Novorossiysk port IFRS earnings plummet 90.1% in 9M
MOSCOW. Dec 2 (Interfax) - The Novorossiysk Commercial Seaport (NSCP) Group saw its net profit to International Financial Reporting Standards (IFRS) plummet 90.1% year-on-year in January-September to $10.1 million, the company said in a statement.
"Decrease of net profit was caused by non-monetary expense on foreign exchange rate loss in the amount of $286.4 million, charged on the 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 $1.95 billion Sberbank loan represents major source of foreign exchange gains or losses for the group," the statement says.
Consolidated sales revenue grew 8% to $746.9 million, earnings before taxes, depreciation and amortization (EBITDA) rose 18.7% to $450.8 million and the cost of sales in the reporting period reduced by $15 million or 4.8% year-on-year, while SG&A decreased 11.6% year-on-year.
"NCSP Group's financial performance has been outpacing operating results since the beginning of 2014 thanks to a diversified cargo mix and a strong marketing power to attract new volumes," NCSP CEO Sultan Batov is quoted in the statement as saying.
"Growing volumes of oil products, grain, ferrous metals, and containers translated into increase in revenue from these cargoes by 17.5%; 121.4%; 9.7%, and 19.6% respectively. This offsets the drop on crude oil revenue and other negative factors and brings up Group's total revenue by 8% and EBITDA by 18.7% year-on-year. Revenue and EBITDA were also supported by increase of loading tariffs for crude oil, oil products, containers, coal, and metals," the statement says.
Key IFRS operating and financial figures for 9M 2014 ($mln, unless stated otherwise):
| 9M 2014 | 9M 2013 | 9M 2014/9M 2013 | |
| Cargo turnover, mln tonnes | 106,5 | 101,0 | +5,45% |
| Revenue (total): | 746,9 | 691,4 | +8% |
| - from stevedoring services | 591,1 | 546,0 | +8,3% |
| - from additional port services | 79,4 | 63,1 | +25,8% |
| - from fleet services | 63,1 | 70,2 | -10,1% |
| - other | 13,3 | 12,1 | +9,9% |
| Cost of sales | 303,0 | 318,5 | -4,9% |
| SG&A | 50,1 | 56,6 | -11,5% |
| EBITDA | 450,8 | 379,7 | +18,7% |
| EBITDA margin (%) | 60,4% | 54,9% | +10 p.p. |
| Profit for the period | 10,1 | 101,8 | -90,1% |
Company management will hold a conference call for investors and analysts on Tuesday at 5:00 p.m. Moscow time.
