Global Ports Holding Plc

Interim results for the six months ended 30 June 2019

Global Ports Holding announces record interim Cruise results, Group outlook for full year maintained

Global Ports Holding Plc ("GPH" or "Group"), the world's largest independent cruise port operator, today announces its unaudited results for the six months ended 30 June 2019.

Financial Summary	H1 2019	H1 2019		H1 2018	YoY Growth	YoY CCY
		CCY6			(%)	Growth (%)
Total Revenue ($m) 1	54.6	56.4		56.6	-3.4%	-0.2%
Segmental EBITDA ($m) 2	39.1	40.3		40.3	-3.1%	0.0%
Adjusted EBITDA ($m)	34.8	36.0		36.1	-3.5%	-0.2%
Operating Profit ($m) 3	1.3		6.5		-80.2%
Profit/(Loss) before tax ($m)	(13.8)		(2.1)
Profit/(Loss) after tax ($m)	(15.8)		(3.6)
Underlying profit for the period ($m) 4	0.9		12.4		-92.4%
EPS (c)	(26.0)		(6.0)
Adjusted EPS (c) 5	1.5		19.7
DPS (c)	19.9		27.9		-28.7%
Net Debt	351.1		253.1		38.7%
Net debt excluding impact of IFRS 16	290.1		253.1		14.6%

Overview

Group - Strong performance in Cruise offset by weakness in Commercial

• Total consolidated revenues were $54.6m in the period down 3.4% yoy (-0.2% ccy)
• Strong Cruise EBITDA growth of 14.3% (21.7% ccy) to $16.8m was offset by a decline in Commercial EBITDA of 13.1% (12.6% ccy) to $22.3m. H1 Segmental EBITDA - down 3.1% at $39.1m (-0.0% ccy), H1 Adjusted EBITDA - down 3.5% to $34.8m (-0.2% ccy, -4.3% ccy and before IFRS 16).

• Operating profit of $1.3m (H1 2018: $6.5m), was primarily due to $15.5m of amortisation expense in relation to port operation rights (H1 2018 $16.0m), depreciation of right of use assets $1.2m (H1 2018: $0.0m), amortisation $6.6m (H1 2018: $6.5m) and one off adjustments $6.9m (H1 2018: $4.2m). The total IFRS 16 impact on operating profit is $0.4m.
• Loss after tax for the period of $15.8 million (H1 2018: $3.6m) is driven by an increase in net finance costs to $18.4m (H1 2018: $11.4m), offset by an increase in income from equity accounted associates to $3.3m (H1 2018: $2.7m), while tax expense increased to $1.9m (H1 2018: $1.5m). The increased net finance costs are primarily due to non-cash loss when revaluing the Eurobond debt, along with non-cash revaluation losses on Turkish entities foreign currency dominated liabilities. Net interest expenses increased only slightly to $12.7m (H1 2018: $12.1m). The higher tax charge reflects higher taxable profit contribution from cruise operations and lower taxable profits from commercial ports, which are in lower tax jurisdictions.
• Underlying profit for the period reflects the loss after tax adjusted for the amortisation of port operating rights $15.5m (H1 2018: $16.1m) and depreciation of right-of-use assets $1.2m (H1 2018: $0.0m).
• 2019 H1 figures are stated under IFRS 16, the adoption of IFRS 16 resulted in a positive impact to Adjusted EBITDA of $1.5m in the period. The full year impact on Adjusted EBITDA is expected to be c$3.0m. The H1 2019 IFRS 16 impact on depreciation is a negative $1.2m and on finance costs a negative $1.1m. With the overall IFRS 16 negative impact on Loss before tax of $0.7m. Unless otherwise stated all 2019 figures are under IFRS 16. The group's option elected for the application of IFRS 16 as described in note 2, does not lead to a restatement of the prior year figures.
• Net debt of $351.1m (31st December 2018: $267.2m) reflects the $60.9m recognition of operating leases on the balance sheet under IFRS 16. Excluding this impact net debt increased to $290.1m. The leverage ratio as per GPH's Eurobond was 4.2x at 30th June 2019 (31st December 2018: 4.2x), vs a covenant of 5.0x, this leverage ratio excludes the impact of IFRS 16.
• Significant progress was made towards the implementation of our new port investment strategy during the period. A concession agreement was signed for Antigua and Barbuda, our JV was named preferred bidder for Nassau and our other JV successfully bid for the port operator of La Goulette, Tunisia. All remain conditional until such times as conditions are fulfilled. In addition, the pipeline of additional port investment and management opportunities remains strong.
  • A strategic review was announced, after period end, to explore ways to maximise value for all stakeholders and includes a range of potential corporate activity including the sale of certain assets as well as strategic investments and partnerships. A further announcement will be made when it is appropriate to do so.
  • Having reviewed carefully the progress made in regard to opportunities for investment in new cruise ports the board has proposed an interim dividend of 19.9c (H1 2018: 27.9c).   

Cruise - Strong H1 results

• Cruise EBITDA grew 14.3% (21.7% ccy) to $16.8m in the period, with Cruise Revenue growing 6.6% (13.3% ccy) to $23.9m.
• The performance of both Ege Port and Valletta in the period were both particularly pleasing. 
• Passenger volumes grew 26.8% yoy, with 2.1m PAX handled in the period, on an organic basis passenger volumes grew 8.6% yoy, with the strong volume growth of 31% from Ege a particular highlight.
• Outlook for Ege Port in Turkey continues to strengthen for 2020 and 2021 and reservations for Bodrum and Antalya cruise port in 2020 are now also showing a marked improvement.

• Significant progress made towards the implementation of our new port investment strategy during the period.

Commercial -weak performance continues

• Commercial EBITDA fell 13.1% (12.6% ccy) to $22.3m in the period, with Commercial Revenue falling 10.0% (9.1% ccy) to $30.8m.
• General & Bulk Cargo volumes fell 42.4% and TEU Throughput fell 14.4% in the period.  Our commercial business, particularly Port Akdeniz was impacted by global macro-economic factors in the period, leading in particular to a decline in marble and cement volumes.
• Excluding the H1 2018 project cargo impact, Port of Adria grew EBITDA yoy, driven primarily by continued strength in steel coil volumes.
• We continue to work on diversifying Port Akdeniz's revenue streams and driving volume to Port Adria to capitalise on our previous capex improvements at this port. While, our commercial ports are not immune to macro-economic factors, historically our volumes have always recovered over time.

Outlook & current trading

Looking into 2020, current booking trends are in line with our expectations, with the continued momentum in bookings to both Ege Port and Bodrum particularly pleasing for both 2020 and 2021.

While our other cruise ports continue to perform in line with our expectations. Our work to transform the retail experience at our ports continues to gather momentum, the new travel retail experience in Barcelona has been well received and we are pleased to already be experiencing strong increased passenger spend.

Trading at our commercial ports was affected by the macro-economic environment, with both cargo and container volumes weak in the period and so far in Q3 volumes have remained weak.

We expect to deliver low single digit growth in organic adjusted EBITDA10 for the full year.

Emre Sayin, Chief Executive Officer said;

"We have seen another record performance from our Cruise business in the first half of the year, with strong growth in passenger volumes translating into strong growth in Cruise EBITDA. We are pleased with the significant progress made in our new port investment strategy and expect to achieve further significant progress in the second half of the year.

Our commercial ports are not immune to macro-economic factors and as a result recent trading has been challenging. Our previous experience suggests that the trading performance will improve over time and we continue to work to diversify the revenue streams at our commercial ports.

Trading since the period end at our Cruise ports has continued to be in line with our expectations, while weak trading trends at our Commercial ports have thus far continued into H2 2019. We expect to deliver low single digit growth in organic EBITDA for the full year."

Notes- For full definitions and explanations of each Alternative Performance measures in this statement please refer to Note 2f  

1. All $ refers to United States Dollar unless otherwise stated
2. Segmental EBITDA is calculated as income/(loss) before tax after adding back: interest; depreciation; amortisation; unallocated expenses; and specific adjusting items
3. Adjusted EBITDA calculated as Segmental EBITDA less unallocated (holding company) expenses
4. Underlying Profit is calculated as profit / (loss) for the year after adding back: amortization expense in relation to Port Operation Rights and the one-off expenses related to the IPO and deduction of reversal of replacement provisions
5. Adjusted earnings per share is calculated as underlying profit divided by weighted average number of shares
6. Performance at constant currency is calculated by translating foreign currency earnings from our consolidated cruise ports, management agreements and associated ports for the current period into $ at the average exchange rates used over the same period in the prior year.
7. Passenger numbers refer to consolidated and managed portfolio consolidation perimeter, hence it excludes equity accounted associate ports Venice, Lisbon and Singapore
8. Revenue allocated to the Cruise segment is the sum of revenues of consolidated and managed portfolio
9. EBITDA allocated to the Cruise segment is the sum of EBITDA of consolidated cruise ports and pro-rata Net Profit of equity accounted associate ports Venice, Lisbon and Singapore and the contribution from the Havana management agreement
10. Organic adjusted EBITDA growth is growth in adjusted EBITDA excluding the contribution from ports that were not in the portfolio for the full 12 months of the previous period

 

Notes to Editors

GPH is the world's largest cruise port operator with an established presence in the Mediterranean, Caribbean, Atlantic and Asia-Pacific regions. GPH was established in 2004 as an international port operator with a diversified portfolio of interests in cruise and commercial ports. As an independent cruise port operator, the group holds a unique position in the cruise port landscape, positioning itself as the world's leading cruise port brand, with an integrated platform of cruise ports serving cruise liners, ferries, yachts and mega-yachts. As the world's sole cruise ports consolidator, GPH's portfolio consists of investments in or management of 15 cruise ports and two commercial ports in 9 countries and continues to grow steadily. 8.5 million cruise passengers globally were handled across our portfolio of cruise ports in 2018. The group also offers commercial port operations which specialise in container, bulk and general cargo handling.

For further information, please contact:

CONTACT
For investor and analyst enquiries:		For media enquiries:
Global Ports Holding, Investor Relations		Brunswick Group LLP
Martin Brown, Investor Relations Director		Azadeh Varzi and Imran Jina
Telephone: +44 (0) 7947 163 687		Telephone: +44 (0) 20 7404 5959
Email: martinb@globalportsholding.com		Email: GPH@brunswickgroup.com

 

A copy of this report will be available on our website www.globalportsholding.com today from 0700hrs (BST).

Investor Presentation

An analyst and investor call will be held today at 9.30am,

Dial-in Number: +44 207 194 3759

PIN: 28143813#

Access to the slide presentation will be available at http://www.globalportsholding.com/reports-presentations

Key Financials	H1 2019	H1 2019 CCY6		H1 2018	YoY Growth (%)		YoY CCY Growth (%)
Total Revenue ($m)	54.6	56.4		56.6	-3.4%		-0.2%
Cruise Revenue ($m) 8	23.9	25.4		22.4	6.6%		13.3%
Commercial Revenue ($m)	30.8	31.1		34.2	-10.0%		-9.1%
Segmental EBITDA ($m)	39.1	40.3		40.3	-3.1%		0.0%
Cruise EBITDA ($m) 9	16.8	17.9		14.7	14.3%		21.7%
Commercial EBITDA ($m)	22.3	22.4		25.6	-13.1%		-12.6%
Adjusted EBITDA ($m)	34.8	36.0		36.1	-3.5%		-0.2%
Segmental EBITDA Margin	71.6%	71.4%		71.3%
Cruise Margin	70.5%	70.6%		65.8%
Commercial Margin	72.4%	72.0%		74.9%
Adjusted EBITDA Margin	63.7%	63.8%		63.8%
Profit/(Loss) before tax ($m)	(13.8)		(2.1)
KPIs
Passengers (m PAX) 7	2.06		1.63		26.8%
General & Bulk Cargo ('000 tons)	458		795		-42.4%
Container Throughput ('000 TEU)	106		123		-14.4%

Please refer to Footnotes above or for full definitions and explanations of each measure in this statement please refer to the Glossary of Alternative Performance Measures

Group performance review

Group performance in the first half of 2019 was marginally weaker than the same period last year, with group revenue down 3.4% (-0.2% in constancy currency) to $54.6m (H1 2018: $56.6m) and Adjusted EBITDA down 3.5% (-0.2% in constant currency) to $34.8m (H1 2018: $36.1) with underlying profit falling 92.4% to $0.9m and loss after tax of -$15.8m. 

The adoption of IFRS 16 resulted in a total Adjusted EBITDA positive impact of $1.5m in the period and the full year Adjusted EBITDA impact is expected to be c$3.0m. Further details on the impact of IFRS 16, including a segmental breakdown of the EBITDA impact is provided in Note 3 to these financial statements.  All 2019 figures in this statement are under IFRS 16 unless otherwise stated, prior year figures are not restated for IFRS 16.

The first half of our financial year is typically lower in terms of cruise passenger volumes due to the seasonally low Q1, hence trends during first half are not fully informative for full-year trends. Nevertheless, we are very pleased to have grown cruise passenger volumes by 26.8% to 2.06m cruise passengers (H1 2018: 1.6m, FY 2018: 4.4m), with strong organic passenger growth of 8.6%. While at all ports, including equity accounted associate ports Venice, Lisbon and Singapore, we welcomed 3.3m passengers (H1 2018: 2.7m, FY 2018: 8.4m), growth of 21.2%.

Cruise Revenue in the first half grew by 6.6% $23.9m (H1 2018: $22.4m, FY 2018: $54.9m), and Cruise EBITDA grew by 14.3% to $16.8m, in line with our expectations. This strong performance was broad based, with particularly pleasing growth from both Valletta and Ege Port in the period, delivering EBITDA growth of 46% and 44% respectively. With the performance from Ege Port strongly supporting the outlook for growth in Turkish cruise passenger volumes in both 2019 and 2020. On a constant currency basis, first half cruise revenue was $25.4m and Cruise EBITDA was $17.9m.

The performance of our Commercial Port operations in the period was disappointing and underperformed compared to our original expectations. Commercial revenues fell by 10.0% to $30.8m in the period (H1 2018: $34.2m, FY 2018: $69.9m). Revenues from Port Akdeniz fell by 6.1% while Port Adria's revenue fell by 27.5%, reflecting the previously highlighted absence of wind turbine project cargo in 2019.

Commercial EBITDA fell by 13.1% to $22.3m, with both ports reporting a decline. Port Akdeniz delivered a reported decline in EBITDA of 10.6% to $20.7m, with General & Bulk cargo volumes remaining weak in Q2 and Container volumes weakening in Q2 vs a stable performance in Q1.

Port of Adria reported an EBITDA decline of 36.3% to $1.6m. However, excluding the one off positive impact of project cargo in H1 2018, Port Adria's underlying performance was positive. Ex project cargo EBITDA grew 35%, and on an ex project cargo and pre IFRS 16 basis EBITDA still grew 15.7%. Despite the significant drop in volumes and revenue our Commercial EBITDA margin fell by just 260bps to 72.4%.

Central costs increased in the period, rising by 1.0% compared to an 89% increase in H1 2018 and a 34% increase in FY 2018. While underlying central costs increased by 12.2% ex the positive impact of the weaker Turkish Lira vs USD and IFRS 16, the reduction in in the underlying growth rate reflects that our significant investment in central costs, including the strengthening of the management team began to annualise in the period.

Loss after tax for the period of $15.8 million (H1 2018: $3.6m) is driven by an increase in net finance costs to $18.4m (H1 2018: $11.4m), offset by an increase in income from equity accounted associates to $3.3m (H1 2018: $2.7m), while tax expense increased to $1.9m (H1 2018: $1.5m). The increased net finance costs are primarily due to non-cash loss when revaluing the Eurobond debt, along with non-cash revaluation losses on Turkish entities foreign currency dominated liabilities. Net interest expenses increased only slightly to $12.7m (H1 2018: $12.1m). The higher tax charge reflects higher taxable profit contribution from cruise operations and lower taxable profits from commercial ports, which are in lower tax jurisdictions.

Since the period end we have announced that in light of the emerging opportunities in our cruise business that we were undertaking a strategic review of the Group. The purpose of the strategic review is to explore ways to maximise value for all stakeholders and includes a range of potential corporate activity including a sale of certain assets as well as strategic investments and partnerships. The process remains at an early stage and there can be no certainty as to the final outcome. A further announcement will be made when it is appropriate to do so.

During the period we made significant progress with our new port investment strategy during the period. A concession agreement was signed for Antigua and Barbuda, our JV was named preferred bidder for Nassau and our other JV successfully bid for the port operator of La Goulette, Tunisia. While each of these new projects has still to complete, we are confident that successful financial conclusion and final agreements will be reached.

In addition to these projects, we are also in the final stages of completing the purchase of the Autoridad Portuaria de Malagas's (Malaga Port Authority) 20.0% holding in the Malaga cruise port concession for EUR1.5m. This will take Creuers ownership to 100% of the Malaga cruise port concession and GPH's effective ownership to 62%.

  

Cruise Ports Business Review

The long term growth fundamentals of the cruise industry continue to provide a very supportive back drop for our cruise business. The global cruise ship order book, currently sits at a record high of 124 new ships on order for delivery between 2019-2027, an increase of 10% in 12 months.

Based on current known orders and the greater size of new ships once completed, this implies the average global cruise passenger growth rate is c4-5% per annum over the medium term according to Cruise Industry News, with new supply arguably creating its own demand.

In the near term there is a significant number of cruise ships that are likely to sail in the Caribbean or Europe set for delivery over the remainder of 2019, 2020, 2021 and 2022. We look forward to welcoming these cruise ships to our ports in the years ahead.

While the order book provides visibility over the long term growth rate, the long lead time on cruise holiday bookings vs land based tourism and cruise lines ability to manage yields means visibility over passenger volumes over the short term is also strong.

 

The first half of our financial year is currently lower in terms of cruise passenger volumes vs the second half due to the fact it includes the seasonally low Q1 for cruise in the Mediterranean. Despite the seasonal low, we still welcomed 2.1m (H1 2018: 1.6m, FY 2018: 4.4m) cruise passengers to our consolidated and managed cruise ports in the period, a pleasing growth rate of 26.8%. On an organic basis, which excludes the impact of our management agreement in Havana, our passenger volume growth rate was 8.6% vs 9.2% in H1 2018.  At all ports including equity accounted associate ports Venice, Lisbon and Singapore we welcomed 3.3m (H1 2018: 2.7m, FY 2018: 8.4m).

In the first half Cruise Revenue increased 6.6% to $23.9m vs H1 2018 $22.4m and Cruise Segmental EBITDA once again grew faster than revenue, delivering growth of 14.3% to $16.8m (H1 2018: $14.7m). The revenue from our cruise ports are almost exclusively Euro based at present, with most ports also incurring costs in Euros, with the exception of our Turkish ports which have a largely USD revenue base and Turkish Lira cost base. On a constant EUR/$ currency basis the first half cruise performance was even stronger, with revenue growth of 13.3% to $25.4m and Cruise EBITDA growth of 21.7% to $17.9m. Excluding the performance of our equity accounted associates (Venice, Lisbon and Singapore), with a pro-rata net income contribution at the Cruise EBITDA level of $3.3m (H1 2018: $2.7m), Cruise EBITDA grew by 12.6% yoy.

We continue to drive growth in on our ancillary revenues, with three main areas of focus: port services; retail and rental services; and passenger and destination services. There were some important developments in the period in this area of the business, most notably in Retail and Rental Services, with the opening of new immersive travel retail in two of the terminals at Barcelona. The new areas have received positive feedback from passengers and the uplift in associated revenue has been very pleasing. Since the period end we issued an RFP for the retail and duty free areas for four of our ports, Malaga, Zadar, Cagliari and Catania. We look forward to receiving submissions in Q3 before deciding on the best way forward for these ports.

While our plans to grow our Port Services revenues continues to progress, our port service evaluation process identified tailored services that we could introduce at each relevant port in order to allow us to offer an integrated service package to cruise passengers and cruise ships. Having concluded the review, we have focussed our actions on a number of our larger ports and we are taking action to fill any gaps in our offering at these ports. While our Destination Services offering continues to see us drive improvements in the service we offer passengers through our Guest Information Centers (GICs).

The last couple of years have been challenging for our Turkish cruise ports, however our 'active patience' approach of continuing to invest in our facilities and a step up in our marketing in 2018 is beginning to deliver, with a 31% growth in passengers in H1 2019 at Ege Port, our key Turkish port. During the period, we hosted the MedCruise General Assembly at Ege Port, providing a great platform to reenergise the industry's interest in the port and region. We currently expect a slightly higher growth in passenger volumes at Ege Port in H2 2019, with passenger volume growth in 2020 currently expected to be even higher.

During H1 we reorganised the management of our cruise operations under a new regional structure, with the creation of three regions, East Mediterranean, West Mediterranean and Americas regions. This new structure reflects our growing global operations, including our pipeline of new port investments, and will help us maintain operational discipline while providing a strong platform for our next stage of growth.

During the period significant progress was made towards the implementation of our new port investment strategy, we signed a 30-year concession agreement for Antigua and Barbuda, our joint venture was awarded the cruise port tender for Nassau, Bahamas and our joint venture was notified that its bid for the operator of La Goulette, Tunisia had been successful.

We are in the final stages of full financial closure in Antigua & Barbuda and now expect this to be achieved before the end of Q3 2019. We look forward to welcoming this port and the c800k passengers that visit every year into our portfolio shortly.

Nassau, Bahamas is one of the largest cruise ports in the world and welcomes 3.7m passengers per annum. We remain in advanced stage discussions with local and international banks over long term bank financing for the concession. Signing of the concession agreement, full financial closure and commencement of the concession is expected to occur before the end of 2019.

Our joint venture with MSC Cruises S.A was successful in acquiring Goulette Shipping Cruise, the company that operates the cruise terminal in La Goulette, Tunisia during the period. Full closure and commencement of the concession is expected in Q4 2019.

All remain conditional until such times as all conditions are fulfilled. In addition to new port investments we continue to work on securing concession extensions at a number of our ports in our current portfolio.

Creuers (Barcelona and Malaga)	H1 2019	H1 2019 CCY6	H1 2018	YoY Growth (%)	YoY CCY Growth (%)
Revenue (USD m)	12.5	13.4	13.3	-6.3%	0.2%
Segmental EBITDA (USD m)	7.7	8.3	8.0	-3.7%	3.1%
Segmental EBITDA Margin	61.7%	61.7%	60.1%
Passengers (m)1	1.04		1.02	1.7%
Turnaround Passengers	0.56		0.58	-3.7%
Transit Passengers	0.48		0.44	8.7%
Yield (USD, rev per pax)	12.0	12.9	13.0	-7.9%

 

Creuers (Barcelona & Malaga), in line with our expectations, grew passenger volumes by 1.7% in the period, welcoming 1.0m (H1 2018: 1.0m) passengers in H1 2019. Revenue of $12.5m (H1 2018: $13.3m) was down 6.3% yoy, although in constant currency terms revenue increased 0.2%.

Despite the modest passenger growth, the change in the passenger mix, with Malaga experiencing a sharp drop in turnaround passengers in the period, negatively impacted passenger yields, revenues and EBITDA in the period. Creuers delivered EBITDA for the period of $7.7m (H1 2018: $8.0m), down 3.7% yoy, on a constant currency basis EBITDA grew 3.1%.

During the period we opened the new retail and duty free areas in two terminals in Barcelona in partnership with our concessionaire. The results have been impressive, with passenger feedback very positive on the new immersive retail areas and most importantly sales have risen strongly. In Malaga we will shortly undertake a refurbishment of the cafeteria area of the Palmeral terminal, further improving the passenger experience. We are also taking action to offer a "one stop shop" integrated service package to cruise lines at both ports.

We are also in the final stages of completing the purchase of the Autoridad Portuaria de Malagas's (Malaga Port Authority) 20.0% holding in the Malaga cruise port concession for EUR1.5m. This will take Creuers ownership to 100% of the Malaga cruise port concession and GPH's effective ownership to 62%. As well as changing the financial ownership, we believe this action will allow us to drive additional operational improvements at the port.

Valletta Cruise Port	H1 2019		H1 2019 CCY6	H1 2018	YoY Growth (%)	YoY CCY Growth (%)
Revenue (USD m)		6.2	6.7	5.7	10.1%	17.8%
Segmental EBITDA (USD m)		3.7	4.0	2.5	46.3%	56.6%
Segmental EBITDA Margin		59.6%	59.6%	48.3%
Passengers (m)1		0.39		0.28	39.8%
Turnaround Passengers		0.11		0.1	79.5%
Transit Passengers		0.29		0.22	29.2%
Yield (USD, rev per pax)		15.8	16.9	20.1	-21.3%

 

Valletta performed very strongly during the period, with passenger growth of 39.8% to 0.39m (H1 2018: 0.28m). Revenue for the period grew 10.1% to $6.2m (H1 2018: 5.7m) or 17.8% in constant currency terms. EBITDA grew 46.3% in the period to $3.7m (H1 2018: $2.5m), with constant currency growth of 56.6%.

The divergence in revenue growth from passenger growth is primarily driven by passenger spending habits at our self-managed travel retail offering and our area management revenues. Within the passenger mix in the period, there was particularly strong growth in turnaround passengers, while turnaround passengers tend to generate higher port services revenues, their retail spend tends to be far lower. With this impact felt more acutely in Valletta compared to our other ports given that we self-manage the travel retail operation.

The area management revenues at Valletta such as rent from waterfront restaurants are not directly related to passenger volume, therefore do not rise or fall in line with passenger growth. Our primary port revenues grew in line with passenger growth.

After a challenging and weather impacted 2018, it has been pleasing to see Valletta return to form in such a manner. Looking into H2 2019 the passenger volume growth should normalise.

Ege Port	H1 2019	H1 2019 CCY6	H1 2018	YoY Growth (%)	YoY CCY Growth (%)
Revenue (USD m)	2.3	2.3	1.7	32.4%	32.4%
Segmental EBITDA (USD m)	1.4	1.4	0.9	43.5%	43.5%
Segmental EBITDA Margin	59.0%	59.0%	54.5%
Passengers (m)1	0.08		0.06	30.9%
Turnaround Passengers	0.01		0.01	-3.4%
Transit Passengers	0.07		0.05	36.8%
Yield (USD, rev per pax)	28.3		28.0	1.1%

   

The last few years have been particularly challenging for our Turkish cruise ports, however as we have highlighted for some time, 2019 is the starting point for the recovery in passenger volumes. This start of this recovery can be seen in the 30.9% growth in cruise passenger volumes in the period. This strong volume growth translated into revenue growth of 32.4% to $2.3m (H1 2018: $1.7m), with our Turkish ports now charging in USD there was no translational FX impact in the period.

EBITDA of $1.4m (H1 2018: $0.9m) was up 43.5% year on year, with the uplift in the margin to 59.0% helped by the positive impact the weak Turkish Lira given the predominately Turkish Lira cost base at the port.  

Looking into H2 2019, the passenger volume growth rate should be higher than in H1 2019 but more importantly, looking into 2020 the passenger growth rate should accelerate yoy as the recovery trend continues to build, while 2021 already shows growth on 2020 reservations.

Other Cruise	H1 2019	H1 2019 CCY6	H1 2018	YoY Growth (%)	YoY CCY Growth (%)
Revenue (USD m)	2.8	3.0	1.6	72.7%	84.9%
Segmental EBITDA (USD m)	4.0	4.3	3.2	25.3%	34.1%
Passengers (m)1	0.54		0.26	111.5%
Turnaround Passengers	0.05		0.01	376.8%
Transit Passengers	0.50		0.25	100.5%

 

Other Cruise revenue reflects the revenue contribution of our smaller cruise port concessions and our management agreement in Havana. While Other Cruise EBITDA reflects the EBITDA contribution of smaller cruise port concessions and our management agreement in Havana, as well as the net income contribution of our equity associate ports (Venice, Lisbon and Singapore).

Cruise passenger volumes grew 111.5% in the period, although on an organic basis passenger volumes fell 3.3%. Revenue grew 72.7% in the period, 84.9% in constant currency, on an organic basis revenue grew 22.0% to $2.0m. EBITDA grew 25.3% to $4.0m, on an organic basis EBITDA grew 11.7%.

During the period US authorities prohibited authorised travel via cruise ships under the People to People program, leading to the US cruise lines to redeploy cruise ships away from Havana. Our management agreement is focussed on us advising on cruise port operation best practice for Havana cruise port, GPH has not invested in the port. We continue to monitor the situation and are actively engaged with all stakeholders. In light of the redeployment of US cruise lines we do not expect a material contribution from this management agreement in the foreseeable future.  

Our equity accounted associate ports, Venice, Lisbon and Singapore once again performed well, reporting total PAX growth of 12.9% to 1.2m (H1 2018: 1.1m). Overall the pro-rata net income contribution from our equity accounted associate ports contributed to Other Cruise EBITDA was $3.3m (H1 2018: $2.7m) during the period, a growth rate of 21.6% on the same period last year.

 

Commercial Ports Business Review

H1 2019 has proven to be a challenging period for our Commercial ports business, with Port Akdeniz in particular suffering from weak general and bulk cargo volumes throughout the period and weak container volumes in Q2. Our commercial ports are not immune to the impact of macro-economic factors such as trade tariffs and their associated impact on global trade in general and we believe the general uncertainty around global trade has been the primary driver of the slowdown experienced by Port Akdeniz.

Commercial	H1 2019	H1 2019 CCY6	H1 2018	YoY Growth (%)	YoY CCY Growth (%)
Revenue (USD m)	30.8	31.1	34.2	-10.0%	-9.1%
Segmental EBITDA (USD m)	22.3	22.4	25.6	-13.1%	-12.6%
Segmental EBITDA Margin	72.4%	72.0%	74.9%
General & Bulk Cargo ('000)	458		795	-42.4%
Throughput ('000 TEU)	106		124	-14.6%
Yield (USD, Revenue per tonnes)	7.4		9.0	-16.9%
Yield (USD, Revenue per TEU)	168.1		176.3	-4.6%

Our Commercial port operations delivered a decline in revenue of 10.0% to $30.8m (H1 2018: $34.2m). While Commercial EBITDA fell by 13.1% to $22.3m (H1 2018: $25.6m). Overall our volumes were weak in the period, with General and Bulk cargo volumes declining by 42.4% and Throughput container volumes falling by 14.6%, this overall volume decline was driven a fall in volumes at Port Akdeniz.

In terms of yields, total throughput container yields were down 4.6%, while cargo yields were down 16.9%, with the drop in cargo yields reflecting the impact of Port Adria's project cargo in H1 2018. Port Akdeniz benefitted from the weakness in Turkish Lira due to the port's cost structure being around 70% in local currency, while revenues are almost exclusively in $. However, while the weak Turkish Lira generated a direct benefit, there was also an unsubstantiated indirect cost in terms of the uncertainty created by the volatility and weakness in the Turkish Lira.

Port Akdeniz	H1 2019	H1 2019 CCY6	H1 2018	YoY Growth (%)	YoY CCY Growth (%)
Revenue (USD m)	26.3	26.3	28.0	-6.1%	-6.1%
Segmental EBITDA (USD m)	20.7	20.7	23.1	-10.6%	-10.6%
Segmental EBITDA Margin	78.7%	78.7%	82.7%
General & Bulk Cargo ('000)	335		695	-51.8%
Throughput ('000 TEU)	80		98	-18.7%
Yield (USD, Revenue per tonnes)	6.4		6.5	-1.0%
Yield (USD, Revenue per TEU)	188.1		194.1	-3.1%

Port Akdeniz, our largest commercial port, reported a revenue decline of 6.1% to $26.3m (H1 2018: $28.0m), with EBITDA declining 10.6% to $20.7m (H1 2018: $23.1m) and the EBITDA margin fell to 78.7%.

General & Bulk Cargo volumes fell sharply, declining by 51.8%, albeit the rate of decline in Q2 moderated vs Q1. Throughput container volumes fell by 18.7% in the period, with Q2 volumes down sharply after a stable performance in Q1. Total marble volumes fell by 22.1% in the period, with import containers also down sharply, falling 21.6%. The small decline in yields reflects the product and services mix in the period rather than a change in the underlying pricing.

While the expansion of the free trade zone has had an impact on volumes in some General & Bulk cargo, particularly in bagged cement and barite, we believe the largest driver of volume declines has been the macro-economic environment. Global trade tariffs and barriers to trade in general are harmful to trade volumes and we believe the general uncertainty around global trade, particularly involving China, has been a primary driver of the slowdown experienced by Port Akdeniz.

Looking into H2 2019, the outlook for both General & Bulk cargo volumes and Throughput container volumes continues to look uncertain. An agreement to end the current escalation of trade tariffs and barriers involving China and a general improvement in Chinese GDP growth are, we believe, the most likely catalysts for a meaningful improvement, particularly in Throughput container volumes.  Our previous experience suggests that the trading performance will improve over time and we continue to work to diversify the revenue streams at our commercial ports.

As previously disclosed, on 29 April 2019, the Competition Authority of the Republic of Turkey notified Global Ports Holding's subsidiary in Turkey, Ortadoğu Antalya Liman İşletmeleri A.Ş ("Port Akdeniz"), that it has commenced an investigation into Port Akdeniz due to an alleged breach of Article 6 of the Law on the Protection of Competition, Law No. 4054 due to excessive pricing concerns on certain services. Further to our statement in Q1, Ortadoğu Antalya Liman İşletmeleri A.Ş ("Port Akdeniz") has submitted the first set of defence on 28 May 2019. By law, the Competition Authority of the Republic of Turkey has 6 months from the submission date to evaluate the defences and prepare an investigation report. The Competition Authority may, at its sole discretion, extend the preparation period by additional 6 months. A further announcement will be made when it is appropriate to do so.

Port Adria	H1 2019	H1 2019 CCY6	H1 2018	YoY Growth (%)	YoY CCY Growth (%)
Revenue (USD m)	4.5	4.8	6.2	-27.5%	-22.4%
Segmental EBITDA (USD m)	1.6	1.7	2.5	-36.3%	-31.8%
Segmental EBITDA Margin	35.0%	35.0%	39.9%
General & Bulk Cargo ('000)	122.7		100.1	22.6%
Throughput ('000 TEU)	25.9		25.6	1.2%
Yield (USD, Revenue per tonnes)	10.3		26.2	-58.1%
Yield (USD, Revenue per TEU)	106.6		108.2	-1.6%

While at the headline level Port of Adria's performance in the period looks disappointing, there was a number of one offs that impacted the performance, most notably the project cargo impact in H1 2018. Excluding this impact, the underlying performance was positive.

Revenue fell 27.5% in the period to $4.5m (H1 2018: $6.2m) and EBITDA fell 36.3% to $1.6m (H1 2018: $2.5m). However, excluding the one off positive impact of project cargo in H1 2018, revenue fell by 5.7%, while underlying EBITDA increased by 35.0%. On a pre-IFRS 16 basis, the underlying EBITDA growth was still an impressive 15.7%, reflecting lower costs 

General & Bulk Cargo volumes rose an impressive 22.6% in the period, driven primarily by the continued strength in steel coil exports which has followed the completion of an investment programme by the manufacturer. While Throughput container volumes rose a more modest 1.2%.

We continue to work on growing the volumes at this port and remain in talks with a number of parties, both importers and exporters about introducing new cargoes at the port during 2019.

Brexit

It looks increasingly likely that UK will exit the EU in the coming months and while the indirect impact on any business cannot be known for sure, we believe that Brexit does not pose a material issue for the group, either directly or indirectly. The long lead times on the booking of cruise holidays and the consistently high rates of occupancy achieved by cruise lines are supportive of our view. We also note recent comments from major cruise lines on their confident outlook for the rest of 2019 and 2020. We do not believe our commercial business has any significant direct exposure to any fall out from Brexit. While of course any wider impact on economic confidence and global trade could have an indirect impact on our commercial ports, we believe this impact would be limited. The group has no port operations in the UK.

Financial Overview

Loss after tax for the period of $15.8 million (H1 2018: $3.6m) is driven by an increase in net finance costs to $18.4m (H1 2018: $11.4m), offset by an increase in income from equity accounted associates to $3.3m (H1 2018: $2.7m), while tax expense increased to $1.9m (H1 2018: $1.5m). The increased net finance costs are primarily due to non-cash loss when revaluing the Eurobond debt, along with non-cash revaluation losses on Turkish entities foreign currency dominated liabilities. Net interest expenses increased only slightly to $12.7m (H1 2018: $12.1m). The higher tax charge reflects higher taxable profit contribution from cruise operations and lower taxable profits from commercial ports, which are in lower tax jurisdictions.

Specific Adjusting Items in Operating Profit

As of 30 June 2019, specific adjusting items comprising project expenses amounting to $4.7m (H1 2018: $3.6m), provisions $1.0m (H1 2018: $0.3m) and other specific adjustment items $1.2m (H1 2018: $0.3m) Please see note 2 f in the interim condensed consolidated financial statements for more details.

Finance Costs

The Group's net finance charge in the period was $18.4m, an increase on the $11.4m charge in H1 2018. This increase was primarily due to the Turkish Lira depreciation against $ in the year, which creates a foreign exchange charge and gain on liabilities and assets respectively.

This occurs for two reasons. Firstly, the group's Eurobond is issued by Global Liman, a 100% owned entity within the group with a functional currency of Turkish Lira. When the Turkish Lira depreciates against the $ a non-cash foreign exchange loss occurs when revaluing the Eurobond debt, while a non-cash foreign exchange gain should occur if the Turkish Lira appreciates against the $. Secondly, although all our Turkish ports charge in $, they must legally keep the accounting books in Turkish Lira, so when the Turkish Lira depreciates against the $ this results in non-cash foreign exchange losses on revaluing the Turkish entities' foreign currency denominated liabilities and non-cash foreign exchange gains on revaluing the Turkish entities foreign currency assets.

During the period net finance expenses increased to $29.0m (H1 2018: $22.3m), primarily due to a non-cash foreign exchange loss when revaluing the Eurobond debt of $13.1m (H1 2018: $9.3m), net interest expenses increased slightly to $12.7m (H1 2018: $12.1m) and interest expenses on lease obligations increased to $1.7m (H1 2018: $0.1m) with $1.1m of this increase due to the adoption of IFRS 16 in the period.

Finance income fell to $10.5m (H1 2018: $10.9m), primarily as a result of a drop in the non-cash foreign exchange gains on Turkish entities' TL costs base to $9.7m (H1 2018: $10.0m).

Taxation

Global Ports Holding is a multinational group and as such is liable for taxation in multiple jurisdictions around the world. The Group's underlying tax charge for the period was $1.9m (H1 2018: $1.5m), representing an effective underlying tax charge of 21.02% (H1 2018: 16.22%). The higher tax charge compared with prior years is primarily the result of higher taxable profits in our Cruise business which is primarily based in higher tax jurisdictions in Europe and the lower taxable profit contribution from our commercial ports which are based in lower tax jurisdictions.

Earnings Per Share

The Group's basic earnings per share was -26.0c (H1 2018: -6.0c), this decrease is in line with the decline in profit for the year attributable to owners of the company -$16.3m (H1 2018: -$3.8m). Adjusted earnings per share of 1.5c (H1 2018: 19.7c), reflects the decline in the underlying profit measure, which is calculated as (loss)/profit for the period after removing the impact of the amortisation of port operating rights and depreciation of right of use assets.

Cash Flow and Investment

Operating cash flow was -$1.3m (H1 2018: $24.5m). The decrease in operating cash flow is primarily related to an increase in working capital of $24.3m. This increase was driven by short term cash collaterals for new projects of $12.4m (H1 2018: nil), a receivable related to a change in port agent in Barcelona of $4.3m (H1 2018: nil) and a period end timing issue over receipt of a $1.5m payment related to our oil services contract in Port Akdeniz. Since period end the short term cash collateral has been returned and the receivables related to the change in port agent and the oil services contract have been received.

Capital expenditure during the period was $5.7m, broadly in line with the $5.6m incurred in H1 2018. In H1 2019 the group spent approximately $2.6m in Port Akdeniz on work related to the TPAO project, $1.1m in Port Adria on infrastructure enhancements, $1.0m in Creuers mostly on remodelling of terminals and security and $0.8m in Valletta on canopy investment.

Balance Sheet

At 30th June 2019 net debt was $351.1m (31st December 2018: $267.2m) This increase was driven by the $60.9m impact of recognising operating leases on the balance sheet under IFRS 16 and the decrease in cash as explained on the cash flow and investment above. The group's Net Debt/Adjusted EBITDA ratio was 4.3x times as at 30th June 2019 (31st December 2018: 3.2x). Excluding the IFRS 16 impact net debt increased to $290.1m (31st December 2018: $267.2m) and the Net Debt/Adjusted EBITDA ratio was 3.6x.

Gross debt at period end was $410.0m (31st December 2018: $347.1m), with this increase driven by the adoption of IFRS 16, excluding this impact, gross debt was $349.0m. The Leverage Ratio as per GPH's Eurobond was 4.2x at 30th June 2019 (31st December 2018: 4.2x), vs a covenant of 5.0x, the leverage ratio excludes the IFRS 16 impact, in line with the bond descriptions.

Impact of Foreign Currency Movements

All of GPH's European and Adriatic cruise ports operate in Euros, with the majority of costs being in Euros at our non-Turkish cruise ports. Our Commercial port, Port of Adria receives revenues in Euros and the majority of its costs are incurred in Euros. The translation of profits from these port operating entities are not hedged and as a result, the movement of the US dollar and Euro exchange rates directly affects the Group's reported results.

The vast majority of our revenues at our Turkish cruise ports are in US Dollars, while the majority of costs are in Turkish Lira. Our Commercial port, Port of Antalya, receives revenues in US Dollars and c70% of its costs are incurred in Turkish Lira. The group does not hedge this exposure as a result, the movement of the US dollar exchange rates to the Turkish Lira directly affects the Group's reported results.

In the first half of 2019, the group was impacted by unfavourable movements against the prior year in respect of the US Dollar against Euro and a favourable movement in respect of the US Dollar against the Turkish Lira. The details of the foreign exchange rates used in the period can be found in Note 2 e) of the consolidated financial statements.

Dividend

Having reviewed carefully the progress made in regard to opportunities for investment in new cruise ports the board has proposed an interim dividend of $12.5m (19.9c per share), The interim dividend is to be paid on 29 November to shareholders on the register on 1 November 2019. This is in keeping with the board's state minimum dividend policy which was communicated at the time of the IPO.

Summary of the effect of the adoption of IFRS 16

	H1 2019  Reported	Impact of IFRS 16	H1 2019 Pre IFRS 16	H1 2018 Reported
Income Statement
Segmental EBITDA	39.1	1.4	37.7	40.3
Adjusted EBITDA	34.8	1.5	33.3	36.1
Depreciation and Amortisation	(23.3)	(1.2)	(22.1)	(22.6)
Net Finance Costs	(18.4)	(1.1)	(17.4)	(11.4)
Balance Sheet
Segment Assets	656.4	58.9	597.5	606.5
Unallocated Assets	48.1	0.7	47.4	95.1
Segment Liabilities	267.1	60.2	206.9	228.8
Unallocated Liabilities	283.4	0.7	282.7	264.7
Gross Debt	409.9	(60.9)	349.0	354.8
Net Debt	351.1	(60.9)	290.1	253.1
Adjusted EBITDA (annualised)	82.5	1.5	80.9	81.4
Leverage Ratios
Gross Debt/EBITDA	5.0		4.2	4.4
Net Debt/EBITDA	4.3		3.6	3.1

 

 

 

 

 

 

 

 

Global Ports Holding PLC

 

Interim condensed consolidated financial statements

 

For the six months ended 30 June 2019

 

 

 

 

 

 

 

 

 

 

Contents

 

Responsibility Statement	16
Independent Review Report to Global Ports Holding PLC	17
Primary Statements
Interim condensed consolidated statement of profit or loss and other comprehensive income	18-19
Interim condensed consolidated statement of financial position	20
Interim condensed consolidated statement of changes in equity	21-23
Interim condensed consolidated cash flow statement	24
Notes to the condensed financial statements	25-52

 

 

 

 

 

Responsibility Statement

 

 

We confirm that to the best of our knowledge:

 

• the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU,

 

• the interim management report includes a fair review of the information required by:

 

 

1. DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

 

2. DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

 

 

By order of the Board,

 

 

 

 

 

Mehmet KUTMAN

Chairman

19 August 2019

 

 

 

INDEPENDENT REVIEW REPORT TO GLOBAL PORTS HOLDING PLC 

Conclusion 

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2019 which comprises the interim condensed consolidated statement of profit or loss and other comprehensive income, the interim condensed consolidated statement of financial position, the interim condensed consolidated statement of changes in equity, the interim condensed consolidated cash flow statement and the related explanatory notes. 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2019 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").   

Scope of review 

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  We read the other information contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. 

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion.  

Directors' responsibilities 

The half-yearly financial report is the responsibility of, and has been approved by, the directors.  The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA. 

As disclosed in note 2, the annual financial statements of the group are prepared in accordance with International Financial Reporting Standards as adopted by the EU.  The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted by the EU. 

Our responsibility 

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. 

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the DTR of the UK FCA.  Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached. 

 

 

 

 

John Luke

for and on behalf of KPMG LLP 

Chartered Accountants 

15 Canada Square

London, E14 5GL

United Kingdom  

19 August 2019

 

The Group has initially applied IFRS 16 at 1 January 2019, using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognised in retained earnings at the date of initial application. See Note 2.

 

  

 

The Group has initially applied IFRS 16 at 1 January 2019, using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognised in retained earnings at the date of initial application. See Note 2.

 

 

 

 

 

 

The notes on pages 12 to 39 are an integral part of these condensed consolidated interim financial statements

 

 

	Notes		As at  30 June 2019 (USD '000) (Unaudited)		As at 31 December 2018 (USD '000) (Audited)		As at  30 June 2018 (USD '000) (Unaudited)
Non-current assets
Property and equipment			128,150		129,351		131,110
Intangible assets			374,759		392,361		410,036
Right of Use Assets	2		59,658		--		--
Goodwill			13,485		13,485		13,699
Equity-accounted investees			26,524		26,003		23,538
Other investments	15		12,617		12,013		11,782
Deferred tax assets	7		2,635		3,066		1,492
Other non-current assets			4,591		4,626		4,964
			622,419		580,905		596,621
Current assets
Trade and other receivables	8		42,916		19,999		16,881
Due from related parties	14		1,057		1,027		1,730
Other investments			72		72		705
Other current assets			4,315		3,336		5,677
Inventory			1,468		1,454		1,791
Prepaid taxes			24		1,363		722
Cash and cash equivalents			58,795		79,829		100,999
			108,647		107,080		128,505
Total assets			731,066		687,985		725,131
Current liabilities Loans and borrowings	10		58,295		48,755		48,074
Trade and other payables			17,785		15,279		13,975
Due to related parties	14		504		542		250
Dividends payable	9		16,821		--		--
Current tax liabilities	7		2,911		2,459		2,430
Provisions	11		1,974		955		1,156
			98,290		67,990		65,885
Non-current liabilities
Loans and borrowings	10		351,654		298,296		306,747
Other financial liabilities			2,088		3,408		2,551
Derivative financial liabilities	15		669		617		788
Deferred tax liabilities	7		89,582		92,294		96,304
Provisions	11		7,388		8,862		20,316
Employee benefits			836		797		837
			452,217		404,274		427,543
Total liabilities			550,507		472,264		493,428
Net assets			180,559		215,721		231,703
Equity
Share capital			811		811		811
Legal reserves			13,038		13,030		13,030
Share based payment reserves			275		--		--
Hedging reserves			(213,618)		(195,393)		(173,069)
Translation reserves			214,918		197,247		179,901
Retained earnings			75,845		108,981		121,628
Equity attributable to equity holders of the Company			91,269		124,676		142,301
Non-controlling interests			89,290		91,045		89,402
Total equity			180,559		215,721		231,703

 

The Group has initially applied IFRS 16 at 1 January 2019, using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognised in retained earnings at the date of initial application. See Note 2.

 

 

 

 

The notes on pages 12 to 39 are an integral part of these condensed consolidated interim financial statements

 

(USD '000)	Notes	Share capital	Legal  reserves	Share based payment reserves	Hedging reserves	Translation reserves	Retained earnings	Total	Non-controlling interests	Total equity
Balance at 1 January 2019 (Audited)		811	13,030	--	(195,393)	197,247	108,981	124,676	91,045	215,721
Adjustment on initial application of IFRS 16 (net of tax) (*)		--	--	--	--	--	--	--	--	--
Adjusted balance at 1 January 2019		811	13,030	--	(195,393)	197,247	108,981	124,676	91,045	215,721
Loss for the year		--	--	--	--	--	(16,317)	(16,317)	557	(15,760)
Other comprehensive (loss) / income for the year		--	--	--	(18,225)	17,671	10	(544)	(461)	(1,005)
Total comprehensive (loss) / income for the year		--	--	--	(18,225)	17,671	(16,307)	(16,861)	96	(16,765)
Transactions with owners of the Company
Transactions with non-controlling interest		--	--	--	--	--	--	--	--	--
Transfer to legal reserves		--	8	--	--	--	(8)	--	--	--
Equity settled share-based payment expenses		--	--	275	--	--	--	275	--	275
Dividends	9	--	--	--	--	--	(16,821)	(16,821)	(1,851)	(18,672)
Total contributions and distributions		--	8	275	--	--	(16,829)	(16,546)	(1,851)	(18,397)
Total transactions with owners of the Company		--	8	275	(18,225)	17,671	(33,136)	(33,407)	(1,755)	(35,162)
Balance at 30 June 2019 (Unaudited)		811	13,038	275	(213,618)	214,918	75,845	91,269	89,290	180,559

 

(*) The Group has initially applied IFRS 16 at 1 January 2019, using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognized in retained earnings at the date of initial application. See Note 2.

 

 

 

 

 

The notes on pages 12 to 39 are an integral part of these condensed consolidated interim financial statements

 

(USD '000)	Notes	Share capital	Legal  reserves	Hedging reserves	Translation reserves	Retained earnings	Total	Non-controlling interests	Total equity
Balance at 1 January 2018 (Audited)		811	13,012	(135,763)	150,626	143,148	171,834	92,896	264,730
Loss for the year		--	--	--	--	(3,789)	(3,789)	151	(3,638)
Other comprehensive (loss) / income for the year		--	--	(37,306)	29,275	9	(8,022)	(2,981)	(11,003)
Total comprehensive (loss) / income for the year		--	--	(37,306)	29,275	(3,780)	(11,811)	(2,830)	(14,641)
Transactions with owners of the Company
Transactions with non-controlling interest		--	--	--	--	--	--	--	--
Transfer to legal reserves		--	18	--	--	(18)	--	--	--
Dividends	9	--	--	--	--	(17,722)	(17,722)	(664)	(18,386)
Total contributions and distributions		--	18	--	--	(17,740)	(17,722)	(664)	(18,386)
Total transactions with owners of the Company		--	18	(37,306)	29,275	(21,520)	(29,533)	(3,494)	(33,027)
Balance at 30 June 2018 (Unaudited)		811	13,030	(173,069)	179,901	121,628	142,301	89,402	231,703

 

 

 

 

 

 

 

 

The notes on pages 12 to 39 are an integral part of these condensed consolidated interim financial statements

(USD '000)	Notes	Share capital	Legal reserves	Hedging reserves	Translation reserves	Retained earnings	Total	Non-controlling interests	Total equity
Balance at 1 January 2018 (Audited)		811	13,012	(135,763)	150,626	143,148	171,834	92,896	264,730
(Loss) / income for the year		--	--	--	--	770	770	6,366	7,136
Other comprehensive (loss) / income for the year		--	--	(59,630)	46,621	(76)	(13,085)	(4,514)	(17,599)
Total comprehensive (loss) / income for the year		--	--	(59,630)	46,621	694	(12,315)	1,852	(10,463)
Transactions with owners of the Company
Transactions with non-controlling interest		--	--	--	--	--	--	94	94
Transfer to legal reserves		--	18	--	--	(18)	--	--	--
Dividends	9	--	--	--	--	(34,843)	(34,843)	(3,797)	(38,640)
Total contributions and distributions		--	18	--	--	(34,861)	(34,843)	(3,703)	(38,546)
Total transactions with owners of the Company		--	18	(59,630)	46,621	(34,167)	(47,158)	(1,851)	(49,009)
Balance at 31 December 2018 (Audited)		811	13,030	(195,393)	197,247	108,981	124,676	91,045	215,721

 

 

 

 

 

 

 

 

 

The notes on pages 12 to 39 are an integral part of these condensed consolidated interim financial statements