Public Joint Stock company «Novorossyisk Grain Plant» announces the extention of the period to submit orders

08.12.2015, 12:51

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Public Joint Stock Company «Novorossyisk Grain Plant» ("Novorossyisk Grain Plant" or "NGP" or the "Company"), one of the largest grain terminals in Russia, announces the extension of the period to submit orders for a public offering ("IPO" or the "Offering") of ordinary shares of NGP (the "Shares") on the Moscow Exchange[1].

The period to submit orders for the Offering has been extended: orders can be submitted since 9 December until 18:00 MSK time, 14 December 2015.

IPO price announcement and start of trading on the Moscow Exchange are expected on 15 December 2015.

About the Company

Public company Novorossiysk Grain Plant (hereinafter – NGP or the “Company”) is one of Russia’s largest grain terminals. NGP’s facilities are located in the port of Novorossiysk on the Russian coast of the Black Sea, which serves as a main Russian grain export channel. NGP’s current capacity amounts to 3.5 million tons of grain a year and the terminal’s utilization rate is close to maximum. In the agricultural season of 2014-2015, NGP’s transshipment volume amounted to 3,550 thousand tons.

Russian grain maritime export market, where NGP operates, has entered the stage of rapid development. Over the last 15 years, Russian grain export has grown by almost 20 times. In the 2014-2015 season, Russian grain export exceeded 30 million tons (including the transit of grain from Kazakhstan). In the future export volumes will keep rising on the back of growing grain production in Russia and stable domestic consumption. According to the Ministry of Agriculture and the Ministry of Economic Development of the Russian Federation, grain production in Russia may surge up to 115 million tons by 2020. The majority of new production volumes are expected to be exported, which will boost demand for the services of deep-sea terminals.

Given that NGP is already close to maximum utilization, a large-scale expansion project has been launched. The investment project assumes reconstruction of the existing facilities but construction of new ones. As a result of the investment project, transshipment volumes are expected to increase to 6.1 million tons by 2018. NGP will be able to store up to 250 thousand tons of grains (forecast increase of 110 thousand tons) while the productivity of the conveyor gallery will increase from 1,600 to 3,500 tons per hour. Expansion has been launched and already in 2016 grain transshipment volumes should reach 4.5 million tons. Thus, NGP will retain one of the leading positions in the industry.

The Company has formed a reliable and stable client base. With such key clients as Vitol, Cargill, Glencore and Louis Dreyfus, the Company has been building relations throughout many years. Nevertheless, the terminal keeps on diversifying and enlarging the range of counterparties and strategic partners.

NGP is the only deep-see terminal in Russia with a diversified business model: in addition to transshipment services, it runs its own production facilities. Flour produced by NGP is both sold domestically and exported. The Company plans to build up its share of exports in the future, given the needs of the market.

The Company demonstrates excellent financial performance. In 2014, the Company’s revenue (according to IFRS financial statements) amounted to 3,090 million rubles, EBITDA - to 1,713 million rubles (55% EBITDA margin); net profit – to 1,319 million rubles (43% net income margin). The unique competences of NGP coupled with streamlined management processes triggered the surge of NGP’s revenue during 1H 2015 to 1,942 million rubles (it almost doubled y-o-y). NGP does not use debt financing. Historically, the Company used a significant part of its net profit for paying dividends (74% in 2014).

Successful realization of the set goals within the framework of the long-term development strategy allowed NGP to retain leadership in the segment of deep-sea transshipment of grain for export during 9 months of 2015, and create prerequisites for retaining leadership positions in the future.

[1] With the use of trading system and listing of CJSC «MICEX SE», a part of the Moscow Exchange Group.