Russian Stevedore Novorossiysk Boosts Profit 21 Percent

Russia's largest port operator and stevedore, Novorossiysk Commercial Sea Port, increased first half profit 21 percent from a year ago even as cargo volume declined.

Net profit rose to $155.5 million in the six months to June 30 from $128.9 million in the year-earlier period on a 4.2 percent rise in revenue to $348.2 million.

The company, which operates the Black Sea port of Novorossiysk, also booked a 4.2 percent rise in earnings before interest, tax, depreciation and amortization to $245.4 million from $234.2 million.

By The Numbers: Europe-Asia Eastbound Container Trade.

Overall cargo volume shrunk 2.6 percent in the first half to 42.2 million metric tons, but stevedoring revenue rose 6.9 percent to $273.7 million on sharply higher shipments of containers, timber and minerals.

Traffic declined 1.7 percent in the first eight months of the year to 57.1 million metric tons but container shipments surged more than 80 percent to 284,300 20-foot equivalent units form 155,800 TEUs in the same period in 2009.

Novorossiysk, which is listed on the London stock market, recently agreed to sell a controlling stake to Russia's state oil pipeline monopoly Transneft and its partner Summa Capital.

The company will acquire a 100 percent stake in Primorsk Commercial Port, operator of Russia's largest oil export terminal, before Transneft takes control.

The Russian government also said it is ready to sell its 20 percent stake in Novorossiysk.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.