AS Tallinna Sadam financial results for 2024 Q2 and 6 months

In the second quarter, Tallinna Sadam earned 32 million euros in sales revenue and 4 million euros in profit. The revenue for six months was 60 million euros and the profit exceeded 9 million euros. In the second quarter, the volume of investments increased to 7 million euros, in the first half of the year we invested a total of 25 million euros.In the second quarter, sales revenue (10%), adjusted EBITDA (27%) and profit (201%) increased year-on-year. Semiannually, the revenue increased (4%)...

Tallinn, 12/08/2024 (informazione.it - comunicati stampa - turismo)

In the second quarter, sales revenue (10%), adjusted EBITDA (27%) and profit (201%) increased year-on-year. Semiannually, the revenue increased (4%) and cost reduction resulted in positive changes for adjusted EBITDA (9%) and profit (32%).

“Considering the general global background and macroeconomic environment, we can be satisfied with the results," comments Valdo Kalm, the Chairman of the Management Board. "The number of passengers has increased, and we see stabilization in terms of cargo volumes. In terms of goods, ro-ro and container volumes have shown the most increase. We are pleased with the efficiency of operations - we have managed to reduce operating costs and we hope to continue in this direction in the future. In the long term, the company's operations will be positively affected by winning the tender for ferry services and signing the chartering contract for the multi-functional icebreaker Botnica for the next five years.

The financial results of six months were affected by an increase in the number of passengers and stabilized cargo volumes. In shipping, both ferries and the icebreaker Botnica showed growth. Botnica started offshore works this year earlier than last year and contributed to the increase in revenue. The group's operating costs have decreased, while financial costs have increased due to high Euribor rates.

Tallinna Sadam management will present the financial results of the Group at a webinars on 12 August, including webinar in Estonian starting at 10.00 (EEST) (link to EST webinar) and webinar in English starting at 11.00 (EEST) (link to ENG webinar).

Key figures (in million EUR):

	Q2	Q2	+/–	6M	6M	+/–
	2024	2023	%	2024	2023	%
Revenue	31.7	28.8	10.0	59.6	57.2	4.2
Adjusted EBITDA	14.9	11.7	27.1	27.6	25.3	9.2
Adjusted EBITDA margin	47.0%	40.7%	6.3	43.6%	44.2%	–0.6
Operating profit	8.9	5.8	55.1	15.9	12.6	26.9
Income tax	–3.1	–3.0	4.7	–3.1	–3.0	4.7
Profit for the period	4.1	1.4	200.6	9.3	7.1	31.5
Investments	7.1	4.6	53.9	25.0	6.1	307.3

	30.06.2024	31.12.2023	+/–
Total assets	618.0	606.2	1.9%
Interest bearing debt	190.0	173.4	9.6%
Other liabilities	60.3	55.1	9.4%
Equity	367.8	377.7	–2.6%
Number of shares	263.0	263.0	0.0%

Major events in Q2:

Winning the tender for ferry services for the period 2026-2033
Icebreaker Botnica charter contract with Baffinland for the period 2024-2028
Icebreaker Botnica charter contract with BP Exploration Operating Copmpany Ltd
Additional trips by the ferry Regula in summer 2024
Signing unsecured loan agreement with Swedbank
Positive judgment in the judicial dispute with SLK and Väinamere Liinid
Extension of the term of office of members of the board in subsidiaries
Court ruling in the case against former board members of Tallinna Sadam.

Revenue
Revenue for six months increased by EUR 2.4 million (+4.2%) year on year to EUR 59.6 million, supported by higher revenues from the icebreaker MSV Botnica (charter fees, the segment Other) and ferry service between Estonia's mainland and two largest islands (the Ferry segment). Revenues from the Passenger harbours and Cargo harbours segments decreased. In terms of revenue streams, the biggest change in the first half-year was in charter fees revenue, which increased by EUR 2.6 million (+45.8%), because the summer charter of the icebreaker MSV Botnica started earlier than last year. However, due to technical issues, the icebreaker's summer project proved shorter than planned in 2024. Vessel dues revenue declined by EUR 1.2 million (–7.3%) to EUR 14.8 million due to a decrease in ferry, cruise ship and cargo vessel calls. Revenue from other services grew by EUR 0.4 million (+43.0%) as the icebreaker MSV Botnica generated additional revenue from its summer work and the LNG quay in Pakrineeme harbour was put into service at the beginning of this year. Ferry service revenue grew by EUR 0.3 million (+1.7%) to EUR 17.6 million. The number of trips grew by 2.0% year on year. Cargo charges revenue decreased by EUR 0.3 million (–9.0%) to EUR 2.9 million due to a decline in cargo volumes. The decrease in cargo charges revenue was higher than in cargo volumes (–0.3%), because in the same period in 2023 we expected the cargo charges revenue from liquid bulk cargo to be higher by the end of the year than in 2024 and, in accordance with IFRS 15, this had a positive effect on the cargo charges revenue for the comparative period. Electricity sales revenue grew by EUR 0.2 million (+11.2%) to EUR 2.4 million, driven by growth in the Passenger harbours segment where the sales volumes of both electricity and network services grew. Operating lease income increased by EUR 0.1 million (+2.0%) to EUR 6.8 million. Operating lease income grew in the Passenger harbours segment, the Ferry segment and the Cargo harbours segment, driven by an increase in the letting of premises in the cruise terminal and parking charges at Old City Harbour as well as indexation of lease income and income from the rights of superficies. Passenger fees revenue grew by EUR 0.1 million (+2.3%) to EUR 5.3 million, supported by a rise in the number of passengers (+2.4%). Changes in other revenue streams were less significant. In segment terms, half-year revenue grew in the segment Other (MSV Botnica) and the Ferry segment, which offset the revenue decline in the Passenger harbours and Cargo harbours segments.

EBITDA
Adjusted EBITDA for six months grew by EUR 2.3 million (+9.2%) year on year to EUR 27.6 million. Adjusted EBITDA grew in the segment Other and the Cargo harbours segment. In the Passenger harbours and Ferry segments, adjusted EBITDA decreased. The adjusted EBITDA of the segment Other increased as revenue grew, while lower non-current asset maintenance and repair costs and fuel costs offset the growth in personnel expenses. The adjusted EBITDA of the Cargo harbours segment increased despite lower revenue, because non-current asset repair costs and the total amount of other expenses decreased. Adjusted EBITDA for the second quarter grew by EUR 3.2 million (+27.1%) year on year. Adjusted EBITDA improved in all segments except Passenger harbours. Adjusted EBITDA margin for six months rose from 44.2% to 46.3% and adjusted EBITDA margin for the second quarter rose from 40.7% to 47.0%.

Profit
Profit before tax for six months increased by EUR 2.4 million (+23.5%) year on year to EUR 12.4 million. Profit grew less than operating profit because finance costs (net) increased. The dividend declared in the second quarter of 2024 in an amount of EUR 19.2 million gave rise to income tax expense of EUR 3.1 million, which was EUR 0.1 million larger than the income tax expense on the dividend distributed last year. The amount of the dividend did not change year on year, but last year income tax expense was reduced by the reversal of deferred tax of EUR 0.1 million. Profit for the first six months increased by EUR 2.2 million (+31.5%) year on year. Second-quarter profit amounted to EUR 4.1 million (+EUR 2.7 million; +200.6%) and profit before tax to EUR 7.2 million (+EUR 2.9 million; +66.1%).

Investments
In the first six months of 2024, the Group invested EUR 25.0 million, EUR 18.9 million more than a year earlier. The largest capital investments of the period were made in the construction of a new quay in Paldiski South Harbour to serve offshore wind farms, the regular dry-docking of a ferry, the reconstruction of a quay ramp in Old City Harbour, the development of information systems and the acquisition of equipment for ferries. Investments of the second quarter totalled EUR 7.1 million (EUR 4.6 million in the second quarter of 2023).

Interim condensed consolidated statement of financial position:

In thousands of euros	30 June 2024	31 December 2023
ASSETS

Current assets
Cash and cash equivalents	25 890	29 733
Trade and other receivables	15 134	12 118
Contract assets	196	0
Inventories	714	550
Total current assets	41 934	42 401

Non-current assets
Investments in associates	2 402	2 177
Other long-term receivables	0	163
Investment properties	14 069	14 069
Property, plant and equipment	557 424	545 271
Intangible assets	2 204	2 083
Total non-current assets	576 099	563 763
Total assets	618 033	606 164

LIABILITIES

Current liabilities
Loans and borrowings	17 416	15 831
Provisions	848	1 311
Government grants	7 778	7 344
Taxes payable	1 745	876
Trade and other payables	11 725	9 429
Contract liabilities	3 088	63
Total current liabilities	42 600	34 854

Non-current liabilities
Loans and borrowings	172 583	157 566
Government grants	32 214	33 075
Other payables	152	255
Contract liabilities	2 733	2 755
Total non-current liabilities	207 682	193 651
Total liabilities	250 282	228 505
EQUITY
Share capital at par value	263 000	263 000
Share premium	44 478	44 478
Statutory capital reserve	23 304	22 858
Retained earnings	36 969	47 323
Total equity	367 751	377 659
Total liabilities and equity	618 033	606 164

Interim condensed consolidated statement of profit or loss:


In thousands of euros	Q2 2024	Q2 2023	6M 2024	6M 2023

Revenue	31 651	28 783	59 582	57 189
Other income	412	520	767	861
Operating expenses	–10 269	–10 802	–19 300	–19 664
Impairment of financial assets	–286	–120	–466	–403
Personnel expenses	–6 451	–6 355	–12 359	–11 976
Depreciation, amortisation and impairment	–6 084	–6 189	–12 120	–13 227
Other expenses	–42	–79	–172	–225
Operating profit	8 931	5 758	15 932	12 555

Finance income and costs
Finance income	234	329	501	587
Finance costs	–2 151	–1 837	–4 242	–3 230
Finance costs – net	–1 917	–1 508	–3 741	–2 643

Share of profit of an associate accounted for under the equity method	210	98	225	138
Profit before income tax	7 224	4 348	12 416	10 050

Income tax	–3 125	–2 985	–3 125	–2 985
Profit for the period	4 099	1 363	9 291	7 065
Attributable to owners of the Parent	4 099	1 363	9 291	7 065

Basic and diluted earnings per share (in euros)	0.02	0.01	0.04	0.03

Interim condensed consolidated statement of cash flows:


In thousands of euros	6M 2024	6M 2023

Cash receipts from sale of goods and services	64 749	62 283
Cash receipts related to other income	34	181
Payments to suppliers	–24 680	–23 952
Payments to and on behalf of employees	–11 384	–12 569
Payments for other expenses	–179	–204
Income tax paid on dividends	–3 325	–3 264
Cash from operating activities	25 215	22 475

Purchases of property, plant and equipment	–22 559	–4 664
Purchases of intangible assets	–374	–404
Proceeds from sale of property, plant and equipment	17	28
Dividends received	0	357
Interest received	483	555
Cash used in investing activities	–22 433	–4 128
Proceeds from loans received	20 000	0
Repayments of loans received	–3 383	–3 383
Dividends paid	–19 000	–19 012
Interest paid	–4 229	–2 498
Other payments related to financing activities	–13	–5
Cash from/used in financing activities	–6 625	–24 898
NET CASH FLOW	–3 843	–6 551
Cash and cash equivalents at beginning of the period	29 733	44 387
Change in cash and cash equivalents	–3 843	–6 551
Cash and cash equivalents at end of the period	25 890	37 836

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region. In addition to passenger and freight services, Tallinna Sadam group also operates in shipping business via its subsidiaries – OÜ TS Laevad provides ferry services between the Estonian mainland and the largest islands, and OÜ TS Shipping charters its multifunctional vessel Botnica for icebreaking and offshore services in Estonia and projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services.

Additional information:

Andrus Ait
Chief Financial Officer
Tel. +372 526 0735
[email protected]

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