Istanbul, Turkey (PortSEurope) March 13, 2018 – As part of it 2017 annual financial report, Global Ports Holding (GPH) has commented on the activities of the ports where it has operations. For the financial year 2017, Creuers del Port de Barcelona, S.A. (Barcelona and Malaga) received 868 cruise calls (+9.0% over 2016) bringing in 2.4m cruise passengers (+5.1% yoy), of which 1.3m were turnaround passengers
(stable yoy) and 1.1m were transit passengers (+11.9). Creuers’ revenues remained flat at $27 million, and segmental EBITDA slightly decreased by 2.6% to $17.6 million. The decline in yield of Creuers was mainly due to changes in passenger mix in favor of transit passengers, which are less profitable compared to turnaround passengers; and a turnaround in passenger increase driven by Malaga, which has lower margins compared to Barcelona. Valletta Cruise Port, with its unique position for West East Mediterranean itineraries, contributed significantly to GPH’s FY 2017 passenger and segmental EBITDA performance. In FY 2017, Valletta Cruise Port received 342 cruise calls (+7.9) bringing in 800,000 cruise passengers (+14.1%), of which 200,000 were turnaround passengers (+89.2%). Segmental EBITDA of the Valletta Cruise Port was up by 216.5% to $6.8m, implying a 340 bps increase in segmental EBITDA margin, thanks to the increasing share of turnaround passengers in the passenger mix. In addition, a stronger Euro currency has also impacted operating figures positively. Meanwhile, lower travel retail has resulted in decline in yield. In 2017, Ege Port (Kuşadası, Turkey) had 130 cruise calls (-53.2%) bringing in 118,954 cruise passengers (-65.8) and a total of 477 ferry calls bringing in 69,989 ferry passengers with a total of 188,843 (-53.4%) passengers visiting the port. Ege Port revenues and segmental EBITDA declined by 58.6% and 67.1%, respectively, due to the decline in number of calls and passenger numbers as a result of ongoing weakness in sentiment for Turkish cruise ports. Management remains cautious for 2018 but hopeful of seeing a recovery as a number of cruise lines have begun to communicate their plans to visit GPH’s Turkish ports in 2018. Commercial Business FY 2017 Detailed Financial Review – Commercial Business 2017 2016 YoY Change Commercial Port Operations General & Bulk Cargo (‘000 tonnes) 1,628.9 1,401.4 16.2% Throughput (‘000 TEU) 249.4 213.9 16.6% Revenue (USD m) 66.1 61.2 7.9% Yield (USD, Revenue per TEU) 174.7 185.2 (5.7%) Yield (USD, Revenue per tonnes) 9.0 9.8 (8.5%) Segmental EBITDA (USD m) 48.3 44.0 9.7% Segmental EBITDA Margin 73.1% 71.9% 120bps Port Akdeniz General & Bulk Cargo (‘000) 1,415.7 1,319.2 7.3% Throughput (‘000 TEU) 200.1 172.0 16.3% Revenue (USD m) 58.5 53.4 9.7% Yield (USD,Revenue per TEU) 194.3 205.9 (5.6%) Yield (USD,Revenue per tonnes) 8.7 8.4 3.8% Segmental EBITDA (USD m) 46.4 41.3 12.5% Segmental EBITDA Margin 79.3% 77.4% 190bps Port of Adria General & Bulk Cargo (‘000) 213.2 82.2 159.4% Throughput (‘000 TEU) 49.3 41.8 17.8% Revenue (USD m) 7.5 7.9 (4.4%) Yield (USD,Revenue per TEU) 95.0 99.9 (5.0%) Yield (USD,Revenue per tonnes) 10.8 32.6 (66.9%) Segmental EBITDA (USD m) 1.9 2.7 (32.0%) Segmental EBITDA Margin 24.6% 34.6% (1,000bp) GPH operates two growing commercial ports, in Turkey and Montenegro. Together, they handled around 249.4k TEU and 1,628.9k tonnes of throughput in 2017. In 2017, the commercial port operations generated 56.8% of the company’s revenue and 60% of its Segmental EBITDA. TEU throughput increased by 16.6% in FY 2017 year-on-year thanks to strong marble exports at Port of Akdeniz. TEU yields softened slightly by 5.7% due to changes in TEU mix between full and empty. General & bulk cargo volume was up 16.2% driven by a solid increase of steel coils export at Port of Adria and growth in cement exports in Port Akdeniz. Due to lower volumes of project cargo in 2017 (which has less visibility by nature) as well as change in product mix led to a decline in the yield, from $9.8 to $9.0. Revenue growth was below volume growth in 2017, mainly due to lower project cargo volumes. Segmental EBITDA for the Commercial business was $48.3m in FY 2017, up 9.7% over FY 2016, translating into c.120 bps improvement in segmental EBITDA margin. The improvement was driven by operational improvement at Port Akdeniz, increase in high-margin TEU business and a favorable currency environment in Turkey. An agreement has been signed with regards to project cargo in the Port of Adria as contracted project cargo at Port of Adria has not been realized in 2017. And some of the anticipated revenue would be into 2018 (we currently estimate that this could have an EBITDA impact of $1.3m) in this financial year. Global Ports Holding PLC is the world’s largest cruise port operator with an established presence in the Mediterranean, Atlantic and Asia-Pacific regions, including extensive commercial port operations in Turkey and Montenegro. Global Ports Holding PLC is 60.60% owned by Global Ports Holding B.V., which is a wholly owned subsidiary of Global Investment Holdings (GIH). The European Bank for Reconstruction and Development (EBRD) is a shareholder of Global Ports Holding PLC. Source: Global Ports Holding Copyright (C) PortSEurope. All Rights Reserved. 2018.