A cruise isn’t everyone’s idea of fun, as the overwhelmed citizens of Venice, Dubrovnik or Barcelona can attest. But buoyed by forecast global growth of 5 per cent a year, floating hotels are a big commercial opportunity. For Global Ports (GPH), it’s also the part of its business it would rather talk about right now.
In the half year to June, passenger volumes across all ports jumped a fifth to 3.3m, driving a 21.7 per cent uptick in constant-currency earnings before interest, depreciation and amortisation. The division is also home to Global Port’s best investment options, including developments in Antigua and Barbuda, Nassau, and Tunisia.
The same can’t be said for commercial freight, where rising tariffs and global macroeconomic factors are blamed for falling revenues. General and bulk cargo volumes dropped 42 per cent in the period.
As such, this isn’t an ideal backdrop to announce a strategic review, which chief executive Emre Sayin confirmed would examine the potential disposal of the commercial arm. Any decision will need to factor in Global Ports’ gross debt, which now sits at $410m (£338m), including how to repay, extend or switch the currency of a $250m dollar-denominated bond that matures in 2021.
Analysts at Berenberg forecast earnings per share of 56.6¢ this year, rising to 62.9¢ in 2020.
| GLOBAL PORTS (GPH) | ||||
| ORD PRICE: | 300p | MARKET VALUE: | £188m | |
| TOUCH: | 295-300p | 12-MONTH HIGH: | 565p | LOW: 282p |
| DIVIDEND YIELD: | 13.3% | PE RATIO: | na | |
| NET ASSET VALUE: | 145¢* | NET DEBT: | 157%** | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2018 | 56.6 | -2.11 | -6.0 | 27.9 |
| 2019 | 54.6 | -13.8 | -26.0 | 19.9 |
| % change | -3 | - | - | -29 |
| Ex-div: | 31 Oct | |||
| Payment: | 29 Nov | |||
| *Includes intangible assets of $388m, or 618¢ a share. **Excludes $60.9m in recognition of operating leases under IFRS 16. | ||||
