Global Ports Holding PLC (GPH)
12 month 2020 Trading Statement
12-March-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014
(MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Global Ports Holding Plc
12 Month 2020 Trading Statement
Global Ports Holding announces Q4 2020 and 12 month 2020 results
Global Ports Holding Plc ("GPH" or the "Group"), the world's largest independent cruise port operator, today announces
its unaudited results for the twelve months ending 31 December 2020. Global Ports Holding's financial year-end has been
changed to March, and we will announce audited financial results for the 15-month period to end March 2021 in July
2021.
Global Investment Holdings, our majority shareholder has today released its full year results for the year ended 31
December 2020, these results can be found at www.globalyatirim.com.tr/en.
Summary
Despite being the most difficult 12-month period in the history of GPH, Adjusted EBITDA for the 12M period was USD18.4m.
Our Cruise operations, which experienced an almost 100% decline in passenger volumes for nine months of the year,
reported an EBITDA loss of just USD0.4m for the 12 month period, with a Q4 2020 EBITDA loss of USD1.4m, standing as
testament to the flexibility of our business model and management actions to reduce costs and preserve cash.
Although completed in January 2021, the sale of Port Akdeniz, has a major impact to the Group financial performance for
12M 2020 as the contribution from Port Akdeniz is reclassified as Discontinued operation, and presented in a single
line item in the profit & loss statement as Net result from discontinued operations. The summary table below presents
key financials & KPI highlights with ("Like-for-like") and without the contribution from Port Akdeniz.
Q4 2020
Key Financials & KPI Highlights 12M 20201 12M 2020 Like-for-like2 12M 20193 Q4 20201 Q4 20193
Like-for-like2
Passengers (m PAX)4 1.3 1.3 5.3 0.0 0.0 1.6
General & Bulk Cargo ('000 tons) 43.7 1,414.8 743.1 6.8 543.3 163.1
Container Throughput ('000 TEU) 53.6 177.6 199.2 14.6 44.4 44.2
Total Revenue (USDm)5 73.1 106.6 117.9 14.1 22.5 26.4
Cruise Revenue (USDm)6 65.8 65.8 63.0 12.0 12.0 16.9
Ex IFRIC 12 Cruise Revenue (USDm)7 15.5 15.5 63.0 1.8 1.8 16.9
Commercial Revenue (USDm) 7.4 40.8 54.8 2.1 10.5 9.4
Segmental EBITDA (USDm)8 1.8 24.6 83.4 (0.6) 4.1 17.1
Cruise EBITDA (USDm)9 (0.4) (0.4) 44.4 (1.4) (1.4) 11.8
Commercial EBITDA (USDm) 2.2 25.1 39.1 0.8 5.4 5.4
Adjusted EBITDA (USDm)10 (4.5) 18.4 77.0 (2.8) 1.9 16.0
Segmental EBITDA Margin 2.5% 23.1% 70.8% -4.1% 18.1% 64.8%
Cruise Margin -0.7% -0.7% 70.4% -11.4% -11.4% 69.8%
Commercial Margin 30.3% 61.4% 71.2% 37.0% 51.7% 57.4%
Adjusted EBITDA Margin -6.1% 17.2% 65.3% -19.9% 8.3% 60.6%
Operating (Loss)/Profit (USDm) (39.0) (40.6) 15.3
(Loss)/Profit for the period (USDm) (46.9) (46.6) (15.2)
12M 20201 12M 2020 Like-for-like2 12M 20193
Gross Debt 556.0 584.2 453.0
Gross Debt ex IFRS 16 Finance Lease 487.4 515.6 388.2
Net Debt 456.5 483.5 389.2
Net Debt ex IFRS 16 Finance Lease 387.9 414.9 324.3
Cash and Cash equivalents 99.5 100.7 63.8
Key Financials and KPIs including Port Akdeniz ? Cruise
passenger volumes for the 12M period fell by -76%. ? Total
container (TEUs) fell by 11% and General & Bulk volumes rose
90%. ? Total consolidated revenues were USD106.6m for the 12M
period; excluding the impact of IFRIC-12 Construction revenues
at Nassau Cruise Port, total consolidated revenues were
USD56.3m, down 52% compared to 2019.
? Q4 Revenues were USD22.5m, excluding IFRIC-12 Construction
revenues were USD12.3m down 53% compared to Q4 2019.
? Q4 Cruise Revenue were USD12.0m, excluding IFRIC-12
Construction revenues fell 90% compared to Q4 2019 to USD1.8m.
? Q4 Commercial Revenue rose 12% yoy to USD10.5m. ? Segmental
EBITDA for the 12M period was down -71% at USD24.6m, with the
Commercial segment's performance being less
impacted with a decline of 36% to USD25.1m, while Cruise EBITDA
was a loss of USD0.4m vs. USD44.1m in 2019.
? Q4 Segmental EBITDA fell 76% to USD4.1m.
? Q4 Cruise EBITDA was a loss of USD1.4m.
? Q4 Commercial EBITDA was up 1% to USD5.4m. ? Adjusted EBITDA
of USD18.4m for the 12M period down 76%, with the main driver being
the decline in Segmental EBITDA
in addition to higher Central Costs due to non-cash
accruals.
? Q4 Adjusted EBITDA fell 88% to USD1.9m.
Key Financials and KPIs with Port Akdeniz classified as a
discontinued operation
As of 31 December 2020, the Group's operating segment Port
Akdeniz is classified as Discontinued operation and therefore
excluded from revenue and EBITDA. The financial results accounting
for such classification are set out below. ? Total consolidated
revenues for the 12M period were USD73.1m; excluding the impact of
IFRIC-12 Construction revenues,
total consolidated revenues were USD22.9m down 81%. ? Commercial
Revenue were USD7.4m and Commercial EBITDA USD2.2m representing the
performance of Port of Adria. Cruise
revenue and EBITDA remain unchanged. ? Segmental EBITDA for the
12m was USD1.8m and Adjusted EBITDA realised as a loss of USD4.5m.
? The increase in Gross Debt was principally a result of the issue
of the USD125m Nassau Cruise Port bond in the period
and an increase in the loan in Antigua to finance capex. ? We
invested USD72.9m into our new Caribbean ports in the period,
funded by the aforementioned indebtedness. The new
pier in Antigua is completed on budget and capable of handling
the largest ships in the world. ? Cash and cash equivalents of
USD99.5m at the end of the period compares to USD63.8m at the end
of 2019. The increase is
primarily driven by the successful bond issuance by Nassau
Cruise Port. The cash provided a strong level of
liquidity as the business prepares itself for the meaningful
restart of cruising in 2021.
? For the avoidance of doubt, this cash excludes the proceeds at
closing from the sale of Port Akdeniz.
Emre Sayin, Chief Executive Officer, said:
"2020 was the most challenging year in the company's history.
However, I am proud of how we responded to this challenge. When we
entered the year we believed Global Ports Holding would deliver a
step change in its cruise operations, with our successful expansion
into the Caribbean and the associated increase in EBITDA
demonstrating the strength of our business model and more
importantly its potential for growth.
The onset of the Covid-19 pandemic meant this was not possible.
However, in adversity the strength of our business model has shone
through. With almost no cruise passengers for the majority of the
year, we managed to deliver a relatively small EBITDA loss at our
cruise ports in 2020. I believe this is an incredible
achievement.
In the near term, the outlook for the Cruise industry remains
highly uncertain. While we expect to see an increase in cruise
activity in Q2 and Q3 2021, it is, as yet, unclear how the ramp up
of cruise operations globally and on a regional level will shape
up. Looking beyond 2021, demand for cruising remains strong and the
major cruise lines continue to report encouraging trends in terms
of the strength of underlying passenger demand. I believe this
continued strong demand highlights the continued attraction of
cruising amongst a growing number of consumers and bodes well for
the strength and speed of the recovery of the industry over the
next few years.
Our recently announced disposal of Port Akdeniz means we
effectively look forward to the future as a pure play cruise
operator in what remains a structural growth industry. We are well
positioned to trade through the current uncertain trading
environment and emerge strongly as the industry returns to
growth."
Disposal of Port Akdeniz
The most significant development came after the period end, with
the completion of the sale of the Group's largest commercial port,
Port Akdeniz, for USD140m to QTerminals W.L.L. The equity value of
Port Akdeniz after deducting net debt and debt-like items of Port
Akdeniz at closing was USD115m, with the buyer withholding USD11.5m
as a security for potential claims, which will be released in
Q4-2021.
As a result of the sale of Port Akdeniz and the effective
creation of a pure-play cruise port operator, the board of Global
Ports Holding announced that it was considering its options in
regard to Port of Adria, the Group's commercial port concession in
Bar, Montenegro, including a potential disposal. There can be no
certainty as to the timing or that the terms of a sale will be
agreed. A further announcement will be made when it is appropriate
to do so.
Eurobond refinancing
On the 18th February 2021, Global Liman Isletmeleri A.S., the
100% owned subsidiary of Global Ports Holding announced it had
launched a scheme of arrangement in connection with the refinancing
of the USD250m Eurobond, which is due to November 2021.
Through the scheme of arrangement, the Group is taking steps to
stabilise its liquidity position and manage its long-term debt
obligations by effectively extending the Eurobond's maturity date,
reducing the principal amount thereof (to the extent noteholders
elect to participate in the cash option of the scheme), and
amending the terms thereof. A detailed description of the
refinancing proposal can be found in the Explanatory Statement made
available on GPH's website.
In connection with the scheme of arrangement, we have entered
into discussions with certain key existing noteholders who have
formed an ad hoc group. GPH has received a counterproposal from the
ad hoc committee on 4 February 2021, which it is currently
discussing with the ad hoc group. GPH believes that these
discussions are likely to result in amendments to the terms of the
proposed refinancing and the scheme timeline prior to the extended
Early Bird Deadline of 19 March 2021. A further announcement will
be made when it is appropriate to do so.
Outlook & current trading
In Q4 2020 and so far in 2021 our ports in the Mediterranean
welcomed a number of cruise ships, however, volumes remain small
during what is the low season for our Mediterranean ports. In the
Caribbean, the first quarter is normally an important trading
period for our Caribbean ports, however there has been no cruise
activity so far in this period.
The cruise industry has made a significant effort to collaborate
with health authorities to help create local, regional and national
frameworks for a return to sailing, and our ports have worked
relentlessly with all stakeholders to ensure they are ready to
safely handle passengers.
However, the near-term outlook for the cruise industry remains
uncertain. With the vaccine roll outs providing some room for
optimism a phased return to cruising is planned across the industry
during 2021, the exact profile of this return remains difficult to
predict. The return profile will be different by region, cruise
brand and cruise line and will be heavily dependent on the easing
of travel restrictions. While some cruise brands are planning a
phased return from April or May 2021, others have recently delayed
their planned restarts until Q3 2021.
Looking past 2021, demand for cruising remains strong and the
major cruise lines continue to report encouraging trends in terms
of the strength of underlying passenger demand. We believe this
continued strong demand highlights the continued attraction of
cruising amongst a growing number of consumers and bodes well for
the strength and speed of the recovery over the next few years.
The localised nature of the expected recovery continues to make
forecasting 2021 financials challenging. However, we will share
updated guidance with investors at the time of the results
announcement for the 15 month period to end March 2021.
Financial Review ? Operating loss (with Port Akdeniz as
Discontinued operation) of USD38.7m for the 12 months to end
December 2020
compares to an operating profit of USD15.3m for 12M 2019. This
was largely driven by Adjusted EBITDA declining from
USD77.0m in 2019 to an EBITDA loss of USD4.5m in 2020. The
operating loss is equal to Adjusted EBITDA after:
? Port operating rights amortisation expense of USD20.1m (12M
2019: USD32.0m), amortisation of USD7.1m (12M 2019:
USD15.7m) - the decline in both items driven by the exclusion of
Port Akdeniz in 2020; and
? One-off adjustments and non-operating expenses of USD7.2m (12M
2019: USD8.4m), the majority of which were project
expenses of USD7.1m (12M 2019: USD5.1m). ? Loss after tax for
the period was USD46.9 million (12M 2020: USD15.2m), due to the
operating loss and further driven by
an increase in net finance costs to USD36.4m (12M 2020:
USD34.3m) and a loss from equity accounted associates of
USD0.1m
vs income of USD5.6m in 2019. The losses in the period generated
a tax income of USD24.7m compared to a tax expense of
USD1.9m in 12M 2019.
Cruise Port Review
Passengers (m PAX) 12M 2020 12M 2019
Creuers 0.15 2.6
Valletta 0.06 0.3
Ege Port 0.00 0.3
Nassau 0.83 0.4*
Antigua 0.26 0.2*
Other Cruise Ports 0.03 1.0
Total Cruise Ports 1.3 5.3
*c2 months contribution only ? Passenger volumes for the 12 months fell 76% with almost no passengers in Q4. ? Cruise Revenue excluding IFRIC-12 Construction revenue for the 12 months fell 76% to USD15.4m, while Cruise EBITDA
fell to a loss of USD0.4m.
? Q4 Cruise Revenue excluding IFRIC-12 Construction revenue fell
by -90% to USD1.8m and Q4 Cruise EBITDA realized a
loss of USD1.3m compared to USD11.8m positive EBITDA in the same
period last year. ? As previously disclosed the combination of our
flexible cost base and decisive action taken to reduce costs
and
conserve cash has helped to protect the business and preserve
cash during the Covid-19 crisis. It is testament to
the underlying strength and flexibility of our cruise port
business model that despite close to no cruise traffic
in Q4 2020, our cruise port business only lost USD1.3m at the
EBITDA level. ? In response to the shutdown of cruise operations
across the world, all but essential maintenance capex was
suspended across the group in Q2 2020. However, our commitment
to the investment programs of our new ports in the
Caribbean meant that overall Capex in the 12M period was
USD78.7m. ? The Capex at our new Caribbean ports was financed by
committed loans at Antigua Cruise Port and a bond issued by
Nassau Cruise Port in June 2020, with a total capex at these
ports in the 12M period of USD72.9m. The investment into
the new pier in Antigua was completed during Q4, while the
investment program into Nassau Cruise Port will continue
into 2022.
Commercial Port Review
12M 2020 12M 2019
Port Akdeniz
General & Bulk Cargo ('000 tons) 1,371 589
Throughput ('000 TEU) 124 151
Port Adria
General & Bulk Cargo ('000 tons) 44 154
Throughput ('000 TEU) 54 48
Total General & Bulk Cargo ('000 tons) 1,414 743
Total Throughput ('000 TEU) 178 199 ? The performance at our Commercial ports in Q4 2020 largely reflected a continuation of the trends experienced in
the first nine months of the year. ? On a like-for-like basis,
i.e. including Port Akdeniz, TEUs fell by 11% and General &
Bulk volumes rose 90%. ? Including Port Akdeniz, Commercial Revenue
and EBITDA for the 12 months were down 26% and 36% respectively,
to
USD40.8m and USD25.1m.
? Q4 Commercial Revenue and EBITDA rose 12% and 1% respectively,
to USD10.5m and USD5.4m. ? Commercial Revenue and EBITDA excluding
Port Akdeniz for the 12 months were flat and up 31% respectively,
to USD7.4m
and USD2.2m
? Q4 Commercial Revenue and EBITDA excluding Port Akdeniz were
USD2.1m and USD0.8m respectively.
Balance Sheet
Gross debt at period end was USD584.2m (31st December 2019:
USD453.0m), with this increase driven largely by the issuing of the
Nassau Cruise Port bond and increase in Antigua Cruise Port's loan
in the period, offset by schedule repayments in other loans and
borrowings of GPH. As at 31 December 2020 net debt was USD483.5m
(31st December 2019: USD389.1m).
Excluding IFRS 16 finance leases, the gross debt at the end of
the period was USD515.6m (31st December 2019: USD388.2m), net debt
at the end of the period was USD414.9m (31st December 2019:
USD324.3m). Classifying Port Akdeniz as discontinued and excluding
IFRS 16 leases gross debt was USD487.4m and net debt was
USD387.9m.
The leverage ratio as per GPH's Eurobond remains above the
incurrence covenant of 5.0x. As an incurrence covenant, the impact
is that incurrence of additional debt at Global Liman and its
subsidiaries and dividend distributions from Global Liman are
restricted.
Operating cash flow was USD16.4m (12M 2019: USD37.1m). The
decline in operating cash flow was driven by lower EBITDA
partially, but offset by a working capital movement that resulted
in a positive cash flow of USD23.3m in the period, primarily as a
result of the unwind in trade receivables due to suspension of
cruise port activity and active working capital management focussed
on preserving liquidity.
Net capital expenditure during the period was USD78.7m, a
significant increase on the USD24.0m incurred in 2019. This was
driven by our continued commitment to invest in our new Caribbean
ports in Antigua and Nassau, USD72.9m spent at these two ports in
the period, with USD8.7m spent in Q4 2020. The new fifth pier in
Antigua completed in Q4 2020, within budget. USD3.9m was spent
across the rest of the cruise portfolio earlier this year, with
USD2.0m spent in Barcelona on terminal improvements and USD1.5m in
Valletta on investment into the waterfront infrastructure. USD2.7m
was spent on capex at the Commercial ports, with the vast majority
of this spent at Port Akdeniz.
Notes 1. Calculated with Port Akdeniz as classified as
Discontinued operation 2. Like-for-like calculated on a basis
consistent with 2019 IFRS results, Port Akdeniz not classified as
Discontinued
operation for comparability to 2019 IFRS results. 3. IFRS
results as reported for 2019. 4. Passenger numbers refer to
consolidated and managed portfolio consolidation perimeter, hence
it excludes equity
accounted associate ports La Goulette, Lisbon Singapore and
Venice. 5. All USD refers to United States Dollar unless otherwise
stated 6. Revenue allocated to the Cruise segment is the sum of
revenues of consolidated ports and from management contracts 7.
Revenue and EBITDA Ex IFRIC 12 refers to exclusion of the impact of
IFRIC 12 construction revenue accounting at
Nassau Cruise Port 8. EBITDA allocated to the Cruise segment is
the sum of EBITDA of consolidated cruise ports and pro-rata Net
Profit of
equity accounted associate ports La Goulette, Lisbon, Singapore
and Venice, as well as the contribution from
management agreements 9. Segmental EBITDA is calculated as
income/(loss) before tax after adding back: interest; depreciation;
amortisation;
unallocated expenses; and specific adjusting items including
Nassau IFRIC-12 construction margin 10. Adjusted EBITDA calculated
as Segmental EBITDA less unallocated (holding company) expenses
Appendix
Consolidated statement of comprehensive income data 12M 20201 12M 2020 Like-for-like2 12M 20193
Revenue 73.1 106.6 117.9
Operating Expenses (87.3) (118.3) (79.9)
of which Depreciation and Amortization (27.2) (49.2) (47.7)
Other Operating Income 3.7 4.8 3.5
Other Operating Expense (9.9) (12.7) (8.6)
(Loss)/Operating profit (39.0) (40.6) 20.9
Finance Income 10.5 16.2 8.6
Finance Expenses (46.9) (52.6) (42.8)
Share of (loss)/profit of equity accounted investees (0.3) - (5.6)
(Loss)/Profit before income tax (75.4) (76.9) (13.4)
Income tax expense 24.7 30.4 (1.9)
Profit / (loss) from discontinued operations 3.8 - -
(Loss)/Profit for the period (46.9) (46.6) (15.2)
Other financial data (USD millions actual)
Adjusted EBITDA9 (4.5) 18.4 77.0
EBITDA margin (6.1)% 17.2% 65.3%
Cash flow (USD Million) 12M 20201 12M 20193
Net cash from operating activities 16.4 37.1
of which change in working capital 23.3 (27.9)
Net Cash used in investing activities (62.6) (29.0)
of which CAPEX (78.7) (23.9)
Net cash from / (used in) financing activities 84.8 (20.8)
of which interest paid (30.0) (26.4)
of which net dividends received / (paid) (0.2) (31.4)
Net (decrease) / increase in cash and cash equivalents 38.3 (12.7)
Consolidated statement of financial position data (USDm) 31 Dec 20201 31 Dec 20193
Cash and cash equivalents (including short term investments) 99.5 63.8
Total current assets 113.4 102.8
Total assets 916.4 794.9
Total debt (including obligations under IFRS-16 finance leases) 556.0 453.0
Net debt (including obligations under IFRS-16 finance leases) 456.5 389.1
Total equity 129.2 155.3
of which retained earnings 24.8 61.1
CONTACT
For investor, analyst and financial media enquiries: For media enquiries:
Investor Relations Global Ports Holding
Martin Brown Ceylan Erzi
Telephone: +44 (0) 7947 163 687 Telephone: +90 212 244 44 40
Email: martinb@globalportsholding.com Email: ceylane@globalportsholding.com -----------------------------------------------------------------------------------------------------------------------
ISIN: GB00BD2ZT390
Category Code: TST
TIDM: GPH
LEI Code: 213800BMNG6351VR5X06
Sequence No.: 95369
EQS News ID: 1175104
End of Announcement EQS News Service
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