SERVICES

APM Terminals increased returns driven by volume growth

Amsterdam - APM Terminals delivered an increased profit of USD 215m (USD 166m) and a return on invested capital of 14.0% (12.0%).

Amsterdam - APM Terminals delivered an increased profit of USD 215m (USD 166m) and a return on invested capital of 14.0% (12.0%). Volumes were 9% ahead of last year supported by volumes from terminals becoming fully operational and new terminals added to the portfolio. 41 out of 65 container terminals operate in growth markets and in Q1 more than 80% of EBITDA was generated in these markets. Revenue increased by 5%. Revenue for Port Activities increased in line with volume and tariff increases in several ports, which were offset by a decrease in revenue for Inland Services due to divestment of activities in North America and Asia. The EBITDA margin improved to 24.3% (19.4%), supported to a large extent by the increase in volume, the on-going operational efficiency improvement programmes and the tariff increases in several ports. The invested capital increased to USD 6.2bn (USD 5.6bn) reflecting the continued high investment level in APM Terminals. Operational cash flow was USD 305m (USD 242m) reflecting the higher EBITDA.

Market development

The global container terminal market measured in TEU increased by 4% in Q1 (Drewry). The number of containers handled by APM Terminals (measured in crane lifts and weighted with APM Terminals’ ownership interest) grew by 9% compared to Q1 2013 to reach 9.4m TEUs. New terminals impacted by 2%. In Russia, Global Ports Investments PLC in which APM Terminals has a co-controlling ownership share has completed the integration of the acquired NCC Group Limited. The business impacts of the political developments in and around Russia are continuously being assessed, but have so far not impacted APM Terminals significantly.

Portfolio Developments

In Q1, APM Terminals sold a 50% share of APM Terminal’s Port Elizabeth, N.J., container terminal at the Port of New York and New Jersey, USA. The transaction is subject to regulatory approvals. The sale of 29% shares in APM Terminals Callao SA, Peru was completed, as well as the sale of a 24% share of APM Terminals Zeebrugge, Belgium to China Shipping. In Tanjung Pelepas, Malaysia, the new berth 13 became operational during the quarter. The berth is equipped to handle the largest container vessels in operation. In Rotterdam, The Netherlands the new Maasvlakte II terminal passed an important milestone in March with completion of the civil works. The terminal remains on schedule to open in Q4.

Safety performance

APM Terminals suffered four fatalities in areas under operational control in January. The lost time incidents frequency (LTIF) for the last four quarters was 1.57 (2.22) per million working hours. New safety guidelines for operating RTG cranes have been issued.

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