 thousand tons to 4,514 thousand tons), and Baltic Stevedoring Company LLC (from 607.1 thousand tons to 886 thousand tons). This substantial growth resulted from completion of major investment projects: specialized grain terminal of PJSC Novorossiysk Grain Terminal, container terminal of OJSC Novoroslesexport, and OJSC IPP terminal for transshipment of bunker fuel.
PJSC NCSP's operating results for 9 months of 2008
|
9 months of |
9 months of |
Change |
||
|
|
2008 |
2007 |
Thousand tons |
% |
|
Cargo turnover, total |
60,335.8 |
58,700.4 |
1,635.4 |
2.8% |
|
Bulk cargo, total |
41,040.2 |
41,051.0 |
(10.8) |
(0.03%) |
|
Crude oil |
32,260.5 |
33,267.7 |
(1,007.2) |
(3.0)% |
|
Petroleum products |
7,951.6 |
6,883.3 |
1,068.3 |
15.5% |
|
UAN liquid fertilizer |
635.9 |
594.5 |
41.5 |
7.0% |
|
Seed Oils |
192.2 |
305.5 |
(113.3) |
(37.1)% |
|
Dry bulk cargo, total |
6,882.3 |
6,975.4 |
(93.1) |
(1.3)% |
|
Grain |
3,548.9 |
3,726.1 |
(177.2) |
(4.8)% |
|
Mineral fertilizers |
1,005.7 |
913.8 |
91.9 |
10.1% |
|
Sugar |
1,213.6 |
1,417.7 |
(204.1) |
(14.4)% |
|
Ore and iron ore concentrate |
94.9 |
427.1 |
(332.2) |
(77.8)% |
|
Scrap metal |
44.6 |
171.4 |
(126.8) |
(74.0)% |
|
Cement |
974.6 |
319.3 |
655.3 |
205.2% |
|
General cargo, total |
8,478.5 |
8,072.8 |
405.8 |
5.0% |
|
Ferrous metals |
6,628.6 |
6,013.2 |
615.4 |
10.2% |
|
Timber |
825.7 |
883.8 |
(58.1) |
(6.6%) |
|
Nonferrous metals |
672.1 |
745.8 |
(73.7) |
(9.9)% |
|
Pig iron |
93.9 |
151.9 |
(58.0) |
(38.2)% |
|
Perishable cargo |
73.5 |
58.9 |
14.6 |
24.8% |
|
Other |
184.4 |
219.2 |
(34.4) |
(15.7)% |
|
Container cargo |
3,934.7 |
2,601.1 |
1,333.6 |
51.3% |
|
Containers |
3,934.7 |
2,601.1 |
1,333.6 |
51.3% |
|
Containers (thousand TEU) |
281.1 |
185.8 |
95.3 |
51.3% |
(1) For the purposes of this table cubic meters were converted into tons using a ratio of 0.55 tons per meter, and we used this ratio as an indicative index based on the assumptions, which our company considers justified. Any discrepancy between the figures presented here and the actual weight of lumber cargo in tons has no significant effect on our overall earnings and EBITDA, since the tariffs are calculated per cubic meter, not by weight.
(2) For the purposes of this table TEU were converted into tons based on a ratio of 14 tons per TEU. This ratio is used as an indicative index and is based on the assumptions, which our company considers justified. Any discrepancy between the figures presented here and the actual weight of container cargo in tons has no significant effect on our earnings and EBITDA, since the tariffs are calculated per TEU, not by weight.
About NSCP
According to the Association of Sea Ports, PJSC Novorossiysk Commercial Sea Port is the largest Russian port operator in terms of cargo turnover. NCSP consolidated cargo turnover in 2007 totaled 79.4 million tonnes. PJSC NCSP is listed on the London Stock Exchange and Russia's RTS and MICEX. In 2007 NCSP's earnings for 2007 totaled US$ 483.4 million, EBITDA -- US$ 227.9 million, and net profit -- US$ 93.7 million (according to consolidated financial statements under IFRS).
NCSP group includes the six stevedoring companies: PJSC NSCP, PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Shipyard, PJSC NCSP Fleet, OJSC Novoroslesexport, OJSC IPP, and Baltic Stevedoring Company Ltd.
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