Global Ports Holding PLC (GPH)
Trading Statement for the six months to 30 September 2023
10-Nov-2023 / 07:00 GMT/BST
=----------------------------------------------------------------------------------------------------------------------
Global Ports Holding Plc
Trading Statement for the six months to 30 September 2023
Global Ports Holding Plc ("GPH" or "Group"), the world's largest independent cruise port operator, today issues a
trading update for the interim period six months to 30 September 2023.
6 months ended 6 months ended YoY 3 Months ended 3 Months ended YoY
Key Financials & KPI Highlights1,6
30-Sept-23 30-Sept-22 Change 30-Sept-23 30-Sept-22 Change
Passengers (m PAX) 2 6.7 4.4 54% 3.6 2.6 39%
Total Revenue (USDm) 105.6 118.3 -11% 52.2 72.6 -28%
Adjusted Revenue (USDm) 3 95.9 64.1 50% 52.6 37.0 42%
Segmental EBITDA (USDm) 4 67.6 44.0 54% 37.4 26.9 39%
Adjusted EBITDA (USDm)5 64.1 40.4 59% 35.6 25.0 42%
Segmental EBITDA Margin (%) 70.4% 68.7% 71.0% 72.7%
Adjusted EBITDA Margin (%) 66.9% 63.0% 67.6% 67.7%
30-Sept-23 31-Mar-23
Gross Debt (IFRS) (USDm) 736.5 672.4 10%
Gross Debt ex IFRS 16 Leases (USDm) 676.7 612.3 11%
Net Debt ex IFRS 16 Leases (USDm) 558.3 494.0 13%
Cash and Cash Equivalents (USDm) 118.4 118.3 0%
Notes
1. All USD refers to United States Dollar unless otherwise
stated 2. Passenger numbers refer to consolidated and managed
cruise port portfolio, hence it excludes equityaccounted associates
La Goulette, Lisbon, Singapore and Venice. 3. Adjusted Revenue is
calculated as Total Revenue excluding IFRIC-12 construction revenue
4. Segmental EBITDA includes the EBITDA from all equity
consolidated ports and the contribution frommanagement agreements,
plus the pro-rata Net Profit of equity-accounted associates La
Goulette, Lisbon, Singaporeand Venice 5. Adjusted EBITDA calculated
as Segmental EBITDA less unallocated (holding company) expenses 6.
Difference may arise due to rounding
Key Financials and KPIs
-- Cruise passenger volumes rose 54% for the 6M period ending 30
Sept 2023 compared to the 2023 H1 ReportingPeriod. In the second
quarter to 30 Sept 2023, cruise passenger volumes increased by 39%
compared to Q1 ending 30June 2023
-- Cruise calls increased by 15% compared to H1 2023, which
indicates that the main driver of the YoY growthin passenger
volumes was the significant increase in occupancy levels, which
have now returned to above 100% acrossour network
-- Adjusted Revenue was USD 95.9 million, an increase of 50% on
the USD 64.1m in the 2023 H1 ReportingPeriod. This growth was
driven by the higher number of cruise calls and passenger volumes
across all our regions
-- Total consolidated revenues, including IFRIC-12 construction
revenues, were USD 105.6m compared to USD118.3m in the 2023 H1
Reporting Period. This decrease reflects the impact of lower
construction activities atNassau Cruise Port where the major
construction works have come to an end during the interim
period
-- Segmental EBITDA for the 6M period was USD 67.6m compared to
USD 44.0m in the 2023 H1 Reporting Period.Adjusted EBITDA was USD
64.1m compared to USD 40.4m in the 2023 H1 Reporting Period
Operating Highlights
The strong trading experienced in the first quarter to 30 June
2023, continued throughout the second quarter of our fiscal year
2024. Our cruise ports, after a relatively quiet summer 2022,
experienced a significant pick-up in activity throughout the summer
2023 cruise season, which can be seen in the particularly strong
growth rates in passenger, revenue and EBITDA in our West Med &
Atlantic and Central Med Regions during the first half.
We completed our transformational investment into Nassau Cruise
Port during the interim reporting period. Our investment has
created a world leading cruise port that has set a new standard for
investment into cruise port infrastructure globally. During the
reporting period we also started operations at Prince Rupert Cruise
Port, Canada, which is included in the Americas Segmental
financials for the first time.
Ege Port extension
At the start of the interim reporting period, GPH agreed to
extend its concession agreement for Ege Port, Kusadasi, adding 19
years to this concession which now ends in July 2052. As part of
the agreement, Ege Port paid an upfront concession fee of TRY 725.4
million (USD 38 million at the prevailing exchange rate at the time
of payment). In addition, Ege Port has committed to invest an
amount equivalent to 10% of the upfront concession fee within the
next five years to improve and enhance the cruise port and retail
facilities at the port, and will pay a variable concession fee
equal to 5% of its gross revenues during the extension period
starting after July 2033.
A capital increase at Ege Port funded the upfront concession
fee. This capital increase was provided by GPH only. As a result,
GPH's equity stake in Ege Port has increased to 90.5% (from
72.5%).
This up-front concession fee and related expenses were financed
by partial utilisation of the USD 75 million growth facility
provided by Sixth Street shortly before the end of the fiscal year
2023. As part of this additional USD 38.9 million drawdown, GPH
issued further warrants to Sixth Street, representing an additional
2.0% of GPH's fully diluted share capital.
St Lucia concession
During the interim reporting period we signed a 30-year
concession with a 10-year extension option for Saint Lucia Cruise
Port. As part of this concession, GPH will invest in a material
expansion and upgrade of the cruise port facilities. This
investment will allow the port to handle the largest cruise ships
in the global cruise fleet, increasing the port's capacity. In the
12 months to 31 March 2023, St Lucia welcomed c590k passengers
(2019 calendar year c790k), the completion of the extended pier and
upgrading the facilities are expected to lead to a rise in
passenger volumes to over 1m in the medium term. GPH will also
invest in transforming the retail experience, continuing our
commitment to driving significant economic benefits for the local
population, this investment will include an exciting new space for
local vendors.
Bremerhaven concession
We were also awarded a 10-year port concession agreement, with a
potential 5-year extension option, by bremenports on behalf of the
city of Bremen regarding the operations at Bremerhaven Cruise Port.
The cruise facilities at the port are currently undergoing a
multimillion-euro investment by the local authorities, which once
completed will expand and renew the port facilities. In 2022,
Bremerhaven Cruise Port welcomed over 230k passengers, with over
90% of these being homeport passengers. The location of the port
means it is ideally located for Scandinavian and Baltic Sea
itineraries. GPH will take over operations of the port in the first
quarter of calendar year 2025.
Increase in ownership at Barcelona and Malaga Cruise Ports
Shortly after the end of the interim reporting period, GPH
purchased from the minority shareholder its 38% holding in
Barcelona Port Investments S.L. (BPI), taking GPH's holding in BPI
to 100%. The transaction terms are confidential, however, the
purchase price is below USD 20 million.
As a result of this transaction, GPH's indirect holding in
Creuers De Port de Barcelona S.A (Creuers) has increased to 100%,
which increases GPH's interest in both Barcelona Cruise Port and
Malaga Cruise Port to 100% from 62%. In addition, GPH's effective
interest in SATS-Creuers Cruise Services PTE. LTD (Singapore Cruise
Port) rises to 40% from 24.8% and the effective interest in Lisbon
Cruise Port LD (Lisbon Cruise Port) rises from 46.2% to 50%.
6 months ended 6 months ended YoY 3 Months ended 3 Months ended YoY
Segmental Financials & KPIs
30-Sept-23 30-Sept-22 Change 30-Sept-23 30-Sept-22 Change
Americas
Passengers (m) 2.2 1.6 37% 1.1 0.9 26%
Adjusted Revenue (USDm) 22.8 14.8 54% 10.7 7.6 40%
Segmental EBITDA (USDm) 14.3 9.5 50% 6.4 5.2 22%
EBITDA Margin (%) 62.8% 64.6% 60.1% 68.9%
West Med & Atlantic
Passengers (m) 2.2 1.3 74% 1.1 0.8 44%
Adjusted Revenue (USDm) 24.2 16.1 50% 13.2 10.0 33%
Segmental EBITDA (USDm) 20.0 11.3 77% 10.9 7.5 46%
EBITDA Margin (%) 82.6% 69.7% 82.6% 75.1%
Central Med
Passengers (m) 1.2 0.7 71% 0.8 0.5 61%
Adjusted Revenue (USDm) 15.4 10.0 55% 9.1 5.9 55%
Segmental EBITDA (USDm) 8.3 6.1 35% 4.8 3.8 26%
EBITDA Margin (%) 53.6% 61.5% 53.1% 65.1%
East Med & Adriatic
Passengers (m) 1.0 0.7 41% 0.6 0.5 32%
Adjusted Revenue (USDm) 25.3 17.4 45% 15.0 10.5 43%
Segmental EBITDA (USDm) 21.4 14.7 45% 13.1 9.1 44%
EBITDA Margin (%) 84.6% 84.7% 87.4% 86.7%
Other
Adjusted Revenue (USDm) 8.3 5.8 42% 4.7 3.1 54%
Segmental EBITDA (USDm) 3.7 2.4 54% 2.2 1.2 73%
EBITDA Margin (%) 44.0% 40.5% 45.6% 40.6%
Unallocated (HoldCo) (3.4) (3.6) -5% (1.8) (1.8) (1)%
Group
Passengers (m) 6.7 4.4 54% 3.6 2.6 39%
Adjusted Revenue (USDm) 95.9 64.1 50% 52.6 39.1 41%
Adjusted EBITDA (USDm) 64.1 40.4 59% 35.6 25.0 42%
EBITDA Margin (%) 66.9% 63.0% 67.6% 64.0%
Balance Sheet
At 30 September 2023, IFRS gross debt was USD 736.5m (Ex IFRS-16
Finance Leases Gross Debt: USD 676.7m), compared to gross debt at
31 March 2023 of USD 672.4m (Ex IFRS-16 Finance Leases Gross Debt:
USD 612.3m). Net debt Ex IFRS-16 finance leases of USD 558.3m
compared to USD 494.0m as at 31 March 2023. At the end of September
2023, GPH had cash and cash equivalents of USD 118.4m, compared to
USD 118.3m at 31 March 2023 and USD 64.0m at 30 June 2023.
In July 2023, GPH issued 5,144,445 new ordinary shares at 206.5
pence each to its largest shareholder, Global Yatirim Holding A.S.
("GIH"), in satisfaction of USD 13.8 million of GPH's debt owed to
GIH under a facility agreement.
At the end of the H1 2024 interim period GPH issued USD 330
million of secured private placement notes ("Notes") to insurance
companies and long-term asset managers at a fixed coupon of 7.87%.
The Notes received an investment grade credit rating from two
rating agencies and will fully amortize over 17 years, with a
weighted average maturity of c13 years. Over 90% of GPH's gross
debt is now fixed and close to 90% of GPH's gross debt is made up
of the investment grade rated Notes and the ring-fenced project
financed issuance for Nassau Cruise Port.
The majority of the proceeds were used to repay in full the
outstanding senior secured loan from Sixth Street (including the
portion drawn at the end of fiscal year 2023 for the Ege Port
extension), plus early repayment fees and accrued interest. The
balance of proceeds from the Notes will primarily be used to fund
further Caribbean expansion and the payment of transaction
costs.
This financing generates material savings of cash interest
expenses and creates a stable, long-term funding base for the
Group. Further, it secures the financing of our growth
pipeline.
The main driver for the change in Gross Debt is the refinancing
of Sixth Street loan with the Notes. The USD 330 million Notes
includes reserves and cash expected to be deployed as equity
contribution for near-term growth projects, hence outstanding debt
has increased compared to the Sixth Street loan with approximately
USD 255 million of nominal outstanding.
This excess refinancing amount also impacted the outstanding
cash (less transaction costs and early prepayment fees). Besides
the refinancing, the other major impact to cash was the
aforementioned extension of Ege Port concession for c. USD 38
million at the start of the interim period whereas the drawdown of
the debt to finance this extension was completed shortly before the
end of the fiscal year 2023.
Outlook
Fiscal years 2024 and 2025 Outlook
GPH provided a detailed outlook statement, including our 2024
expectations for passenger volumes in the announcement of our
full-year results for the Reporting Period ended 31 March 2023,
released on 10 July 2023.
Our current expectations for passenger volumes for the 2024
Reporting Period (12 months to 31 March 2024) is ahead of this
guidance, driven primarily by the faster than expected recovery in
occupancy rates in the first half.
This outperformance in occupancy and the continued strong
trading means that we now expect to welcome at least 12.5m
passengers across our consolidated and managed ports in the 12
months to 31 March 2024, compared to an initial expectation of 11.8
million.
In calendar year 2024 available berths across the global cruise
fleet are expected to reach all-time highs, propelling the industry
to exciting new record highs. The major cruise lines have reported
strong booking trends for summer 2024 and they "see no signs of
demand slowing".
Long-term outlook
The long-term outlook for the cruise industry remains
positive.
Long-established demand and supply trends have re-established
themselves as key drivers of growth in the industry, with passenger
volumes by the end of 2027, expected to be 45% higher than
pre-Covid levels.
This strong level of industry growth means there is a need for
significant levels of investment in cruise port infrastructure in
order to meet the needs of both the growing number of cruise ships
and the growing size of cruise ships as well as the increased
demand from passengers for an improved cruise port experience.
This growth is creating exciting opportunities for cruise ports
but also presents potential risks, as cruise ports will face
substantial challenges to meet the demands and needs of the
evolving industry. GPH's significant experience and know-how in
port and destination development and global cruise port operations,
honed from our experience worldwide, means we are well-positioned
to play a primary role in both the investment and industry growth
in the years ahead.
GPH will release interim financial results for the six months to
30 September 2023 in mid-December 2023.
CONTACT
For investor, analyst and financial media enquiries: For trade 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
-----------------------------------------------------------------------------------------------------------------------
Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EQS Group. The issuer is solely responsible for the
content of this announcement.
-----------------------------------------------------------------------------------------------------------------------
ISIN: GB00BD2ZT390
Category Code: TST
TIDM: GPH
LEI Code: 213800BMNG6351VR5X06
Sequence No.: 283958
EQS News ID: 1770149
End of Announcement EQS News Service
=------------------------------------------------------------------------------------
Image link:
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1770149&application_name=news
(END) Dow Jones Newswires
November 10, 2023 02:00 ET (07:00 GMT)
Global Ports (LSE:GPH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Global Ports (LSE:GPH)
Historical Stock Chart
From Apr 2023 to Apr 2024
