Global Ports Holding – Q1 2020 Trading Statement

Global Ports Holding Plc (GPH), the world's largest independent cruise port operator, today issues a trading update for the period from 1 January to 31 March 2020 - June 10, 2020 Financial highlights The board and management have taken further action to reduce the cost base and conserve cash. Operating expenses across the group have now been reduced by 75% for May to Dec 2020, generating a full- year 2020 operating expenses reduction of 60%.When combined with ongoing trading at the Commercial ports, management believes that GPH can continue to trade even under a scenario of no cruise ships until 2022, without the need to raise capital.Total consolidated revenues were $21.4m ($21.5m ccy) in the quarter, a rise of 3% yoy (4% ccy).Segmental EBITDA was $12.2m in the quarter, a 14% yoy decline (14% ccy), delivering a 56.8% Segmental EBITDA margin for the period.Adjusted EBITDA of $10.3m ($10.3m ccy) was down 17% yoy (17% ccy).Loss after tax for the period of $16.5m (2019: $13.8m) was impacted in Q1 2019 $10.5m of non-cash amortisation of port operating rights (2019: $8.4m) and non-cash FX charges totalling $3.9m (2019: $3.3m).Underlying loss for the period was $1.3m vs $1.6m in 2019 and reflects loss after tax for the period after adding back $10.5m of port operating rights amortisation vs $8.4m in 2019. Cruises Passengers ('000 PAX)Q1 2020Q1 2019Pax diff (%)Creuers (Barcelona/Malaga)119252-53Valletta4078-49Ege Port1.85.1-66Nassau8340n/aOther cruise ports258174+48Total cruise ports1,253506+146 Total cruise revenue rose by 102% yoy to $11.0m ($11.1m ccy) for the period vs $5.4m in Q1 2019.The first time contribution of our new ports in Nassau and Antigua drove this strong revenue growth compared to Q1 2019 despite the negative impact of Covid-19 across our cruise port portfolio towards the end of the quarter.Passenger volumes rose 146% yoy to 1.25m, driven by the first time contribution from the new Caribbean ports.The Covid-19 pandemic had a significant impact on passenger volumes towards the end of the quarter, with the global cruise industry effectively ceasing operations globally for the first time in its history.Cruise EBITDA was $5.7m ($5.7m ccy) in the period, up 61% vs the $3.5m reported in Q1 2019.Cruise EBITDA margin fell to 51.5%, reflecting the reduction in contribution from equity associate ports, which are only accounted for at the EBITDA level.The EBITDA growth, despite the negative impact of Covid-19, in the period was driven by the first time Q1 contribution from our new Caribbean ports. Excluding these new ports, EBITDA fell by $3.1m yoy.Despite the Covid-19 impact, the reported passenger volumes and revenue and EBITDA figures highlight the strong contribution that our new Caribbean ports are expected to make to the portfolio in the years ahead. Both in terms of financial contribution and in terms of the geographic and seasonal balance that they bring to the portfolio.Nassau Cruise Port's recent successful $150m 8.0% coupon private bond offering, underpins the strength and attractions not only of this project but of the global cruise industry. The proceeds will support the significant planned investment into transforming Nassau Cruise Port into one of the iconic cruise destinations in the world. Transforming the experience for cruise passengers, locals and the cruise lines, generating jobs and driving economic growth.Since the onset of the Covid-19 crisis, management has taken a number of actions to reduce costs and preserve cash across the cruise port portfolio, more details on these actions and measures can be found below. VolumesQ1 2020Q1 2019Change (%)Port Akdeniz-AntalyaGeneral & Bulk Cargo ('000)26814486Throughput ('000 TEU)31.439.3-20Port AdriaGeneral & Bulk Cargo ('000)18.652.9-65Throughput ('000 TEU)11.813.1-9Total General & Bulk Cargo ('000)286.5196.846Total Throughput ('000 TEU)43.252.4-18 Total commercial revenues declined by 32% yoy to $10.4m for the period ($10.4m ccy) vs $15.3m in Q1 2019. Excluding the impact of the previously disclosed oil services contract in Q1 2019, revenue fell 16%.Total Container volumes declined by 18% yoy, in line with management expectations. Q1 2020 Container performance compares to a positive comparative period performance. Q1 2019 Container volume growth was +2.6% yoy compared to steep volume declines in Q4 2018, Q2 2019 and Q3 2019.Total General & Bulk cargo volumes rose 46% yoy.This rise was driven by the strong performance at Port Akdeniz, where a new volume focussed pricing structure helped to deliver an 86% yoy increase in General & Bulk volumes. With this strong performance partially offset by a sharp decline in volumes at Port of Adria where volumes declined by 65%, driven by a decrease in general cargo volumes. Commercial EBITDA fell 39% in the period to $6.5m ($6.5m ccy) vs $10.6m in 2019. Excluding the oil services contract effect at Port Akdeniz in Q1 2019, Commercial EBITDA fell by 16% in the period.While management believes year to date Container throughput volumes have been affected by the Covid-19 crisis, the strong performance from General & Bulk cargo volumes has largely offset this impact. As a result, year to date, our Commercial port operations continue to trade in line with our financial expectations.On 11 March 2020 GPH announced that following a competitive sales process conducted in the second half of 2019, it had entered exclusive negotiations with a potential buyer of Port Akdeniz. As a result of these negotiations, the board recently received a firm offer for Port Akdeniz. The board is currently assessing the terms of this offer and expects to provide an update in due course. There can be no certainty as to the timing or that the terms of a sale will be agreed. A further announcement will be made when it is appropriate to do so.On the 29th April 2019, the Competition Authority of the Republic of Turkey notified Global Ports Holding's subsidiary in Turkey, Ortadoğu Antalya Liman İşletmeleri A.Ş ("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. On 28th May 2019, Port Akdeniz engaged legal representation and submitted a full defence against all allegations. Subsequently, the investigation report issued by the Competition Authority was received by Port Akdeniz on 15th April 2020 notifying that the Competition Authority would be continuing its investigation. The next stage in the process may take up to an additional 6 to 12 months, excluding any form of appeal. A further announcement will be made when it is appropriate to do so. Full details can be accessed here. Source: Global Ports Holding

Global Ports Holding – Q1 2020 Trading Statement

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Global Ports Holding – Q1 2020 Trading Statement

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All news

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Kazakhstan’s ports handled 6.2 mln tonnes of cargo in Jan-Oct’24

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