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Turkey troubles rock Global Ports

The port operator hit the main market in May this year, but political volatility in Turkey weighed on its maiden results
August 22, 2017

Shares in Global Ports (GPH) fell by as much as a tenth on Monday after the port operator reported falling revenue and a post-tax loss of $6.7m (£5.2m) in its maiden first-half results, from a $0.4m gain in the previous comparable period. Despite good cruise passenger growth and reduced net debt, management cited “ongoing weakness in sentiment for Turkish cruise ports” and disadvantageous currency movements. Chief executive Emre Sayin reminded shareholders of the plan to diversify geographically, expanding the company’s cruise operations into the Caribbean and Asia: that can't come too soon.

IC TIP: Hold at 626p

While the first quarter is traditionally quieter for the cruise business, passenger numbers still grew 14.1 per cent. This was led by Valetta Cruise Port, in Malta, where numbers rose 20.3 per cent. However, political volatility and a related decline in consumer sentiment prompted cruise lines not to call at Turkish ports: passenger numbers at Ege Port, the company’s highest-margin location, fell 63.4 per cent. These figures were also dampened by renovations at Ege’s shopping mall. Ultimately, revenue from the cruise business fell 15.9 per cent to $18.5m.

Commercial port sales fared better, growing by 1.6 per cent to $31.3m – helped by higher marble and cement exports at Port Akdeniz, and new cargo customers.

Analysts at Barclays forecast adjusted pre-tax profits of $41m and EPS of 50ȼ for the year to December 2017 (from $39m and 57ȼ in 2016).

GLOBAL PORTS (GPH)   
ORD PRICE:626pMARKET VALUE:£393m
TOUCH:621-626p12-MONTH HIGH:762pLOW: 610p
DIVIDEND YIELD:nilPE RATIO:na
NET ASSET VALUE:305ȼ*NET DEBT:77%
Half-year to 30 Jun**Turnover ($m)Pre-tax profit ($m)Earnings per share (ȼ)Dividend per share (p)
201652.7-2.34-0.40nil
201749.7-6.53-11.321.6
% change-6---
Ex-div:31 Aug   
Payment:29 Sep   
*Includes intangible assets of $446m, or 710ȼ a share **Pre-IPO figures. Company listed in May 2017