Standard & Poor's (S&P) and Moody's international rating agencies updated credit opinions on NCSP Group maintaining the current ratings of the Group at 'BB-' and 'Ba3', respectively, with stable outlooks, the company informed.
The national scale credit ratings are affirmed at 'ruAA-' and 'Aa3.ru', respectively.
Standard & Poor’s report dated 8 May 2014 notes the following:
The stable outlook on NCSP reflects Standard & Poor's Ratings Services' expectation that NCSP will continue to cautiously control its capex and preserve cash. We also believe that the group will be able to continue to raise tariffs moderately, which will help it to preserve an EBITDA margin of about 55% despite slightly lower cargo volumes.
Moody's Ba3 CFR is driven by NCSP's solid position of Russia's largest and diversified sea port operator, including its role of an important route for Russian oil exports. The rating factors in NCSP's positive free cash flow, a degree of the group's capex flexibility and NCSP's strong relationship with state-owned banks, in particular the continued support from Sberbank, the group's largest creditor.
NCSP Group (Novorossiysk Commercial Sea Port) is Russia's largest port operator. The shares of PJSC NCSP (tax number: 2315004404) are quoted on the Moscow Exchange in Russia (under the NMTP ticker) and the LSE as GDRs (under the NCSP ticker). 50.1% of PJSC NCSP shares belong to Novoport Holding Ltd whose beneficiaries are JSC Transneft and Summa Group.
NCSP Group unites the following stevedoring companies: PJSC Novorossiysk Commercial Sea Port, Primorsk Trade Port LLC (since 2011), PJSC Novorossiysk Grain Terminal, JSC Novorossiysk shiprepair yard, PJSC Fleet Novorossiysk Commercial Sea Port (FNCSP), JSC Novoroslesexport, IPP (OJSC), Baltiysk Stevedoring Company LLC and CJSC SFP.
IFRS net loss of NCSP Group for 2013 was RUB 3.335 billion against a profit of RUB 9.824 billion the year before. Revenue decreased by 8.03% to RUB 29.558 billion from RUB 32.14 billion, profit from operations 2.45-fold to RUB 5.323 billion from RUB 13.02 billion, loss before tax was RUB 2.169 billion against a profit of RUB 12.931 billion for 2012. EBITDA decreased by 13.71% to $510.4 million from $591.5 million.
According to the DataCapital information retrieval system, RAS net profit of PJSC Novorossiysk Commercial Sea Port for 2013 decreased by 48.9% to RUB 2.62 billion from RUB 5.127 billion the year before. Revenue decreased by 3.59% to RUB 10.275 billion from RUB 10.658 billion, sales profit by 8.28% to RUB 5.814 billion from RUB 6.339 billion, pre-tax profit 2.89-fold to RUB 2.257 billion from RUB 6.528 billion