COSCO interim results 2018 – Piraeus, Kumport, Noatum, Vado terminals information

Piraeus, Greece (Ports Europe) August 28, 2018 - China’s COSCO Shipping Ports Limited has announced results for the six months ended 30 June 2018. Key facts are: Total throughput increased by 26.5% to 56,706,600 TEU Equity throughput increased by 22.3% to 17,966,616 TEU Revenue surged by 79.7% to approximately $495.457 million (€423.665 million) Excluding one-off exceptional items in the first half of 2017, profit attributable to equity holders of the company soared by 70.1% to approximately $168.988 million (€144.501 million) Profit from terminal companies in which the group has controlling stakes was mainly attributable to Piraeus Container Terminal S.A. in Greece, Xiamen Ocean Gate Container Terminal Co., Ltd. and Guangzhou South China Oceangate Container Terminal Company Limited. In the first half of 2018, the container throughput of Piraeus Terminal amounted to 2,075,548 TEU (1H2017: 1,753,692 TEU), increased by 18.4% compared with the corresponding period last year. In addition, due to the appreciation of the Euro, profit recorded by Piraeus Terminal from January to June 2018 increased to $13.640 million/€11.663 million (1H2017: $10.845 million), representing a 25.8% increase compared with the corresponding period last year. During the period, the Noatum Ports Holdings (NPH) in Spain and CSP Zeebrugge Terminal in Belgium (both acquired in the fourth quarter last year) recorded a profit of $2.707 million (€2.314 million)and a loss of $3.841 million, respectively. In respect of non-controlling terminals, profit from non-controlling terminals for the first half of 2018 was $153.547 million/€131.298 million (1H2017: $98.111 million), a 56.5% increase compared with last year. Excluding that of QPI, profit from non-controlling terminal business for the first half of 2018 was $100.6 million/€86.023 million, (1H2017: $84.770 million), an increase of 18.7% compared with the corresponding period last year. The increase was mainly attributable to Kumport Liman Hizmetleri ve Lojistik Sanayi ve Ticaret A. Ş. in Turkey, whose container throughput for the first half of 2018 recorded a significant growth of 57.8% to 652,163 TEU (1H2017: 413,288 TEU), as the new shipping lines started to call there. Meanwhile, in accordance with the investment incentive policy newly introduced in Turkey, Kumport Terminal successfully applied for income tax exemption thereunder in February 2018, further increasing the share of profit of Kumport Terminal during the period. The share of profit of Kumport Terminal for the first half of 2018 amounted to $10.880 million/€9.303 million (1H2017: $4.285 million), approximately 1.5 times higher compared with the corresponding period last year. Revenues Revenues of the group from January to June 2018 amounted to $495.457 million/€423.67 million (1H2017: $275,776,000), a 79.7% increase compared with the corresponding period last year. In the fourth quarter of last year, the group completed the acquisition of the NPH Group and increased its equity interests in CSP Zeebrugge Terminal, profits of the NPH Group and CSP Zeebrugge Terminal have been consolidated into the group’s revenues since November and December 2017, respectively. In the first half of 2018, the NPH Group recorded revenue of $141.199 million (€120.739 million), while the revenue of CSP Zeebrugge Terminal amounted to $9.056 million. On the other hand, in addition to raising stevedoring charges for local cargoes from March this year, Piraeus Terminal also saw an increase in its throughput as compared with the corresponding period last year. As a result, Piraeus Terminal recorded revenue of $111,452,000 (€95,302,605) during the period (1H2017: $85.107 million/€72.77 million), a 31.0% increase compared with the corresponding period last year. Cost of sales Cost of sales mainly comprised operating expenses of terminal companies in which the Group has controlling stakes. Cost of sales for the first half of 2018 was $337.963 million/€288.99 million (1H2017: $177,248,000), a 90.7% increase compared with the corresponding period last year. The increase was mainly attributable to the cost of sales of the NPH Group and CSP Zeebrugge Terminal newly added in the period, which amounted to $116.469 million (€99.59 million) and $7.663 million respectively, as well as that from Piraeus Terminal and Xiamen Ocean Gate Terminal. Due to higher overall operational costs at Piraeus Terminal, which resulted from a 18.4% increase in throughput, raised concession rates in October 2017, as well as higher fuel prices and labour costs, the cost of sales of Piraeus Terminal for the period increased to $85.271 million/€72.92 million (1H2017: $63.305 million/€54.13 million), a 34.7% increase compared with the corresponding period last year. Administrative expenses Administrative expenses in the first half of 2018 were $60.458 million/€51.70 million (1H2017: $38,342,000), a 57.7% increase compared with the corresponding period last year. The completion of the acquisition of the NPH Group, the increase in equity interests in CSP Zeebrugge Terminal, the establishment of Abu Dhabi Terminal, and the acquisition of the equity interests in Nantong Tonghai Terminal and Wuhan Terminal contributed to higher administrative expenses of newly added terminal companies during the period. Share of profits less losses of joint ventures and associates The group’s share of profits less losses of joint ventures and associates for the first half of 2018 totalled $151.934 million/€129.92 million (1H2017: $97,545,000), a 55.8% increase compared with the corresponding period last year. During the period, Kumport Terminal in Turkey delivered satisfactory performance, with a significant increase of 57.8% in its container throughput during the first half of 2018, as the new shipping lines started to call there. Meanwhile, Kumport Terminal successfully applied for income tax exemption under the investment incentive policy in February 2018, further increasing the share of profit of Kumport Terminal during the period. The share of profit of Kumport Terminal for the first half of 2018 amounted to $10.88 million/€9.3 million (1H2017: $4.285 million/€3.66 million), approximately 1.5 times higher compared with the corresponding period last year. Euromax Terminal Rotterdam B.V. in Rotterdam, the Netherlands, delivered steady operational development during the period. For the first half of 2018, throughput of Euromax Terminal grew by 8.0% compared with the corresponding period last year to 1,457,423 TEU (1H2017: 1,349,893 TEU), and the group’s share of profit of Euromax Terminal increased to $3.225 million/€2.76 million,000 (1H2017: $457,000/€390,780). Cash flow In the first half of 2018, the group continued to receive steady cash flow income, its net cash generated from operating activities amounted to $84.747 million (€72.47 million) in the period (1H2017:$70.129 million). In the first half of 2018, the group borrowed bank loans of $426.217 million (1H2017: $146.154 million) and repaid loans of $420.212 million (1H2017: $276.705 million). During the period, an amount of $85.025 million (1H2017: $48.079 million) was paid in cash by the group for the expansion of berths and the purchase of property, machines and equipment. The acquisition of 40% equity interest in Reefer Terminal S.p.A. (Vado Reefer Terminal) was completed in the first half of 2017, in connection with which an amount of $7.465 million (€6.38 million) was invested, and an additional shareholders’ loan of $26.191 million (€22.4 million) was provided to Vado Reefer Terminal. Overseas Regions Fueled by increased calls by the OCEAN Alliance and shipping alliances, overseas terminals portfolio delivered strong growth with total throughput increased by 36.8% to 12,149,338 TEU for the six months ended 30 June 2018 (1H2017: 8,880,942 TEU) and accounted for 21.5% of the Group’s total. Throughput of the NPH Group in Spain was 1,762,631 TEU in the first half of 2018; throughput of Piraeus Terminal in Greece increased by 18.4% to 2,075,548 TEU (1H2017: 1,753,692 TEU). Source: COSCO Shipping Ports Limited Copyright (C) Ports Europe. All Rights Reserved. 2018.

COSCO interim results 2018 – Piraeus, Kumport, Noatum, Vado terminals information

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COSCO interim results 2018 – Piraeus, Kumport, Noatum, Vado terminals information

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Port of Naples progresses cold ironing project

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New grain terminal in Kazakhstan’s Kuryk port

Our Expert Analysis

Latest Free Reads

Top Ports