APM Terminals, the terminal operating arm of AP Moller Maersk, has reported a strong first quarter performance with container growth exceeding the market average.
Container volumes at the Hague-based company’s global portfolio of terminals climbed nine percent, when compared to the corresponding period last year, to 9.4 million TEU.
Meanwhile, profits jumped from US$166 million to $215 million, and return on invested capital (ROIC) also increased from the 12 percent posted in Q1 2013 to 14 percent during the month period. Profit, excluding divestment gains and impairment losses, was also up from $161 million to $217 million.
APM Terminals’ revenue increased by five percent during the quarter in line with volume, which was offset by a decrease in revenue for Inland Services due to the divestment of activities in North America and Asia. EBITDA margin improved significantly to 24.3 percent from the 19.4 percent the previous year, again supported by increased volume and operational efficiency.
“APM Terminals’ first quarter results reflect the company’s continuing focus on creating long-term customer value,” said Kim Fejfer, CEO of APM Terminals.
“The benefits of our continuous improvement approach to productivity, operational excellence, liner network solutions and portfolio management continue to deliver positive results for our customers and shareholders.”
“Our ongoing efforts to optimise our portfolio through partnerships, capital efficiency, infrastructure investment and better operations underscore our confidence in our customers and the future potential of the port market.”
As part of its financial statement for the first quarter, APM Terminals also gave an update on its portfolio developments.
In Russia, Global Ports Investments (GPI) in which APM Terminals has a co-controlling ownership share, completed the integration of NCC, the acquired competing operator. The business impacts of the political developments in and around Russia are continuously being assessed.
In Rotterdam, the new APM Terminals Maasvlakte II terminal passed an important milestone in March with the completion of civil works. Step-by-step integration of automated equipment, system testing and job training is progressing and will continue into the summer. The terminal remains on schedule to open late 2014.
In the Southeast Asia hub of Tanjung Pelepas, Malaysia, berth 13 was inaugurated during the quarter. The berth is equipped to handle the largest container vessels in operation and served the Triple-E vessel, Maersk Mc-Kinney Moller in early April.
APM Terminals announced a 50-50 joint venture with infrastructure investor Brookfield Asset Management for ownership of the APM Terminals Port Elizabeth, New Jersey container terminal at the Port of New York and New Jersey which is currently fully-owned by APM Terminals. The joint venture is subject to regulatory approvals.
Other deals include the completed sale of a 29 percent share in APM Terminals Callao to TIL, as well as the 24 percent share sale of APM Terminals Zeebrugge to China Shipping.
In Santos, Brazil, dredging to remove a high spot in the access channel has been completed and the company expects to receive permission to handle large vessels within a few weeks.