NOVOROSSIYSK, RUSSIA — Novorossiysk Commercial Sea Port (NCSP) Group announced on Dec. 1 that net income for the third quarter was $156,502,000 up from $10,087,000 in the same quarter of last year.
EBITDA for the first nine months of 2015 was $488,353,000 up 8.3% from $450,787,000 in the first nine months of 2014.
Revenue for the first nine months of 2015 was $654,676,000 down 12.3% in the same period of last year. Grain handling revenue is down $15,200,000 or 22.6% year-on-year as volumes dropped 11% year-on-year.
Key drivers of revenue reduction were the decrease in volumes of crude oil, grain and containers. FX losses from ruble nominated revenue, and the drop in bunkering volumes.
Russian ruble depreciated against U.S. dollar by 10.7 rubles in the third quarter, which produced a material effect on NCSP’s net income for the first nine months of 2015.
This depreciation led to charging a foreign exchange loss in the amount of $262,000,000 on NCSP’s dollar nominated debt, versus a foreign exchange gain accounted for in the first six months of 2015.
Hence, NCSP Group’s net income comprised $156,500,000 for the first nine months of 2015 versus $250,300,000 for the first six months of 2015.
The group’s revenue from container cargo reduced by $8,100,000 or 16% year-on-year, due to volumes decrease by 139,000 TEU or 28% year-on-year. Revenue from other cargo grew
Stevedoring revenue accounted for most of the overall revenue decrease and reduced by $83,000,000 or 14% year-on-year.
Due to changes in the cargo mix and volumes NCSP’s stevedoring revenue reduced by $3,700,000.
Also changes in tariffs and ruble depreciation stevedoring revenue decreased by $23,300,000.
Bunkering revenues, which are part of stevedoring revenue, reduced by $56,300,000 on the back of decreasing fuel prices, and the volume’s drop to 190,000 tonnes for the first nine months of 2015 from 229,000 tonnes for the first nine months in 2014.