AS Tallinna Sadam unaudited financial results for 2022 and Q4

Last year's results were most affected by lifting of restrictions related to the pandemic, which boosted the activity of passenger ports, and the start of the Russian-Ukraine war and sanctions, which led to a decrease in cargo harbours' volumes. The number of passengers increased by 98% to 7.0 million passengers, but the cargo volume decreased by 20.7% to 17.8 million tons. At the same time, the number of vessel calls was relatively stable, decreasing by only 3% to 7130 visits. High energy...

In 2022, 28/02/2023 (informazione.it - comunicati stampa - turismo)

Last year's results were most affected by lifting of restrictions related to the pandemic, which boosted the activity of passenger ports, and the start of the Russian-Ukraine war and sanctions, which led to a decrease in cargo harbours' volumes. The number of passengers increased by 98% to 7.0 million passengers, but the cargo volume decreased by 20.7% to 17.8 million tons. At the same time, the number of vessel calls was relatively stable, decreasing by only 3% to 7130 visits. High energy prices, rising service prices and wage pressures increased operating costs.

In the fourth quarter, revenue was 28.2 million euros (–1%), adjusted EBITDA was 8.9 million euros (–30%) and profit was 1.6 million euros (–75%). The decline was influenced by the reduced number of vessel calls, the lowering of vessel dues in passenger harbours, the drop in cargo volumes resulting from sanctions and the shorter charter period of Botnica. The ferry segment showed an increase in both revenue and profit margin due to the effect of fee indexation.

According to Valdo Kalm, chairman of the management board of Tallinna Sadam, despite the impact of the war and sanctions on the cargo business and the rapid increase in input prices, the company was still able to increase its revenue and adjusted EBITDA, which once again proves the effectiveness of a balanced business model. "The recovery of the passenger business from the pandemic has been faster than expected, and in the cargo business, in addition to the negative effects of the war to the liquid bulk, we also see opportunities for the growth of other types of cargo. We continued with investments and opened the front square of the passenger terminal D, with which we are moving towards developing the port area into a more human-friendly and attractive living environment. In the real estate business, a very important step forward was the public display of the sketches of the detailed plans of the Old City Harbour at the end of the year. Looking to the future, we also started the implementation of the offshore wind farm construction quay and back area project in Paldiski South Harbour. I believe that ports will play an important role in supporting green energy production and infrastructure development in the future," said Kalm.

Tallinna Sadam management will present the financial results of the Group at a including (EET) ( link to EST webinar ) and (EET) ( link to ENG webinar ).

The annual revenue grew by EUR 11.7 million (+10.6%) year on year to EUR 121.7 million. Revenue grew in all revenue streams except vessel dues. Growth was the fastest in passenger fee revenue, which grew by EUR 4.6 million (+81%) to EUR 10.2 million. Ferry service revenue grew by EUR 3.8 million (+13%), rising to EUR 33.6 million. The only revenue stream that decreased was revenue from vessel dues, which declined by EUR 0.2 million (–0.5%) to EUR 37.2 million due to a smaller number of vessel calls and a lower tonnage charge rate for ferries visiting Old City Harbour.
Revenue for the fourth quarter of 2022 declined by EUR 0.3 million (–1%) to EUR 28.2 million. The main reasons were a decrease in vessel dues (EUR –1.8 million, –19.2%), primarily through fewer vessel calls in the Passenger harbours and the Cargo harbours segments, and the lowering of port dues for all ferry operators.
The annual revenue of the Passenger harbours segment increased through higher passenger numbers. Passenger fee revenue grew by EUR 4.6 million due to the lifting of the COVID-19 restrictions. Passenger traffic increased both on regular routes and in cruise travel. Revenue from the sale of electricity grew due to a sharp rise in electricity prices and higher consumption. Lease income increased through letting of premises in the cruise terminal, higher parking charge income and termination of rent concessions. The fourth quarter revenue of the Passenger harbours segment decreased by EUR 0.3 million (–4%) to EUR 8.1 million.
The annual revenue of the Cargo harbours segment dropped mainly due to the impact of vessel dues revenue, which declined because sanctions reduced the number of vessel calls. Fewer vessel calls also lowered revenue from other services. Despite smaller cargo volumes, cargo charge revenue grew slightly because cargo with lower charge rates was replaced by cargo with higher charge rates. Rising electricity prices supported growth in revenue from electricity sales. In addition to sanctions, the performance of the Cargo harbours segment was affected by the sale of the electricity distribution network at Paljassaare Harbour at the end of 2021. The fourth quarter revenue of the Cargo harbours segment decreased by EUR 0.5 million (–5%) to EUR 9.9 million.
The annual revenue of the Ferry segment grew mostly due to the indexation of the contractual fee rates and a higher number of trips made. The segment's fourth quarter revenue grew by EUR 0.9 million (+12%) to EUR 8.3 million.
The revenue of the segment Other grew, although the summer charter of the icebreaker Botnica was shorter than a year earlier when the Canadian customer extended the charter. Revenue growth was supported by the indexation of the icebreaking and summer charter fee rates to the inflation index. The segment's fourth quarter revenue decreased by EUR 0.4 million (–16%) to EUR 1.9 million (there were more charter days in the fourth quarter a year earlier).

Adjusted EBITDA grew by EUR 1.8 million (+3.3%) to EUR 55.8 million due to adjusted EBITDA growth in the Passenger harbours segment and the Ferry segment. Adjusted EBITDA margin decreased from 49.1% to 45.9%. Adjusted EBITDA for the fourth quarter fell by EUR 3.9 million (–30%).

The Group's net profit for 2022 amounted to EUR 25.6 million, which is EUR 20 thousand (–0.1%) smaller than a year earlier. Net profit for the fourth quarter was EUR 1.6 million (EUR –4.9 million, –75%).

The Group's capital investments in 2022 totalled EUR 13.9 million, which is EUR 0.9 million (6%) less than in the prior year and the past six years' lowest level.
The main capital investments in 2022 were again made at Old City Harbour, where the largest completed project (the last works were completed in early 2023) was the reconstruction of the outdoor area around Terminal D which began in 2020. At Muuga Harbour, the largest investments were related to developing the conditions for ro-ro traffic and improving traffic conditions in the harbour area. No major works were carried out on the icebreaker Botnica. In the Ferry segment, the largest works included scheduled dry-dock maintenance of the ferries and upgrades to the customer service and ticket sale systems.
The fourth quarter capital investments amounted to EUR 1.4 million, which is EUR 3.1 million less than in the fourth quarter of 2021.

Additional information:

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

m.zirel@ts.ee

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