Banner year for APM Terminals, Looks to Invest $3 Billion in Port Infrastructure Projects

The Hague, Netherlands – APM Terminals, the Hague-based global port operator, yesterday reported record breaking annual results for 2011. A revenue growth of 10% year- on-year and an EBITDA of USD 1,059 mio. makes APM Terminals’ result
for 2011 “the strongest ever”, according to CEO Kim Fejfer.

Net operating profit after tax was USD 649 mio. Profits of USD 793 million. in 2010 were heavily influenced by extraordinary items incl. divestment gains. The profit in 2011 before gains and special items was USD 611 million, 24% higher than the previous year.

Even better: The return on invested capital – ROIC, often described by APM Terminals’ top exec as the most important single key figure for the port operator – reached 13.1%.

This is a significant leap in profitability from 2010 where the return percentage was 10.4% when corrected for divestment gains and special items. “This shows that APM Terminals is tracking well towards our long term goal of being the best and most profitable global port operator in the world. Profitability is our license to grow,” stated Mr. Fejfer in a comment on the annual results.

And growth is key for the independent port and inland services operator. Most industry analysts forecast a large need for additional port capacity over the next decade, and Mr. Fejfer is eager to secure the lion’s share of global growth
opportunities.

“If there were such a thing as a “market share” for expansion, we believe that APM Terminals would be the #1 global port operator in 2011 in that category. We committed more than 3 billion USD to infrastructure development and facility expansion in 2011 and expect to do something similar in 2012,” added Fejfer.

During 2011, APM Terminals secured 5 new locations as a result of the companys active portfolio development efforts: Poti in Georgia, Moin in Costa Rica, Callao in Peru, Gothenburg in Sweden and Lazaro Cardenas in Mexico. These complement the project pipeline of Santos, Brazil; Rotterdam, Netherlands; Wilhelmshaven, Germany and Vado, Italy. APM Terminals has recently also announced upcoming investments in Izmir, Turkey.

The total amount of containers handled – weighted with ownership share – increased by 8% on a like-for-like basis and reached 33.5 million TEU.

“And yes – gaining market share is also a long-term ambition for us, but we are only interested in sustainable and profitable growth, not just growth for it’s own sake,” says Fejfer, who also hopes to offer customers a more stable service level during
2012:

“We are very humble about the fact that although financial performance went well some of our customers’ experience has been more mixed as operations in container terminals in North Africa and the Middle East were negatively influenced by unrest related to the Arab Spring during 2011.”

APM Terminals is part of the global shipping and energy conglomerate A.P. Moller Maersk, and the customer base consists of more than 60 shipping lines. Volumes from customers outside the ownership sphere increased by 11% year-on-year and
now constitute 46 % of volumes handled.

“2011 was also the year where we developed and implemented a new corporate visual identity to enhance the APM Terminals brand as a truly independent company.  We will continue to diversify our client portfolio in the upcoming years,” added Mr.
Fejfer.