OMSK: Global Ports, the largest ports operator in Russia, saw its pre-tax profit halve and its revenue fall by a quarter in the six months to June as the volume of containers passing through its ports tumbled amid an economic contraction in Russia.
Global Ports, which handles only container ships, suffered a 26 per cent decline in its throughput “as a result of changes in the macroeconomic environment”. Russia’s economy has contracted in both quarters so far this year, shrinking by a hefty 4.6 per cent in the second quarter, writes Joel Lewin.
But on a brighter note, the sliding rouble softened the blow for the London-listed company.
The depreciating rouble, which has lost some 38 per cent to the dollar since May, gave Global Ports a leg up by cutting local currency costs. This helped the company achieve record margins on its earnings before interest, tax, depreciation and amortisation, although that excludes a large impairment charge.
Still, overall revenue fell 25.2 per cent to $214.3m and pre-tax profit dropped 52.9 per cent to $45.2m. An impairment charge of $46.7m relating to “a change in estimates” at its Ust-Luga terminal also hurt.
The company’s shares are down 34 per cent in the last 12 months, although year to date they are up 106 per cent after bouncing back from a dramatic slump in the second half of 2014.
Shipping activity at Port Qasim on February 11
KARACHI: Three ships namely, Glen Canyon, Al-Salam- II and TSM Pollux carrying Containers, Gas oil and Palm oil were arranged...
