Global Ports Investments revenue dropped on 27.9% in 2015 while EBITDA Margin increased slightly on 1.6 pp from 69.6% to 71.2%

11 Mar 2016 • About Global Ports Investments ($GLPR) • By InTwits

Global Ports Investments reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

EBITDA Margin is expanding: 71.2% in 2015 vs. 69.6% in 2014 vs. 55.1% in 2011
Global Ports Investments has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.6%. At the same time it's in pair with industry average of 18.0%.
CAPEX is quite volatile: 11.7 in 2015, 23.6 in 2014, 62.8 in 2013, 79.8 in 2012, 132 in 2011
The company has highly profitable business model: ROIC is at 14.6%
It operates with medium-size leverage: Net Debt/EBITDA is 3.6x while industry average is 3.5x

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Global Ports Investments ($GLPR) key annual financial indicators

mln. $	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	501.3	501.8	332.2	562.4	405.7	-27.9%
Gross Profit	263.7	202.0	195.3	330.9	276.0	-16.6%
SG&A		43.4	45.6	55.2	42.3	-23.2%
EBITDA	276.1	286.7	200.3	391.3	288.9	-26.2%
Net Income	134.1	107.8	114.1	-193.1	-25.1	-87.0%
Balance Sheet
Cash	137.1	89.6	113.2	78.8	123.1	56.2%
Short Term Debt	52.4	69.8	206.4	110.0	103.0	-6.3%
Long Term Debt	154.6	263.3	1,230.9	1,073.7	1,062.4	-1.1%
Cash flow
Capex	132.0	79.8	62.8	23.6	11.7	-50.2%
Ratios
Revenue growth	31.1%	0.1%	-33.8%	69.3%	-27.9%
EBITDA growth	36.3%	3.9%	-30.2%	95.4%	-26.2%
Gross Margin	52.6%	40.3%	58.8%	58.8%	68.0%	9.2%
EBITDA Margin	55.1%	57.1%	60.3%	69.6%	71.2%	1.6%
Net Income Margin	26.8%	21.5%	34.3%	-34.3%	-6.2%	28.1%
SG&A, % of revenue		8.6%	13.7%	9.8%	10.4%	0.6%
CAPEX, % of revenue	26.3%	15.9%	18.9%	4.2%	2.9%	-1.3%
ROIC	18.5%	17.0%	7.1%	12.1%	14.6%	2.5%
ROE	15.2%	12.2%	11.3%	-24.5%	-9.6%	15.0%
Net Debt/EBITDA	0.3x	0.8x	6.6x	2.8x	3.6x	0.8x

Revenue and profitability

The company's Revenue dropped on 27.9% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.6 pp from 69.6% to 71.2% in 2015.

Gross Margin increased on 9.2 pp from 58.8% to 68.0% in 2015. SG&A as a % of Revenue increased slightly on 0.63 pp from 9.8% to 10.4% in 2015.

Net Income marign surged on 28.1 pp from -34.3% to -6.2% in 2015.

Capital expenditures (CAPEX) and working capital investments

The company's CAPEX/Revenue was 2.9% in 2015. CAPEX/Revenue dropped on 13.0 pp from 15.9% in 2012 to 2.9% in 2015. For the last three years the average CAPEX/Revenue was 8.7%.

Return on investment

The company operates at low but positive ROIC (14.63%) and negative ROE (-9.58%). ROIC increased on 2.5 pp from 12.1% to 14.6% in 2015. ROE surged on 15.0 pp from -24.5% to -9.6% in 2015.

Leverage (Debt)

Company's Net Debt / EBITDA is 3.6x and Debt / EBITDA is 4.0x. Net Debt / EBITDA jumped on 0.8x from 2.8x to 3.6x in 2015. Debt decreased slightly on 1.5% in 2015 while cash jumped on 56.2% in 2015.

Appendix 1: Peers in Industrial Transportation

Below you can find Global Ports Investments benchmarking vs. other companies in Industrial Transportation industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Hellenic Carriers Ltd ($HCL)		-60.3%	-17.0%	88.5%	-36.7%
Zhejiang Expressway Co ($ZHEH)	0.2%	2.2%	13.3%	20.5%
Yangming Marine Transport Corp ($YMTD)	-9.2%	10.9%	-9.5%	13.4%
Dp World Ltd ($0P5M)	-6.6%	4.8%	-1.5%	12.7%
Wisdom Marine Lines Co Limited ($WML)		11.2%	-0.8%	8.8%	21.6%
Median (14 companies)	10.8%	3.5%	-1.4%	3.4%	-7.1%
Global Ports Investments ($GLPR)		0.1%	-33.8%	69.3%	-27.9%

Top companies by Gross margin, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Novorossiysk Commercial Sea Port ($NCSP)	52.8%	57.9%	54.3%	61.0%
Dp World Ltd ($0P5M)	32.7%	35.8%	39.8%	41.9%
Zhejiang Expressway Co ($ZHEH)	39.9%	34.0%	36.9%	37.7%
Globaltrans Investment ($GLTR)	30.1%	31.4%	25.8%	23.2%
Wisdom Marine Lines Co Limited ($WML)	37.4%	30.3%	20.3%	20.7%	24.1%
Median (9 companies)	32.7%	30.3%	20.3%	20.7%	15.8%
Global Ports Investments ($GLPR)	52.6%	40.3%	58.8%	58.8%	68.0%

Top companies by EBITDA margin, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Capital Lease Aviation ($CLA)	105.0%	101.2%	88.5%	89.2%	80.5%
Frontline Ltd ($FRO)	13.7%	17.2%	-4.6%	64.5%	74.6%
Novorossiysk Commercial Sea Port ($NCSP)	52.7%	48.4%	26.8%	58.3%
Zhejiang Expressway Co ($ZHEH)	52.8%	49.6%	51.1%	53.5%
Wisdom Marine Lines Co Limited ($WML)	60.1%	56.9%	52.0%	52.8%	55.2%
Median (14 companies)	33.8%	22.6%	17.1%	17.0%	10.5%
Global Ports Investments ($GLPR)	55.1%	57.1%	60.3%	69.6%	71.2%

Top companies by CAPEX/Revenue, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Frontline Ltd ($FRO)	10.2%	2.5%	0.5%	83.6%	171.4%
Hellenic Carriers Ltd ($HCL)	1.3%	11.7%	246.3%	75.1%	0.7%
Dp World Ltd ($0P5M)	15.1%	20.6%	33.4%	20.7%
Zhejiang Expressway Co ($ZHEH)	6.6%	5.3%	3.2%	13.4%
Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN)	13.7%	15.6%	16.9%	11.5%
Median (14 companies)	9.5%	8.0%	7.7%	5.6%	1.5%
Global Ports Investments ($GLPR)	26.3%	15.9%	18.9%	4.2%	2.9%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Novorossiysk Commercial Sea Port ($NCSP)	18.7%	11.0%	4.5%	17.1%
Dx ($DX.)	8.2%	9.3%	9.6%	14.5%	12.8%
Zhejiang Expressway Co ($ZHEH)	13.3%	11.2%	13.3%	13.2%
Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN)	18.2%	20.2%	17.6%	8.8%
Bba Aviation ($BBA)		9.6%	9.6%	8.1%	5.1%
Median (14 companies)	7.6%	7.3%	5.4%	6.7%	4.9%
Global Ports Investments ($GLPR)	18.5%	17.0%	7.1%	12.1%	14.6%

Top companies by Net Debt / EBITDA


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Hellenic Carriers Ltd ($HCL)	2.5x	533.2x	291.0x	39.1x
Yangming Marine Transport Corp ($YMTD)		19.7x		9.8x
Wisdom Marine Lines Co Limited ($WML)	7.9x	8.5x	9.0x	9.1x	8.4x
Evergreen Marine Corp(Taiwan) ($EGMD)		7.9x	33.6x	6.7x	18.3x
Interbulk Group ($INB)	3.5x	3.3x	4.1x	3.5x	3.6x
Median (14 companies)	3.5x	3.7x	4.1x	2.7x	3.3x
Global Ports Investments ($GLPR)	0.3x	0.8x	6.6x	2.8x	3.6x

Global Ports Investments stock price chart

Global Ports Investments financials

mln.	FY2010	FY2011	FY2012

Revenue	382.4	501.3	501.8
EBITDA	202.6	276.1	286.7
Net income	109.4	134.1	107.8
CAPEX	52.211	132.0	79.765
Debt	206.7	206.9	333.1
Cash	47.355	137.1	89.644

About Global Ports Investments

Global Ports Investments Plc, a container and oil products terminal operator, provides a range of services for import and export logistics operations in Russia and the Baltics. The company operates in three segments: Russian Ports, Oil Products Terminal, and Finnish Ports. The Russian Ports segment owns and manages a container terminal in St. Petersburg port, North-West Russia; a container terminal in Vostochnyi port near Nahodka, Far-East Russia; a container terminal in Kronstadt near St. Petersburg, North-West Russia; and an in-land container terminal in Yanino near St. Petersburg, North-West Russia. This segment also provides roll on/roll off cargo terminal for automobiles, construction, agricultural, and self and non-self propelled equipment and other ferry cargoes; and timber and general cargo comprising round timber and timber products, scrap metal, metal items, ferrous and nonferrous metals, target cargo, and heavy and oversized equipment, as well as stevedoring, forwarding, and warehouse services. The Oil Products Terminal segment operates 4 oil products terminals with a total storage capacity of 1,026,000 cbm and handles exports of Russian, Belorussian, and Kazakh fuel oil and light oil products, as well as provides various related services, such as the unloading of rail tank cars, the loading and unloading of tanker vessels, storage, segregation, and blending services. The Finnish Ports segment is involved in the operation of two terminals comprising MLT Kotka, which operates in the port of Kotka and focuses primarily on Russian import and Finnish export cargo flows; and MLT Helsinki that operates in the port of Vuosaari and focuses primarily on Finnish import and export cargo flows. Global Ports Investments Plc was incorporated in 2008 and is based in Limassol, Cyprus.