Global Ports suffers badly in half year results

Global Ports suffers badly in half year results
The operator actually saw a 2.2% rise in container volumes

Global Ports Investments’ profit attributable to the owners plunged by 110.5% into loss in the company’s half year report, as it leaked US$12.1m.

Profit before income tax also suffered badly, plummeting by 98% to just US$3m in its half year results, with the operator hit by the troubled Russian economy.

The Russian container market has performed well so far this year, growing by 15.7%, but Global Ports’ own throughput grew by just 2.2% to 587,000 teu.

Despite this slight growth container revenue fell by 7.1% to US$126.3m as a result of a 9.2% decline in revenue per teu.

Global Ports CEO Mikhail Loganov said: “With the current market backdrop showing signs of improvement, we are confident that Global Ports’ well invested assets, operational skills and high-quality service will ensure that we are well positioned to capitalise on any ongoing market recovery.”

The drop in revenue per teu also hit adjusted EBITDA, which fell by 12.8% to US$97.3m, although this was also damaged by the impact of the Russian rouble appreciation.

The company’s capital expenditure for the half year stands at US$7.9m, which was spent on maintenance and regular improvements in existing capacity. The figure for the year is expected to be between US$23m–US$25m.

Elsewhere free cash fell by 22.8% to US$70.3m. Global Ports attributed this to a decline in cash generated in operations, which fell from US$114.3m to US$94.4m.

Finally, gross profit also fell, dropping by 24% to US$82.5m.