APM Terminals Q2 2014 Profit, Volume Growth

By George Backwell August 24, 2014

In its second quarter ended 30, June 2014 APM Terminals reports increases in both profits and container volume throughput. Highlights as follows:

Profit in Q2 increased to USD 223m (USD 179m) supported by 8% volume growth throughout the portfolio
ROIC of 14.2% (12.8%) • Number of containers handled was 9.8m TEU (9.1m TEU) driven by market growth and new investments added to the portfolio
AgreementreachedtodivestAPMTerminals Virginia, Portsmouth, USA with an expected completion during Q3.

Financial Performance
APM Terminals delivered an increased profit of USD 223m (USD 179m) in Q2, driven by a strong volume growth of 8% with new terminals contributing by 2%. Additions to the network came mainly from the acquisition of NCC Group Limited by Global Ports Investments PLC, Russia in 2013 and ramp-up in the jointly owned Brasil Terminal Portuario in Santos, Brazil.

Revenue increased by 6% to USD 1.1bn, reflecting the growth in volume and tariff increases in Port Activities partly offset by a decrease in Inland Services due to divestment of activities in North America and Asia in a continued effort to optimise the portfolio.

The global container terminal market measured in TEU increased by 5% in Q2 (Drewry).

The EBITDA margin improved to 23.0% (20.4%) sup- ported to a large extent by the increase in operational and commercial efficiencies. More than 80% of EBITDA was generated in growth markets, where 41 out of 66 container terminals are located and operating.

The increase in the effective tax rate to 13.8% (7.2%) was primarily due to expiration of local tax incentives within the portfolio.

APM Terminals continued to increase its invested capital during the quarter to USD 6.4bn compared to USD 5.6bn in the previous year. At the end of Q2 2014 the portfolio consisted of 66 terminals, with 16 expansion projects in progress and additional seven new terminals under implementation.