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2020 Interim Results Summary

– Operational outperformance of the market continues with the first half 2020 Consolidated Marine Container Throughput up 8.4% year-on-year to 774 thousand TEU against 2.4% year-on-year decline in the Russian container market over the same period

– Consolidated Marine Bulk Throughput of 2.2 million tonnes (+11.9% y-o-y)*

– Revenue increased by 1.8% to USD 184.4 million (-8.4% like-for-like)

– Adjusted EBITDA of USD 104.9 million (first half 2019: USD 116 million), like-for-like Adjusted EBITDA Margin of 63.9%

– Operating profit growth of 32.0% to USD 78.7 million

– Profit for the period of USD 23.8 million (first half 2019: USD 36.2 million)

– Strong Free Cash Flow of USD 69.4 million

– Further deleverage success with Net Debt down USD 71.2 million and Net Debt to LTM Adjusted EBITDA reduced to 3.1x (-0.2x compared to 31 December 2019)


Albert Likholet, CEO of Global Ports, commented: “The Group’s performance over the first six months of 2020 demonstrates the validity of our strategy that has been implemented over the last two years, focusing on clients, productivity, service standards, enhanced IT solutions, deleveraging, and cost management. As a result, the Group has been able to meet the challenges of the recent volatile environment by being an efficient vertically integrated organisation with sufficient cash reserves, having effectively hedged the majority of its FX exposure.

“Despite all the disruption generated by COVID-19, we not only ensured uninterrupted operations for our clients during global lockdown, thereby, safeguarding jobs for our employees and supporting the Russian economy, we also gained market share in both key basins where we operate. In addition, we delivered financially by generating healthy Free Cash Flow and reduced Net Debt by more than USD 70 million, proving the resilience of our business model.

“Although we expect today’s volatility and uncertainty to continue into the medium term, we remain convinced that our ongoing focus on our clients’ needs and best-in-class service offering combined with the Group’s financial prudence create not only resilience to manage such conditions but also puts us on a strong footing for when the market recovers.”

*Footnote: As a result of the new terms of certain sales agreement, in 1H 2020 VSC acted as a principal vs as an agent at the beginning of 2019: previously the net result of revenue from transportation services and associated cost was included in the consolidated revenue. Since the middle of 1H 2019 full revenue and associated costs have been recognized in consolidated revenue and transportation expenses accordingly. This Adjusted EBITDA neutral change resulted in additional USD 20.4 million to consolidated revenue (USD 2.2 million in the first half of 2019) and USD 20.4 million (USD 2.2 million in the first half of 2019) to cost of sales in the first half of 2020.

Our previous Premium coverage can be found here: “Global Ports – From Russia with love“.

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