NCSP Group Reports Consolidated Financial Results to IFRS for Q3 2014
OREANDA-NEWS. Novorossiysk Commercial Sea Port Group (NCSP Group or the Group) (LSE: NCSP, Moscow Exchange: NMTP) today announces its consolidated financial results to IFRS for the nine months ending 30 September 2014.
Conference call and webcast for investors and analysts will be held on 2 December 2014 at 17:00 Moscow time (14:00 London / 09:00 New York). See end of announcement for details. Media are welcome to participate in listen only mode.
NCSP Group's consolidate revenue for 9 months 2014 increased by USD 55.5 million or 8.0% year-on-year and reached USD 746.9 million.
Cost of sales in the reporting period reduced by USD 15 million or 4.8% year-on-year, while SG&A decreased 11.6% year-on-year.
Group's EBITDA for 9 month 2014 increased by USD 71.1 million* or 18.7%* year-on-year up to USD 450.8 million.* EBITDA margin improved by 5.5* percent points up to 60.4%* versus that of the same period last year.
PJSC NCSP's CEO Sultan Batov commented on Group's financial result for Q3 2014:
"NCSP Group's financial performance has been outpacing operating results since the beginning of 2014 thanks to a diversified cargo mix and a strong marketing power to attract new volumes.
Growing volumes of oil products, grain, ferrous metals, and containers translated into increase in revenue from these cargoes by 17.5%*; 121.4%*; 9.7%*, and 19.6%* respectively. This offsets the drop on crude oil revenue and other negative factors and brings up Group's total revenue by 8.0% and EBITDA by 18.7%* year-on-year.
Revenue and EBITDA were also supported by increase of loading tariffs for crude oil, oil products, containers, coal, and metals".
NCSP Group's consolidated revenue for 9 months 2014 increased by USD 55.5 million or 8.0%. year-on-year reaching up to USD 746.9 million.
Revenue from stevedoring services increased by USD 45.0 million or 8.2% year-on-year to USD 591.1 million. Revenue from additional port services was up USD 16.3 million or 25.8% year-on-year on the back of growing volumes of containers and metals. Revenue from fleet services was down by USD 7.1 million or 10.1% year-on-year; other revenue increased by USD 1.3 million or 10.9% year-on-year.
Grain volumes more than doubled in the reporting period versus same time last year, which increased stevedoring revenue by USD 36.7 million.
Increase of oil products' volumes by 12.8%* year-on-year alongside with a tariff increase at PJSC NCSP translated into USD 16.3 million* or 17.5%* year-on-year increase in revenue from this cargo.
Drop in volumes by 12.3 million tonnes* caused crude oil revenues to contract by USD 24.8 million.*
Container traffic increased 8.5%* and 15.1%* year on year in TEU and tonnes respectively, which boosted container revenue by USD 8.1 million* or 19.6%* year-on-year, with additional support from higher tariff and growing share of loaded containers.
Revenue from ferrous metals increased by USD 5.4 million* or 9.7%* year-on-year in line with volumes' growth. Revenue from other cargo was up USD 3.2 million.
Costs
Group's cost of sales in the reporting period reduced by 4.8% year-on-year or USD 15.4 million. SG&A were down 11.6% year-on-year or USD 6,6 million.
EBITDA
Group's EBITDA for 9 months 2014 increased by 18.7%* or USD 71.1 million* versus same period last year and reached USD 450.8 million.* EBITDA margin improved by 5,5* percent points up to 60.4%.*
EBITDA increase of USD 68.2 million* was contributed by growth in stevedoring revenue driven by higher volumes and bigger share of high-margin cargoes in the cargo mix, as well as by certain tariff increases.
Increase and revenue from additional port services and decrease of fleet services revenue combined added another USD 6.1 million* to EBITDA.
On the other hand, change to loss versus profit from Novorossiysk Fuel Oil Terminal same period last year reduced EBITDA by USD 3.2 million.
Profit for the period
NCSP Group recorded profit for the period of 9 months 2014 in the amount USD 10.1 million versUSD 101.8 million for 9 months 2013.
Decrease of net profit was caused by non-monetary expense on foreign exchange rate loss in the amount of USD 286.4 million, charged on Group's financial obligations nominated in foreign currency as a result of their revaluation at the ruble exchange rate at the beginning and at the end of the reporting period.
The USD 1 950 million Sberbank loan represents major source of foreign exchange gains or losses for the Group.
In the reporting period Russian ruble to US dollar exchange rate increased from
32.7 rubles as of 31.12.2013 to 39.4 rubles as of 30.09.2014.
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