Increase in revenue of OT Logistics in the 3rd quarter by 19% year on year, good economic situation is conducive
The OT Logistics Capital Group, the biggest port operator in Poland and a leader in inland shipping in Central and Eastern Europe, recorded consolidated revenue of PLN 724.3 million after three quarters of 2018, which represents a rise by over 13% year on year. In the 3rd quarter only, growth of revenue came to 19% (compared with 3% in the 1st quarter of the current year and 17% in the 2nd quarter of this year). The Group pursues improvement of effectiveness of its operating activities in a consistent way, performing intensive works on debt roll-over in parallel.
The 3rd quarter was another one when the Group increased its revenue from operating activities. Ongoing recovery in logistics which is reflected in the rise of the number of orders, volumes and rates, almost in all assortment groups, has a positive influence on the results. This enabled the OT Logistics Capital Group to make use of its handling and transport potential to a very large extent, mainly within the scope of raw material service for metallurgy and power sectors.
– The OT Logistics Capital Group consistently strives for improvement of operating outcome and effects of its operations are noticeable in the 3rd quarter. The economic situation is conducive to us. However, we also take up a whole range of actions aimed at optimizing the activities and at increasing profitability of the entire organization. In order to achieve pre-set objectives, we have undertaken cooperation, among others, with a reputable and experienced adviser that is to help the Group magnify operational efficienc – says Zbigniew Nowik, President of the OT Logistics Management Board.
The economic revival is visible, in particular, in the segment of the Group’s freight forwarding services. Antes and margins are rising in container and metal product shipment. The large growth of handling operations in ports is propelled by the economic situation on the coal and steel markets. General cargo handling is on the increase as well.
– I believe that the economic situation, sustained in further periods, and the increasingly effective operations of companies within the Group will contribute to improvement of the outcome in next quarters – adds Zbigniew Nowik.
The Group works on its debt roll-over by servicing the hitherto prevailing obligations on time. In the 3rd quarter, the Company redeemed series E bonds within the pre-set time-limit with the value of PLN 10 million and bought part of series G bonds ahead of time with the value of PLN 3.6 million. At the beginning of November this year, by way of a decision made by bond holders, the date of redemption of series D bonds with the value of PLN 100 million was moved to 2020. Terms and conditions on issue of bonds were also adapted to arrangements with creditors. The Company continues the debt roll-over process, remaining in regular contact with its stakeholders. Within the next step, OT Logistics intends to conduct private issue of covered series H bonds with the value of up to PLN 125.5 million. Resources from this issue shall serve the refinancing of D and F series bonds as many as possible. In parallel with the processes related to bonds, the Group conducts talks with banks which finance it, concerning amendments to the credit debt conditions which are to enable a rollover of bank debt in the entirety and ultimately. At the end of the 3rd quarter of 2018, the OT Logistics Capital Group’s financial debt came to PLN 427.4 million, compared with PLN 465.9 million at the end of 2017.
rel (OT Logistics)
Photo credit: OT Logistics SA