The rise and fall of Eurokai
The first half 2019 showed profits going up and revenues going down for the German port network > The first half of 2019 showed profits going up and revenues going down for the German port network
Revenues for the Eurokai Group fell in the first hal 2019 mainly due to the sale and deconsolidation of MCT Medcenter Container Terminal S.p.A. Gioia Tauro to EUR 149.6 million (against EUR 167.1 million in the previous year).
Net profit, with an operating result (EBIT) rising to EUR 56.9 million (previous year: EUR 22.5 million), despite a stakeholding result falling to EUR 10.1 million (previous year: EUR 14.1 million), rose significantly due to the profit from share sales, to EUR 51.5 million (previous year: EUR 26.2 million).
EUR 3.3 million of this rise in operating result was attributable to the first application of IFRS 16, while at the same time in this context financing costs rose by EUR 4.5 million.
The diminution in the stakeholding result was caused by the anticipated fall in the pro rata result for the Eurogate segment which, despite a rise in handling volumes in Germany of 4.9%, saw segment revenues fall by 1.6% to EUR 288.2 million (previous year: EUR 292.7 million).
While the handling volume at the Hamburg terminal rose by 42.0% due to new customers, Eurogate Container Terminal Bremerhaven GmbH posted a decline in handling of 58.0%, due to the loss of the transatlantic services of the The Alliance from the start of 2019.
The decreased result in Bremerhaven could not be fully counterbalanced by the improved result at the Hamburg terminal. Consequently, operating result (EBIT), standing at EUR 24.4 million, is considerably below the previous year (EUR 34.7 million). Given a significantly improved result from affiliated companies and a fall in costs of revenue and income taxes, net Group profit in the period under review rose to EUR 33.0 million (previous year: EUR 25.8 million).
Net segment profit for the half year includes a large percentage result from Contship Italia, which must be eliminated in calculating the results from affiliated companies attributable to Eurokai as Contship Italia is fully consolidated in eurokai Group.