- Revenue USD $4.24 billion
- Segment result after tax of USD $654 million
- Return on Invested Capital of 10.97%
- Invested capital of USD $6.2 billion
- 36 million TEU throughput (based on equity share)
APM Terminals generated profit of USD $654 million in 2015, with a Return on Invested Capital (ROIC) of 10.9%, which reflected in part lower volumes of containerized traffic in such markets as West Africa, Russia and Brazil. The number of containers handled by APM Terminals (weighted by APM Terminals’ ownership interest) decreased by 6.0% compared with 2014, to 36 million TEUs. The decrease was mainly due to the divestment of operations in Charleston, South Carolina; Jacksonville, Florida; and Houston, Texas, in the USA, and the company’s one third share of the MedCenter Container Terminal, in Gioia Tauro, Italy; (in 2014 APM Terminals also trimmed holdings in Portsmouth, Virginia, USA and Le Havre, France). Excluding these divestments, like-for-like volumes decreased by 1.1% for the year, while overall global container throughput grew by 1.3%. The continuing expansion of the APM Terminals Global Terminal Network, however, was accelerated through the several significant acquisitions and new projects won.
APM Terminals agreed to acquire 100% of the shares in Grup Marítim TCB (TCB), the leading Spanish container terminal operator, with terminals located in Spain, Colombia, Brazil, Mexico, Guatemala and Turkey. When the transaction is fully completed, APM Terminals Global Terminal Network will expand to 77 terminals in 38 countries across five continents and with additional eight terminals in development. The 11 acquired TCB terminals (including a facility in Guatemala scheduled to open in early 2016) will add an additional 4.3 million TEUs of capacity and 3.5 million TEUs in estimated annual container volumes (2.6 million TEUs of additional throughput when weighted Equity share). The acquisition has an implied enterprise value of USD $1.1 billion with additional capital investments of USD $400 million over the next five years.
APM Terminals also concluded an agreement in 2015 to invest approximately USD $800 million in a new container terminal associated roadway infrastructure adjacent to our existing facility in Tema, Ghana, representing 3.5 million TEUs in new annual throughput capacity for the creation of a new deep-water hub in West Africa. Other investments finalized in 2015 were a 20% share of a bulk grain terminal in Qingdao, China; a 51% majority share in a multi-purpose terminal in Cartagena, Colombia and a refrigerated cargo terminal in Vado, Italy, along with ongoing expansion and upgrades of existing facilities across the portfolio.
Newly completed projects expected to begin operations in 2016 include the 1.5 million TEU annual capacity deep-water APM Terminals Izmir, in Turkey on the Aegean Sea, and Phase I of the semi-automated Lázaro Cárdenas Terminal 2 (TEC2) deep-water facility on Mexico’s Pacific Coast, with an initial annual throughput capacity of 1.2 million TEUs. In April of 2015 the world’s first fully-automated container terminal, APM Terminals Rotterdam Maasvlakte II was officially opened. The new terminal was named “Innovation of the Year” by Containerisation International, and APM Terminals was named “Port Operator of the Year” at the 2015 Lloyd’s List Global Awards ceremony.
Many of the innovative systems and technologies applied at APM Terminals Rotterdam Maasvlakte II will also be utilized at APM Terminals Lázaro Cárdenas. The terminal, currently under construction in Mexico’s second-busiest container port, is expected to open late 2016. The TEC2 facility will be the first automated container terminal in Latin America and will feature fully automated electric yard stacking cranes, and shuttle carriers will be used for transport between the yard cranes and the ship to shore (STS) cranes.
APM Terminals earned a profit of USD $654 million (USD $ 900 million) and an ROIC of 10.9% (14.7%) with an underlying profit of USD $ 626 million (USD $849 million) in 2015. Lower global oil prices resulted in a sharp decline in import volumes into oil producing countries in West Africa, Russia and Brazil. Along with divestments in 2014, this caused revenue to decrease by 4.8% and the EBITDA-margin to decrease by 2.7% compared with 2014 (22.7%). Operating business generated a profit of USD $696 million, while projects under implementation represented a deficit of USD $42 million stemming from their upstart costs.
Results in 2014 were was positively impacted by net divestment gains after tax of USD $232 million, and negatively affected by impairments of USD $181 million related to European activities of which USD $154 million was related to joint venture companies. The result for
2015 does not include any impairment, but includes net divestment gains of USD $10 million and positive impact from reversed impairments of USD $14 million.
Global market conditions have had an unfavourable effect upon container volumes and rates in several key terminals. Specifically, major operations in oil-dependent markets have declined
significantly compared with 2014 container volumes. Partly mitigating this, performance in APM Terminals’ North American businesses has increased compared to 2014, mainly due to increased volume and storage income; (in 2015, APM Terminals was also named Lloyd’s List North American Maritime Awards’ “Port Operator of the Year”).
APM Terminals’ revenue improvement and cost-saving initiatives continue to be aggressively pursued across the global portfolio, and have delivered approximately USD $200 million to the bottom line, though adverse market conditions were only partly mitigated. The acquisition of the Grup Maritim TCB portfolio will initially produce a negative impact on ROIC of just over one percentage point due to the increased asset base, and the amortisation of terminal rights.
The Grup Maritim TCB acquisition has an implied enterprise value of USD $1.1 billion, with
additional capital expenditure investments of USD $400 million over the next five years. Subject to regulatory approvals the transaction is expected to be completed in Q1 2016.
The share of profit in joint ventures and associated companies increased to USD $199 million (USD $79 million), mainly caused by the USD $154 million impairments in Joint Venture companies in 2014. The effective tax rate (excluding profits from JV’s and associates) increased to 26% (23%) as certain tax incentives have expired since last year. Cash flow from operating activities was USD $874 million (USD 925m), and cash flow used for capital expenditure was USD $774 million (positive USD $2 million).