Trading Statement for the six months to 30 September 2023

Global Ports Holding Plc

Trading Statement for the six months to 30 September 2023

Global Ports Holding Plc ("GPH" or "Group"), the world's largest independent cruise port operator, today issues a trading update for the interim period six months to 30 September 2023.

Notes                         

1.   All $ refers to United States Dollar unless otherwise stated

2. Passenger numbers refer to consolidated and managed cruise port portfolio, hence it excludes equity accounted associates La Goulette, Lisbon, Singapore and Venice.
3. Adjusted Revenue is calculated as Total Revenue excluding IFRIC-12 construction revenue
4. Segmental EBITDA includes the EBITDA from all equity consolidated ports and the contribution from management agreements, plus the pro-rata Net Profit of equity-accounted associates La Goulette, Lisbon, Singapore and Venice 
5. Adjusted EBITDA calculated as Segmental EBITDA less unallocated (holding company) expenses
6. Difference may arise due to rounding

Key Financials and KPIs

• Cruise passenger volumes rose 54% for the 6M period ending 30 Sept 2023 compared to the 2023 H1 Reporting Period. In the second quarter to 30 Sept 2023, cruise passenger volumes increased by 39% compared to Q1 ending 30 June 2023
• Cruise calls increased by 15% compared to H1 2023, which indicates that the main driver of the YoY growth in passenger volumes was the significant increase in occupancy levels, which have now returned to above 100% across our network
• Adjusted Revenue was USD 95.9 million, an increase of 50% on the USD 64.1m in the 2023 H1 Reporting Period. This growth was driven by the higher number of cruise calls and passenger volumes across all our regions
• Total consolidated revenues, including IFRIC-12 construction revenues, were USD 105.6m compared to USD 118.3m in the 2023 H1 Reporting Period. This decrease reflects the impact of lower construction activities at Nassau Cruise Port where the major construction works have come to an end during the interim period
• Segmental EBITDA for the 6M period was USD 67.6m compared to USD 44.0m in the 2023 H1 Reporting Period. Adjusted EBITDA was USD 64.1m compared to USD 40.4m in the 2023 H1 Reporting Period

Operating Highlights

The strong trading experienced in the first quarter to 30 June 2023, continued throughout the second quarter of our fiscal year 2024. Our cruise ports, after a relatively quiet summer 2022, experienced a significant pick-up in activity throughout the summer 2023 cruise season, which can be seen in the particularly strong growth rates in passenger, revenue and EBITDA in our West Med & Atlantic and Central Med Regions during the first half.

We completed our transformational investment into Nassau Cruise Port during the interim reporting period. Our investment has created a world leading cruise port that has set a new standard for investment into cruise port infrastructure globally. During the reporting period we also started operations at Prince Rupert Cruise Port, Canada, which is included in the Americas Segmental financials for the first time.

Ege Port extension

At the start of the interim reporting period, GPH agreed to extend its concession agreement for Ege Port, Kusadasi, adding 19 years to this concession which now ends in July 2052. As part of the agreement, Ege Port paid an upfront concession fee of TRY 725.4 million (USD 38 million at the prevailing exchange rate at the time of payment). In addition, Ege Port has committed to invest an amount equivalent to 10% of the upfront concession fee within the next five years to improve and enhance the cruise port and retail facilities at the port, and will pay a variable concession fee equal to 5% of its gross revenues during the extension period starting after July 2033.

A capital increase at Ege Port funded the upfront concession fee. This capital increase was provided by GPH only. As a result, GPH's equity stake in Ege Port has increased to 90.5% (from 72.5%).

This up-front concession fee and related expenses were financed by partial utilisation of the USD 75 million growth facility provided by Sixth Street shortly before the end of the fiscal year 2023. As part of this additional USD 38.9 million drawdown, GPH issued further warrants to Sixth Street, representing an additional 2.0% of GPH's fully diluted share capital.

St Lucia concession

During the interim reporting period we signed a 30-year concession with a 10-year extension option for Saint Lucia Cruise Port. As part of this concession, GPH will invest in a material expansion and upgrade of the cruise port facilities. This investment will allow the port to handle the largest cruise ships in the global cruise fleet, increasing the port's capacity. In the 12 months to 31 March 2023, St Lucia welcomed c590k passengers (2019 calendar year c790k), the completion of the extended pier and upgrading the facilities are expected to lead to a rise in passenger volumes to over 1m in the medium term. GPH will also invest in transforming the retail experience, continuing our commitment to driving significant economic benefits for the local population, this investment will include an exciting new space for local vendors.

Bremerhaven concession

We were also awarded a 10-year port concession agreement, with a potential 5-year extension option, by bremenports on behalf of the city of Bremen regarding the operations at Bremerhaven Cruise Port. The cruise facilities at the port are currently undergoing a multimillion-euro investment by the local authorities, which once completed will expand and renew the port facilities. In 2022, Bremerhaven Cruise Port welcomed over 230k passengers, with over 90% of these being homeport passengers. The location of the port means it is ideally located for Scandinavian and Baltic Sea itineraries. GPH will take over operations of the port in the first quarter of calendar year 2025.

Increase in ownership at Barcelona and Malaga Cruise Ports

Shortly after the end of the interim reporting period, GPH purchased from the minority shareholder its 38% holding in Barcelona Port Investments S.L. (BPI), taking GPH’s holding in BPI to 100%. The transaction terms are confidential, however, the purchase price is below USD 20 million.

As a result of this transaction, GPH’s indirect holding in Creuers De Port de Barcelona S.A (Creuers) has increased to 100%, which increases GPH’s interest in both Barcelona Cruise Port and Malaga Cruise Port to 100% from 62%. In addition, GPH’s effective interest in SATS-Creuers Cruise Services PTE. LTD (Singapore Cruise Port) rises to 40% from 24.8% and the effective interest in Lisbon Cruise Port LD (Lisbon Cruise Port) rises from 46.2% to 50%.