TIDMGPH
RNS Number : 7464Y
Global Ports Holding PLC
13 May 2019
Global Ports Holding Plc
Q1 2019 Trading Statement
Q1 2019 results are in line with management expectations with
record Q1 Adjusted EBITDA. Outlook for full year remains
unchanged.
Global Ports Holding Plc ("GPH Plc" or "Group"), the world's
largest independent cruise port operator, today issues a trading
update for the period from 1 January to 31 March 2019.
Management are pleased with trading year to date. Operational
results are in line with management expectations, with record Q1
Adjusted EBITDA reported for the period. Due to the seasonal nature
of the business, the first quarter of the year is always the
quietest trading period in particular for cruise, but also for the
commercial division. Q1 trading trends do not therefore inform the
trend for the full year.
Key Financials & KPI Highlights
Q1 2019 Q1 2019 Q1 2018 YoY
Constant
Reported currency(7) Reported Change
Passengers ('000 PAX)(1) 510.0 334.6 52.4%
General & Bulk Cargo ('000 tons) 196.8 480.7 -59.1%
Container Throughput ('000 TEU) 52.4 51.1 2.6%
Total Revenue ($m)(2) 20.7 21.3 20.6 0.3%
Segmental EBITDA ($m)(3) 14.1 14.5 13.1 8.3%
Segmental EBITDA Margin 68.4% 68.2% 63.3%
Cruise Revenue ($m)(4) 5.4 5.8 5.2 4.6%
Cruise EBITDA ($m)(5) 3.5 3.8 2.3 51.7%
Cruise Margin 64.8% 65.2% 44.6%
Commercial Revenue ($m) 15.3 15.4 15.4 -1.1%
Commercial EBITDA ($m) 10.6 10.7 10.7 -1.1%
Commercial Margin 69.6% 69.6% 69.6%
Adjusted EBITDA ($m) 12.4 12.7 11.4 8.6%
Adjusted EBITDA Margin 59.9% 59.9% 55.4%
Profit/(Loss) for the period ($m) (13.8) (8.8) 57.7%
Underlying Profit/(Loss) for the
period ($m)(6) (5.5) (0.7) 700%
Operational review
-- Total consolidated revenues were $20.7m ($21.3m ccy) in the
quarter, up 0.3% yoy (3.1% ccy).
-- Segmental EBITDA was $14.1m ($14.5m ccy) in the quarter, a
8.3% yoy increase (10.9% ccy), delivering a 68.4% Segmental EBITDA
margin for the period, a 510bps increase on Q1 2018.
-- Adjusted EBITDA of $12.4m ($12.8m ccy) was up 8.6% yoy (11.5%
ccy). Group central costs in USD benefitted from the weak Turkish
Lira yoy, nevertheless the growth in underlying central costs
should now start to moderate as the investment made in group
functions in 2018 annualises.
-- The adoption of IFRS 16 in the period created an EBITDA
benefit vs Q1 2018 of $609k, ex this Cruise EBITDA would have grown
27.9% to $3.0m ($3.2m ccy). The full year impact is expected to be
c$2m.
-- Loss after tax for the period of $13.8m (2018: $8.8m) was
impacted in Q1 2019 by a non-cash FX charges totalling $7.4m (2018:
$6.4m).
-- Underlying loss for the period was $5.5m vs $0.7m in 2018 and
reflects loss after tax for the period after adding back $8.4m of
port operating rights amortisation vs $8.0m in 2018.
Cruise
Passengers ('000 PAX) PAX Change PAX Change
Q1 2019 Q1 2018 ('000) (%)
Creuers (Barcelona/Malaga) 252 246 5.5 2%
Valletta 78.2 69.8 8.4 12%
Ege Port 5.2 2.8 2.4 85%
Other Cruise Ports 174.8 15.6 159.1 1017%
Total Cruise Ports 510.0 334.6 175.4 52%
-- Total cruise revenue rose by 4.6% yoy to $5.4m ($5.8m ccy)
for the period vs $5.2m in Q1 2018.
o Passenger volumes rose 52% yoy to 510k, driven by the first
time contribution of new ports. Organic passenger volume growth was
2.0%, with good growth in the Valletta in particular.
o It is early in the cruise season but we are pleased to report
strong growth in Turkish cruise passengers, particularly at Ege
Port in Kusadasi.
-- Cruise EBITDA was $3.5m ($3.8m ccy) in the period, up 51.7%
vs the $2.3m reported in Q1 2018.
o The EBITDA growth was primarily the result of the performance
from our equity associate ports, particularly Singapore and the
first time Q1 contribution from new ports.
o Excluding the positive impact on EBITDA from IFRS 16 on Q1
2019, Cruise EBITDA growth was 28%.
-- During the period we were very pleased to sign a 30-year
cruise port concession in Antigua and Barbuda and to be awarded
preferred bidder status for Nassau cruise port in the Bahamas. We
continue to work with all parties towards a successful conclusion
of both agreements and further announcements, as appropriate, will
be made in due course.
Commercial
Q1 2019 Q1 2018 YoY Change Change
('000) (%)
Port Akdeniz-Antalya
General & Bulk Cargo ('000) 144.0 426.0 (282.0) -66.2%
Throughput ('000 TEU) 39.4 39.3 0.1 0.2%
Port Adria
General & Bulk Cargo ('000) 52.9 54.8 (1.9) -3.4%
Throughput ('000 TEU) 13.1 11.8 1.3 10.6%
Total General & Bulk Cargo
('000) 196.8 480.7 (283.9) -59.1%
Total Throughput ('000
TEU) 52.4 51.1 1.3 2.6%
-- Total commercial revenues fell by 1.1% yoy to $15.3m for the
period ($15.4m ccy) vs $15.4m in Q1 2018, with revenue growth in
Port Akdeniz offset by an expected decline in Port of Adria.
-- Total Container volumes were up 2.6% yoy, with both
commercial ports delivering growth. Of particular note was growth
in marble volumes of 1.4% yoy at Port Akdeniz in the period,
reversing the negative trend experienced in Q4 2018.
-- Total General & Bulk cargo volumes fell 59.1% yoy.
o The decline was primarily driven by a continuation of the
trends reported for H2 2018, with General & Bulk cargo volumes
at Port Akdeniz falling 66.2% in the quarter.
o Our work to diversify revenues continues to deliver positive
results. The drilling ship support services contract continues to
perform well at Port Akdeniz and we now expect this to continue
throughout 2019, with potential for it to be extended into 2020.
While we expect to start operating the Ro-Ro service from Antalya
to Trieste shortly.
o Port Adria's modest volume decline reflects the fact that as
expected and previously guided the Q1 2018 wind turbine project
cargo did not reoccur in Q1 2019. Excluding this, General &
Bulk cargo volumes grew 7.2% at Port Adria, driven by particularly
strong growth in steel coils, this growth was particularly pleasing
after the declines experienced in Q4 2018.
-- Commercial EBITDA fell 1.1% in the period to $10.6m ($10.7m
ccy) vs $10.7m in 2018. Excluding the project cargo effect at Port
of Adria, Commercial EBITDA grew 5.3% in the period.
-- On 29 April 2019, the Competition Authority of the Republic
of Turkey notified Global Ports Holding's subsidiary in Turkey,
Ortado u Antalya Liman İ letmeleri A. ("Port Akdeniz"), that it has
commenced an investigation into Port Akdeniz due to an alleged
breach of Article 6 of the Law on the Protection of Competition,
Law No. 4054 due to excessive pricing concerns on certain services.
Port Akdeniz has engaged appropriate legal representation and is
preparing a full defence against all allegations that will be
submitted before the end of May 2019. The full legal process could
take up to 24 months, however, a further announcement will be made
when it is appropriate to do so.
Balance Sheet
At 31st March 2019 net debt was $272.6m (Year end 2018: $267.2m)
with the increase since year end primarily due to additional
interest accruals related to our Eurobond and the fact Q1 is a low
point in the Mediterranean cruise season. The group's Net
Debt/EBITDA ratio was 3.2x times as at 31(st) March 2019.
Capital expenditure during the period was $3.4m, an increase on
the $1.2m incurred in Q1 2018. The yoy increase was primarily
driven by investment into Barcelona, general quay improvement and
Ro-Ro related investment in Port of Adria and capex related to the
drilling ship support services contract in Port Akdeniz. Gross debt
at period end was $351.5m, the Leverage Ratio as per GPH's Eurobond
(excluding Unrestricted Subsidiaries) was 4.2x at 31(st) March
2019, comfortably below the covenant of 5.0x.
Outlook & current trading
Overall the Group has delivered a good performance in Q1 and
trading since the period end has been in line with management
expectations. Despite the ongoing weak General & Bulk cargo
volumes we remain confident of delivering on our expectations of
mid to high single digit percentage growth in EBITDA for the full
year.
Emre Sayin, Chief Executive Officer said;
"Trading has been positive, with good growth in cruise passenger
volumes and Cruise EBITDA, albeit the first quarter is a seasonally
quiet period for the cruise business.
We continue to deliver on our inorganic cruise growth strategy
in the Americas and are making progress to full financial closure
and commencement of the concessions in Antigua and Barbuda, and the
Bahamas.
While some negative volume trends at our commercial ports have
persisted into Q1 2019, overall the ports continue to perform in
line with our EBITDA expectations and our work to diversify our
revenue streams means we remain confident of good Commercial EBITDA
performance in the year.
Trading at both our cruise and commercial ports have continued
to perform in line with our expectations as we head into the Summer
season."
Notes
[1] Passenger numbers refer to consolidated and managed
portfolio consolidation perimeter, hence it excludes equity
accounted associate ports Venice, Lisbon and Singapore
[2] All $ refers to USD unless otherwise stated
[3] Segmental EBITDA figures indicate only operational
companies; excludes GPH HQ expenses
[4] Revenue allocated to the Cruise segment is the sum of
revenues of consolidated and managed portfolio
[5] EBITDA allocated to the Cruise segment is the sum of EBITDA
of consolidated cruise ports and pro-rata Net Profit of equity
accounted associate ports Venice, Lisbon and Singapore and the
contribution from the Havana management agreement
[6] Underlying loss for period is after adding back amortisation
of port operating right intangibles of $8.4m
[7] Performance at constant currency is calculated by
translating foreign currency earnings from our consolidated cruise
ports, management agreements and associated ports for the current
period into $ at the average exchange rates used over the same
period in the prior year
Global Ports Holding Plc
Martin Brown, Investor Relations
Director
Telephone: +44 (0) 7947 163 687 Email: martinb@globalportsholding.com
Brunswick Group LLP
Azadeh Varzi and Imran Jina
Telephone: +44 (0) 207 404 5959 Email: GPH@brunswickgroup.com
Investor Conference Call
An analyst and investor call will be held today at 11.30am hrs
(BST).
Dial-in Number +44 (0)207 194 3759
PIN: 48733882#
APPENDIX
Consolidated statement of comprehensive income
data ($m) Q1 2018 Q1 2019
================================================ ======== ========
Revenue 20.6 20.7
Operating Expenses (18.1) (17.7)
Depreciation and Amortization (11.4) 11.7
Other Operating Income 0.8 0.9
Other Operating Expense (6.2) (6.9)
Operating profit (2.9) (3.0)
Finance Income 4.7 4.7
Finance Expenses (12.6) (12.6)
Profit before income tax (9.6) (12.6)
Income tax expense 0.0 (1.2)
Profit for the year (9.6) (13.8)
Other financial data (USD millions actual)
EBITDA 11.4 12.4
EBITDA margin 55.3% 59.9%
Consolidated statement of financial position data
($m) FY 2018 Q1 2019
=================================================== ======== ========
Cash and cash equivalents 79.8 78.9
Total current assets 107.1 106.7
Total assets 688.0 736.0
Total debt (including obligations under leases) 350.5 414.8
Net debt (including obligations under leases) 267.1 308.1
Total equity 215.7 200.1
of which retained earnings 109.0 97.9
Consolidated cash flow statement ($m) Q1 2018 Q1 2019
--------------------------------------------------------- -------- --------
Net cash provided by operating activities 9.2 4.3
Net cash (used in) / produced from investing activities 12.9 (1.0)
Net cash (used in) / produced from financing activities (17.3) (0.3)
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END
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