APM Terminals Announces 2010 Results: USD 793 Million Profit

APM Terminals operates a global network of 50 con¬tainer terminals and 120 inland facilities in 64 countries. During 2010, APM Terminals continued to focus on de¬velopment in emerging markets and portfolio manage¬ment to improve performance. The integration of inland activities into APM Terminals was a strategic step de¬signed to strengthen and expand client services. Equally important the integration allows APM Terminals to en¬ter new markets related to port terminal activities and offer the customers more integrated solutions, covering a larger part of the logistics chain.

As part of the increased focus on growth and develop¬ment in emerging markets, APM Terminals concluded a joint venture agreement regarding establishment of a new terminal in Santos, Brazil, and a concession agree¬ment on the operation of the port terminal in Monrovia, Liberia. The construction of the new port terminal in Cai Mep, Vietnam is nearlng completion for operations to commence early 2011. in additicn, a number of terminals were expanded or upgraded during 2010 to cater for growing market demand, notably the Suez Canal Con¬tainer Terminal m Port Said, Egypt the Aqaba Container Terminal in Jordan, and the port terminals in Lagcs, Nigsna and Luanda, Angola.

In 2010, the overall global container terminal market rebounded strongly from the drop in 2009. Measured in TEU, volumes grew by 13% during the period (D re wry). The number of containers handled by APM Terminals (crane lifts weighted with APM Terminals’ ownership share) was up 2% compared tc 2009, and 7% adjusted fcr discontinued operations in six locations: Oakland and Savannah in the USA, Kachsiung in Taiwan. Yantian in China, Voltri in Italy, and Dunkirk in France.

APM Terminals continued tc broaden its customer portfolio and registered increased customer satisfaction sccres throughout 2010. The strong operational perfor¬mance levels and service mindset demonstrated by the global organisation were in particular reccgnisEd by the customers. Volumes frcm customers other than Maersk Line and Safmarine increased by 12% (19% adjusted fcr discontinued terminals), contributing 44% (41%) of APM Terminals’ tctal volumes. APM Terminals entered intc a long term agreement with a subsidiary of Hyundai Merchant Marine in Los Angeles, and with Virginia Inter¬national Terminals tc operate APM Terminals Virginia under a lease agreement.

APM Terminals is an industry leader with respect to safety and was awarded the Safety at Sea International (SASI) Award in the category of Management and Opera¬tions in 2010. APM Terminals wall continue its focus cn further improving safety levels in future. APM Terminals is also focusing cn reducing its environmental impact and recorded a reduction of mere than 10% in C02 emis¬sions per crane lift during 2010 compared tc 20D9.

The EBITDA margin fcr port activities increased from 24.4% to 25.3%, primarily as a result of cost reductions. Alsc in 2010, APM Terminals focused on improving the operating processes and thus increasing productivity in the pcrts. The tctal EBITDA margin was negatively affected by lower earnings and restructuring ccsts in in¬land activities, declining frcm 21.2% to 20.4%.

The results were positively affected by divestment of an ownership interest in Sigma Enterprises Ltd. at a gam of USD 422 million before tax and negatively affected by impairment losses and provisions made for restructur¬ing of inland activities, etc. Excluding these amounts, the profit was USD 492 million (USD 431 million).

Cash flow from operating activities was USD B45 million (USD 760 million).

Return on invested capital (ROIC) was 16.0% (10.0%). Return befcre gain and impairment losses, etc. was 10.4% (8.7%).

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Source: apmterminals , February 23, 2011

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