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Global Ports Investments PLC Sees Revenues Decline By 28% on Lower Container




Global Ports Investments PLC announced its fullyear results for the financial year ended 31 December 2015.


In 2015 Global Ports proactively responded to the conditions in both its industry and in the broader economy. This included an even greater focus on operational cash costs and efficiency, emphasis on maintaining pricing discipline, as well as a pragmatic review of CAPEX plans. As a result of these actions, the Group increased its Adjusted EBITDA margin by 488 basis points* to a record 71.7%* and generated strong Free Cash Flow of USD 236 million*. The Group continued prioritizing further deleveraging its balance sheet and decreased its Net Debt by USD 160 million*.

Group financial and operational highlights for 2015

● Against the backdrop of a macroeconomic slowdown and a sharp devaluation of the Russian rouble negatively impacting imports, Global Ports’ Marine Container Throughput declined 31%* 1 year on year to 1,834 thousand TEU* in 2015;

● Revenue was 27.9% lower than in 2014 at USD 405.7 million, the decline was mainly driven by lower container throughput;

● The Group achieved a record Adjusted EBITDA margin of 71.7%* as continued focus on efficiency and cost control, supported by the devaluation of the Russian rouble, enabled the Group to reduce Total Operating Cash Costs by 38%* and to expand the margin by 488 basis points*;

● Adjusted EBITDA in 2015 declined 22.6%* to USD 291.0 million*, with growth in the Adjusted EBITDA margin partly offsetting the impact of the revenue decline on Adjusted EBITDA;

● The Group reduced its capital expenditures on a cash basis in 2015 by 50.2% to USD 11.7 million. CAPEX reduction was achieved without compromising service quality, reliability and safety of operations at the Group’s already well invested terminals;

● The Group generated a high level of Free Cash Flow of USD 236.3 million* during the period, 24.2%* below what was achieved in 2014;

● The Group continued to focus on deleveraging: Net Debt2 reduced by USD 160 million* in 2015. The Group’s Total Debt has decreased by over USD 290 million* since the NCC Group acquisition in the end of 2013.

● The Group successfully refinanced part of its debt portfolio by issuing two 5-year tranches of Russian rouble nominated bonds3 swapped to USD for the aggregate amount of approximately USD 134 million*. This allowed Global Ports to achieve greater financial flexibility, extend its maturity profile, decrease its average cost of borrowings and increase the share of fixed-rate borrowing in its portfolio.

● In line with statements made a year ago, the Group continues to prioritize deleveraging over dividend distribution in order to ensure the long-term financial flexibility of the Company in the current market environment.

Mr. Vladislav Baumgertner, CEO of Global Ports Management, commented:

“The macro-economic backdrop in Russia continues to be challenging and the container market has inevitably felt the effects of this. In 2015 we tried to mitigate as much as possible the macro impact on our company’s performance while still preserving our undoubted long-term potential. Our focus on efficiency combined with the successful promotion of our premium terminal services with our clients has allowed us to increase our Adjusted EBITDA margin to a record level of 72%* and generate healthy free cash flow of USD 236 million*.

We continued our process of deleveraging that has already seen us reimburse more than USD 290 million* in debt since the NCC Acquisition. We also entered the public debt markets last year, an important step that has increased our financial flexibility.

We fully expect 2016 to be another challenging year. So far we have seen no signs of a market recovery and at the same time competition in our industry is intensifying. Nevertheless as a team we feel well prepared to face even this toughest of environments since our track is one of repeated success in navigating our way through difficult cycles.”

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