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3rd Quarter Results

·17-min read

Global Ports Holding PLC (GPH)
10-Nov-2020 / 07:00 GMT/BST
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Global Ports Holding Plc

9 Month 2020 Trading Statement

Global Ports Holding announces Q3 2020 and 9 month results

Global Ports Holding Plc ("GPH" or the "Group"), the world's largest independent cruise port operator, today announces its unaudited results for the nine months ending 30 September 2020.

 

 

Key Financials and KPIs

 

 

Emre Sayin, Chief Executive Officer, said:

"As 2020, a year the global cruise industry and many of us will want to forget, comes to an end, the global cruise industry remains in near shutdown and the outlook for 2021 remains uncertain for the sector.

While cruise activity has restarted in the Mediterranean and Asia, levels of activity remain very low. As we head into Winter in the Northern Hemisphere, the potential end of the significant travel restrictions in Europe cannot be assessed with certainty due to the ongoing and even increasing impacts of Covid-19. 

In North America and the Caribbean, the cruise lines and cruise ports have put in place extensive Covid-19 protocols and the industry is ready to set sail once again. However, while the Centers for Disease Control and Prevention (CDC) has effectively replaced its no sail order with a "Framework for Conditional Sailing Order for Cruise Ships", we do not expect there will be a meaningful return to cruising in the near-term.

The near-term outlook for the industry looks more challenging than we had expected at the time of half year results in August 2020. The first quarter is normally an important trading period for our Caribbean ports and no meaningful cruise activity in this period will have a negative impact to full-year 2021 trading. We continue to manage the Group carefully by focusing on reducing costs and preserving cash during this difficult period.

We continue to work with all stakeholders towards the successful financial close for the sale of Port Akdeniz. The successful conclusion of this process will effectively complete our strategic ambition of creating a pure play cruise port operator. While we continue to believe in the long term strength of the global cruise industry, all stakeholders should remain alert to the fact that the disposal of Port Akdeniz will occur during a period of continued uncertainty around a meaningful return to cruising."

Disposal of Port Akdeniz

Following a period of exclusive negotiations, on 21st October 2020, GPH entered into a conditional sale and purchase agreement to sell Ortadoğu Antalya Liman Işletmeleri ("Port Akdeniz") to QTerminals W.L.L. ("QTerminals"), a Qatari commercial port operating company, for an enterprise value of $140m. The net cash proceeds for GPH from this transaction at closing will be determined by deducting net debt and debt like items of Port Akdeniz at closing as well as paying transaction-related costs and taxes. A small portion of the purchase price will be withheld by QTerminals and paid 12 months after closing of the transaction.

The sale remains conditional, inter alia, upon obtaining certain regulatory clearances and approvals from various Turkish governmental authorities. Management is focussing on the completion of this transaction. The successful closing of the sale will be an important factor when addressing the upcoming maturity of the $250m Eurobond due November 2021, for which GPH continues to assess a range of options but no decision has been made on timing and structure. An update will be provided when it is appropriate to do so.

Management believes the Group has sufficient resources to withstand an extended cruise shutdown into 2021. However, following the sale of Port Akdeniz maintaining sufficient liquidity is pivotal to the Group's ability to trade through this extended cruise shutdown, particularly as the threat of a second wave of Covid-19 cases and a return to severe travel restrictions sweeps across Europe.

Financial Review

 

Cruise Port Review

 

 

 

Commercial Port Review

 

 

 

 

 

Balance Sheet

Gross debt at period end was $575.1m (31st December 2019: $453.0m), with this increase driven largely by the issuing of the Nassau Cruise Port bond in the period. As at 30th September 2020 net debt was $466.2m (31st December 2019: $389.1m). The Group's Net Debt/EBITDA ratio was 14.0x (FY 2019 4.3x).

Excluding IFRS 16 finance leases, the gross debt at the end of the period was $508.8m (31st December 2019: $388.2m), net debt at the end of the period was $399.8m (31st December 2019: $324.3m) and Net Debt/EBITDA was 12.0x. The leverage ratio as per GPH's Eurobond remains above the incurrence covenant of 5.0x. As an incurrence covenant, the impact is that incurrence of additional debt at Global Liman and its subsidiaries and dividend distributions from Global Liman are restricted.

Operating cash flow was $20.6m (9M 2019: $24.8m). The decline in operating cash flow was driven by lower EBITDA partially offset by a working capital movement that resulted in a positive cash flow of $11.5m in the period, primarily as a result of the unwind in trade and other receivables in the absence of cruise calls in Q2 and Q3 2020 and following the peak cruise season in the Caribbean.

Net capital expenditure during the period was $64.4m, a significant increase on the $5.9m incurred in 9M 2019. $57.8m was spent on the Caribbean ports in Antigua and Nassau. $3.8m was spent across the rest of the cruise portfolio earlier this year, with $2.0m spent in Barcelona on terminal improvements and $1.5m in Valletta on investment into the waterfront infrastructure. $2.7m was spent on capex at the Commercial ports, with the vast majority of this spent at Port Akdeniz.

 

Outlook & current trading

The near term outlook for Cruise over the remainder of 2020 and 2021 is highly uncertain and looks more challenging than the outlook at the time of half year results in August 2020.

While a number of cruise lines have commenced sailing in the Mediterranean and Asia, volumes remain very low. In North America and the Caribbean, there remains uncertainty as to when cruising will recommence in a meaningful way.

The recent issuing of a "Framework for Conditional Sailing Order for Cruise Ships" by the Centers for Disease Control and Prevention (CDC) provides a more formal structure for the return to cruising. However, we do not expect there will be a meaningful return to cruising in the near term.

The first quarter is normally an important trading period for our Caribbean ports therefore no meaningful cruise activity in this period will have a negative impact on our overall trading in 2021.

While from an operating cash flow perspective management believe the Group has sufficient resources to withstand an extended cruise shutdown into 2021, the successful sale of Port Akdeniz will effectively create a pure play cruise port group during a period of continued uncertainty around a meaningful return to cruising in 2021. Therefore, maintaining sufficient liquidity is pivotal to the Group's ability to trade through this extended cruise shutdown, particularly in the context of a Covid-19 second wave and as a return to severe travel restrictions sweeps across Europe.

 

Conference call

A conference call for investors only will be held at 4.00pm today.

Please register in advance at:

https://us02web.zoom.us/webinar/register/WN_escuppCxR-KGEmZ0FMn2Vw

 

Notes

 

Appendix

 

 

 

 

 

 

 


 

 


Key Financials & KPI Highlights

9M 2020

9M 2020

9M 2019

YoY Change

 

Q3 2020

Q3 2019

YoY Change

 

 

CCY5

 

 

 

 

 

 

Passengers (m PAX)6

1.3

 

3.7

-64%

 

0.01

1.6

-99%

General & Bulk Cargo ('000 tons)

871

 

580

50%

 

288

122

136%

Container Throughput ('000 TEU)

133

 

155

-14%

 

42

50

-15%

 

 

 

 

 

 

 

 

 

Total Revenue ($m)1

84.1

84.1

91.5

-8%

 

29.9

36.9

-19%

Cruise Revenue ($m)7

53.8

53.8

46.1

17%

 

19.9

22.2

-10%

Ex IFRIC 12 Cruise Revenue ($m)9

13.7

 

46.1

-70%

 

1.9

22.2

-92%

Commercial Revenue ($m)

30.3

30.3

45.4

-33%

 

10.0

14.7

-32%

 

 

 

 

 

 

 

 

 

Segmental EBITDA ($m)2

20.6

20.6

66.3

-69%

 

3.7

27.2

-86%

Cruise EBITDA ($m)8

0.9

0.9

32.6

-97%

 

(2.9)

15.7

-118%

Commercial EBITDA ($m)

19.6

19.6

33.7

-42%

 

6.7

11.4

-42%

Adjusted EBITDA ($m)3

16.5

16.5

61.0

-73%

 

3.0

26.2

-89%

Segmental EBITDA Margin

24.4%

24.4%

72.4%

 

 

12.3%

73.7%

 

Cruise Margin

1.7%

1.7%

70.6%

 

 

-14.6%

70.8%

 

Commercial Margin

64.8%

64.8%

74.2%

 

 

67.1%

78.0%

 

Adjusted EBITDA Margin

19.6%

 

66.7%

 

 

10.0%

71.0%

 

 

 

 

 

 

 

 

 

 

Operating (Loss)/Profit ($m)

(26.2)

 

10.3

 

 

(6.6)

9.0

 

(Loss)/Profit for the period ($m)

(47.7)

 

(14.8)

 

 

(12.6)

0.9

 

Underlying profit for the period4

0.1

 

17.3

 

 

3.2

11.3

 

 

 

 

 

 

 

 

 

 

 

9M 2020

 

Dec 2019

 

 

 

 

 

Gross Debt

575.1

 

453.0

 

 

 

 

 

Gross Debt ex IFRS 16 Finance Lease

508.8

 

388.2

 

 

 

 

 

Net Debt

466.2

 

389.1

 

 

 

 

 

Net Debt ex IFRS 16 Finance Lease

399.8

 

 324.3

 

 

 

 

 

Cash and Cash equivalents

108.9

 

63.8

 

 

 

 

 

Passengers (m PAX)

9M 2020

  9M 2019       

YoY Change (%)

Q3 2020

Q3 2019

YoY Change (%)

Creuers

0.14

1.9

-93%

0.003

          0.86

-99.7%

Valletta

0.047

0.7

-93%

0.007

0.32

-97.8%

Ege Port

0.007

0.2

-97%

0.000

0.12

-100%

Nassau

0.835

n/a

n/a

0.000

n/a

n/a

Antigua

0.256

n/a

n/a

0.000

n/a

n/a

Other Cruise Ports

0.016

0.8

-98%

0.002

0.29

-99.5%

Total Cruise Ports

1.3

      3.7

-64%

0.011

         1.59

-99%

 

9M 2020

 

9M 2019

Yoy Chge

Port Akdeniz

 

 

 

 

General & Bulk Cargo ('000 tons)

835

 

 445

88%

Throughput ('000 TEU)

94

 

119

-21%

 

 

 

 

 

Port Adria

 

 

 

 

General & Bulk Cargo ('000 tons)

37

 

 136

-73%

Throughput ('000 TEU)

39

 

 36

8%

 

 

 

 

 

Total General & Bulk Cargo ('000 tons)

871

 

580

50%

Total Throughput ('000 TEU)

133

 

 155

-14%

Consolidated statement of comprehensive income data

9M 2020

9M 2019

Revenue

84.1

91.5

Operating Expenses

(91.3)

(61.6)

       of which Depreciation and Amortization

(36.3)

(34.9)

Other Operating Income

2.4

3.0

Other Operating Expense

(21.4)

(22.6)

Operating profit

(26.2)

10.3

Finance Income

16.5

5.6

Finance Expenses

(49.2)

(32.5)

Share of profit of equity accounted investees

0.6

4.4

Profit before income tax

(58.3)

(12.3)

Income tax expense

10.6

(2.6)

Profit for the period

(47.7)

(14.8)

Other financial data (USD millions actual)

 

 

Adjusted EBITDA

16.5

61.0

EBITDA margin

19.6%

66.7%

Cash flow (USD Million)

9M 2020

9M 2019

Net cash from operating activities

20.6

24.8

of which change in working capital

11.5

(14.7)

Net Cash used in investing activities

(66.9)

(2.9)

of which CAPEX

(64.4)

(5.9)

Net cash from / (used in) financing activities

92.4

(28.6)

of which interest paid

(16.4)

(14.1)

of which net dividends received / (paid)

(0.2)

(22.3)

Net (decrease) / increase in cash and cash equivalents

46.1

(6.7)

Consolidated statement of financial position data ($m)

30.09.2020

30.09.2019

31.12.2019

Cash and cash equivalents (including short term investments)

108.9

66.2

63.8

Total current assets

135.5

115.5

102.8

Total assets

879.4

699.8

794.9

Total debt (including obligations under financing leases)

575.1

411.1

453.0

Net debt (including obligations under financing leases)

466.2

324.3

389.1

Total equity

124.6

171.2

155.3

of which retained earnings

32.5

74.4

61.1

CONTACT

 

 

For investor, analyst and financial media enquiries:

 

For media enquiries:

Global Ports Holding, Investor Relations

 

Global Ports Holding

Martin Brown

 

Ceylan Erzi

Telephone: +44 (0) 7947 163 687

 

Telephone: +90 212 244 44 40

Email: martinb@globalportsholding.com

 

Email: ceylane@globalportsholding.com

Key Financials & KPI Highlights

9M 2020

9M 2020

9M 2019

YoY Change

 

Q3 2020

Q3 2019

YoY Change

 

 

CCY5

 

 

 

 

 

 

Passengers (m PAX)6

1.3

 

3.7

-64%

 

0.01

1.6

-99%

General & Bulk Cargo ('000 tons)

871

 

580

50%

 

288

122

136%

Container Throughput ('000 TEU)

133

 

155

-14%

 

42

50

-15%

 

 

 

 

 

 

 

 

 

Total Revenue ($m)1

84.1

84.1

91.5

-8%

 

29.9

36.9

-19%

Cruise Revenue ($m)7

53.8

53.8

46.1

17%

 

19.9

22.2

-10%

Ex IFRIC 12 Cruise Revenue ($m)9

13.7

 

46.1

-70%

 

1.9

22.2

-92%

Commercial Revenue ($m)

30.3

30.3

45.4

-33%

 

10.0

14.7

-32%

 

 

 

 

 

 

 

 

 

Segmental EBITDA ($m)2

20.6

20.6

66.3

-69%

 

3.7

27.2

-86%

Cruise EBITDA ($m)8

0.9

0.9

32.6

-97%

 

(2.9)

15.7

-118%

Commercial EBITDA ($m)

19.6

19.6

33.7

-42%

 

6.7

11.4

-42%

Adjusted EBITDA ($m)3

16.5

16.5

61.0

-73%

 

3.0

26.2

-89%

Segmental EBITDA Margin

24.4%

24.4%

72.4%

 

 

12.3%

73.7%

 

Cruise Margin

1.7%

1.7%

70.6%

 

 

-14.6%

70.8%

 

Commercial Margin

64.8%

64.8%

74.2%

 

 

67.1%

78.0%

 

Adjusted EBITDA Margin

19.6%

 

66.7%

 

 

10.0%

71.0%

 

 

 

 

 

 

 

 

 

 

Operating (Loss)/Profit ($m)

(26.2)

 

10.3

 

 

(6.6)

9.0

 

(Loss)/Profit for the period ($m)

(47.7)

 

(14.8)

 

 

(12.6)

0.9

 

Underlying profit for the period4

0.1

 

17.3

 

 

3.2

11.3

 

 

 

 

 

 

 

 

 

 

 

9M 2020

 

Dec 2019

 

 

 

 

 

Gross Debt

575.1

 

453.0

 

 

 

 

 

Gross Debt ex IFRS 16 Finance Lease

508.8

 

388.2

 

 

 

 

 

Net Debt

466.2

 

389.1

 

 

 

 

 

Net Debt ex IFRS 16 Finance Lease

399.8

 

 324.3

 

 

 

 

 

Cash and Cash equivalents

108.9

 

63.8

 

 

 

 

 

Passengers (m PAX)

9M 2020

  9M 2019       

YoY Change (%)

Q3 2020

Q3 2019

YoY Change (%)

Creuers

0.14

1.9

-93%

0.003

          0.86

-99.7%

Valletta

0.047

0.7

-93%

0.007

0.32

-97.8%

Ege Port

0.007

0.2

-97%

0.000

0.12

-100%

Nassau

0.835

n/a

n/a

0.000

n/a

n/a

Antigua

0.256

n/a

n/a

0.000

n/a

n/a

Other Cruise Ports

0.016

0.8

-98%

0.002

0.29

-99.5%

Total Cruise Ports

1.3

      3.7

-64%

0.011

         1.59

-99%

 

9M 2020

 

9M 2019

Yoy Chge

Port Akdeniz

 

 

 

 

General & Bulk Cargo ('000 tons)

835

 

 445

88%

Throughput ('000 TEU)

94

 

119

-21%

 

 

 

 

 

Port Adria

 

 

 

 

General & Bulk Cargo ('000 tons)

37

 

 136

-73%

Throughput ('000 TEU)

39

 

 36

8%

 

 

 

 

 

Total General & Bulk Cargo ('000 tons)

871

 

580

50%

Total Throughput ('000 TEU)

133

 

 155

-14%

Consolidated statement of comprehensive income data

9M 2020

9M 2019

Revenue

84.1

91.5

Operating Expenses

(91.3)

(61.6)

       of which Depreciation and Amortization

(36.3)

(34.9)

Other Operating Income

2.4

3.0

Other Operating Expense

(21.4)

(22.6)

Operating profit

(26.2)

10.3

Finance Income

16.5

5.6

Finance Expenses

(49.2)

(32.5)

Share of profit of equity accounted investees

0.6

4.4

Profit before income tax

(58.3)

(12.3)

Income tax expense

10.6

(2.6)

Profit for the period

(47.7)

(14.8)

Other financial data (USD millions actual)

 

 

Adjusted EBITDA

16.5

61.0

EBITDA margin

19.6%

66.7%

Cash flow (USD Million)

9M 2020

9M 2019

Net cash from operating activities

20.6

24.8

of which change in working capital

11.5

(14.7)

Net Cash used in investing activities

(66.9)

(2.9)

of which CAPEX

(64.4)

(5.9)

Net cash from / (used in) financing activities

92.4

(28.6)

of which interest paid

(16.4)

(14.1)

of which net dividends received / (paid)

(0.2)

(22.3)

Net (decrease) / increase in cash and cash equivalents

46.1

(6.7)

Consolidated statement of financial position data ($m)

30.09.2020

30.09.2019

31.12.2019

Cash and cash equivalents (including short term investments)

108.9

66.2

63.8

Total current assets

135.5

115.5

102.8

Total assets

879.4

699.8

794.9

Total debt (including obligations under financing leases)

575.1

411.1

453.0

Net debt (including obligations under financing leases)

466.2

324.3

389.1

Total equity

124.6

171.2

155.3

of which retained earnings

32.5

74.4

61.1

CONTACT

 

 

For investor, analyst and financial media enquiries:

 

For media enquiries:

Global Ports Holding, Investor Relations

 

Global Ports Holding

Martin Brown

 

Ceylan Erzi

Telephone: +44 (0) 7947 163 687

 

Telephone: +90 212 244 44 40

Email: martinb@globalportsholding.com

 

Email: ceylane@globalportsholding.com

ISIN:

GB00BD2ZT390

Category Code:

QRT

TIDM:

GPH

Sequence No.:

87523

EQS News ID:

1146798


 

End of Announcement

EQS News Service

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