Thessaloniki Port Authority produces improved financial results for first half of 2018

Thessaloniki, Greece (Ports Europe) September 12, 2018 - During the six-month period to June 30, 2018, Thessaloniki Port Authority SA has reported total revenue of €29.2 million ($33.87 million) , up 4.3% compared to €28 million ($32.48 million) revenue for the same period last year. Revenue from the container terminal increased by 11.6% from €16.7 million ($19.37 million) to €18.7 million ($21.69 million) while the revenue from the conventional port dropped by 6.1% from €10.3 million ($11.95 million) to €9.7 million ($11.25 million). Gross margin as a percentage of sales was 50.3% vs 52.2% for the same period last year. Significant productivity gains have already been achieved but only impacted the financial performance of the company in the second part of the semester. On the other hand, the company was affected by certain additional costs including (i) an increase in concession fees which went from 2% of total revenue to 3.5% representing an additional cost of €428 thousand for the period in 2018 ((ii) an increase in the employee costs resulting from the reactivation of the 13th and 14th salaries which were cut when the port was in the public sector representing an additional cost of €540,000 ($626,300) and (iii) the management fees paid to Terminal Link a related party for an amount of €323,000 ($374,620). The number of moves handled at the terminal container increased by 10.8% from 188,306 last year to 208,553. Import (+14.3%) and export (+11.3%) domestic cargoes have fuelled growth. Other revenue including yard services and storage increased by 11.0%. The number of tons handled at the conventional cargo terminals decreased by 17.1% from 2,229,774 tons to 1,847,744 tons. Even though the company saw a significant recovery during the last few months of the period, the cargos of nickel ore (-34%) and clinker (-31%) were lower than last year. On the other hand, the product mix resulted in higher average prices which limited the drop-in revenue. Cost of sales was €14.5 million, up 8.5 % compared to the same period last year (€13.4 million). Several line items increased during the period including: The concession fee which is now 3.5% of revenue (it was 2% of revenue up until March 23, 2018). This resulted in an additional charge of €428,000 ($496,400). The reactivation of the 13th and 14th salaries which were cut when the port was in the public sector and which now apply as the Company is private. This resulted in an additional charge of €540,000 ($626,300). Excluding the impact of the above two items, the gross profit would have increased by €1 million and the gross margin as a percentage of revenue would have been 53.6% vs 52.2% last year. Significant productivity gains have been achieved in the last few months which explains this improvement in the adjusted margin. EBITDA was €16 million ($18.56 million) versus €15.1 million ($17.51 million) for the same period last year, a 5.9% increase. This increase in EBITDA is in line with the improved operating result and the stability of the depreciation expense. ThPA was privatised on March 23, 2018, and is now operated by South Europe Gateway Thessaloniki (SEGT) Ltd, a consortium, in turn, owned by Deutsche Invest Equity Partners GmbH (47%), Terminal Link SAS (33%) and Belterra Investments Ltd (20%). Source: Athens Stock Exchange Copyright (C) Ports Europe. All Rights Reserved. 2018.

Thessaloniki Port Authority produces improved financial results for first half of 2018

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Thessaloniki Port Authority produces improved financial results for first half of 2018

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