APM Terminals records $223m profit growth in 6 months

Despite the challenging business environment, APM Terminals, the Danish terminal operator, has delivered an increased profit of USD223 million in the first half of 2014, as against USD 179 million recorded the same period in 2013. The return on invested capital grew by14.2 percent as against 12.8 percent recorded in the same period in the previous year.

According to the company’s H1 report, revenue increased by 6 percent, representing the growth in volume and tariff increases in port activities, partly offset by a decrease in inland services due to divestment of activities in North America and Asia. The EBITDA margin improved to 23.0 percent compared to 20.4 percent recorded the same period in the preceding year, which was as a result of increase in volume and increased tariffs.

Also, terminals becoming fully operational and new terminals added to the portfolio supported the 8 percent growth in volume while more than 80 percent of EBITDA was generated in growth markets, 41 out of 66 container terminals are located and operated in these markets.

The invested capital increased to USD 6.4 billion within the period under review as against USD 5.6 billion recorded the same period in 2013. This reflects continued high investment level in APM Terminals, developing seven terminals and expansions in 16 terminals.

However, the operational cash flow was negatively impacted by Value Added Tax (VAT) receivables accumulating in connection with construction activities, primarily in Latin America.

“APM Terminals had a good performance in the second quarter and in the first half of 2014. The rise in our first half results came despite challenging conditions,” said Kim Fejfer, APM Terminals chief executive officer.

Continuing, he said: “It is crucial for our Global Terminal Network to provide stable operations and constantly improve our efficiency and portfolio offerings to our customers. This November, we are excited to introduce the world’s first fully automated container terminal which produces zero emissions from container handling equipment, launching a new era in container handling productivity and safety.”

APM Terminals efforts to improve port productivity are ongoing with a structured approach to continuously improve processes in each location. The scope of these improvements considers everything from initial planning to the introduction of new technology while the goal is to lead the industry in productivity and reliability while proactively managing the changes that larger container vessels and the rise of mega alliances are bringing to markets.