NCSP Group Announced Operating Results for January-June 2010
OREANDA-NEWS. July 14, 2010. The Novorossiysk Commercial Sea Port Group (LSE: NCSP, RTS and MICEX: NMTP) hereby reports its consolidated operating results for January-June
Commenting on the operating results for the first six months of 2010 PJSC NCSP Chairman of the Board Alexander Ponomarenko said: "Relative decrease of NCSP Group cargo traffic in the first half of 2010 must be evaluated in the context of 2009 operating results, which were an absolute record in the history of NCSP. However, given the intra-year volatility of crude oil volumes, results for the first half of the year are positive. Our priority this year is to retain the volumes reached in 2009 with a focus on continuing implementation of the investment program, which will result in launching new capacity starting from the end of 2011".
"Certain positive changes in the structure of our cargo mix over the last six months must also be noted. Thus, the share of such important cargoes as containers, grain, and oil products in the first half of 2010 has grown to 4.2%, 10.6%, and 15.8% of the total cargo turnover respectively", added Alexander Ponomarenko.
In the reporting period the total amount of cargoes that demonstrated positive growth rates recorded an aggregate growth of 1 847.6 thousand tons versus January-June 2009. Growth in container cargo, dry mineral fertilizers, raw sugar, and timber contributed 76.7% of this increase. On the other hand, the aggregate decrease of the cargoes that demonstrated negative dynamics comprised 2 972.4 thousand tons, of which 89.9% was contributed by the drop in iron ore and crude oil volumes.
In the first half of 2010 export volumes of crude oil reduced by 1.6 million tons total, while the 1 million tons drop happened in June versus May 2010, mostly due to the fact that some producers corrected their shipping schedules expecting a better market in July.
Volumes of UAN liquid fertilizer and petroleum products retained positive growth rates in the reporting period and increased by 17.9% (34.2 thousand tons) and 2.4% (158.3 thousand tons) respectively. Thus Group’s turnover of liquid cargo totaled 27 481.9 thousand tons, which is by 1 488.8 thousand tons less than the volumes in H1 2009.
Bulk cargo volumes in the first six months of 2010 totaled 7 092.5 thousand tons, a 5.7% drop from the volumes of same period last year, conditioned by the decrease of iron ore exports. The Group is utilizing additional capacity being freed up as a result of the above to load other bulk cargo including dry mineral fertilizers, which over the last six months increased by 333.0 thousand tons or by 47.2%. In the second half of the year we expect iron ore volumes to recover up to the level of 300 thousand tons per month based on the recently signed contracts, which will allow us to reach last year figures.
Handling of grain in the reporting period increased by 2.1% (by 93.3 thousand tons), while the share of Novorossiysk Grain Terminal in the Group’s total grain volumes increased up to 60.7% versus 56.5% in January-June 2009.
General cargo traffic in the reporting period versus January-June last year increased by 148.5 thousand tons (by 2.6%). Volumes of non-ferrous metals increased by 56.8 thousand tons (by 11.7%), timber cargo was up by 150.4 thousand tons or by 264.5 thousand cubic meters (by 33.5%), and perishable cargo grew by 80.9 thousand tons (by 107.7%).
Container traffic in the first half of 2010 increased by 68.2% (by 82.7 thousand TEU) versus the same period last year, and reached a total of 203.9 thousand TEU.