Global Ports
Holding Plc
Trading Statement
for the nine months to 31 December 2023
Global Ports
Holding Plc (“GPH” or “Group”), the world’s largest independent
cruise port operator, today issues a trading update for the
nine-month period from 1 April to 31 December 2023.
Key Financials & KPIs1
|
9
months ended
|
9
months ended
|
YoY
Change
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3
months ended
|
3
months ended
|
YoY
Change
|
31-Dec-23
|
31-Dec-22
|
(%)
|
31-Dec-23
(Q3)
|
31-Dec-22
(Q3)
|
(%)
|
|
|
|
|
|
|
|
Passengers
(m)2
|
10.2
|
6.8
|
51%
|
3.5
|
2.4
|
44%
|
Total Revenue
($m)
|
151.2
|
173.9
|
-13%
|
46.0
|
55.6
|
-18%
|
Adjusted
Revenue ($m)3
|
135.8
|
92.2
|
47%
|
39.9
|
28.1
|
42%
|
Segmental
EBITDA ($m)4
|
92.9
|
63.9
|
45%
|
25.4
|
19.9
|
28%
|
Adjusted
EBITDA ($m)5
|
87.7
|
59.1
|
48%
|
23.5
|
18.7
|
26%
|
Segmental
EBITDA Margin (%)
|
68.4%
|
69.3%
|
|
63.6%
|
70.7%
|
|
Adjusted
EBITDA Margin (%)
|
64.6%
|
64.2%
|
|
59.0%
|
66.7%
|
|
|
|
|
|
|
|
|
|
31-Dec-23
|
31-Mar-23
|
|
|
|
|
Gross Debt IFRS
($m)
|
746.7
|
672.4
|
11%
|
|
|
|
Gross Debt ex
IFRS 16 Leases ($m)
|
682.6
|
612.3
|
11%
|
|
|
|
Net Debt ex
IFRS 16 Leases ($m)
|
581.5
|
494.0
|
18%
|
|
|
|
Cash and Cash
Equivalents ($m)
|
101.2
|
118.3
|
-14%
|
|
|
|
Notes
-
All $ refers to United States Dollar unless otherwise
stated
-
Passenger numbers refer to consolidated and managed portfolio
consolidation perimeter; hence it excludes equity accounted ports
La Goulette, Lisbon, Singapore and Venice.
-
Adjusted Revenue is calculated as total revenue excluding
IFRIC-12 construction revenue
-
Segmental EBITDA includes the EBITDA from all consolidated
ports and the contribution from management agreements, plus the
pro-rata Net Profit of equity-accounted associates La
Goulette, Lisbon, Singapore
and Venice
-
Adjusted EBITDA calculated as Segmental EBITDA less
unallocated (holding company) expenses
-
Differences may arise due to rounding
Key Financials and KPIs
-
Cruise calls rose 20% from 2,676
to 3,564 for the 9M period ending 31 Dec 2023, and 28% from 1,027
to 1,312 in the 3M period to 31 Dec 2023
-
Cruise passenger volumes growth
was stronger, rising 51% for the 9M period ending 31 Dec 2023
compared to the 2022 9M Reporting Period, and 44% in the third
quarter to 31 Dec 2023. The stronger growth in passenger volumes
compared with the growth rates of cruise calls was driven by
the significant increase in
occupancy levels, which are now above 100% across our
network
-
Adjusted Revenue for the 9M period
rose 47% to USD 135.8 million, with Q3 Adjusted Revenue rising 42%
mainly driven by the higher passenger volumes. Total Revenue,
including IFRIC-12 construction revenues, declined 13% to USD 151.2
million. This decrease reflects the impact of lower construction
activities at Nassau Cruise Port where the major construction works
came to an end during the period
-
Segmental EBITDA for the 9M period
of USD 92.9 million, a 45% increase on the USD 63.9 million for the
same period last year
-
Adjusted EBITDA for the 9M period
was USD 87.7 million, a 48% increase on the USD 59.1 million for
the same period last year
-
Net Debt ex IFRS 16 Leases rose
18% to USD 581.5 million, and cash and cash equivalents fell 14% to
USD 101.2 million, inorganic growth investments.
Segmental
Financials & KPIs
|
9
months ended
|
9
months ended
|
YoY
Change
|
3
months ended
|
3
months ended
|
YoY
Change
|
|
|
31-Dec-23
|
31-Dec-22
|
(%)
|
31-Dec-23
|
31-
Dec-22
|
(%)
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
|
|
|
Adjusted Revenue
($m)
|
37.9
|
24.7
|
53%
|
15.1
|
9.9
|
52%
|
Segmental
EBITDA ($m)
|
24.1
|
17.6
|
37%
|
9.8
|
8.1
|
21%
|
Segmental
EBITDA Margin (%)
|
64%
|
69%
|
|
65%
|
81%
|
|
Passengers
(m)
|
3.7
|
2.8
|
31%
|
1.5
|
1.2
|
22%
|
Revenue per
passenger ($)
|
10.3
|
8.7
|
17%
|
10.3
|
8.3
|
24%
|
|
|
|
|
|
|
|
West Med
& Atlantic
|
|
|
|
|
|
|
Adjusted Revenue
($m)
|
34.8
|
23.3
|
49%
|
10.7
|
7.2
|
49%
|
Segmental
EBITDA ($m)
|
28.3
|
16.6
|
71%
|
8.4
|
5.3
|
57%
|
Segmental
EBITDA Margin (%)
|
81%
|
74%
|
|
79%
|
75%
|
|
Passengers
(m)
|
3.6
|
2.1
|
73%
|
1.4
|
0.8
|
72%
|
Revenue per
passenger ($)
|
9.7
|
11.2
|
-14%
|
7.6
|
8.8
|
-13%
|
|
|
|
|
|
|
|
Central
Med
|
|
|
|
|
|
|
Adjusted Revenue
($m)
|
19.5
|
12.8
|
53%
|
4.1
|
2.8
|
47%
|
Segmental
EBITDA ($m)
|
10.1
|
7.3
|
38%
|
1.8
|
1.1
|
57%
|
Segmental
EBITDA Margin (%)
|
52%
|
57%
|
|
44%
|
41%
|
|
Passengers
(m)
|
1.6
|
0.9
|
71%
|
0.3
|
0.2
|
67%
|
Revenue per
passenger ($)
|
12.3
|
13.7
|
-10%
|
12.5
|
14.2
|
-12%
|
|
|
|
|
|
|
|
East Med
& Adriatic
|
|
|
|
|
|
|
Adjusted Revenue
($m)
|
32.0
|
22.7
|
41%
|
6.7
|
5.3
|
26%
|
Segmental
EBITDA ($m)
|
26.3
|
19.0
|
38%
|
4.9
|
4.3
|
14%
|
Segmental
EBITDA Margin (%)
|
82%
|
84%
|
|
73%
|
81%
|
|
Passengers
(m)
|
1.3
|
0.9
|
42%
|
0.3
|
0.2
|
44%
|
Revenue per
passenger ($)
|
25.4
|
25.7
|
-1%
|
25.4
|
29.1
|
-13%
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Adjusted Revenue
($m)
|
11.6
|
8.7
|
33%
|
3.3
|
2.9
|
16%
|
Segmental
EBITDA ($m)
|
4.1
|
3.3
|
25%
|
0.5
|
0.9
|
-49%
|
EBITDA
Margin (%)
|
37%
|
38%
|
|
14%
|
33%
|
|
Passengers
(m)
|
0.0
|
0.0
|
n.m.
|
0.0
|
0.0
|
n.m.
|
|
|
|
|
|
|
|
Unallocated
(HoldCo)
|
|
|
|
|
|
|
Adjusted
EBITDA ($m)
|
(5.3)
|
(4.7)
|
12%
|
(1.8)
|
(1.1)
|
69%
|
|
|
|
|
|
|
|
Group
|
|
|
|
|
|
|
Adjusted Revenue
($m)
|
135.8
|
92.2
|
47%
|
39.9
|
28.1
|
42%
|
Adjusted
EBITDA ($m)
|
87.7
|
59.1
|
48%
|
23.5
|
18.7
|
26%
|
Adjusted
EBITDA Margin (%)
|
65%
|
64%
|
|
59%
|
67%
|
|
Passengers
(m)
|
10.2
|
6.8
|
51%
|
3.5
|
2.4
|
44%
|
Revenue per
passenger ($)
|
13.3
|
13.6
|
-2%
|
11.5
|
11.7
|
-1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
GPH's cruise
operations in the Americas for the 9M Reporting Period includes
GPH's two Caribbean ports, Nassau and Antigua, as well as Prince
Rupert, Canada. The San Juan Cruise Port, Puerto Rico transaction
reached financial closing in the fourth quarter.
During the
9M period, we completed our expansion investment in Nassau Cruise
Port, creating a world-leading facility that has set a new standard for
cruise port infrastructure globally. During the Reporting Period,
we also started operations at Prince Rupert Cruise
Port, Canada, which is included in the Americas
Segment for the first time. Prince Rupert contributed a low single
digit percentage of the total Americas EBITDA in the 9M Reporting
Period.
Trading in
the Americas continued to improve in the 9M period, with passenger
volumes of 3.7 million compared to 2.8 million in the comparable
period last year and just 768k in the comparable period two years
ago. Adjusted revenue in
the Americas rose
49% to USD 37.9 million, with Segmental EBITDA rising
37% to USD 24.1 million. Nassau Cruise Port continued to perform
strongly and Antigua Cruise Port, which tends to be a winter
destination, started to experience the expected pick up in
trading.
Revenue
yield per passenger rose 17% to USD 10.3, reflecting the positive impact of the
completion of the upland portion of our investment in Nassau on
ancillary revenue as well as the impact of tariff increases
(inflation pass-through).
San Juan Cruise
Port
Shortly after the end of the third
quarter, on 14 February 2024, San Juan Cruise Port (SJCP) reached
financial close on the public-private partnership agreement for San
Juan Cruise Port and took over cruise operations. The successful
long-term project financing was achieved through the issuance, by
SJCP, of bonds totalling USD 187 million. The bonds have received
an investment grade rating of BBB- from S&P. The Series A
tax-exempt bonds (USD 110 million) will fully amortize over 21
years, with a weighted average duration of c19 years. The Series B
private placement bonds (USD 77 million) will fully amortize over
15 years, with a weighted average duration of c12 years.
San Juan Cruise Port is a popular
transit port and homeport. However, the cruise port infrastructure
needs significant investment to ensure continued operations over
GPH’s 30-year concession term and to meet the needs of the modern
and fast-growing cruise industry. Under the terms of the concession
agreement, SJCP paid the Puerto Rico Ports Authority upfront fees
of USD 77 million. During the initial investment phase, SJCP will
invest approximately USD 100 million, primarily focused on critical
infrastructure and upgrades to the terminal buildings and the
walkway in front of the Old San Juan piers. In addition, the
investment includes transaction expenses, reserve accounts
customary for a project-financing of this nature and other
incidental uses of proceeds. A second investment phase will
commence, subject to certain pre-agreed criteria.
St
Lucia Cruise Port
During the 9M reporting period we
signed a 30-year concession with a 10-year extension option for St
Lucia Cruise Port. As part of this concession, GPH will invest in a
material expansion and upgrade of the cruise port facilities. This
investment will allow the port to handle the largest cruise ships
in the global cruise fleet, increasing the port's capacity. In the
12 months to 31 March 2023, St Lucia welcomed c590k passengers (2019 calendar year
c790k). The completion of the extended pier and upgrading of the
facilities are expected to lead to a rise in passenger volumes to
over 1 million p.a. in the medium-term. The successful commencement
of the concession remains subject to a number of final conditions
being satisfied. The handover and management of St Lucia Cruise
Port is expected to occur shortly.
West Med & Atlantic
GPH's West
Med & Atlantic region includes our Spanish ports Barcelona,
Fuerteventura, Lanzarote, Las Palmas, Malaga, Tarragona and Vigo,
plus Kalundborg, Denmark, as well as the equity pick-up
contribution from Lisbon and Singapore.
Trading in
this region improved significantly compared to the comparable
period last year. Passenger volumes rose 73% to 3.6 million.
Adjusted Revenue rose 49% to USD 34.8 million, and Adjusted EBITDA
rose 71% to USD 28.3 million. The primary driver of this
improvement was the absence of Covid-related restrictions either at
the point of departure or during the key booking season, factors
that negatively impacted passenger volumes and occupancy rates in
the comparable period.
Revenue per
passenger fell 14% to USD 9.7. This was largely due to the port mix
with a higher relative share of the recently completed Canary
Island ports, which currently have a comparatively lower yield, and
the relationship between significantly higher passenger volumes and
non-passenger-volume-related revenues.
Increase in
ownership at Barcelona and Malaga Cruise
Ports
At the start of the third quarter,
GPH purchased the remaining 38% of Barcelona Port Investments S.L.
(BPI) that it didn’t already own from the minority shareholder,
taking GPH’s holding in BPI to 100%. The transaction terms are
confidential. However, the purchase price is
below USD 20 million.
As a result of this transaction,
GPH’s indirect holding in Creuers De Port de Barcelona S.A
(Creuers) has increased to 100%, which increases GPH’s interest in
both Barcelona Cruise Port and Malaga Cruise Port to 100% from 62%.
In addition, GPH’s effective interest in SATS-Creuers Cruise
Services PTE. LTD (Singapore Cruise Port) rises to 40% from 24.8%
and the effective interest in Lisbon Cruise Port LD (Lisbon Cruise
Port) rises from 46.2% to 50%.
Barcelona Port Authority recently
announced plans to allow Royal Caribbean to construct a dedicated,
private terminal at Barcelona Cruise Port with one berth. Once
complete, this terminal is expected to be the primary terminal for
Royal Caribbean’s cruise operations in Barcelona. Current
expectations are for the construction to be completed by summer
2027 at the earliest. The financial impact on GPH at this point is
not expected to be material.
Bremerhaven
concession
During the Reporting period we
signed a 10-year port concession agreement, with a potential 5-year
extension option for Bremerhaven Cruise Port. The cruise facilities
at the port are currently undergoing a multimillion-Euro investment
by the local authorities, which, once completed, will expand and
renew the port facilities. In 2022, Bremerhaven Cruise Port
welcomed over 230k passengers, with over 90% of these being
homeport passengers. The location of the port means it is ideally
located for Scandinavian and Baltic Sea itineraries. In accordance
with the terms of the concession, GPH will take over port
operations in the first quarter of calendar year 2025.
Liverpool Cruise
and Casablanca Cruise Port
Shortly after the end of the 9M
period in April 2024, GPH signed a 50-year agreement to operate
cruise services at Liverpool Cruise Port. Liverpool Cruise Port has
the potential for significant growth in passenger volumes. However,
the port is currently unable to satisfy demand during the peak
season due to berthing and infrastructure restrictions.
In 2023, Liverpool Cruise Port
welcomed 102 cruise ships and over 186k passengers. This is
expected to increase to over 200k passengers in 2024 and exceed
300k per annum once potential infrastructure works are completed.
Liverpool Cruise Port is well-positioned to participate in the
growing Northern European cruise region, in particular the British
and Irish markets. It has good airport connectivity, with two
international airports within an hour's drive, providing
significant potential to act as a gateway to the Northern European
and Round Britain Cruise Markets for American and European
passengers, as well as being well-positioned to act as a home port
for the domestic passenger market.
On the 5 April 2024, GPH announced
that following a public tender process, a majority-owned consortium
between GPH (51%), local shareholder Steya (40%) and Ocean
Infrastructures Management from Spain (9%) had been awarded
preferred bidder status for a 15-year concession agreement to
operate the Casablanca Cruise Port. The GPH-led consortium and the
local port authority are now working towards agreeing on the terms
of the concession agreement.
The cruise port facilities in
Casablanca recently underwent a EUR 60 million investment in the
cruise port infrastructure, which included the construction of a
new cruise pier, brand-new cruise terminal and maritime station to
international standards, thereby significantly increasing the
port's capacity.
The port is now capable of
handling ships up to 350 m long and has the capacity for over 400k
passengers per annum. Casablanca Cruise Port is expected to welcome
c150k transit passengers in 2024, rising to c180k passengers in
2025. Located on the Northwest coast of Africa, Casablanca is a key
stopover port for Canary Island and West Mediterranean cruises, as
well as crossing sailings between Europe and the
Caribbean.
Central Med
Our Central
Med region includes Valletta Cruise Port, Malta as well as GPH’s
four Italian ports (Cagliari, Catania, Crotone and Taranto) and the
equity pick-up contribution from La Goulette, Tunisia and Venice
Cruise Port, Italy.
Trading in
this region significantly improved in the 9M Reporting Period.
Passenger volumes of 0.9 million were a 71% increase compared to
the comparable period last year. Adjusted Revenue rose 53% to USD
19.5 million, and Adjusted EBITDA rose 38% to 10.1
million.
As with the
West Med & Atlantic region, the primary driver of this
improvement was the absence of Covid-related restrictions either at
the point of departure or during the key booking season, factors
that negatively impacted passenger volumes and occupancy rates in
the comparable period.
Revenue per
passenger fell 10% to USD 12.3, reflecting the mix and the
relationship between significantly higher passenger volumes and
non-passenger volume-related revenues.
East Med & Adriatic
GPH’s East
Med & Adriatic operations include the flagship Turkish port
Ege, Port Kusadasi, as well as Bodrum, Turkey and Zadar,
Croatia.
Passenger
volumes in this region rose to 1.3 million, a 42% increase compared
to the comparable period, with this increase being primarily driven
by strong trading at our Turkish ports. Adjusted revenue of USD
32.0 million increased 41% compared to the comparable period.
Adjusted EBITDA rose 38% to USD 26.3 million.
Revenue
yield per passenger was largely unchanged at USD 25.4.
Ege Port
extension
At the start of the 9M reporting
period, GPH agreed to extend its concession agreement for Ege Port,
Kusadasi, adding 19 years to this concession, which now ends in
July 2052. As part of the agreement, Ege Port paid an upfront
concession fee of TRY 725.4 million (USD 38
million at the prevailing exchange rate at the time of
payment). In addition, Ege Port has committed to invest an amount
equivalent to 10% of the upfront concession fee within the next
five years to improve and enhance the cruise port and retail
facilities at the port, and will pay a variable concession fee
equal to 5% of its gross revenues during the extension period only
starting after July 2033.
A capital increase at Ege Port
funded the upfront concession fee. This capital increase was
provided by GPH only. As a result, GPH's equity stake in Ege Port
has increased to 90.5% (from 72.5%).
This up-front concession fee and
related expenses were financed by partial utilisation of
the USD
75 million growth facility provided by Sixth Street
shortly before the end of the fiscal year 2023. As part of this
additional USD 38.9 million drawdown, GPH issued further warrants to Sixth
Street, representing an additional 2.0% of GPH's fully diluted
share capital.
Other
Our Other
reporting segment includes our commercial port Port of Adria,
Montenegro, our management agreement for Ha Long Cruise Port,
Vietnam and the contribution from our port services
businesses.
Adjusted
Revenue increased 33% to USD 11.6 million and Adjusted EBITDA rose
25% to USD 4.1 million.
GPH remains
focused on increasing port services at GPH-operated ports and
third-party-operated ports. These services primarily target
enhancing cruise passengers' overall experience in the port and
destination and include destination and shoreside services, crew
services, and area & terminal management.
Port of
Adria's future within GPH remains under review by the GPH
board.
Balance Sheet
At 31 December 2023, IFRS Gross
Debt was USD 746.7 million (Ex-IFRS-16 Finance Leases Gross Debt:
USD 682.6 million), an 11% increase from the Gross Debt at 31 March
2023 of USD 672.4 million (Ex-IFRS-16 Leases Gross Debt: USD 612.3
million).
Net debt Ex-IFRS-16 Leases was USD
581.5 million compared to USD 494.0 million as at 31 March 2023.
At 31 December
2023, GPH had cash and cash equivalents of USD
101.2 million, compared to USD 118.3
million at 31 March 2023.
During the Q3-period since the end
of September 2023 the Gross Debt remains largely unchanged. As of
30 September 2023 Gross Debt Ex-IFRS-16 Finance Leases stood at USD
679.5 million (vs. USD 682.6 million as of 31 December 2023). Net
Debt increased during the 3M period due to the decline in Cash
& cash equivalents (from USD 118.4 million as of 30 September
2023 to USD 101.2 million as of 31 December 2023) which was the
result of outflow for CAPEX and the acquisition of the BPI stake
exceeding operating cash flow generated during the
period.
The main drivers of the changes in
debt over the 9M period was the issuance of USD 330
million of secured private placement notes (“Notes”)
to insurance companies and long-term asset managers at a fixed
coupon of 7.87% in September 2023. The Notes received an investment
grade credit rating from two rating agencies and will fully
amortize over 17 years, with a weighted average maturity of c13
years. Over 90% of GPH’s gross debt is now fixed and close to 85%
of GPH’s gross debt is made up of the investment grade rated Notes
and the ring-fenced project financed issuance for Nassau Cruise
Port.
The majority of the proceeds from
the Notes were used to repay in full the outstanding senior secured
loan from Sixth Street (including the portion drawn at the end of
fiscal year 2023 for the Ege Port extension), plus early repayment
fees and accrued interest.
This financing generates material
savings of cash interest expenses and creates a stable, long-term
funding base for the Group. Further, it secures the financing of
our growth pipeline.
The main driver for the change in
Gross Debt is the fact that the USD 330 million Notes include reserves and cash expected to be
deployed as equity contributions for near-term growth projects.
Hence, outstanding debt has increased compared to the Sixth Street
loan, which has approximately USD 255 million of nominal outstanding.
This excess refinancing amount
also impacted the outstanding cash (less transaction costs and
early prepayment fees). Besides the refinancing, the other major
impacts to cash were the aforementioned extension of Ege Port
concession for c. USD 38 million at the start of the reporting period whereas
the drawdown of the debt to finance this extension was completed
shortly before the end of the fiscal year 2023, as well as capital
expenditure and investments picking up in the Q3 period mainly in
the West Med region related to construction projects in Las Palmas
and other Spanish ports recently added to the portfolio and the
acquisition of the BPI minority interest.
Operating
cash flow of USD 53.0 million reflected the growth in EBITDA,
offset by the primarily the impact in the first half of
an increase in trade receivables
due to improved trading as the industry returned to normal trading
patterns post Covid, compared to the lower-than-normal trading
activity in the comparable period. All operations continue to
operate on normal payment terms, so this impact should not be
repeated next financial year. Additionally, there was a one-off
effect in the Trade Payable due payment of invoices to the
contractor in Nassau Cruise Port as the investment project was
completed (impact of ca. USD 13 million).
Net capital
expenditure including investments were USD 74.8 million, including
the impact of advances, this primarily reflects the Ege Port
extension, final investments in Nassau Cruise Port and construction
activity in Spanish ports picking up during Q3 of the fiscal year
2024 as well as the purchase of the minority shareholding in
BPI.
Outlook
The global cruise industry has
shown remarkable resilience following the challenges posed by the
Covid-19 pandemic. Occupancy rates are now at pre-pandemic levels
across the industry and bookings for the 2024 season are robust,
with major cruise lines reporting strong booking volumes and
prices.
While high inflation and rising
interest rates globally have led to an uncertain economic outlook,
the longer lead time on cruise bookings compared to land based
tourism provides significant protection to the cruise industry
during periods of macro stress, with passenger volumes rarely
negatively impacted.
At GPH's ports year-to-date, we
have experienced higher than originally expected passenger volumes,
driven primarily by a faster recovery in occupancy rates across our
port network. The majority of this impact was realised during the
first six months of the Reporting Period.
Based on preliminary data, we
anticipate passenger volumes for the 12 months to 31 March 2024 to
be around 13.4 million across our consolidated and managed ports as
of 30 September 2023, hence excluding any contribution from San
Juan for half of February and March 2024, this compares favourably
to our initial expectation of 11.8 million passengers at the
beginning of the reporting period.
Our current traffic forecast
expectations for consolidated and management ports for the 12
months to 31 March 2025 is 16 million. This excludes incremental
passenger volumes once St Lucia Cruise Port and Casablanca join the
network. The addition of these ports will take our total passenger
volume across all ports in the GPH cruise port network, including
equity accounted ports, to over to 20 million.
CONTACT
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For investor, analyst and
financial media enquiries:
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For trade media
enquiries:
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Investor
Relations
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Global Ports
Holding
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Martin Brown
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Ceylan Erzi
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Telephone: +44 (0) 7947 163
687
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Telephone: +90 212 244 44
40
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Email:
martinb@globalportsholding.com
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Email:
ceylane@globalportsholding.com
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