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Global Ports profits halved as Russia's economic slowdown continues

RUSSIA'S largest container terminal operator, Global Ports, first half pre-tax profits fell 53 per cent to US$45.2 million as volume fell 32 per cent year on year to 834,000 TEU on 25.2 per cent less revenue to $214.3 million.

The Global Ports said that the fall in revenue was to be seen against the backdrop of a macro-economic slowdown and a sharp devaluation of the Russian rouble, London's Container Management reported.

Said company chairman Tiemen Meester: "The macro-economic backdrop in Russia remained challenging, affecting consumer demand. We have expanded our EBITDA margin to 72 per cent and limited the decline in free cash flow to 11 per cent."

Container throughput handled by the company declined at each of its Russian ports over the reporting period.

First Container Terminal (FCT) volumes fell 38 per cent to 304,000 TEU; and Petrolesport handled 218,000 TEU, a decrease of 35 per cent. But cargo the firm's Finnish ports volume rose five per cent to 128,000 TEU.

"Looking ahead to the second half of the year, we expect that the market will remain difficult," said Mr Meester.