Supervisory Board Endorses Business Plan For 2010

22.12.2009

At its regular session held on 21st December, the Supervisory Board of Luka Koper d.d. endorsed the company's business plan for 2010, which anticipates a 14.4 million-tonne cargo throughput, a rise of some nine percent on 2009 levels, which shall be in the region of 13.3 million tonnes. The growth in freight is projected across all divisions, though throughput as regards timber alumina and liquid cargos is expected not to rise above 2009 levels.

The company projects the generation of € 116.5 million in operating revenues during 2010, which is some seven percent ahead of revenues for 2009, which are anticipated to be in the region of € 108.5 million. Operating costs are projected to amount to € 107.9 million (costs for 2009 shall amount to some € 97 million), exhibiting four percentage points more rapid growth than for operating revenues. The expected cost increase will, in particular, be due to higher amortisation and maintenance costs, a consequence of intensive investments in port infrastructure over recent years.

Taking into consideration the financials and corporation tax, net profit for 2010 is anticipated to amount to € 9.1 million, a twenty percent increase on 2009. Attention should be drawn to the value of certain investments, which are currently undergoing revaluation.

The company will further pursue growth in operations profitability, which requires efficient cost management given the moderate growth rate in revenues. Luka Koper d.d. will generate some € 32 million in simplified cash flow (EBITDA) in 2009, while projections for 2010 are € 34.4 million.

A number of new investments shall also come on stream in 2010, including the Alcohol Terminal, the reclamation of the Pier I lagoons as container freight storage area, and road connections to the port’s new entrance gate. The company is allocating € 35.8 million to new infrastructure investments aimed at enhancing the long-term competitive edge of various terminal operations, as well as the Port of Koper as a whole. Among the largest and most relevant of these are the aforementioned Alcohol Terminal, the renovation of air-conditioned warehousing, internal and external truck terminals adjacent the new entrance gate, the construction of Berth 12, seabed dredging operations (berth and channel deepening) as well as a number of maintenance undertakings.