Russia’s Global Ports Investments has reported an increase in container through output, driven by a revival of imports and growing containerization of exports, driven by the revival in imports due to improving consumer demand and the growing containerization of exports. The Russian container market demonstrated a strong recovery during the H1 2017 as well as improving capacity utilization rates.
The group says it continued to focus on developing additional revenue streams, improving operational efficiency, maximizing free cash flow generation and deleveraging. As a result of these actions, Global Ports achieved revenue of US$ 162.5M, adjusted EBITDA of US$ 97.3M, gross profit of US$ 82.5M and free cash flow of US$ 70.3M. The group reduced total debt by a further US $35.6M over the period.
Here are Global Ports’ figures:
● The Russian container market demonstrated a healthy recovery with volumes up 15.7% in H1 2017. Total container throughput in the Russian container market for the six months of 2017 was 2.2M TEU.
● The Group’s consolidated marine container throughput increased 2.2% to 587,000 TEU.* This growth in throughput accelerated to growth of 4.4% year on year in Q2 2017.
● Pricing initiatives introduced in the beginning of 2017 have, after a certain amount of lead-time, led to improving volumes towards the end of the first half of 2017 and after the end of the first half.
● In order to improve the utilisation of available space at its terminals, the Group continued to focus on increasing bulk cargo volumes. As a result, consolidated marine bulk throughput increased by 41.5% to 1.313 Mt in H1 2017.
The figure is somewhat lower than the figures reported by ASOP (Association of Russian Seaport Operators), which are reported in the August edition of WorldCargo News, although the overall market figure is about the same.