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Such a significant indicator is associated, first, with the effective organization of the production process in KSK and the measures taken to save the life and health of employees during a pandemic. Thanks to this, the team successfully copes with the high flow of export cargo caused by the increased demand for cereals around the world. 

During the second half of 2020, KSK has already set records for daily unloading of wagons and monthly grain transshipment. Therefore, the record achieved is a natural result of the well-coordinated work of the entire team of the grain terminal.

Commenting on the achievement, Alexander Trukhanovich, General Director of KSK, emphasized: “Throughout the year, the continuously changing situation forced often, just on the go, adjust our plans. But, as we can see, the constant readiness for changes has brought its positive results - we have implemented a number of fundamental operational solutions that have significantly increased the efficiency of the terminal and achieved record performance."

The performance of the Delo Service Company, which provides towing services in the port of Novorossiysk using new highly maneuverable own tugs, has increased. In January-September 2020, they provided 913 mooring services by the fleet, which is 29% higher than in the same period a year earlier.

CEO of KSK Alexander Trukhanovich commented on the achievement: “The main components of such success are reasonable decision-making, well-coordinated team-work, competent and careful operation of the new KSK’. And surely, the favorable conjuncture of the grain market and the high harvest in Russia helped us achieve this record. "

At the same time, the management of the company implemented a successful commercial policy at the start of the grain season. Manually assembling a good customer base and organizing cooperation with partners in the provision of loans.

The logistics component for grain delivery by road has been revised. An agreement with the customers to use different auto terminal with a larger capacity and with a more rational organization of vehicle turnover was reached.

In the midst of grain handling season, the management of KSK had to make a number of operational corrective decisions. Due to a smaller harvest in the nearest southern regions of the country, the flow of grain carriers decreased, but the number of applications for receiving railroad trains with grain increased sharply, reaching peak values for the entire operation of the terminal. In this regard, the method of handling the wagons was not only revised, but also brought to the best practices since the existence of KSK: from 125 wagons per day in early August to 188 wagons in the middle of September.

With such a responsible and competent approach, achieving a transshipment record was only a matter of time. However, the KSK team is not going to stop there. Additional traction equipment has been ordered for the railway segment. The equipment has already been introduced and is undergoing practical testing. It is intended to automate, respectively, to reduce the production of technological procedures - weight control, sampling grain samples and a number of others. The total investment in the modernization of KSK is about USD 68 million.

Key financial results:

• Consolidated revenue 5,520 million rubles (+ 20.8%)
• Consolidated EBITDA 4,383 million rubles (+ 39.5%)
• EBITDA margin 79.4% vs. 68.8% in the first half of 2019
• Adjusted net profit 2,857 million rubles (+ 33.7%)
• Operational cash flow 3,745 million rubles (+ 67.2%)
• CAPEX 949 million rubles (-52.3%)
• Net debt as of the 30th of June 2020 22,525 million rubles (+ 2% compared to the 31st of December 2019)
• Net debt/EBITDA 2.8x as of the 30th of June 2020 vs. 3.3x as of the 31st of December 2019 

Key operating results:

• Total cargo throughput is 5 million tons (+ 54%)
• Grain throughput 1.9 million tons (+ 75%)
• Container throughput 254 thousand TEU (+ 36%)

DeloPorts 6 months results.

DeloPorts CEO Igor Yakovenko commented on the half-year results: “The launch of the berth No. 38 allowed the container terminal of DeloPorts to increase its market share in the Azov and Black Sea basin to 60%. Together with a good grain harvest it allowed the Group to increase its throughput by 54% in mln tons  as well as to increase the Company’s financial results despite the economic restrictions caused by the pandemic. The grain throughput reached 1.9 million tons, a record 75% growth year on year. The containerized cargo handling reached 254 thous. TEU, a 36% increase. In the 1st half of 2020 the focus was on the implementation of our perspective projects and the adjustment of development priorities in accordance with the clients’ needs: for example, a record grain reception volume was reached at the grain terminal, and the container terminal increased the oversized cargo handling speed by 8X”.

About the Company

DeloPorts is a holding company that owns and operates stevedore assets of Delo Group in the port of Novorossiysk. DeloPorts consolidates NUTEP Container Terminal, KSK Grain Terminal and Delo Service Company.

Delo Group is the major Russian transportation and logistics holding company that owns and operates port container terminals in the Azov and Black Sea, Baltic and Far-Eastern basins, a wide network of railway container terminals, a fleet of containers and flatcars. The headquarters of the Group is the Management Company “Delo”, 70% is owned by the Group’s founder Sergey Shishkarev and 30% owned by State Corporation Rosatom. 

The Group’s stevedore business is represented by DeloPorts holding and the leading operator of port container terminals Global Ports. TransContainer and Ruscon assemble the transportation and logistics business of Delo Group.

KSK CEO Alexander Trukhanovich commented on the achievement of record results: “This agricultural year we have adjusted our priorities focusing more on the railway reception. Due to the poor harvest in the south of Russia, the automobile reception of grain gave way to the railway one. We had to look for new solutions to increase the wagons handling speed. We switched to unloading wagons in two grain storages simultaneously, which  allowed us to reduce the number of technological operations by 30%, and now we use three locomotives instead of two.”

In the near future, the terminal will be equipped with the automatic samplers and the in-line sampler, which will save the time required for determining grain quality. In addition, the unified operations control center will be created for traffic control at NUTEP Container Terminal and KSK Grain Terminal. This will allow us to use railway tracks and diesel locomotives efficiently, excluding their downtime.

The construction of the additional silos for 102 thousand tons allowed KSK to increase grain storage capacity up to 220,000 tons were completed as a part of KSK investment program, developed until 2021. As well as the additional grain reception lines from railway and road transport. The speed of cargo reception was increased and the own laboratory was expanded. Currently, the construction of the deep-water berth No. 40A is underway, it will allow KSK to receive Post-Panamax vessels with a deadweight of 100 thousand tons and to increase exports to the South-East Asian countries.

Previously, the chains with special grips were used for oversized containers handling. The dockers attached them to a crane spreader (reach stacker) and after that the oversized container was manually snapped onto fittings. This labor-intensive process took at least 20-30 minutes per container and it required additional human resources (at least 4 people). This naturally slowed down the vessel handling speed. Now, an oversized container handling takes almost the same time as a standard container handling. And there is no need for additional human resources as the frame and the oversized container are gripped directly by the crane spreader (reach stacker).

“All our efforts are aimed at increasing the operational efficiency of the terminal. We have already launched the unique deep-water berth in the south of Russia as a part of the NUTEP investment program developed till 2021. We are also modernizing the warehouse inland platform, purchasing and launching the new technological equipment. In addition, we optimize the processes at the terminal to increase the operating speed and to improve the service quality for our clients”, - said the NUTEP CEO Yury Matvienko. 

TEC CONTAINER is the manufacturer of the semi-automatic extension frame for oversized containers with a capacity of 50 tons that was purchased by NUTEP at a price of 6.5 million rubles. It is used on all types of cranes (reach stackers) equipped with a standard spreader.

NUTEP is a modern container terminal of the holding company DeloPorts which handles container, general and Ro-Ro cargo in Novorossiysk sea port.

DeloPorts is a holding company that owns and operates stevedore assets of Delo Group in the port of Novorossiysk. DeloPorts consolidates NUTEP Container Terminal, KSK Grain Terminal and Delo Service Company.

Delo Group is the major Russian transportation and logistics holding company that owns and operates port container terminals in the Azov and Black Sea, Baltic and Far-Eastern basins, a wide network of railway container terminals, a fleet of containers and flatcars. The headquarters of the Group is the Management Company “Delo”, 70% is owned by the Group’s founder Sergey Shishkarev and 30% owned by State Corporation Rosatom. 

The Group’s stevedore business is represented by DeloPorts holding and the leading operator of port container terminals Global Ports. TransContainer and Ruscon assemble the transportation and logistics business of Delo Group.

The Memorandum was sent to the Association of Conscientious Agroindustrial Complex Market Participants after the signing. 

The terminal’s project capacity will be increased from 2 to 4 million tons per year after the completion of the investment program. The operational capacity of the terminal will reach 6 million tons. A comprehensive program for DeloPorts terminals development for 2015-2021 includes the investment program for KSK Grain Terminal. The construction of a deep-water grain berth will be completed at KSK by 2021: the terminal will receive vessels with a deadweight of 100 thousand tons. 

“The audit from the State Expert Evaluation Department showed that the cost calculation in the estimate documentation complies with all standards. Despite the restrictions caused by the pandemic, all work is proceeding according to the plan. We regularly adhere the strongest quarantine security measures at the terminal to ensure the health security of the employees”, - said KSK CEO Alexander Trukhanovich. He explained that the development includes construction of the deep-water berth No. 40A and dredging operations within the investment program til 2021: “We have already completed the construction of the additional silos of a volume of 102 thous. tons that allowed us to increase grain storage capacity up to 220,000 tons. As well as the additional grain reception lines from railway and road transport were constructed, speed of cargo reception was increased. The terminal capacity will reach 7 million tons per year in 2021. The total investment in the project - 68 million USD.”

DeloPorts CEO Igor Yakovenko commented on the Company’s results for the 6 months of 2020: “Despite the difficult economic situation caused by the coronavirus pandemic, DeloPorts terminals and the Service Company “Delo” have increased their operations and  improved efficiency. Thanks to the launch of the deep-water container berth, the throughput at NUTEP Container Terminal increased by 36% in the 6 months of 2020 against the 2% decrease in the total container throughput of the Russian seaports. Thanks to the recovery of the grain export market after the lean grain season of 2018-2019, as well as the launch of the new silos at KSK Grain Terminal, the grain throughput of the terminal increased by 75% year on year while the grain throughput growth in the Russian seaports amounted to  22%”.

 DeloPorts cargo throughput, 6M 2020 (‘000 tonnes)

*Minor deviations in the calculation of the percentage changes in this press release are due to rounding.

About the Company

DeloPorts is a holding company that owns and operates stevedore assets of Delo Group in the port of Novorossiysk. DeloPorts consolidates NUTEP Container Terminal, KSK Grain Terminal and Delo Service Company.

Delo Group is the major Russian transportation and logistics holding company that owns and operates port container terminals in the Azov and Black Sea, Baltic and Far-Eastern basins, a wide network of railway container terminals, a fleet of containers and flatcars. The headquarters of the Group is the Management Company “Delo”, 70% is owned by the Group’s founder Sergey Shishkarev and 30% owned by State Corporation Rosatom. 

The main reason for the downgrade is the consolidation of 99.64% of TransContainer PJSC, the leading Russian intermodal container operator, by Delo Group, and the economic and market consequences caused by the coronavirus pandemic spread. 

According to Fitch, DeloPorts and TransContainer are the key assets of the Management Company “Delo”. A strong correlation between DeloPorts and MC “Delo” ratings is caused by the operational interconnectedness of the subsidiary and the parent company. Fitch’s stable outlook shows that MC “Delo” can flexibly reallocate resources within the Group. It reduces the business risks and allows the Group to have a comfortable, balanced business model.

MC “Delo” and DeloPorts CEO Igor Yakovenko commented on the Fitch’s decision: “Despite the acquisition of TransContainer and the economic consequences caused by the epidemic, the financial position of the Group remains stable as well as its operational processes.”

About the Company

DeloPorts is a holding company that owns and operates stevedore assets of Delo Group in the port of Novorossiysk. DeloPorts consolidates NUTEP Container Terminal, KSK Grain Terminal and Delo Service Company.

Delo Group is the major Russian transportation and logistics holding company that owns and operates port container terminals in the Azov and Black Sea, Baltic and Far-Eastern basins, a wide network of railway container terminals, a fleet of containers and flatcars. The headquarters of the Group is the Management Company “Delo”, 70% is owned by the Group’s founder Sergey Shishkarev and 30% owned by State Corporation Rosatom. 

The Group’s stevedore business is represented by DeloPorts holding and the leading operator of port container terminals Global Ports. TransContainer and Ruscon assemble the transportation and logistics business of Delo Group.

Source: dated 15.06.2020

According to the Agency, the stevedore holding DeloPorts is a strategic asset of Delo Group, and its rating confirms a reliable business reputation of the parent company and a stable business strategy.

The Agency associates maintenance of the DeloPorts rating and the stable outlook with the strengthening and diversification of the Group's  controlling company’s (Management Company “Delo”) business after acquiring 99.6% of the largest Russian railway operator PJSC TransContainer in April 2020.

S&P emphasizes that the Group expects to receive synergies from the cooperation of the two companies after a full integration of TransContainer. According to the Agency, the larger and more diversified business helps the company to offset higher leverage at the consolidated level resulting from the acquisition and the complicated economic situation caused by the COVID-19 pandemic.

S&P predicts that the impact of COVID-19 will have a moderate effect on DeloPorts operations in 2020 and expects recovery in 2021. A global recession and a commodity circulation decrease  can cause the general slowdown in cargo turnover. S&P expects DeloPorts cargo turnover to remain a minimum of the last year’s level.

Igor Yakovenko, CEO of Delo Group and DeloPorts, commented on the Standard & Poor’s forecast:

“Under the conditions prevailing in the global market affected by the COVID-19, maintaining the rating and a stable outlook indicates the right strategic development course of DeloPorts as part of Delo Group. We maintain a stable financial state of the Company, we also continue to implement the investment projects aimed at the Group’s capacities increase and at the operating efficiency improvement.

It is important that the assets of the DeloPorts, as a strategic part of the transportation and logistics industry, lead non-stop operations to the benefit of the country's infrastructural security. We preserve all workspaces and work on the quality of services improvement  for our clients in the pandemic situation."

Source - S&P dated 20.05.2020

About the Company

DeloPorts is a holding company that owns and operates stevedore assets of Delo Group in the port of Novorossiysk. DeloPorts consolidates NUTEP Container Terminal, KSK Grain Terminal and Delo Service Company.

Delo Group is the major Russian transportation and logistics holding company that owns and operates port container terminals in the Azov and Black Sea, Baltic and Far-Eastern basins, a wide network of railway container terminals, a fleet of containers and flatcars. The headquarters of the Group is the Management Company “Delo”, 70% is owned by the Group’s founder Sergey Shishkarev and 30% owned by State Corporation Rosatom. 

The Group’s stevedore business is represented by DeloPorts holding and the leading operator of port container terminals Global Ports. TransContainer and Ruscon assemble the transportation and logistics business of Delo Group.

Key financials

·      Consolidated revenue RUB 9,835 mln (-17.5%), including main segments: container segment RUB 4,912 mln (+21.0), grain segment RUB 3,363 mln             (-44.1%)

·      Consolidated EBITDA RUB 6,755 mln (-23.1%)

·      EBITDA margin 68.7% against 73.7% in 2018

·      Operating cash flow RUB 5,610 mln (-14.3%)

·      CAPEX RUB 4,139 mln (-9.3%)

·      Net debt RUB 22,126 mln (+14.4)

·      Net debt/EBITDA 3,3x versus 2,2x as of 31 December 2018

Key operating results

·      Total volume of cargo handling 837 mln tonnes (-4.6%)

·      Grain handling volume 3.6 mln tonnes (-25.0%)

·      Container throughput 375 thous. TEUs (+12.6%)

Key corporate events:

·         Launch of the berth No. 38 at NUTEP Container Terminal led to a 13% increase in container cargo turnover in TEU and a record annual transshipment.

·         Commissioning of the 5th tug of the Service Company “Delo”.

DeloPorts CEO Igor Yakovenko commented on the reporting results:

 “The Company’s financial indicators decreased due to a drop in grain transshipment, caused by the overall decrease in Russian grain export in 2019. The high prices in the domestic market and relatively low prices in the international market lead to the Russian agricultural producers lowering interest for the grain export, which had an impact on the Group’s results.

At the same time, DeloPorts completely fulfilled all its strategic development tasks in 2019: the Group's share in the transshipment of dry cargo in Novorossiysk increased from 17 to 20 percent, the investment program was successfully introduced and allowed us to increase the throughput capacity of NUTEP and KSK, so that container transshipment reached 13%”.

The full version of the audited consolidated IFRS financial statements, as of and for the period of 12 months ended on the 31th of December, 2019, is available at DeloPorts website

http://www.deloports.ru/pages/investors/financial_results/

About the Company

DeloPorts is a holding company that owns and operates stevedore assets of Delo Group in the Port of Novorossiysk. DeloPorts consolidates the NUTEP Container Terminal, the KSK Grain Terminal and the Service Company Delo.

Delo Group is the major Russian transportation and logistics holding company that owns and operates port container terminals in the Azov and Black Sea, Baltic and Far-Eastern basins, a wide network of railway container terminals, a fleet of containers and flatcars. The headquarters of the Group is the Management Company “Delo”, 70% is owned by the Group’s founder Sergey Shishkarev and 30% owned by State Corporation Rosatom.

The Group’s stevedore business is represented by DeloPorts holding and the leading operator of port container terminals Global Ports. TransContainer and Ruscon assemble the transportation and logistics business of Delo Group. 

The increase in turnover of the NUTEP Container Terminal in twenty-foot equivalent reached 26% compared to the 1st quarter of 2019, in January-March 2020, the terminal handled 125,640 TEUs. The turnover growth largely occurred due to the launch of the new deep-water berth No. 38, the redirection of a part of the traditional cargo flow from the North-West to the South, as well as the increase in handling of perishable cargo in refrigerated containers.

Despite the unfavorable market conditions and the negative change in the ruble exchange rate, the NUTEP Container Terminal was able to increase the March turnover by 27%. NUTEP reached a record monthly turnover of 50,518 TEUs, a 10,800 TEUs increase compared to the same period in 2019.

The grain turnover at KSK Grain Terminal in the 1st quarter of 2020 grew by 57% compared to the same period in 2019 and reached 1.1 mln tonnes. The increase of grain handling is the result of the commissioning of the new production facilities for automobile and railway cargo reception. Moreover, the KSK silo capacities expanded from 116 thous. tonnes of simultaneous storage to 210 thous. tonnes. In the meantime, KSK turnover in March 2020 increased by 90% compared to March 2019.

The turnover of general cargo and Ro-Ro cargo in the 1st quarter of 2020 reached to 10 thous. tonnes.

In January-March 2020, 308 mooring services were provided by the fleet of Delo Service Company, a 36% growth year on year.

Cargo throughput (‘000 t)*

*Minor deviations in the calculation of the percentage changes in this press release are due to rounding.

Russian President Vladimir Putin has recently extended the days off until the end of April and granted the regions the right to determine a range of security measures against the coronavirus. The movement in Krasnodar Region has been restricted since the 3rd of April accept those who received special passes from regional authorities.

“DeloPorts LLC terminals - NUTEP Container Container Terminal, KSK Grain Terminal and Delo Service Company - are included in the list of continuous operation enterprises, that are not suspended during the quarantine. International vessels reception, handling and storageof cargo, dispatch are carried out as usual.

At the same time, the safety and health of our customers and staff are the absolute priority. We now adhere the strongest quarantine security measures”, said Igor Yakovenko, CEO of the company.

The company has a control headquarters, which is able to respond immediately to any possible customers’ situationsit’s main goal is to prevent the suspension of cargo flow.

JSC “Murmansk Commercial Seaport”, JSC “Rosterminalugol” and PJSC “Vladivostok Commercial Seaport” were also awarded in this nomination.

The unique deep-water berth of Delo Group was launched at the NUTEP Container Terminal in 2019. Berth No. 38 has no analogues on the Black Sea coast. It is able to receive container vessels with capacity to 10,000 TEUs.

The turnover of DeloPorts terminals in 2019 decreased by 5% compared to 2018 reaching 8.3 mln tonnes.

The container terminal NUTEP increased the turnover by 13% in twenty-foot equivalent. The yearly result showed a record turnover of 375 thous. TEUs.

The grain terminal KSK turnover decreased by 25% compared to 2018, amounted to 3.6 mln tonnes. The decrease occurred due to changes in the structure of the export transshipment market for grain corps in the Russia Federation.

Bunkering fuel sale dropped by 22% compared to 2018.

The previous record was also reached in December 2018.

In the last month of the year NUTEP handled the record 40 vessels. The new deep-water container berth 38 received the 16 of them while giving the 23,016 TEU throughput.

DeloPorts is a holding company that owns and operates stevedore assets of Delo Group in the Port of Novorossiysk. DeloPorts consolidates the NUTEP Container Terminal, the KSK Grain Terminal and the Service Company “Delo”.