Novorossiysk Commercial Sea Port reports 38.1% EBITDA decline and 19.0 pp EBITDA Margin decline from 58.3% to 39.3%
04 Apr 2016 • About Novorossiysk Commercial Sea Port (
$NCSP) • By InTwits
Novorossiysk Commercial Sea Port reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Novorossiysk Commercial Sea Port has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.4%. At the same time it's in pair with industry average of 17.1%.
- CAPEX is quite volatile: 10.2 in 2015, 10.8 in 2014, 1.5 in 2013, 23.6 in 2012, 9.5 in 2011
- The company has highly profitable business model: ROIC is at 16.1%
- It operates with high leverage: Net Debt/EBITDA is 4.1x while industry average is 3.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Novorossiysk Commercial Sea Port ($NCSP) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,050 | 1,034 | 928 | 956 | 877 | -8.2% |
| Gross Profit | 554 | 598 | 504 | 583 | 640 | 9.7% |
| SG&A | 74 | 84 | 73 | 67 | 42 | -38.2% |
| EBITDA | 553 | 501 | 249 | 557 | 344 | -38.1% |
| Net Income | 127 | 311 | -110 | -429 | -84 | -80.3% |
Balance Sheet
|
|---|
| Cash | 128 | 243 | 421 | 311 | 109 | -65.0% |
| Short Term Debt | 392 | 93 | 398 | 1,731 | 356 | -79.5% |
| Long Term Debt | 2,114 | 2,178 | 1,788 | 10 | 1,156 | 10,975.8% |
Cash flow
|
|---|
| Capex | 95 | 56 | 97 | 94 | 64 | -32.3% |
Ratios
|
|---|
| Revenue growth | 65.2% | -1.5% | -10.2% | 3.0% | -8.2% | |
| EBITDA growth | 33.2% | -9.5% | -50.3% | 123.9% | -38.1% | |
| Gross Margin | 52.8% | 57.9% | 54.3% | 61.0% | 72.9% | 11.9% |
| EBITDA Margin | 52.7% | 48.4% | 26.8% | 58.3% | 39.3% | -19.0% |
| Net Income Margin | 12.1% | 30.1% | -11.8% | -44.9% | -9.6% | 35.2% |
| SG&A, % of revenue | 7.1% | 8.1% | 7.8% | 7.0% | 4.7% | -2.3% |
| CAPEX, % of revenue | 9.1% | 5.4% | 10.4% | 9.9% | 7.3% | -2.6% |
| ROIC | 18.7% | 11.0% | 4.5% | 17.1% | 16.1% | -1.0% |
| ROE | 13.4% | 27.8% | -9.2% | -63.4% | -48.7% | 14.7% |
| Net Debt/EBITDA | 4.3x | 4.1x | 7.1x | 2.6x | 4.1x | 1.5x |
Revenue and profitability
Novorossiysk Commercial Sea Port's Revenue decreased on 8.2% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 19.0 pp from 58.3% to 39.3% in 2015.
Gross Margin surged on 11.9 pp from 61.0% to 72.9% in 2015. SG&A as a % of Revenue decreased on 2.3 pp from 7.0% to 4.7% in 2015.
Net Income marign surged on 35.2 pp from -44.9% to -9.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 7.3%. The company's CAPEX/Revenue increased slightly on 1.9 pp from 5.4% in 2012 to 7.3% in 2015. For the last three years the average CAPEX/Revenue was 9.2%.
Return on investment
The company operates at low but positive ROIC (16.11%) and negative ROE (-48.74%). ROIC decreased slightly on 1.0 pp from 17.1% to 16.1% in 2015. ROE jumped on 14.7 pp from -63.4% to -48.7% in 2015.
Leverage (Debt)
Debt level is 4.1x Net Debt / EBITDA and 4.4x Debt / EBITDA. Net Debt / EBITDA surged on 1.5x from 2.6x to 4.1x in 2015. Debt dropped on 13.2% in 2015 while cash dropped on 65.0% in 2015.
Appendix 1: Peers in Industrial Transportation
Below you can find Novorossiysk Commercial Sea Port 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 |
|---|
| Frontline Ltd ($FRO) | | -27.8% | -9.4% | -55.6% | 104.5% |
| Zhejiang Expressway Co ($ZHEH) | | 2.2% | 13.3% | 20.5% | 32.2% |
| Wisdom Marine Lines Co Limited ($WML) | | 11.2% | -0.8% | 8.8% | 21.6% |
| Dp World Ltd ($0P5M) | | 4.8% | -1.5% | 12.7% | 16.7% |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | | 17.8% | 7.7% | -6.6% | 16.2% |
| |
|---|
| Median (14 companies) | | 3.5% | -1.4% | 5.8% | -5.0% |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | | -1.5% | -10.2% | 3.0% | -8.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Ports Investments ($GLPR) | 52.6% | 40.3% | 58.8% | 58.8% | 68.0% |
| Dp World Ltd ($0P5M) | 32.7% | 35.8% | 39.8% | 41.9% | 48.4% |
| Zhejiang Expressway Co ($ZHEH) | 39.9% | 34.0% | 36.9% | 37.7% | 43.6% |
| Wisdom Marine Lines Co Limited ($WML) | 37.4% | 30.3% | 20.3% | 20.7% | 24.1% |
| Globaltrans Investment ($GLTR) | 30.1% | 31.4% | 25.8% | 23.2% | 20.2% |
| |
|---|
| Median (9 companies) | 32.7% | 30.3% | 20.3% | 20.7% | 20.2% |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 52.8% | 57.9% | 54.3% | 61.0% | 72.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital Lease Aviation ($CLA) | 105.0% | 101.2% | 88.5% | 89.2% | 80.5% |
| Frontline Ltd ($FRO) | 13.7% | 17.2% | -4.6% | 64.5% | 74.6% |
| Global Ports Investments ($GLPR) | 55.1% | 57.1% | 60.3% | 69.6% | 71.2% |
| Zhejiang Expressway Co ($ZHEH) | 52.8% | 49.6% | 51.1% | 53.5% | 58.0% |
| Wisdom Marine Lines Co Limited ($WML) | 60.1% | 56.9% | 52.0% | 52.8% | 55.2% |
| |
|---|
| Median (14 companies) | 33.8% | 22.6% | 17.1% | 17.0% | 16.8% |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 52.7% | 48.4% | 26.8% | 58.3% | 39.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Frontline Ltd ($FRO) | 10.2% | 2.5% | 0.5% | 83.6% | 171.4% |
| Dp World Ltd ($0P5M) | 15.1% | 20.6% | 33.4% | 20.7% | 28.9% |
| Yangming Marine Transport Corp ($YMTD) | 11.0% | 13.1% | 8.2% | 7.0% | 7.7% |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 13.7% | 15.6% | 16.9% | 11.5% | 5.7% |
| Wisdom Marine Lines Co Limited ($WML) | 160.8% | 163.8% | 108.4% | 4.2% | 5.2% |
| |
|---|
| Median (14 companies) | 10.1% | 11.2% | 7.7% | 4.2% | 2.8% |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 9.1% | 5.4% | 10.4% | 9.9% | 7.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zhejiang Expressway Co ($ZHEH) | 13.3% | 11.2% | 13.3% | 13.2% | 15.3% |
| Global Ports Investments ($GLPR) | 18.5% | 17.0% | 7.1% | 12.1% | 14.6% |
| Dx ($DX.) | 8.2% | 9.3% | 9.6% | 14.5% | 12.8% |
| Frontline Ltd ($FRO) | -3.4% | -1.0% | -8.9% | 7.6% | 12.1% |
| Globaltrans Investment ($GLTR) | 30.3% | 25.5% | 16.3% | 6.4% | 10.3% |
| |
|---|
| Median (14 companies) | 7.6% | 7.3% | 6.3% | 6.7% | 6.7% |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 18.7% | 11.0% | 4.5% | 17.1% | 16.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Evergreen Marine Corp(Taiwan) ($EGMD) | | 7.9x | 33.6x | 6.7x | 18.3x |
| Wisdom Marine Lines Co Limited ($WML) | 7.9x | 8.5x | 9.0x | 9.1x | 8.4x |
| Interbulk Group ($INB) | 3.5x | 3.3x | 4.1x | 3.5x | 3.6x |
| Global Ports Investments ($GLPR) | 0.3x | 0.8x | 6.6x | 2.8x | 3.6x |
| Dp World Ltd ($0P5M) | 3.1x | 2.4x | 2.0x | 1.5x | 3.4x |
| |
|---|
| Median (12 companies) | 3.1x | 3.1x | 4.1x | 2.8x | 3.2x |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 4.3x | 4.1x | 7.1x | 2.6x | 4.1x |
