TIDMGPH
RNS Number : 0218W
Global Ports Holding PLC
09 November 2017
9 November 2017
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF REGULATION (EU) NO 596/2014
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH
JURISDICTION
This announcement is to update equity investors that Global
Ports Holding Plc's ("GPH Plc" or "Group") 100% subsidiary Global
Liman İ letmeleri A. . ("Global Liman") has released its IFRS
financials for the nine month period ending 30.09.2017 in line with
the reporting obligations of Global Liman's outstanding
Eurobond.Global Liman's' financials represent the Group's
operational performance. All numbers reported in this announcement
are Global Liman's IFRS financials for the period ending
30.09.2017, except where indicated otherwise. GPH Plc reports its
IFRS financials semi-annually for the periods ending 30(th) June
and 31(st) December. Please note that there is no material
difference between GPH Plc and GPH AS in terms of operational
performance for 9M 2017, because GPH Plc has no other operating
activities other than through its 100% shareholding in Global
Liman.
Global Ports Holding Plc
9M 2017 Trading Statement
Strong volume growth in both Commercial and Cruise segments
continues in 9M-2017, offset by ongoing negative passenger growth
trend at Turkish Cruise ports
Key Financials & KPI Highlights
9M 9M YoY Q3 YoY
2017 2016 Change 2017 Q3 2016 Change
-------------------------- -------- -------- -------- ------ -------- --------
Passengers (mn
PAX) (3) 3.1 2.7 15.1% 1.6 1.4 16.1%
General & Bulk
Cargo ('000 tons) 1,203.7 1,106.4 8.8% 395.8 352.7 12.2%
Throughput ('000
TEU) 182.2 161.8 12.6% 59.7 56.8 5.1%
-------------------------- -------- -------- -------- ------ -------- --------
Revenue (USD m) 87.9 90.3 -2.6% 38.2 37.5 1.6%
Cruise Revenue
(USD m) (1) 38.3 42.4 -9.7% 19.8 20.4 -3.0%
Commercial Revenue
(USD m) 49.7 47.9 3.6% 18.4 17.2 7.1%
Segmental EBITDA
(USD m) (2) 60.1 60.9 -1.2% 27.9 26.2 6.7%
Segmental EBITDA
Margin 68.4% 67.4% +100bps 73.2% 69.7% +350bps
Cruise EBITDA
(USD m) 25.0 27.7 -9.6% 14.9 14.0 6.2%
Cruise Margin 65.5% 65.4% +10bps 75.5% 68.9% +660bps
Commercial EBITDA
(USD mn) 35.1 33.2 5.8% 13.0 12.1 7.3%
Commercial Margin 70.7% 69.2% +150bps 70.8% 70.7% +10bps
-------------------------- -------- -------- -------- ------ -------- --------
Consolidated EBITDA
(USD mn) 57.4 57.4 0.1% 27.5 24.9 10.6%
Consolidated EBITDA
Margin 65.4% 63.5% +180bps 72.1% 66.2% +580bps
Profit / (Loss)
for the period
(USD m) 2.5 7.7 -67.2% 9.2 7.3 26.1%
-------------------------- -------- -------- -------- ------ -------- --------
(1) Cruise revenues include sum of all cruise ports
excluding Venice, La Spezia, Lisbon and Singapore
(equity accounted investee entities).
(2) Segmental EBITDA indicate only operational
companies; excludes GPH HoldCo expenses and exceptional
and other non-cash income and expenses.
(3) Passenger numbers refer to controlled operations,
hence excluding equity pick-up entities Venice,
Lisbon and Singapore.
Financial and Operational Highlights
-- Strong cruise passenger number growth along with solid growth
in commercial port volumes continues; offset by ongoing weakness in
consumer sentiment towards higher margin Turkish cruise ports and
lower project cargo volumes
o Overall Segmental EBITDA is broadly flat at USD 60.1m on a 9
month basis (-1.2% or USD -0.8m). This represents a strong increase
in EBITDA performance during Q3 2017, with EBITDA growth of USD
1.8m (+6.7%) compared to the same period last year (vs. decline of
USD 2.5m (-7.2%) in H1 2017). Cruise and Commercial segments
contributed equally to EBITDA growth in Q3 2017.
o Despite the ongoing weakness in sentiment for Turkish cruise
ports, Cruise Segmental EBITDA grew 6.2% in Q3 2017, bringing the
9M 2017 figure to USD 25.0m.
o Solid increase in Commercial Segmental EBITDA of 5.8% to USD
35.1m
-- Profit after tax for 9-month period of USD 2.5m (USD 3.0m for
GPH Plc), which includes USD 22.8m amortization expense in relation
to Port Operation Rights.
-- Strong operating cash flow of USD 33.1m for the 9 month
period (2016 9 month period: USD 38.9m).
-- Net Debt(1) / EBITDA(2) of GPH Plc at 3.0x (Global Liman at
3.7x in line with financial policy)
(1) Calculated as loans and borrowings including
finance lease obligations less cash and cash equivalents
less other short term investments
(2) Consolidated EBITDA is calculated as Segmental
EBITDA less unallocated expenses
Outlook & current trading
Trading has been pleasing and in Q4 where we have seen a
continuation of the trends reported at our interim results. With
the exception of Turkish cruise ports, there has been a strong
growth in passenger numbers, as well as commercial volume growth
since the end of Q3.
Two effects outside our control may impact the Group's full-year
2017 results.
Firstly, contracted project cargo at Port of Adria, which is
less predictable by nature, has not been realized yet and some of
the anticipated revenue may now be delayed into next year (we
currently estimate that this could have an EBITDA impact of USD
1.3m) in this financial year).
Secondly, with respect to Dubrovnik, despite the fact that GPH
and its joint venture partner have accommodated the amendments
requested to the project by the new local government, the
authorities have still not signed the final Concession Agreement.
We currently do not have clarity on when a final Concession
Agreement will be signed and therefore we now do not expect any
EBITDA contribution from the port for 2017. The new award winning
terminal in Lisbon is now fully operational, and is expected to
increase both passenger numbers and ancillary revenues at the
port.
The remainder of the ports continue to trade in line with our
expectations of single digit growth in segmental EBITDA.
Accordingly, for the 2017 full year, Segmental EBITDA is
expected to be broadly flat compared to FY16, with the potential
for a single-digit growth should the Adria project cargo volume be
realized this year.
Emre Sayın, Chief Executive Officer said;
"We continue to see strong overall volume growth in both our
Cruise and Commercial segments, stable EBITDA margins and strong
operating cashflows, in spite of the continued impact of the
regional geopolitical climate on our Turkish Cruise Ports.
Development on our pipeline of international cruise ports
continues to progress. The Port of Lisbon is now fully operational
and demonstrates how collaboration with the national government,
the mayor's office and other local partners can deliver an
award-winning cruise terminal that will bring economic benefits to
the local population.
In Dubrovnik, despite extensive efforts to agree final
contractual terms with the Port Authority, we have entered an
amicable period of resolution to try to resolve the issues raised
by the new administration.
Elsewhere, progress is also being made on a number of target
acquisitions in the Caribbean and Asia, as set out at IPO. In
particular, we have made strong progress in Cuba having built a
very positive relationship with the government in Havana and I am
very optimistic about our plans there. We remain focused on
expanding our global footprint from its existing concentration in
the Mediterranean,and we will update the market accordingly."
Mr. Emre SAYIN, Chief Executive Officer and the senior
management of Global Ports Holding PLC will hold a conference call
with equity investors and analysts to discuss these interim results
on 9 November 2017 at 9:00 UK time (GMT). Below are the details for
the conference call.
Participant Pin Code: 285 596 23#
UK: +44 2071943759
USA: +0 8442860643
Turkey: +90 2123755127
Austria: +43 19288330
France: +33 170710159
Germany: +49 69222225429
Hong Kong: +852 30773574
Netherlands: + 31 207095119
Italy: +39 0236013817
Portugal +351 1210609110
UAE: +800035703603
Singapore: +65 64298400
Sweden: +46 856642510
Spain: +34 911140101
For further information, please contact:
Global Ports Holding PLC
Asli Su Ata, Head of Investor Relations
Ismail Ozer, Investor Relations Analyst
Telephone: +90 212 244 60 00
Email: investor@globalportsholding.com
Brunswick Group LLP
Will Rowberry / Imran Jina
+44 (0) 20 7404 5959
Email: GPH@brunswickgroup.com
This announcement does not constitute an invitation and should
not be taken as an inducement to engage in any investment activity
and is for the purpose of providing information about the Company.
Certain information contained in this announcement constitutes
"forward-looking statements," which can be identified by the use of
forward-looking terminology such as "may," "will," "should,"
"expect," "anticipate," "target," "intend," "continue" or
"believe," or the negatives thereof, other variations thereon or
comparable terminology. Due to various risks and uncertainties,
actual events or results or the actual performance of the Company
described herein may differ materially from the events, results or
performance reflected or contemplated in such forward-looking
statements. Any projections, forecasts and estimates contained
herein are based upon certain assumptions that the Company
considers reasonable. Projections are necessarily speculative in
nature, and it can be expected that some or all of the assumptions
underlying the projections will not materialize and/or that actual
events and consequences thereof will vary significantly from the
assumptions upon which projections contained herein have been
based. The inclusion of projections herein should not be regarded
as a representation or guarantee regarding the reliability,
accuracy or completeness of the information contained herein, the
Company is under no obligation to update or keep current such
information. Unless otherwise indicated, the information provided
herein is based on matters as they exist as of the date of
preparation and not as of any future date.
Certain data in this announcement, including financial,
statistical, and operating information has been rounded. As a
result of the rounding, the totals of data presented and the
percentages in tables changes in this announcement may vary
slightly from the actual arithmetic total or percentages as
calculated from the rounded data.
9M 2017 Financial Performance Overview
Cruise Segment's Operating Performance
Passenger YoY YoY
(m) 9M 2017 9M 2016 Change Q3 2017 Q3 2016 Change
-------------- ---------------- ---------------- --------- ----------------- ---------------- ---------
Creuers 1.78 1.72 3.8% 0.89 0.87 2.3%
Valletta 0.58 0.49 17.7% 0.27 0.23 14.7%
Ege Port 0.17 0.35 -51.7% 0.11 0.18 -40.7%
Other Cruise
Ports 0.58 0.14 306.0% 0.31 0.08 308.4%
Total Cruise
Ports 3.10 2.70 15.1% 1.57 1.35 16.1%
-------------- ---------------- ---------------- --------- ----------------- ---------------- ---------
-- Strong growth in total cruise passengers of 15.1%
o 2.9% organic growth across the portfolio (taking into account
pro-forma effect for Italian port acquisitions which are
consolidated for the first time in 2017) despite continuing
challenges in the Turkish ports
o Continued above-market average passenger growth across GPH's
European cruise ports
o Ege Ports showed a decline in negative growth rate due to the
more favourable base effect of Q3 2017 (negative passenger growth
rate during H1-2017 was 63.4% vs 40.7% in Q3 2017
year-on-year).
o There has been no major impact to the volume of Barcelona
cruise passengers as a result of the current political issues in
Spain
o Despite the overall positive volume trend in passengers,
revenues and segmental EBITDA from cruise operations have declined
by 9.7% and 9.6% respectively, due to a lower share of
higher-yielding Turkish ports not fully offset by European
ports
o Despite the weakness in Turkey, cruise EBITDA registered
positive growth (6.2%) in Q3 2017 compared to the same period last
year; this means that the EBITDA decline in Turkey was fully offset
by an increasing share of more profitable turnaround passengers at
GPH's European cruise ports, on an aggregated basis
Cruise M&A Pipeline
Dubrovnik
Despite the fact that GPH and its joint venture partner have
accommodated the amendments requested to the project by the new
local government, the authorities have still not signed the final
Concession Agreement within the specified period.
The consortium partners are currently pursuing an amicable
resolution process, with the hope of resolving the situation.
Lisbon
A new, state-of the art terminal in Lisbon Cruise Port has been
developed by GPH and its partners, and has been operational. The
opening of its new, terminal is expected to increase both passenger
numbers and ancillary revenues at the Port of Lisbon.
The terminal building, which has already won a number of awards,
will be inaugurated on the 10(th) November 2017, followed by a EUR
22m investment and two year construction process. GPH, which built
and operates Lisbon Cruise Port, has worked closely with the
Portuguese national government, the mayor's office and other local
partners throughout the development.
In line with GPH's growth strategy, GPH continues to progress
with its M&A pipeline, and the Group will provide further
updates as appropriate.
Commercial Segment's Operating Performance
YoY YoY
9M 2017 9M 2016 Change Q3 2017 Q3 2016 Change
----------------- ---------------- ---------------- ----------- ---------------- ---------------- -----------
Port Akdeniz-
Antalya
General & Bulk
Cargo ('000) 1,079.5 1,040.5 3.7% 341.3 331.9 2.8%
Throughput
('000 TEU) 145.9 129.3 12.9% 47.9 46.8 2.3%
Port of Adria
General & Bulk
Cargo ('000) 124.2 65.9 88.5% 54.5 20.8 162.2%
Throughput
('000 TEU) 36.3 32.5 11.6% 11.8 10.0 18.0%
Total
General & Bulk
Cargo ('000) 1,203.7 1,106.4 8.8% 395.8 352.7 12.2%
Throughput
('000 TEU) 182.2 161.8 12.6% 59.7 56.8 5.1%
----------------- ---------------- ---------------- ----------- ---------------- ---------------- -----------
-- Commercial revenues were USD 49.7mn in 9M 2017, up 3.6% year-on-year
-- Strong growth in container volumes (up 12.6% YoY), along with
a 8.8% increase in general & bulk cargo.
o Primarily driven by a strong increase in marble exports at
Port Akdeniz
o Rising cement exports at Port Akdeniz and general cargo
increase in Port of Adria, particularly steel coils
o Container yields declined by 2.4%, while general & bulk
cargo yields went down by 10.3% during 9M 2017
-- On general & bulk cargo front, lower project cargo volume
which has less visibility by nature as well as change in product
mix led to a decline in yields
o An agreement has been signed with regards to project cargo in
the Port of Adria, however, handling period is not clear at the
present time.
-- Commercial EBITDA increase driven by Port Akdeniz
o Strong growth in Antalya's EBITDA margin due to operational
improvement, increase in high-margin TEU business and a favorable
currency environment in Turkey
o Lower EBITDA in Port of Adria attributable to lower project
cargo, which has less visibility by nature
Solid Balance Sheet
-- Net debt of GPH Plc was USD 230.0m as of 30.09.2017, while
Net Debt to EBITDA ratio was 3.0x, in line with the financial
policy communicated during the IPO process.
-- Net debt of Global Liman at 30.09.2017 stood at USD281.8mn as
opposed to USD283.8mn at 2016 YE . Global Liman's net debt excludes
net IPO primary proceeds of USD 73mn.
-- Consolidated Leverage Ratio as per the Global Liman Eurobond
is 4.8x versus a covenant of 5.0x.
-- GPH Plc has paid an interim dividend of USD 17.5m on 29 September 2017.
-- Capital Expenditure for 9M 2017 was USD12.4m, primarily to
fund the modernisation programme at Port of Adria (investment in
equipment and machinery), and renovation works for Ege Port's
shopping mall, both completed in H1 2017.
APPIX
Summary Income Statement
Global Liman GPH
PLC
===================================== ============================ =======
YoY 9M
USD m 9M 2017 9M 2016 Change 2017
===================================== ======== ======== ======== =======
Consolidated statement of comprehensive
income data
Revenue 87.9 90.3 -2.6% 87.9
Operating Expenses (66.1) (65.6) 0.9% (66.1)
Depreciation and Amortization (31.0) (30.6) 1.4% (31.0)
Other Operating Income 0.9 0.5 67.8% 0.9
Other Operating Expense (5.1) (3.6) 39.9% (5.1)
Operating profit 17.6 21.6 -18.7% 17.6
Finance Income 13.6 7.9 71.8% 14.1
Finance Expenses (27.9) (24.1) 15.7% (27.9)
Profit before income
tax 4.6 6.1 -24.3% 5.0
Income tax expense (2.1) 1.7 n.m. (2.1)
Profit for the year 2.5 7.7 -67.2% 3.0
Other financial data
(USD m actual)
EBITDA 57.4 57.4 0.1% 57.4
EBITDA margin 65.4% 63.5% +180bps 65.4%
------------------------------------- -------- -------- -------- -------
Summary Balance Sheet
Global Liman GPH
PLC
=================================== ========================= ============
USD m 30.09.2017 2016 30.09.2017
=================================== ================ ======= ============
Consolidated statement
of financial position data
(USD m)
Cash and cash equivalents 63.3 44.3 115.1
Total current assets 112.7 111.9 164.6
Total assets 723.6 700.4 775.5
Total debt (including obligations
under financing leases) 359.7 342.7 359.7
Net debt(1) (including
obligations under financing
leases) 281.8 283.8 230.0
Total equity 219.3 222.5 274.4
of which retained earnings 17.2 43.6 137.0
----------------------------------- ---------------- ------- ------------
(1) Calculated as loans and borrowings including
finance lease obligations less cash and cash equivalents
less other short term investments .
Summary Cash Flow Statement
Global Liman GPH
PLC
================================ ==================== ======
9M
USD m 9M 2017 9M 2016 2017
================================ ========= ========= ======
Consolidated cash flow
statement data (USD millions)
Net cash provided by operating
activities 33.1 38.9 33.1
Net cash (used in) / produced
from investing activities (9.2) (13.2) (9.2)
Net cash (used in) / produced
from financing activities (7.6) (55.3) 43.7
-------------------------------- --------- --------- ------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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