Istanbul, Turkey (PortSEurope) March 14, 2021 – Last Friday, Turkey’s Global Ports Holding Ltd (GPH) reported its trading statement for 2020 which showed that both the cruise and commercial businesses were hit hard by the Covid-19 coronavirus crisis. The most significant development came after the period end, with the completion of the sale of the group’s largest commercial port, Port Akdeniz, for $140m to Qatar’s
QTerminals. Cruise Sector GPH operates cruise passenger terminals in the ports of Barcelona (Creuers), Valletta (Malta), Ege (Turkey) Nassau (Bahamas) and Antigua, and with governments worldwide essentially placing the cruise ship industry in the cold freeze, cruise passenger volumes decreased by -76%. In Q4 2020, there were practically zero passengers. In response to the situation, all but essential maintenance capex was suspended across the group in Q2 2020. Cruise Port Review Passengers (m PAX)12M 202012M 2019Creuers0.152.6Valletta0.060.3Ege Port0.000.3Nassau0.830.4*Antigua0.260.2*Other Cruise Ports0.031.0Total Cruise Ports1.35.3*c2 months contribution only Source: GPH Commercial Sector Commercial ports in Q4 2020 including Port Akdeniz, saw containers (TEU) down by 11% and general and bulk cargo volumes increased by 90%. Including Port Akdeniz, commercial revenue and EBITDA were down 26% and 36% respectively, to $40.8m and $25.1m. Q4 commercial revenue and EBITDA increased 12% and 1% respectively, to $10.5m and $5.4m. Commercial revenue and EBITDA, excluding Port Akdeniz, for the 12 months were flat and up 31% respectively, to $7.4m and $2.2m Q4 commercial revenue and EBITDA excluding Port Akdeniz were $2.1m and $0.8m. Commercial Port Review 12M 202012M 2019Port Akdeniz (Turkey) General & Bulk Cargo (‘000 tons)1,371 589Throughput (‘000 TEU)124 151Port Adria (Montenegro) General & Bulk Cargo (‘000 tons)44 154Throughput (‘000 TEU)54 48Total General & Bulk Cargo (‘000 tons)1,414 743Total Throughput (‘000 TEU)178199Source: GPH Key Financials and KPIs with Port Akdeniz classified as a discontinued operation As of 31 December 2020, the Group’s operating segment Port Akdeniz is classified as “Discontinued operation” and therefore excluded from revenue and EBITDA. The financial results accounting for such classification are set out below. Total consolidated revenues for the 12M period were $73.1m; excluding the impact of IFRIC-12 Construction revenues, total consolidated revenues were $22.9m down 81%.Commercial Revenue were $7.4m and Commercial EBITDA $2.2m representing the performance of Port of Adria. Cruise revenue and EBITDA remain unchanged.Segmental EBITDA for the 12m was $1.8m and Adjusted EBITDA realised as a loss of $4.5m. PortSEurope Note: In January this year, Global Ports Holding Plc (GPH) announced that all conditions precedent to the sale of Ortadoğu Antalya Liman Işletmeleri (Port Akdeniz) to QTerminals W.L.L., had been completed. The sale means that GPH will now effectively be a pure-play global cruise port operator. The GPH board and senior management will now focus time and resources on the restart of cruise port operations during 2021 and continued expansion in the global cruise port market. GPH will also now consider selling the Port of Adria, the group’s commercial port concession in Montenegro’s coastal town of Bar. Other options for its future will be considered. “There can be no certainty as to the timing or that the terms of a sale will be agreed,” GPH said. Port Akdeniz operates the Akdeniz-Antalya port under a concession agreement that expires in August 2028. The buyer, QTerminals, is a terminal operating company jointly established by Qatari port and logistics services providers Mwani Qatar and Milaha. In a separate development, Global Ports Holding Plc announced last November that Autorita’ di Sistema Portuale del Mar Ionio (AdSP – Port Authority of the Ionian Sea-Port of Taranto) has awarded the Turkish company a 20-year concession to manage the services for cruise passengers in the Port of Taranto in Southern Italy. The cruise port infrastructure in Taranto is currently undergoing a state-funded, €28m investment program, including the building of a new cruise terminal. The construction of these new facilities is expected to be completed by the end of 2020. In 2019, the Taranto Cruise Port welcomed 9k cruise passengers, with a preCovid-19 forecast of over 14k passengers in 2020. Read the latest PortSEurope news on Global Ports Holding here Copyright (C) PortSEurope. All Rights Reserved. 2021.