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%) 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) () and webinar in English starting at 11.00 (EEST) ().
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.
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