NCSP Group Consolidates Financial Results for 2013
OREANDA-NEWS. Novorossiysk Commercial Sea Port Group (“NCSP Group” or the “Group”) (LSE: NCSP, Moscow Exchange: NMTP) today reports its consolidated IFRS financial results for the year ending 31 December 2013.
NCSP Group's consolidated revenue comprised UUSD 928.1 million in 2013 and EBITDA totaled USD 510.4 million.
Revenue decreased by USD 105.6 million or by 10.2%; and EBITDA reduced by USD 81.1 million or by 13.7% versus that of 2012, mostly driven by a drop in Group's cargo traffic by 11.3% or 18 million tons, of which crude oil contributed 19 million tonnes decrease, and grain contributed 4 million tonnes decrease, while partially offset by 5 million tonnes hike in oil products transshipment.
NCSP Group posted a net loss of USD 104.7 million for 2013, primarily due to loss from impairment of goodwill in the amount of USD 259.9 million and exchange rate losses totaling USD 125.4 million.
PJSC NCSP CEO Yuriy Matvienko commented on 2013 financial results:
"Group's performance in 2013 was materially affected by factors beyond its control: rerouting of substantial crude oil export volumes to the East, as well as weakening of demand and export volumes of other commodities. This resulted in stiffening competition in the Black&Azov and in the Baltic seas both in cargo transshipment and in towing and bunkering services, creating a more balanced market split between players.
Still the Group was able to consolidate certain cargo flows (oil products, metals, iron ore) and to maintain flat volumes or to increase handling despite zero growth or decrease in industry's total volumes.
This smoothed somewhat the effect of operational changes on Group's financial performance, to prove that the Group demonstrates sufficient stamina in volatile markets and preserves its fundamentally strong ability to generate stable cash flows.
Net loss from impairment of goodwill and exchange rate losses shall not materially affect Group's ability to service its debt and to maintain dividend payments on a par with previous years.
This loss also shall not affect Group's service of the USD 1.95 billion loans from Sberbank, including maintenance of Net Debt/EBITDA covenant. No covenants related to net profit apply to Group. As of 31 December 2013 all covenants were maintained with headroom".
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