Full Year 2011 Financial Results Announcement
12.04.2012
Globaltrans Investment PLC (the “Company” and together with its consolidated subsidiaries “Globaltrans” or the “Group”), (LSE ticker: GLTR) today announces its financial and operational results[1] for the year ended 31 December 2011.
Certain financial information which is derived from the management accounts is marked in this announcement with an asterisk {*}. Information (non-GAAP and operational measures) requiring additional explanation or defining is marked with initial capital letters and the explanations or definitions thereto are provided at the end of this announcement.
Summary
Globaltrans, a leading private freight rail transportation group in Russia, achieved outstanding financial results and an excellent operational performance in 2011. The combination of its large fleet, high quality service and a blue chip client base enabled the Group to outperform[2] the overall Russian freight rail transportation market and increase its market share. The Group also reduced its debt level during 2011 establishing a strong platform for growth for the business in 2012.
Financial highlights
- Adjusted Revenue increased 30% year on year to USD 1,177.0* million in 2011 (2010: USD 903.0* million) supported by increased Freight Rail Turnover and robust pricing.
- EBITDA rose 31% year on year to USD 505.6* million. Adjusted EBITDA increased 29% year on year to USD 505.1* million (2010: USD 390.9* million).
- Adjusted EBITDA Margin was maintained at 43%.
- Profit for the year increased 40% year on year to USD 317.2 million. Earnings per share [3] rose 50% year on year to USD 1.68 per share.
- Net Debt decreased 32% to USD 258.4* million at year end 2011 compared to the end of the previous year. The ratio of Net Debt to Adjusted EBITDA improved to 0.5x* as at the end of 2011.
- The Board of Directors recommended a dividend of USD 98.9 million (64 US cents per ordinary share[4]) for 2011 compared to the USD 58.5 million (37 US cents per ordinary share) paid for 2010.
Operational highlights
- The Group’s Freight Rail Turnover (measured in tonnes-km) grew 14% year on year to 110.6 billion tonnes-km more than double the overall Russian market growth of 6%[5].
- Globaltrans’ market share [6] of overall Russian freight rail volumes increased to 5.6% in 2011 compared to 5.3% in 2010 with major share gains achieved in metallurgical cargoes, coal and construction materials.
- Average Price per Trip increased 26% year on year to USD 970.8 (22% in rouble terms) reflecting an increased Average Distance of Loaded Trip (up 6%), the Group’s high quality service offering as well as a favourable pricing environment.
- The Group has largely maintained the structure of its cargo mix with a focus on metallurgical cargoes, oil products and oil, coal, and construction materials.
- The Empty Run Ratio for gondola cars improved to 41% in 2011 (2010: 42%) driven primarily by growth in rail transportation of construction materials. Total Empty Run remained unchanged at 62% compared to 2010. The Share of Empty Run Kilometres Paid by Globaltrans improved to 78% (2010: 82%) as clients increasingly paid Empty Runs directly to RZD.
- The Group’s Average Rolling Stock Operated increased 15% to 42,363 units in 2011 compared to the previous year.
- Given the strong demand for the Group’s services and the decrease in railcar prices, Globaltrans has resumed its opportunistic investment programme during the last months of 2011. Since then, the Group has, in aggregate, ordered 9,988 railcars with 7,560 units delivered to date. Deliveries of the remaining units are expected by the end of June 2012. These railcars will enable Globaltrans to address the needs of its clients for additional transportation services as well as to substitute part of the Group’s leased-in fleet.
CEO Comment
Sergey Maltsev, CEO of Globaltrans Investment PLC, said:
“The Group again leveraged its strong market position, high quality of service and market-leading operating capabilities to deliver an excellent operational and financial performance. As a result, Globaltrans has outperformed the market for the third year in a row.
We carefully watch market developments to take advantage of growth opportunities when they arise. The decrease in railcar prices in late 2011 coupled with continuing strong demand for our services gave us the opportunity to significantly increase our owned fleet by 25% through the acquisition of new railcars – much as we did in 2009. This new capacity will enable us to meet the additional transportation needs of our clients and will also substitute for part of our leased-in fleet, further enhancing our position as a leading independent private freight rail group in Russia. We will continue to monitor market changes and invest strategically in the growth of our business.
The combination of this recent investment in our fleet expansion and the favourable market outlook gives me confidence that Globaltrans is well-positioned to continue its profitable growth”.
Outlook
Overall Russian Freight Rail Turnover (measured in tonnes-km) has continued to grow this year, increasing 8% [7] in the first quarter of 2012 compared to the same period in the previous year.
Strong demand from our clients (along with increased interest to outsource freight rail transportation) as well as replacement of our leased-in fleet are expected to enable us to swiftly and profitably employ our new fleet. In addition to organic growth, Globaltrans may also consider non-organic growth opportunities that would fit to the Group’s strategy and be value accretive.
Looking forward, we remain optimistic about the Group’s prospects for 2012 and our trading performance this year to date supports this view.
Downloads
- FY 2011 Financial results announcement.
- FY 2011 Results presentation.
- Directors' report and consolidated financial statements for the year ended 31 December 2011.
- FY 2011 selected operational information.
Analyst and investor conference call
An analyst and investor conference call hosted by Sergey Maltsev, Chief Executive Officer and Alexander Shenets, Chief Financial Officer will be held on Thursday, 12 April 2012 at 09.00 New York time (EDT) / 14.00 London time / 17.00 Moscow time. To participate in the conference call, please dial one of the following numbers and ask to be put through to the “Globaltrans” call:
UK toll free: 0800 358 5256
International: +44 (0) 207 190 1590
As there will be simultaneous translation for the first part of the call (slide presentation), you should state whether you prefer to listen in English or Russian. During the Q&A session, all participants will hear both languages.
There will also be a webcast of the call, available through the Globaltrans website (www.globaltrans.com). Please note that this will be a listen-only facility. A slide presentation will be distributed and made available at the Globaltrans website prior to the conference call.
ENQUIRIES
Globaltrans Investor Relations
Mikhail Perestyuk
+357 25 503 153
irteam@globaltrans.com
For international media
Holloway & Associates
Laura Gilbert / Zoe Watt
+44 20 7240 2486
globaltrans@rholloway.com
NOTES TO EDITORS
Globaltrans is a leading private freight rail transportation group in Russia and the first such group to have an international listing.
Globaltrans Investment PLC is incorporated in Cyprus with major operating subsidiaries located in Russia, Ukraine and Estonia. The Group provides freight rail transportation, railcar leasing, and certain ancillary services to clients in Russia, the CIS countries and the Baltics.
The Group’s fleet of rolling stock owned and leased under finance and operating leases amounted to 47,580 units at 31 December 2011, including 26,607 gondola cars, 20,427 rail tank cars, 56 locomotives and 490 other railcars.
The Group’s Freight Rail Turnover in 2011 was 110.6 billion tonnes-km with 69.6 million tonnes of freight transported. In 2011 the Group’s Adjusted Revenue was USD 1,177.0* million with Adjusted EBITDA reaching USD 505.1* million.
Globaltrans' global depositary receipts (ticker symbol: GLTR) have been listed on the Main Market of the London Stock Exchange since May 2008.
To learn more about Globaltrans, please visit www.globaltrans.com.
LEGAL DISCLAIMER
Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of Globaltrans. You can identify forward-looking statements by terms such as 'expect', 'believe', 'anticipate', 'estimate', 'intend', 'will', 'could', 'may' or 'might', the negative of such terms or other similar expressions. Globaltrans wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Globaltrans does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Globaltrans, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Globaltrans operates in, as well as many other risks specifically related to Globaltrans and its operations.
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[1] The Group’s financial performance in 2011 was affected by a 3.2% appreciation of the average exchange rate of the Russian rouble (Functional Currency of the Company, its Cyprus and Russian subsidiaries) against the US dollar (the Group’s financial information presentation currency). The 2011 year end exchange rate of the Russian rouble against the US dollar weakened by 5.6% compared to the end of 2010.
[2] In terms of Freight Rail Turnover (measured in tonnes- km).
[3] Basic and diluted earnings per share for profit attributable to the equity holders of the Company during the year.
[4] Based on number of shares issued, excluding treasury shares.
[5] According to Rosstat.
[6] Market share data has been calculated using the Group’s transportation volume (measured in tonnes) as the numerator and the overall Russian freight rail transportation volume published by Rosstat as the denominator.
[7] According to OJSC Russian Railways..