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Global Ports Holding Plc Reports Stable Q1 2019

Global Ports Holding Plc reports stable Q1 2019

Global Ports Holding Plc Reports Stable Q1 2019Source: Port de Barcelona

Istanbul, Turkey (PortSEurope) May 14, 2019 – Global Ports Holding Plc, a leading global independent cruise port operator, has issued a trading update for Q1 2019, and has described the results as in line with management expectations with record Q1 adjusted EBITDA.

Highlights

The number of passengers (PAX) increased 52.4% to 510,000.

General & Bulk Cargo (tons) was down 59.1% to 196,800.

Container Throughput (TEU) was up 2.6% to 52,400.

Total revenue increased 0.3% to $20.7 million.

Cruise Statistics

Cruise    
Passengers (‘000 PAX)Q1 2019  Q1 2018PAX Change (‘000)PAX Change (%)
Creuers (Barcelona/Malaga)2522465.52%
Valletta78.269.88.412%
Ege Port5.22.82.485%
Other Cruise Ports174.815.6159.11017%
Total Cruise Ports510.0334.6175.452%

Total cruise revenue rose by 4.6% yoy to $5.4m ($5.8m ccy) for the period vs $5.2m in Q1 2018.

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.

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.

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.

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 (‘000)Change (%)
Port Akdeniz-Antalya    
General & Bulk Cargo (‘000)144.0426.0(282.0)-66.2%
Throughput (‘000 TEU)39.439.30.10.2%
     
Port Adria    
General & Bulk Cargo (‘000)52.954.8(1.9)-3.4%
Throughput (‘000 TEU)13.111.81.310.6%
     
Total General & Bulk Cargo (‘000)196.8480.7(283.9)-59.1%
Total Throughput (‘000 TEU)52.451.11.32.6%

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.

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. 

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.

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, 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. 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.

Source: Global Ports Holding Plc

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