OREANDA-NEWS. Total cargo turnover for January-June 2013 was 72.1 million tonnes, compared to 81.6 million tonnes for the first six months of 2012.

Crude oil and grain volumes for 1H 2013 both declined significantly year-on-year, down 9.3 million tonnes and 3.7 million tonnes, respectively. This was primarily due to the re-allocation of crude oil among various export routes on the backdrop of an overall decline in Russian Federation oil exports, as well as the nearly complete absence of grain exports in the first half of 2013 due to the poor harvest in 2012 and high domestic grain prices.

The Group partially compensated these declining volumes with oil products, which increased in 1H 2013 by 3.7 million tonnes, or 40.5%, year-on-year, primarily due to higher volumes at PTP and at the Novorossiysk Fuel Oil Terminal, which was launched as a JV with an oil trading company in 2012.

The above factors were the primary contributors to the Group's year-on-year changes in revenue for 1H 2013.

Consolidated revenue of the Group in the reporting period was USD 467.8 million, compared to USD 541.1 million in 1H 2012. Majority of the Group's revenue comes from stevedoring services, which yielded USD 362.9 million in H1 2013, compared to USD 434.9 million in 1H 2012.

Stevedoring revenue was mainly influenced by lower crude oil and grain volumes in 1H 2013. Year-on-year declines in revenue from these cargoes comprised USD 24.9 million and USD 61.8 million, respectively. Higher oil products handling increased revenue from this cargo year-on-year by USD 18.6 million. Other cargoes and services decreased stevedoring revenue by an additional USD 3.9 million year-on-year.

Revenue from other port services, fleet services, other services and ship repairs was largely unchanged year-on-year.

The Group was successful at managing costs during the reporting period. Cost of services and SG&A for 1H 2013 remained nearly unchanged year-on-year, despite an indexation of wages early in 2013 under the new collective labour agreement.

NCSP Group's 1H 2013 EBITDA was USD 251.6 million, compared to USD 318.6 million in 1H 2012. The primary reason for the year-on-year decline in EBITDA was weaker stevedoring services revenue, which brought 1H 2013 EBITDA down by USD 66 million year-on-year.

Operating profit for 1H 2013 totaled USD 209 million compared to USD 280.5 million in 1H 2012.

Profit for the period was supported year-on-year by a decrease in finance costs of USD 17.8 million, an increase in interest income on deposits and loans issued of USD 8 million, and the recognition of deferred tax benefits of USD 21.8 million, primarily due to the recognition of future tax benefits related to foreign exchange losses.

The main factor behind the decline in profit for the period was a foreign exchange loss of USD 129.2 million related to the Group's foreign-currency denominated assets and liabilities as a result of the weakening of the rouble to the US dollar from RUB 30.4/USD at 31 December 2012 to RUB 32.7/USD as of 30 June 2013.