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)
(link to EST webinar (https://teams.microsoft.com/l/meetup-
join/19%3ameeting_NzZlZDk5ZmQtNGZmMS00ZWZhLTk2MGMtNmI4NTdhYmQ0ZmI4%40thread.v2/0
?context=%7b%22Tid%22%3a%223c572f71-c808-4685-aa00-
2ca59a11c7e2%22%2c%22Oid%22%3a%22a6492212-75ef-498f-8735-75f88c5d463a%22%7d))
and webinar in English starting at 11.00 (EEST) (link to ENG webinar
(https://www.globenewswire.com/Tracker?data=1w4cONrRmvgpJsjRj4fXQU9SwCfmsfpHalE2
BbuXgLWjz_3ArvgzX2Kputrb-cBO0GEt_w6Lw0JK1dF-KmSvscALNsEwiO8h1Pe3V-
F4BY9nQ8mERCNJz6s9Ahtr1pFSFNJjy6a5u6OlFPkjKnWhdafbRIee5BKDC426uvJ48Uo8Y4-
PD8uSCeHKJYMR3MfQMSP-KiHetW_e-arHko-2lWB2oqc6Xuwh1sq-
XMyZlnCNx6hNUijAb8xmANi1zgmXsTA0x4NkVvENlzgOzLfh_-rzh7tg5WcPNoPyYd7FQBvl-O8_kQ-
G2AQagKGL_3TK67y9lcCMR-j4L6IFUYkodYxGDkGXVZcjoKK9hvWFp5qe8fNOsGUqJHFt05Hfh20e)).
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
a.ait@ts.ee (mailto:a.ait@ts.ee)
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