For immediate release                                                                                                                     16 July 2021

Global Ports Investments PLC

Q2 and H1 2021 Operational Results

Global Ports Investments PLC ("Global Ports" or the "Company" and, together with its subsidiaries and joint ventures, the "Group") (LSE ticker: GLPR) today announces its operational results for Q2 and H1 2021.

Highlights

●       Strong market growth seen in Q2 2021 as the overall Russian container market grew by 13.3 % to 1.38 million TEU, driven by both the accelerating growth of full containerised import (+26.0% y-o-y) and the continued growth of containerised export (+3.9% y-o-y).

●       As a result of the sharp increase in freight rates in the global container shipping market in H2 2020 and a deficit of empty containers globally, during Q2 2021 market players preferred faster container import and export supply chains with the shortest sea leg. As a result, Q2 market growth was concentrated in the Far Eastern basin (Q2 2021: +18.1% y-o-y) and the Southern basin (Q2 2021: +11.2% y-o-y). Nonetheless, combined throughput of terminals located in Saint Petersburg and the surrounding area demonstrated signs of recovery with Q2 2021 volumes up 4.3% y-o-y after an 11.9% y-o-y decline in Q1 2021. 

●       As a result of the strong growth seen in Q2 2021 the growth of the Russian container market accelerated to 7.6% y-o-y in H1 2021 with throughput at Far Eastern terminals increasing 14.7% y-o-y, Southern terminals increasing by 9.1% y-o-y, while the growth of combined throughput of terminals located in Saint Petersburg and the surrounding area in Q2 2021 was not sufficient to compensate for the decline in Q1 2021, resulting in 4.2% y-o-y decline for the first six months of 2021.

●       The Group successfully maintained its market share position in Q2 2021 in all its basins with throughput at VSC boosting by 23.4% y-o-y in Q2 2021 (outperforming the Russian Far East market increase of +18.1%) and throughput of its terminals in the Baltic Basin growing by 4.4% y-o-y in Q2 2021 (vs a market growth of 4.3%). In total, Consolidated Marine Container Throughput increased by 10% y-o-y in Q2 2021 to 418 thousand TEUs. 

●       The Group's Consolidated Marine Container Throughput increased by 1.9% y-o-y in H1 2021 to 789 thousand TEUs. 

●       The Group's Consolidated Marine Bulk Throughput increased by 16.2% y-o-y to 1.37 million tonnes in Q2 2021, driven by the solid recovery in global coal demand and high growth of fertilisers and scrap metal handling at PLP (H1 2021: growth of 19.0% y-o-y).

●       Heavy Ro-ro handling demonstrated a continued recovery in Q2 2021 with a 56.4% growth to 6.9 thousand units. Car handling was also strong in Q2 2021 with an 66.4% growth to 26.1 thousand units.

●       On the back strong growth of the market in the Far East, the decision has been made to gradually cease coal handling at VSC and concentrate on the Group's core strategic operations of driving container volumes.  This decision will enable the Group to decrease its environmental impact from the third quarter of 2021 and capture the growth opportunity presented by the increased sustained demand for container import and export flows as well as steadily growing transit volumes seen at VSC.  

Albert Likholet, CEO of Global Ports Management, commented:

"Over the period, the Russian container market was strong in all segments and across all basins as rapid import recovery, continuing growth of full export, and booming transit volumes has enabled an acceleration of its growth in Q2. We are also pleased to see that the Baltic basin has started to catch up with the overall market performance and that the Group's terminals grew faster than the market in the Far East basin and Saint-Petersburg area during the second quarter.

"Our agile asset base has always meant that Global Ports has been well-placed to navigate any challenges and benefit from any market uplift, and we have remained adaptable, taking an opportunistic approach to additional revenue streams. Furthermore, the impact that our business has on the environment has always been an important consideration for us. VSC container handling growth in the second quarter of 2021 was 23.4% y-o-y with the terminal posting the highest monthly container volumes in its history so far this year, and we see further growth potential to come. Therefore, in the current environment, it makes strategic sense to prioritise container volumes in the Far East, delivering a lower environmental impact, which has always been at the core of our Group strategy".

ENQUIRIES

NOTES TO EDITORS

Global Ports Investments PLC is the leading operator of container terminals in the Russian market by capacity and container throughput.[1]

Global Ports' terminals are located in the Baltic and Far East Basins, key regions for foreign Russian trade and transit cargo flows. Global Ports operates five container terminals in Russia (Petrolesport, First Container Terminal, Ust-Luga Container Terminal[2] and Moby Dik[3] in the Russian Baltics, and Vostochnaya Stevedoring Company in the Russian Far East) and two container terminals in Finland[4] (Multi-Link Terminals in Helsinki and Kotka). Global Ports also owns inland container terminal Yanino Logistics Park[5] located in the vicinity of St. Petersburg.

Global Ports' revenue for 2020 was USD 384.4 million and Adjusted EBITDA was USD 209.7 million. Consolidated Marine Container Throughput was 1,533 thousand TEU in 2020.

Global Ports' major shareholders are Delo Group, the largest intermodal container and port operator in Russia[6] (30.75%), and APM Terminals B.V. (30.75%), whose core expertise is the design, construction, management and operation of ports, terminals and inland services. APM Terminals operate a terminal network of 75 terminals globally. 20.5% of Global Ports shares are traded in the form of global depositary receipts listed on the Main Market of the London Stock Exchange (LSE ticker: GLPR).

For more information please see: www.globalports.com

LEGAL DISCLAIMER

Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of Global Ports. You can identify forward-looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" or the negative of such terms or other similar expressions. Any forward-looking statement is based on information available to Global Ports as of the date of the statement and, other than in accordance with its legal or regulatory obligations, Global Ports does not intend or undertake to update or revise these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements involve known and unknown risks and Global Ports wishes to caution you that these statements are only predictions and that actual events or results may differ materially from what is expressed or implied by these statements. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Global Ports, including, among others, general political and economic conditions, the competitive environment, risks associated with operating in Russia and market change in the industries Global Ports operates in, as well as many other risks related to Global Ports and its operations. All written or oral forward-looking statements attributable to Global Ports are qualified by this caution.

DEFINITIONS

First Container Terminal (FCT) is located in the St. Petersburg harbour, Russia's primary gateway for container cargo and is one of the first specialised container terminals established in Russia. The Global Ports Group owns a 100% effective ownership interest in FCT. The results of FCT are fully consolidated.

Moby Dik (MD) is located on the St. Petersburg ring road, approximately 30 kilometres from St. Petersburg, at the entry point of the St. Petersburg channel. It is the only container terminal in Kronstadt. The Global Ports Group owns a 75% effective ownership interest in MD, CMA Terminals currently has a 25% effective ownership interest. The results of MD are accounted in the Global Ports' financial information using the equity method of accounting (proportionate share of net profit shown below EBITDA).

Petrolesport (PLP) is located in the St. Petersburg harbour, Russia's primary gateway for container cargo. The Group owns a 100% effective ownership interest in PLP. The results of PLP are fully consolidated.

Ro-Ro, roll on-roll off is cargo that can be driven into the belly of a ship rather than lifted aboard. Includes cars, buses, trucks and other vehicles.

Revenue per TEU is defined as the Global Ports Group's Consolidated Container Revenue divided by total Consolidated Container Marine Throughput.

TEU is defined as twenty-foot equivalent unit, which is the standard container used worldwide as the uniform measure of container capacity; a TEU is 20 feet (6.06 metres) long and eight feet (2.44 metres) wide and tall.

Ust Luga Container Terminal (ULCT) is located in the large multi-purpose Ust-Luga port cluster on the Baltic Sea, approximately 100 kilometres westwards from St. Petersburg city ring road. ULCT began operations in December 2011. The Global Ports Group owns an 80% effective ownership interest in ULCT, Eurogate, the international container terminal operator, currently has a 20% effective ownership interest. The results of ULCT are fully consolidated.

Vostochnaya Stevedoring Company (VSC) is located in the deep-water port of Vostochny near Nakhodka on the Russian Pacific coast, approximately eight kilometres from the Nakhodka-Vostochnaya railway station, which is connected to the Trans-Siberian Railway. The Group owns a 100% effective ownership interest in VSC. The results of VSC are fully consolidated.

Yanino Logistics Park (YLP) is the first terminal in the Group's inland terminal business and is one of only a few multi-purpose container logistics complexes in Russia providing a comprehensive range of container and logistics services at one location. It is located approximately 70 kilometres from the Moby Dik terminal in Kronstadt and approximately 50 kilometres from PLP. The Global Ports Group owns a 75% effective ownership interest in YLP, CMA Terminals currently has a 25% effective ownership interest. The results of YLP are accounted in the Global Ports' financial information using the equity method of accounting (proportionate share of net profit shown below EBITDA).

LEGAL DISCLAIMER

Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of Global Ports. You can identify forward-looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" or the negative of such terms or other similar expressions. Any forward-looking statement is based on information available to Global Ports as of the date of the statement and, other than in accordance with its legal or regulatory obligations, Global Ports does not intend or undertake to update or revise these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements involve known and unknown risks and Global Ports wishes to caution you that these statements are only predictions and that actual events or results may differ materially from what is expressed or implied by these statements. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Global Ports, including, among others, general political and economic conditions, the competitive environment, risks associated with operating in Russia and market change in the industries Global Ports operates in, as well as many other risks related to Global Ports and its operations. All written or oral forward-looking statements attributable to Global Ports are qualified by this caution.