OREANDA-NEWS. June 29, 2011. Novorossiysk Commercial Sea Port Group (Ў°NCSP GroupЎ± or the Ў°GroupЎ±) (LSE: NCSP, MICEX: NMTP) announces its unaudited consolidated financial results for the three months ended 31 March 2011 in accordance with International Financial Reporting Standards (IFRS).

The complete report Ў°Interim Condensed Consolidated Financial Statements for the Three Months ended 31March 2011Ў± is available on the GroupЎЇs website at: http://nmtp.info/holding/investors/reporting/msfo/

Key performance indicators of the Group (USD Ў®000s)

ЎЎ

3 months 2011

3months 2010

Change, %

Revenue

233 056

175 515

32.8%

Gross Profit

115 756

116 265

(-0.4%)

Adjusted EBITDA**

117ЎЎ641

121 384

(-3.1%)

Operating Profit

95 921

104 468

(-8.2%)

Net Profit

143 652

83 941

71.1%

Basic and Diluted Earnings per Share, USD

0,0075

0,0043

75.9%

Capex* (new and existing projects) (including VAT)

35 542

12 477

184.9%

Cargo Turnover* (tons Ў®000s)

37 245,2

21ЎЎ504,7

73.2%

ЎЎ

As of 31 March 2011

USD Ў®000s

Net Debt*

2ЎЎ587 511

* Here and below ЁC based on management accounts data

** Calculated as profit before tax not accounting for exchange rate differences, increased by the amount of depreciation charges and net financial costs

*** Calculated as the difference between interest income on deposits and financial costs.

Revenue

NCSP Group consolidated revenue in the first three months of 2011 totaled USD 233.1 mm, compared with USD 175.5mm in the same period of 2010.

Geographic Breakdown

With the acquisition of LLP Primorsk Trade Port (Ў°PTPЎ±), the Group increased diversification of its operations.ЎЎTherefore the Group has presented the breakdown of sales by geography of its operations:

ЎЎUSD Ў®000s

3 months 2011

3months 2010

Change, %

TOTAL, including:

233 056

175 515

32.8%

Novorossiysk

165 282

173 863

(-4.9%)

Primorsk

63 764

-

-

Baltiysk

3 400

1 652

105.8%

Other

610

-

-

PTP acquisition led to an increase in revenue for the first quarter of 2011 by USD 63.8 mm.ЎЎ

Growth in volumes and revenues from stevedoring operations in the port of Baltiysk (up to USD 3.4 mm in the reporting period, which represents a 105.8% increase over corresponding results of 2010).

Due to the ban on export of grain that was introduced on 15 August 2010, the GroupЎЇs revenue in the port of Novorossiysk declined by USD 31.4* mm in the reporting period (-17.7% from consolidated Group revenues in first quarter of 2010).The decrease in revenues caused by the introduction of the grain export ban was partially compensated by growth of revenues from bunker age and from handling of other cargoes, including containers.

ЎЎ

ЎЎЎЎUSD Ў®000s

3 months 2011

3months 2010

Change, %

TOTAL, including:

233 056

175 515

32.8%

Stevedoring services

186ЎЎ550

138 766

34.4%

Additional port services

19 592

21 926

(-10.6%)

Fleet services

23 210

12 242

89.6%

Ship repair

72

ЎЎ3

2300.0%

Other

3 632

2 578

40.9%

Cost of Services

NCSP GroupЎЇs cost of services according to IFRStotaledUSD 117.3ЎЎmm in the first three months of 2011 versUSD 59.3ЎЎmm in the same period of 2010.

The main factors driving the performance of the cost of services in the first quarter of 2011 relative to the same period of 2010 included:

Ў¤ЎЎЎЎЎЎЎЎЎЎЎЎЎЎ consolidation of PTP (+USD 24.1* mm in the reporting period);

Ў¤ЎЎЎЎЎЎЎЎЎЎЎЎЎЎ in crease in bunker age services provided by NCSP Fleet, which led to an increase of purchased bunker age fuel for the Group as a whole from USD 17.2ЎЎmm in the first quarter of 2010 to USD 45.8ЎЎmm in the first quarter of 2011;

Ў¤ЎЎЎЎЎЎЎЎЎЎЎЎЎЎ in crease in wage sand salaries by USD 3.9 mm due to a new collective employment agreement with NCSP employees, as well as to changes in existing tax legislation with regards to work compensation.

NCSP GroupЎЇs selling, general and administrative expenses in the reporting period totaled USD 19.9mmversUSD 11.9mmin the same period of last year. The increase is largely due to the increase in wages and salaries with the PTP consolidation.

Adjusted EBITDA

In order to ensure comparability of data for the first three months of 2011 with the same period of 2010, EBITDA for both periods is adjusted for exchange rate differences, resulting from fluctuations in the Russian Ruble exchange rate against the US dollar, on GroupЎЇs assets and liabilities in foreign currency.ЎЎAs such, adjusted EBITDA in the first quarter of 2011 totaled USD 117.6*ЎЎmm versUSD 121.4*mm in the same period of 2010.ЎЎ

Changes in Adjusted EBITDA in the reporting period were driven by the following key factors:

Ў¤ЎЎЎЎЎЎЎЎЎЎЎЎЎЎ PTP consolidation led to an increase of Adjusted EBITDA by USD 35.9* mm;

Ў¤ЎЎЎЎЎЎЎЎЎЎЎЎЎЎ Decrease in volumes and revenues from stevedoring services led to a USD 34.7* mm contraction of Adjusted EBITDA, of which USD 23.8* mm was due to the grain export ban;

Ў¤ЎЎЎЎЎЎЎЎЎЎЎЎЎЎ Increase in the amount of bunker age services in the reporting period led to an increase of Adjusted EBITDA by USD 0.3* mm in the reporting period;

Ў¤ЎЎЎЎЎЎЎЎЎЎЎЎЎЎ Decrease in the amount of other port services led to a decrease in Adjusted EBITDA by USD 1.5* mm in the reporting period.

Leverage and Net Debt

NCSP GroupЎЇs total debt as of 31 March 2011 totaledUSD 2ЎЎ632.3 mm, of which USD 122.3 mm is due within the next 12 months from the reporting date.

On 21 January 2011to finance acquisition of PTP the Group raised a loan from Sberbank in the amount of USD 1ЎЎ950.0mm.The Group also consolidated PTPЎЇs existing debt as of the date of the acquisition in the amount of USD 368.4ЎЎmillion.

The GroupЎЇs Net Debt as of there porting date totaled USD 2ЎЎ587.5million, which accounts for the GroupЎЇs Cash and cash equivalents of USD 44.8ЎЎmm.

Weighted average interest rate on the GroupЎЇs loans and borrowings as of 31March 2011 totaled 5.82% (accounting for 3-month Libor rate of 0.303% as of 31 March 2011).

The maturity schedule of the GroupЎЇs liabilities as of 31March 2011was as follows:

Ў®000s

Principal Debt

Interest

Total, of which:

2ЎЎ632 298

779 112

Due with in three months

38 684

41 583

Due in three to six months

27 859

31 512

Due in six to twelve months

55 719

73 267

Due in one to two years

400 333

134 916

Due in two to five years

171 682

330 134

Due in more than five years

1ЎЎ938 021

167 700

Investment program

In the reporting period NCSP Group continued implementation of its investment program, aimed at construction of new and reconstruction of existing stevedoring capacities.ЎЎ

During the first three months of 2011, according to the GroupЎЇs management accounts, capital expenditure totaled USD 35.5*mm (USD 12.5*mm in the same period of 2010), including:

Ў¤ЎЎЎЎЎЎЎЎЎЎЎЎЎЎ investments in existing capacities - USD 8.4*mm including VAT (USD 7.7*mm in the same period of 2010 including VAT);

Ў¤ЎЎЎЎЎЎЎЎЎЎЎЎЎЎ investments in construction of new stevedoring capacities - USD 27.1* mm including VAT (USD 4.7* mm including VAT in the same period of 2010.).