AS Tallinna Sadam financial results for 2023 Q1

In the first quarter, revenue increased to 28.4 million euros (+6%) and adjusted EBITDA to 13.6 million euros (+0.6%), and profit was 5.7 million euros (-21%). The adjusted EBITDA margin was 48% and the volume of investments 1.5 million euros (–67%).In the passenger business, strong growth continued both in the number of passengers and in passenger vessel calls, including a record for vessel calls on the Tallinn-Helsinki line. The cargo volumes of liquid bulk and dry bulk decreased due to...

Tallinn, 10/05/2023 (informazione.it - comunicati stampa - turismo)

In the passenger business, strong growth continued both in the number of passengers and in passenger vessel calls, including a record for vessel calls on the Tallinn-Helsinki line. The cargo volumes of liquid bulk and dry bulk decreased due to the sanctions imposed on goods of Russian origin, but its economic impact was significantly smaller than the decrease in volume, as the volume of goods with a lower tariff rate decreased in particular. In shipping, both ferries and the icebreaker Botnica showed growth. Rising service prices and wage pressure increased operating costs, financial costs also increased.

Tallinna Sadam management will present the financial results of the Group at a webinars on 10May, including webinar in Estonian starting at 13.00 (EET) (link to EST webinar) and webinar in English starting at 14.00 (EET) (link to ENG webinar).

Key figures (in million EUR):

	Q1 2023	Q1 2022	+/–	%
Revenue	28.4	26.8	1,6	6.1
Adjusted EBITDA	13.6	13.5	0.1	0.6
Adjusted EBITDA margin	47.8%	50.4%	–2.6	–
Operating profit	6.8	7.2	–0.4	–5.8
Profit for the period	5.7	7.2	–1.5	–20.7
Investments	1.5	4.7	–3.2	–67.2

	31.03.2023	31.12.2022	+/–
Total assets	627.2	621.2	1.0%
Interest bearing debt	184.4	187.4	–1.6%
Other liabilities	56.2	52.9	6.2%
Equity	386.7	381.0	1.5%
Number of shares	263.0	263.0	0.0%

Major events in Q1:

Record vessel calls on Tallinn-Helsinki line
Icebreaker Botnica contract with Baffinland for 2023 summer
Positive court ruling to end the legal dispute with SLK and Väinamere Lines
MOU with OÜ Utilitas Wind for the development of offshore wind farms
Announcement of the passenger terminal A architecture competition
Public discussion of sketch designs of the detail plans of Old City Harbour

Revenue
Revenue for the first quarter grew by EUR 1.6 million (+6.1%) year on year. All revenue streams showed growth, except cargo charges and sale of electricity. Passenger fee revenue grew the most, increasing by EUR 0.7 million (+47%) in connection with an increase in the number of passengers, the effect of which was lowered by a 10% reduction in the fee rate for passengers arriving at or departing from Old City Harbour on regularly operated ferry routes as from March 2022. Decline in cargo charges (–9%) was significantly lower than the decrease in cargo volumes (–31%) as volumes decreased mostly for cargo with lower charge rates. Revenue grew in the Passenger harbours segment, the Ferry segment and in the segment Other, but decreased in the Cargo harbours segment by EUR 1.7 million due to lower cargo volumes.

The revenue of the Passenger harbours segment grew by EUR 2.0 million (33%) mainly through higher revenue from vessel dues and passenger fees (+EUR 1.0 million and +EUR 0.7 million, respectively), which increased due to growth in vessel calls and passenger numbers. Lease income grew (+EUR 0.2 million) due to the addition of new premises as well as higher income from the cruise terminal. Revenue from other services was mainly supported by revenue on the sale of advertising space.
In the Cargo harbours segment, revenue decreased by EUR 1.7 million (–18%) due to a decline in cargo volumes and the number of vessel calls. Revenue from vessel dues (–EUR 1.0 million), electricity sales (–EUR 0.4 million) and cargo charges (–EUR 0.2 million) decreased the most. The decline in electricity sales revenue was attributable to both lower electricity prices and smaller consumption due to lower operating volumes.
The revenue of the Ferry segment grew by EUR 1.0 million (13%), driven by a rise in the contractual fee rates (due to an increase in the Estonian fuel cost, employment cost and consumer price indices) and supported by a higher number of trips.
The revenue of the segment Other grew by EUR 0.4 million (10%) in connection with a higher charter fee rate for the icebreaking season, which took effect in December 2022 under a new agreement signed with the Estonian Transport Administration.

EBITDA
Adjusted EBITDA grew by EUR 0.082 million because revenue growth exceeded growth in expenses excluding depreciation, amortisation and impairment, although profit on the investment in the equity-accounted associate AS Green Marine decreased. In terms of segments, adjusted EBITDA grew in the Passenger harbours segment, the Ferry segment and the segment Other and decreased in the Cargo harbours segment. Adjusted EBITDA margin declined from 50.4% to 47.8%.

Profit
Profit before tax decreased by EUR 1.49 million (–20.7%) to EUR 5.7 million. Net profit for the period was also EUR 5.7 million, EUR 1.49 million smaller than a year earlier.

Investments
The Group invested EUR 1.5 million in the first three months of 2023, EUR 3.2 million less than a year earlier. The largest investments were made in completing the reconstruction of the outdoor area around terminal D and increasing the capacity of Muuga Harbour to serve ro-ro cargo.

Interim condensed consolidated statement of financial position:

In thousands of euros	31 March 2023	31 December 2022
ASSETS

Current assets
Cash and cash equivalents	51 957	44 387
Trade and other receivables	11 264	7 477
Contract assets	215	0
Inventories	735	749
Non-current assets held for sale	0	100
Total current assets	64 171	52 713

Non-current assets
Investments in associates	2 138	2 099
Other long-term receivables	303	303
Property, plant and equipment	558 806	564 379
Intangible assets	1 812	1 735
Total non-current assets	563 059	568 516
Total assets	627 230	621 229

LIABILITIES

Current liabilities
Loans and borrowings	15 916	15 916
Provisions	543	2 013
Government grants	8 240	8 578
Taxes payable	1 044	1 060
Trade and other payables	8 984	9 770
Contract liabilities	3 072	62
Total current liabilities	37 799	37 399

Non-current liabilities
Loans and borrowings	168 482	171 482
Government grants	32 905	30 156
Other payables	622	449
Contract liabilities	745	767
Total non-current liabilities	202 754	202 854
Total liabilities	240 553	240 253

EQUITY
Share capital at par value	263 000	263 000
Share premium	44 478	44 478
Statutory capital reserve	22 115	22 115
Retained earnings (prior periods)	51 383	25 791
Profit for the period	5 701	25 592
Total equity	386 677	380 976
Total liabilities and equity	627 230	621 229

Interim condensed consolidated statement of profit or loss:


In thousands of euros	Q1 2023	Q1 2022

Revenue	28 405	26 771
Other income	341	295
Operating expenses	–9 145	–8 663
Personnel expenses	–5 621	–4 771
Depreciation, amortisation and impairment	–7 038	–6 287
Other expenses	–145	–128
Operating profit	6 797	7 217

Finance income and costs
Finance income	258	31
Finance costs	–1 393	–284
Finance costs – net	–1 135	–253

Share of profit of an associate accounted for under the equity method	39	227
Profit before income tax	5 701	7 191

Profit for the period	5 701	7 191
Attributable to owners of the Parent	5 701	7 191

Basic and diluted earnings per share (in euros)	0.02	0.03
Basic and diluted earnings per share – continuing operations (in euros)	0.02	0.03

Interim condensed consolidated statement of cash flows:


In thousands of euros	Q1 2023	Q1 2022

Cash receipts from sale of goods and services	32 199	31 849
Cash receipts related to other income	28	20
Payments to suppliers	–13 307	–12 493
Payments to and on behalf of employees	–5 373	–4 359
Payments for other expenses	–148	–146
Cash from operating activities	13 399	14 871

Purchases of property, plant and equipment	–1 630	–5 318
Purchases of intangible assets	–176	–50
Proceeds from sale of property, plant and equipment	0	28
Government grants received	242	1
Interest received	–1 564	–5 339
Cash used in investing activities
Repayments of loans received	–3 000	–3 000
Interest paid	–1 263	–356
Other payments related to financing activities	–2	–2
Cash from/used in financing activities	–4 265	–3 358
NET CASH FLOW	7 570	6 174
Cash and cash equivalents at beginning of the period	44 387	34 840
Change in cash and cash equivalents	7 570	6 174
Cash and cash equivalents at end of the period	51 957	41 014

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which serves annually 10 million passengers and 20 million tons of cargo in average. 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 construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services.

Additional information:

Marju Zirel
Head of Investor Relations
Tel. +372 5342 6591

[email protected]

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