29 Sep 2010 14:17

Novorossiysk sea port ups H1 IFRS net profits 21% to $155.5 mln

MOSCOW. Sept 29 (Interfax) - First-half net profits at Novorossiysk Commercial Sea Port (NCSP) were up 20.7% year-on-year at $155.5 million, as calculated to International Financial Reporting Standards (IFRS), the company reported.

Net profits adjusted for foreign exchange gains/losses and their effect on the profit tax were up 9.4% at 168.9 million.

NCSP financial highlights for H1 ($1,000):

H1 2010 H1 2009 Change
Net profit 155 559 128 900 +20.7%
Adjusted net profit 168 972 154 470 + 9.4%
Sales revenue 348 267 334 169 +4.2%
Adjusted EBITDA 245 411 235 522 +4.2%
Gross profit 230 099 231 338 -0.5%
Operating profit 212 834 205 800 +3.4%
Net debt - 1 848 187 295 -
Cargo turnover 42,148,500 tonnes 43,273,300 tonnes -2.6%

NCSP's consolidated revenue for six months of 2010 reached $348 267 thousand, exceeding the result for the same period last year by 4.2% ($14.098 million). Revenue from stevedoring services (transshipment of liquid, bulk, general and container cargo, including bunkering) in the reporting period grew by $17.608 million (6.9%). More than a half of this increase ($9.564 million) was contributed by changes in the cargo mix and increased revenues from growing volumes of containers (up by 68.2%), timber cargo (up by 33.5%), bulk mineral fertilizers (up by 47.2%), and grain (up by 2.1%). The remaining part of the total revenue increase ($8.044 million) was contributed by higher sale prices and growing volumes in the group's bunkering business, the company reported.

"Revenue from additional port services (forwarding, storage, customs documentation, repacking, etc) for the first six months of 2010 dropped by $4.996 million (10.0%), which is due to shorter storage times and smaller volumes of cargo stored at the port. Revenue from fleet services in the reporting period was virtually flat with the same period of last year. Revenue from ship repair services in the first six months of 2010 more than doubled compared to that of the same period last year and totaled $631 thousand thanks to completion of some ship-repair orders for external clients," the report says.

In order to provide data comparability for H1 2010 and H1 2009, the calculation of EBITDA for both periods was adjusted for exchange rate differences on assets and liabilities nominated in foreign currency that result from the fluctuations of the ruble-dollar exchange rates, and for interest income on deposits. EBITDA adjusted for the six months of 2010 was $245.411 million versus $235.522 million for the same period last year, the company said.

NCSP's cost of services under IFRS totaled $118 168 thousand for the six months of 2010 versus $102.831 million for the same period of 2009 mainly due to rising fuel oil and diesel fuel prices purchased for bunkering operations. Changes in other cost items (including higher power and utility costs, as well as repair and maintenance expenses, partially offset by a reduction in pension liabilities according to new actuarial calculations) added another $534 thousand to Group's total cost of services. NCSP's sales, general, and administrative expenses in the reporting period totaled $17.208 million versus $25.413 million for the same period of 2009, the company said.

NCSP's debt on loans and other borrowings totaled $446 998 thousand as of 30 June 2010, of which the current portion of long-term loans due within 12 months from the reporting date comprised $131.834 million, including the $118 million syndicated loan facility actually repaid in full on 17 July 2010. As of reporting date, cash resources at NCSP's disposal totaled $448.846 million, including cash and cash equivalents of $109.103 million; deposits maturing in more than three but less than 12 months of $339.743 million. "Therefore, as of reporting date cash resources available to NCSP Group exceeded its debt by $1.848 million," the report says.

NCSP's credit and loan debt structure as of June 30 ($1,000):

Debt principal Contract interest
Total, including