On April 30, the Novorosiysk Commercial Sea Port (NMTP) released its FY 2007 consolidated financials. The statement says that revenue jumped 74.3% to USD 483 mn and EBITDA increased by 87.5% to USD 204.4 mn. The net profit more than doubled to USD 93.7 mn. In 2008, the company targets further improvements in its financials amid planned tariff hikes on cargo handling.
Таble 1. NMTP: basic FY 2007 financials, in mn
| | 2007 | 2007F | Discrepancy | 2006 | Changes |
|---|
| Revenue | 483.4 | 461.1 | 4.84% | 277.3 | 74.3% |
| EBITDA | 204.4 | 195.6 | 4.50% | 109 | 87.5% |
| Operating profit | 154.6 | 140 | 10.43% | 70.4 | 119.6% |
| Net profit | 93.7 | 93.6 | 0.11% | 44.1 | 112.5% |
Source: company data, Finam estimates
On the whole, the published financials slightly outpaced our expectations. The considerable y-o-y growth in the financial results is attributable to consolidation of the stevedore assets, tariff hikes and the active investment program. The EBITDA margin indicator practically fully met our expectations, at 42.3% versus the 42.4% projected. We expect further improvements in the company's financial performance thanks to the planned tariff hikes on cargo handling services. We expect the company to achieve a 2008 EBITDA margin at about 49%. We also highlight the robust cash flows at the company.
We are generally neutral about the published financials. We do not exclude that the investors that took part in the company's IPO late last year may have expected the marginally better financial results. In view of the released financials, we are to revise our recommendation and the target price on NMTP shares, with a moderately positive outlook for the shares.
0.553
1.6
