staying the course€¦ · tons in 2015. the ioc rio tinto mining company increased its shipments...

ANNUAL REPORT2016

LIVRER LE MEILLEUR À NOTRE

STAYING THE COURSE

STAYING THE COURSE

PREVIEW

1, Quai Mgr-Blanche, Sept-Îles (Québec) Canada G4R 5P3 | Téléphone : 418 968-1231

USMissionValuesCommunications

OUR PORTPortrait of our port operationsNew partnership in Pointe-NoireAchievements

OUR WORLDEnvironmentCommunity actionsPride

US OUR PORT OUR WORLD FINANCIAL PERFORMANCE

A QUICK GLANCE

MESSAGE FROM MANAGEMENT

FINANCIAL PERFORMANCE

w w w.por t s i .com - 2016 A nnual repor t

Photo : Éric Guay

MESSAGE FROM MANAGEMENT

Given the harsh economic context that has shaped 2016, we must first and foremost acknowledge the hard work and daily effort that the crew of the Port of Sept-Îles have and continue to invest. We can proudly say that we have managed to “stay the course” on such rough waters, and ensured a prosperous future for our material, financial and human resources.

In fact, with Pointe-Noire having ceased all its port activities since 2014, which represented close to 9 million tons annually, more than 40 % of the Port’s annual revenues have been impacted. The prudence and thoroughness we consequently adopted in 2015 were also applied throughout 2016. We thank our business partners and community organizations for being indulgent and collaborative in finding new ways to continue our development plans through these hard times.

The Port’s acquisition of more than 400 hectares of the Pointe-Noire sector and the long-term agreements entered into between the Port and the Government of Québec, the new owner of Wabush Mines’ assets, have undoubtedly marked 2016 and will pave the way for new opportunities stemming from the multi-user model developed by the Port of Sept-Îles.

Thanks to its mission and vision based on true respect, trust and diverse partnerships with stakeholders, the Port would like to highlight the fact that these solid relationships have largely contributed to lessen the challenging period of 2016 and make the future all about delivering the best to our world !


PIERRE D. GAGNON

PIERRE CÔTÉ

CEO

Chairman

Photos : PSI

Photo : Rachel Devost

A QUICK GLANCE

437

4 2,401

22,942,401SHIPS

CRUISE SHIPS CRUISE PASSENGERS

GENEROUS SUPPORT TO THE COMMUNITY

TONS OF CARGO



MISSION

The Port of Sept-Îles, benefitting from the natural advantages of the Bay of Sept-Îles, has the mission to remain an important development agent by providing adequate facilities and efficient services in a partnership framework and with a sustainable development approach.

COMMUNICATIONS

As promised, we have focused on social media and greatly appreciate the opportunities that these new tools have offered us to communicate more directly with our community and partners. Our columns in the local weekly paper also allow us to share current strategic issues with the community, let them know who we are and inform them on ongoing projects. We wish to demonstrate our will to strengthen our ties with our community through social media.

VALUESThe Port of Sept-Îles’ client-oriented performance is based on partnership, commitment, professionalism and expertise. The motivation of its 7-star team lies on pride, audacity, solidarity and the desire to continuously surpass itself. These values define who we are, what we hold dear and what inspires us.

EN

VALUES

VALUES

VALUES

MISSIONCOMMUNICATIONS

MISSIONCOMMUNICATIONS


US

1, Quai Mgr-Blanche, Sept-Îles (Québec) Canada G4R 5P3 | Telephone : 418 968-1231w w w.por t s i .com - 2016 A nnual repor t

Photo : Sabina Filion

PORTRAIT OF OUR PORT OPERATIONS

In 2016, the volume of cargo handled in the Port of Sept-Îles increased by 1 %, totalling 23 million tons compared to 22.7 million tons in 2015. The IOC Rio Tinto mining company increased its shipments in 2016 to 18.6 million tons compared to 17.8 million tons the year before. Tata Steel Minerals Canadas shipment total was 1.6 million tons in 2016 compared to 2.3 million in 2015.


OUR PORT

SHIPS 437

TOTAL TONNAGE 22,942,401

INBOUND TONNAGE 2,106,678

OUTBOUND TONNAGE 20,835,723

CANADIAN TONNAGE 460,294

INBOUND CANADIAN 356,583

OUTBOUND CANADIAN 103,711

FOREIGN TONNAGE 22,482,107

INBOUND FOREIGN 1,750,095

OUTBOUND FOREIGN 20,732,012

CRUISE SHIPS (INCLUDED IN SHIPS) 4

NUMBER OF PASSENGERS 2,401

TOP 10 CARGO

1 IRON ORE 20,372,378

2 ALUMINA 1,153,632

3 ALUMINUM 470,909

4 FUEL OIL-DIESEL-GAS 304,601

5 PETROLEUM COKE 212,329

6 COKE BREEZE 145,015

7 LIMESTONE 132,045

8 BENTONITE 71,975

9 LIQUID PITCH 42,816

10 OTHER CARGO 36,701

w w w.por t s i .com - 2016 A nnual repor tPhoto : Éric Guay

NEW PARTNERSHIP IN POINTE-NOIRE

December 7, 2016 | Pierre D. Gagnon, President and CEO of the Port of Sept-Îles on the left and Pierre Bolduc, Executive Director of Société ferroviaire et portuaire de Pointe-Noire on the right | Signature of long-term agreements

By acquiring Wabush Mines’ assets, subject to their sale under Act C-36, the Government of Québec, through Société ferroviaire et portuaire de Pointe-Noire (SFPPN), has become a new user and partner. As such, the Port and the SFPPN signed, last December, long-term strategic commercial agreements to ensure Pointe-Noire’s full potential and future development.



Photo : PSI


ACHIEVEMENTS

2016 could not have had a more positive start following the Superior Court of Québec’s approval, February 1st, of the Port of Sept-Îles’ partial acquisition of Wabush Mines’ property within the company’s procedure under the Companies’ Creditors Arrangement Act (C-36). The acquisition of this vast property of 407 hectares has contributed to the Port’s development thanks to its proximity to the infrastructures of Pointe-Noire, La Relance and the multi-user dock.

The future looked even brighter as the Government of Québec announced, last spring and summer, a financial partnership to relaunch Bloom Lake’s activities and launch Tata Steel Minerals Canada’s DSO project in Schefferville, translating into nearly 200 million dollars’ worth of investments to boost the iron industry, which has been struggling due to the decrease in ore prices.


Another highlight has been the shipments from Pointe-Noire in the fall with the loading of three ore carriers, two for SFPPN and one for Tata Steel Minerals Canada. These shipments of 238,728 tons have marked a new era for Pointe-Noire with a new operator and partner, who plans to apply the multi-user concept to all its facilities.

As for the cruise terminal, four ships have docked in 2016 ; the Crystal Serenity and the Silver Whisper, simultaneously, thus increasing the number of passengers who disembarked. This stage constitutes an important milestone in the history of Destination Sept-Îles Nakauinanu who, for the first time, was operating two sites to welcome 2,500 passengers and crew members wanting to discover what Sept-Îles has to offer. This complex logistic operation was an undeniable success, sending a clear message to the industry and paving the way for new business opportunities for the future of our port of call.



Last June, the City of Sept-Îles and the Port of Sept-Îles confirmed the ongoing work of Observatoire de veille environnementale de la baie de Sept-Îles thanks to accrued financial support to carry out phase III involving Société du Plan Nord and Sept-Îles’ big industry.

Photo : Destination Sept-Îles Nakauinanu


ENVIRONMENT

The work of Observatoire de veille environnementale de la baie de Sept-Îles continues thanks to the financial support offered by the Port of Sept-Îles, the City of Sept-Îles, Société du Plan Nord as well as Sept-Îles’ big industry. The Port reiterates the importance of this initiative, launched in 2013, allowing research to be conducted by Institut nordique de recherche en environnement et en santé au travail (INREST) to preserve our precious and rich ecosystem for generations to come.

OUR WORLD

w w w.por t s i .com - 2016 A nnual repor tPhoto : Pascal Poirier

COMMUNITY ACTIONS

• $ 52,575 raised for the 7th Edition of “5 à Huîtres maritime”!

• MAMU Marathon – Staff participation to support the organization and participants.

• Participation in the CEGEP career day in Sept-Îles, “L’heure-juste”, sowing a positive seed in our youth’s future career choices.

• On October 25, Québec Marine Day, 450 students from the Commission scolaire du Fer received a DVD called “Les matelots de Tante Caro” to thank them for their participation in the filming of 26 episodes highlighting the richness of the St-Lawrence and its marine activities.

• September 2… the Port sets sail and launches its Facebook and LinkedIn pages.

• Participation in “Savoir Affaires” organised by Développement économique Sept-Îles.

• Collaboration in the organisation of the 115th commemoration of the sinking of the Saint-Olaf.



Photo : Sébastien Miousse

Photo : Sébastien Miousse

Photo : Michel Frigon

PRIDE

The Hermel’s home port has received more than 6,255 visitors during the summer and port visits from cruise ships. We are proud of our partnership and synergy with Tourisme Sept-Îles which is in charge of showcasing this famous artefact and other exhibits (in 2016 – Evolution 1812-1912). The Hermel’s home port has become a place to meet and discuss and celebrate Mylène Paquet and Hermel Lavoie’s passion and achievements, so similar to those of North Shore residents.



Photo : PSI

FINANCIAL PERFORMANCE

The relaunch of activities in Pointe-Noire has mainly contributed to the 11 % increase in revenues, for a total of $ 8,210 K in 2016.

The Port has had to postpone certain repairs and continue its rationalisation efforts to reduce operation and administration expenses in the order of $ 495 K compared to 2015. The expenses contained in the results have considerably increased due to the interests on the multi-user dock that have been applied in their entirety to the 2016 expenses. However, the termination of a contract of a partner of the multi-user dock placed under the Companies Creditor’s Arrangement Act has generated unexpected revenues of $ 617 K.

As a consequence, operations total $ 797 K for 2016.



Global results show $ 8,215 K following an accounting reclassification of an important amount of $ 6.4 M received by a user as a buy-in payment for the construction of the multi-user dock as well as other items having no bearing on cash flow such as the variation of the fair market value of interest rate swaps.

Almost all of the Port’s capital expenditures concern the acquisition of 400 hectares of property in Pointe-Noire, for a total of $ 1.3 M.

Photo : Andrée Ruest

STATEMENT OF COMPREHENSIVE INCOMEas at December 31, 2016(in thousands of dollars)

2016 2015

REVENUES 8,210 7,423

EXPENSES

Operating expenses 3,490 3,699

Administrative expenses 3,216 3,502

Interest on LT debt 2,124 841

Other revenues (800) (1,047)

Realisation on security (617) 0

7,413 6,995

NET RESULT 797 428

Items having no bearing on cash flow 7,418 (3,469)

Comprehensive income 8,215 (3,041)

CAPITAL EXPENDITURES 1,329 17,991




STATEMENT OF FINANCIAL POSITIONas at December 31, 2016(in thousands of dollars)

2016 2015

ASSETS

CURRENT ASSETS

Cash 7,933 11,550

Accounts receivable 3,860 2,522

Prepaid expenses 94 108

Current portion of investments 1,000 1,500

Current portion of net investments in financial leases 2,190 3,033

15,077 18,713

INVESTMENTS 3,000 2,500

NET INVESTMENTS IN FINANCE LEASES 7,155 9,346

GRANTS RECEIVABLE 2,269 2,965

CONTRIBUTIONS RECEIVABLE 11,000 11,000

DEPOSIT ON PROPERTY & EQUIPMENT 0 1,000

PROPERTY & EQUIPMENT 302,483 303,546

340,984 349,070

2016 2015

LIABILITIES

CURRENT LIABILITIES

Line of credit 0 0

Accounts payable 1,340 2,554

Deferred revenues 867 45

Current portion of LT debt 6,560 7,168

8,767 9,767

DEFERRED REVENUES 88,503 95,023

LONG-TERM DEBT 59,879 66,382

DERIVATIVE INSTRUMENTS 3,649 4,557

DEFERRED GRANTS 100,034 101,219

EMPLOYEE & ACCRUED SOCIAL BENEFITS 766 951

261,598 277,899

CAPITAL

Contributed capital 11,707 11,707

Retained earnings 68,505 60,405

Reserve (826) (941)

79,386 71,171

340,984 349,070



INFRASTRUCTURES

New announcements and new opportunities will strengthen our offer and the handling capacity of our installations. Our bay is open to a great number of ships. We continue to support our cruise ship industry with future plans for a permanent pavilion.

DEVELOPMENT

The signature of the agreements with SFPPN as well as the rise in iron prices in the last weeks of 2016 have made the perspectives for 2017 seem much brighter and promising. In light of this favourable context, the Port intends to collaborate closely with its partners Développement économique Sept-Îles, the Chamber of Commerce and SFPPN to work towards the economic diversification that the area greatly needs.

COMMUNITY

Given the current context, and beyond what we have expected, we have found a new way to partner and exchange with local organizations thus consolidating our facilitation and liaison roles. We also want to make ourselves readily available to support and encourage activities and projects that can benefit the entire community.

STAYING THE COURSE

The Port of Sept-Îles wants to maintain its commanding position on the international scene thanks to the quality of its world-class port facilities.

The Port of Sept-Îles is an active and inspiring partner, an outstanding citizen who supports common goals and sustainable relations. Its goal is to stay the course for a brighter future for all.


Photo : Éric Guay

staying the course€¦ · tons in 2015. the ioc rio tinto mining company increased its shipments...

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