AS Tallinna Sadam financial results for 2019 1st quarter

In the first quarter of 2019, the revenue of AS Tallinna Sadam (hereinafter “the Group”) amounted to EUR 28.5 million, declining by 3.0% compared to the same period last year. The Group's adjusted EBITDA was EUR 16.9 million in the first quarter, declining by 4.2% year-on-year. Net profit decreased by EUR 0.8 million to EUR 11.0 million in the first quarter.

According to Valdo Kalm, Chairman of the Management Board of the Group, the most significant impact on the results of the first quarter was the planned maintenance of passenger vessels, which resulted in a temporary break of service of several passenger ships and a decrease in the number of vessel calls and passengers, the volume of ro-ro cargo and the revenue of the passenger harbours segment. “According to international maritime regulations, all passenger ships must undergo regular maintenance and dock. Due to the maintenance, Tallink, Viking Line and Eckerö Line vessels were out of service for a while and therefore the volumes of passengers as well as ro-ro cargo passing through the harbours declined in the first months of the year,” said Kalm.

The financial results were also impacted by a drop in the volume of liquid bulk by 11.9% in the cargo harbours segment. “The volume of liquid bulk handled at the harbours of the Group decreased mainly at the beginning of the year, as a result of which both vessel fees and cargo fees decreased. Liquid bulk volumes have stabilized at the end of the quarter, and we see this trend continuing,” noted Valdo Kalm.

In the first quarter, the investments also increased compared to the same period last year due to the reconstruction of the passenger terminal D.

Despite the modest decline in revenue and profit at the beginning of the year, the Management Board estimates that the profit target set for 2019 will be achieved and deviations from the set dividend policy will not occur.

Key figures (in million EUR):

Revenue

Revenue for the first quarter of 2019 decreased by EUR 0.9 million, i.e. 3.0%, compared to the same period last year. In terms of revenue streams, the strongest decline occurred in vessel dues that decreased by EUR 0.9 million, i.e. 9%, and passenger fees that decreased by EUR 0.2 million, i.e. around 7%. Revenue increased in the segments of Ferry and Other but decreased in Passenger harbours and Cargo harbours segments.

Passenger harbours revenue decreased by EUR 0.6 million i.e. 7.2%, mainly because several passenger ferries operating on regular routes were temporarily out of service due to planned dry dock or wet berth maintenance. This reduced the number of trips and passengers, which also lowered revenue from vessel dues and passenger fees. The impact of the decrease in ro-ro cargo volume was smaller.

Cargo harbours revenue declined by EUR 0.5 million, i.e. by 4.9%, primarily because the volume of liquid bulk cargo decreased, which lowered vessel dues revenue. Cargo charge revenue was less affected by the drop of liquid bulk volume, as liquid bulk cargo charge rates are lower than those of other cargo types and, quarterly cargo charge revenue is based on the estimated annual cargo charge revenue (IFRS 15).

Ferry segment revenue grew by EUR 0.2 million i.e. by 2.9%, mainly because the fee rates, which are linked to the Estonian consumer and fuel price indices and wage inflation, were higher than in the comparative period.

The revenue of the segment Other grew through the indexation of the contractual fees of the icebreaker Botnica to the Estonian consumer price index. 

EBITDA

Adjusted EBITDA declined by EUR 0.7 million i.e. by 4.2 %, somewhat less than operating profit because growth in depreciation, amortisation and impairment expenses did not affect EBITDA. In terms of segments, adjusted EBITDA grew in the Ferry segment and decreased in all other segments. The decline was the sharpest in the Cargo harbours segment due to the decrease in its revenue. Adjusted EBITDA margin dropped from 59.8% to 59.1%.

Net profit

Net profit amounted to EUR 11.0 million, EUR 0.8 million less than in the comparative period.

Investments

The Group invested EUR 3.9 million in the first quarter of 2019. The figure is larger than in the same period last year when investments totalled EUR 1.9 million. Investments of the period were mostly related to the reconstruction of passenger terminal D at the Old City Harbour.

Interim condensed consolidated statement of financial position:

Interim condensed consolidated statement of profit or loss:

Interim condensed consolidated statement of cash flows:

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2018 serviced 10.6 million passengers and 20.6 million tons of cargo. 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 m/v Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder in an associate AS Green Marine, which provides waste management services. Tallinna Sadam group's sales in 2018 totaled EUR 130.6 million, adjusted EBITDA EUR 74.4 million and net profit EUR 24.4 million.

Additional information:

Marju Zirel

Head of Investor Relations

AS Tallinna Sadam

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