OREANDA-NEWS. On 04 May 2008 Novorossiysk Commercial Sea Port announces its consolidated audited financial results for the twelve months to 31st December 2007, in accordance with International Financial Reporting Standards.

Key financial indicators for the period

Mr. Igor Vilinov, CEO of NCSP, said: "I am happy to announce that the financial results of NCSP for the 12 months of 2007 are in line with our expectations showing significant improvement in our key financial indicators. In comparison to last year, revenue grew 74,33%, net profit is up 112,47%, operating profit grew 119,56%, EBITDA showed an increase of 91,4% while EBITDA margin grew from 42,9% to 47,2%.

The results demonstrate successful growth of the company and confirm the effectiveness of the strategy being implemented by NCSP’s management – capacity growth through the development of world class facilities, focus on highly profitable cargo and efficiency increase through the consolidation synergies and implementation of new terminals.

Successful November listing of ordinary shares in Moscow and GDRs in London has subsequently raised NCSP’s profile. In 2007, the company achieved significant progress in increasing the efficiency of its operations by concentrating on further integration and consolidation of assets, as well as improving corporate governance with the purpose of increasing capitalization, investment attractiveness 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 been completed:

• 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