Strong First Quarter for the APM Terminals

APM Terminals’ focus on delivering competitive solutions in the market translated into strong first quarter performance as seen in the financial results.

The company announced a profit of $215m ($166m). ROIC was 14.0% (12.0%). Profit, excluding divestment gains and impairment losses, was $217m $161m. Container volumes showed growth of 9% compared to the same quarter last year and reached 9.4 million TEU. Cash flow from operating activities was $305m ($242m) and cash flow used for capital expenditure was $120m $164m.

Revenue increased by 5%. Revenue for Port Activities increased in line with volume, which was offset by a decrease in revenue for Inland Services due to the divestment of activities in North America and Asia. The EBITDA margin improved significantly to 24.3% (19.4%), supported by increased volume and operational efficiency.

APM Terminals continues to invest in upgrading the facilities and improving operational processes to cater for these increased demands.

“APM Terminals’ first quarter results reflect the company’s continuing focus on creating long-term customer value. The benefits of our continuous improvement approach to productivity, operational excellence, liner network solutions and portfolio management continue to deliver positive results for our customers and shareholders. Our ongoing efforts to optimize our portfolio through partnerships, capital efficiency, infrastructure investment and better operations underscores our confidence in our customers and the future potential of the port market” said Kim Fejfer, CEO of APM Terminals.

Portfolio Developments

In Russia, Global Ports Investments (GPI) in which APM Terminals has a co-controlling ownership share, completed the integration of NCC, the acquired competing operator. The business impacts of the political
developments in and around Russia are continuously being assessed.

In Rotterdam, the new APM Terminals Maasvlakte II terminal passed an important milestone in March with completion of the civil works. Step-by-step integration of automated equipment, system testing and job training is progressing and will continue into the summer. The terminal remains on schedule to open late 2014.

In the Southeast Asia hub of Tanjung Pelepas, Malaysia, berth 13 was inaugurated during the quarter. The berth is equipped to handle the largest container vessels in operation and served the Triple-E vessel, Maersk Mc-Kinney Moller in early April.

In Santos, Brazil, dredging to remove a high spot in the access channel has been completed and the company expects to receive permission to handle large vessels within a few weeks.

APM Terminals announced a 50-50 joint venture with infrastructure investor Brookfield Asset Management for ownership of the APM Terminals Port Elizabeth, New Jersey container terminal at the Port of New York and New Jersey which is currently fully-owned by APM Terminals. The joint venture is subject to regulatory approvals.

Other deals include the completed sale of a 29% share in APM Terminals Callao to TIL, as well as the 24% share sale of APM Terminals Zeebrugge to China Shipping.

[mappress]
May 22, 2014