1.3. Highlights of the Year

Operations

In April, NCSP signed an agreement to increase cement handling by some 200,000 tonnes with one of Europe’s largest producers of white and gray cement, Turkey’s Cimsa.

On July 6-7, employees of PJSC NCSP, NCSP Fleet and other Group companies successfully localized and remediated the damage from the flooding in the city of Novorossiysk. Port operations were restored within 24 hours.

In August, PJSC NCSP began handling steam coal targeting up to 125,000 tonnes per month in the long-term.

In August PJSC IPP started to handle new cargo — Euro-5 standard low sulfur diesel fuel — targeting up to 150,000 tonnes per month in the long-term.

Over the course of the year, a suite of organizational and operational measures was developed and implemented to increase the operating efficiency of Group companies at the Novorossiysk Port.

The Group introduced technology for accelerated processing container trains that enabled it to double throughput for rail shipments of containers from Novorossiysk Port.

PJSC NCSP acquired three container loaders with capacity of up to 45 tonnes; two forklifts with capacity of 20 tonnes; six automatic loaders with capacity of 12 tonnes, as well as other equipment to update equipment at its Eastern Pier

Strategic development

In the first quarter, LLC PTP launched a bunkering complex with capacity of up to 360,000 tonnes per year.

In the second quarter, the Group completed construction of LLC Novorossiysk Fuel Oil Terminal facilities with capacity of up to 4 million tonnes per year and the overhaul of PJSC NCSP’s Pier No. 4 to handle oil products from this terminal.

The first phase of the expansion of LLC BSC’s container terminal was completed, increasing throughput capacity to 200,000 TEU.

In February 2013 PJSC NCSP, PJSC NLE, PJSC NSRZ and PJSC NGT together with FGUP Rosmorport concluded agreement of cooperation on design and engineering works under the Novorossiysk Sea Port Modernisation Programme, which consists of preparing designs for dredging works and construction of new cargo terminals.

Also in February 2013 PJSC NCSP, PJSC NGT and PJSC United Grain Company signed an agreement of intent to build specialized seed oils storage and transshipment terminal with up to 2 million tonnes per year capacity.

Federal Tariff Service by its order dated 26 March 2012 has terminated direct price regulation on all cargoes, except crude oil and oil products, for a number of stevedoring companies operating at port of Novorossiysk, including PJSC NCSP, OJSC NLE, and OJSC NSRZ.

Corporate development

In March, Moody’s Investors Service affirmed the Ba3 credit rating of PJSC NCSP with a stable outlook.

In March, PJSC NCSP’s Board of Directors approved a ruble bond program consisting of five series. Bond series BO-01, BO-02, BO-03, BO-4 and BO-05 amounted to respectively 5 billion rubles, 4 billion rubles, 4 billion rubles, 3 billion rubles and 2 billion rubles accordingly.

In May PJSC NCSP conducted market placement of its ruble bonds Seies BO-02 for the amount of 4 bln. rubles.

In May, Novorossiysk Port Capital S.A. redeemed a $300 million issue of five-year Loan Participation Notes.

In June by the Board of Director’s decision the Internal Control Service of PJSC NCSP was reorganized into the Internal Audit Department.

On March 19, 2013, PJSC NCSP’s Board of Directors made the following decisions:

— To elect Transneft Senior Vice President Maxim Grishanin as Chairman of the Board of Directors of PJSC NCSP

— To suspend the powers of PJSC NCSP CEO Rado Antolovic

— To appoint PJSC NCSP Executive Director Yury Matvienko as interim CEO of PJSC NCSP

— To appoint Igor Terentyev as PJSC NCSP Executive Director

— To determine the size of PJSC NCSP’s Management Board at five members and elect the new Management Board.

Social policy

In the end of 2011 and in early 2012 production personnel wages were raised at some of the Group’s companies as part of new social policy.

In July the Group actively participated in a public effort to remediate the damage from flooding in the Krasnodar region and provided charity donations to families that suffered from the disaster.

In September,PJSC NCSP Fleet celebrated its 20th anniversary.

In December, LLC BSC celebrated its tenth anniversary.

In December, PJSC NCSP and the Novorossiysk city administration signed an agreement on the Novorossiysk Commercial Sea Port’s involvement in the social and economic development of the city.

On March 22, 2013, PJSC NCSP signed a new collective agreement with employees for the period to 2016.

  © PJSC «Novorossiysk Commercial Sea port» 2013