OREANDA-NEWS. September 12, 2011. Global Ports released its 1H11 IFRS and operating results today (12 Sep). The company posted strong YoY growth (revenue: +57%, EBITDA: +82%, Net income: +99%), but this was mostly expected by the market (although no meaningful Bloomberg consensus figures exist). The results are also generally in line with our estimates, although 2Q11 EBITDA came in 5% lower than our estimate. We attribute this difference to a lower actual EBITDA margin (56.8% vs 58.6%) and a minor negative deviation in container revenues, which generate higher margins than oil transhipments.

From an operating standpoint, container terminals located in Russia reported numbers in line with our estimates (-1% vs our estimate), but the VEOS oil products terminal in Estonia reported transhipment volumes 7% lower than our forecast. In our view, this difference may be the result of stronger competition from the Ust-Luga oil terminal, which opened in 2011. Nonetheless, this difference in oil product volumes was offset by higher tariffs and appreciation of the euro vs the dollar (terminal tariffs are euro denominated). We note that we expected unimpressive oil transhipment volume growth at VEOS, given increasing competition from Russian oil terminals and spare capacity in the Baltic region.

Bottom line

In our view, while the company posted strong YoY results, the figures were mostly expected by us and the market. From the operating side, we note that the oil products segment reported unimpressive cargo volumes and container volumes were in line with our expectations.