In the second quarter of 2019, revenue, adjusted EBITDA and net profit of AS
Tallinna Sadam (hereinafter "the Group") increased. Revenue amounted to EUR
32.8 million, growing by 0.2% compared to the same period last year. The Group's
adjusted EBITDA was EUR 18.8 million in Q2, growing by 4.1% year on year. Net
profit amounted to EUR 7.2 million.
According to Valdo Kalm, Chairman of the Management Board of the Group, the
results of Q2 were influenced by the growth of dry bulk cargo, mainly due to the
launch of the dry bulk terminal by the new cargo operator PK Terminal and by
recovery of the liquid bulk volumes to the last year's level under conditions of
continued strong competition. "In the second quarter, the number of passengers
increased mainly due to the Tallinn-Helsinki route. At the end of June, Eckerö
Line started operating on the Muuga-Vuosaari route with its vessel MS Finbo
Cargo, which serves both lorries and vehicles and in addition, Tallink also
started to serve passengers with vehicles on this route with its vessel Sea
Wind. These events will have an impact on the Group's financial results mainly
since the third quarter," said Kalm. The biggest growth in revenue and
profitability was generated by the ferries operating on Saaremaa and Hiiumaa
routes and by the icebreaker Botnica due to the indexation of contractual fees
and the increase of operational efficiency.
Supported by the growth in passenger and cargo volumes, half-year revenue made a
slight recovery to EUR 61.4 million, reducing the 3%-drop in Q1 caused by lower
liquid cargo volume and scheduled maintenance of the passenger ships. Adjusted
EBITDA remained at the previous year's level due to lower operating expenses in
Q2. The strong growth in net profit over in 6 months year-on-year was due to EUR
20.5 million lower dividend income tax expense in 2019.
In the second quarter, the investments also increased compared to the same
period last year due to the reconstruction of the passenger terminal D, dredging
works at the Paldiski South Harbour and the co-financing of the construction of
Reidi road at the Old City Harbour.
The Management Board estimates that Tallinna Sadam will achieve the profit
target set for 2019 and there will be no deviations from the dividend policy.
The members of the Management Board will present the financial results of the
Group at a webinar on 14 August at 11:00 EET, to attend, please register here
(https://register.gotowebinar.com/register/2889630203974507267). The webinar
will be held in English.
Key figures (in million EUR):
Q2 Q2 +/- 6 months 6 months +/-
2019 2018 2019 2018
Revenue 32.8 32.8 0.2% 61.4 62.2 -1.3%
Adjusted EBITDA 18.8 18.1 4.1% 35.7 35.7 0.0%
Adjusted EBITDA margin 57.4% 55.2% 2.2 58.2% 57.4% 0.8
Operating profit 13.3 12.6 5.2% 24.7 25.0 -0.9%
Income tax -5.8 -26.3 -78.0% -5.8 -26.3 -78.0%
Profit for the period 7.2 -14.1 150.8% 18.2 -2.3 906.7%
Investments 7.1 3.3 118.1% 11.1 5.2 113.3%
30.06.2019 31.12.2018 +/-
Total assets 608,7 623,6 -2,4%
Net debt 185,6 171,0 8,5%
Equity 350,7 367,7 -4,6%
Number of shares 263,0 263,0 0,0%
Revenue
Revenue for the 6 months of 2019 decreased by EUR 0.8 million, i.e. 1.3%, year
on year. The decline is mostly attributable to the decline in liquid cargo
volume and the decline in the number of ship calls during the first quarter due
to planned repairs of passenger ships. Revenue from general and dry bulk vessels
increased through growth in cargo volumes and revenue from container vessels
grew through a rise in their average size. In both Q2 and 6 months revenue
increased in the Ferries and Other segments, but decreased in the Passenger
harbours and Cargo harbours segment.
Passenger harbours revenue for Q2 remained at the same level as in the previous
year but decreased in the first half of the year due to lower number of calls in
Q1 due to planned maintenance of passenger vessels and due to the discounts for
the vessels with lower level of emissions.
Cargo harbours revenue for Q2 did not change significantly year on year, but in
the first half of the year decreased by 2.6% mainly due to the decrease of
liquid cargo volume in Q1.
The revenue of the Ferry segment grew because of a rise in fee rates, which are
linked to the Estonian consumer.
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
Compared to Q2 2018, adjusted EBITDA increased by EUR 0.7 million influenced by
growth in all segments, covering the decline in Q1. Adjusted EBITDA margin
increased from 57.4% to 58.2% in 6 months as a result of Q2 growth, from 55.2%
to 57.4%. Adjusted EBITDA for the first 6 months was EUR 35.7 million, remaining
on the same level as last year.
Net profit
In the second quarter of 2019, the Group declared a dividend of EUR 35.2
million. Related income tax expense amounted to EUR 5.76 million, being EUR
20.5 million smaller than in the previous year when the Group declared a record-
high dividend (EUR 105 million). Due to the decrease in income tax expense, net
profit for six months (EUR 18.2 million) exceeded the result of the comparative
period (a loss of EUR 2.26 million) by EUR 20.5 million.
Investments
In the first half of 2019, the Group invested EUR 11.1 million, including EUR
7.1 million in Q2 (6 months 2018: EUR 5.2 million). Investments of the period
were mostly related to the reconstruction of passenger terminal D at the Old
City Harbour, dredging works at the Paldiski South Harbour and the co-financing
of the construction of Reidi road at the Old City Harbour.
Interim condensed consolidated statement of financial position:
In thousands of euros 30 June 2019 31 December 2018
----------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents 24,638 42,563
Trade and other receivables 10,872 8,017
Contract assets 369 0
Inventories 341 305
Total current assets 36,220 50,885
----------------------------------------------------------------------
Non-current assets
Investments in associates 1,451 1,569
Other long-term receivables 151 196
Property, plant and equipment 568,841 568,965
Intangible assets 2,024 2,024
Total non-current assets 572,467 572,754
----------------------------------------------------------------------
Total assets 608,687 623,639
----------------------------------------------------------------------
LIABILITIES
Current liabilities
Loans and borrowings 15,766 15,766
Derivative financial instruments 393 425
Provisions 1,105 1,957
Government grants 85 174
Taxes payable 6,895 5,844
Trade and other payables 11,201 9,485
Contractual liabilities 3,988 32
Total current liabilities 39,433 33,683
----------------------------------------------------------------------
Non-current liabilities
Loans and borrowings 194,463 197,846
Government grants 23,130 23,418
Other payables 79 79
Contract liabilities 919 939
Total non-current liabilities 218,591 222,282
----------------------------------------------------------------------
Total liabilities 258,024 255,965
----------------------------------------------------------------------
EQUITY
Share capital at par value 263,000 263,000
Share premium 44,478 44,478
Statutory capital reserve 18,520 18,520
Hedge reserve -393 -425
Retained earnings (prior periods) 6,859 17,678
Profit for the period 18,199 24,423
----------------------------------------------------------------------
Total equity 350,663 367,674
----------------------------------------------------------------------
Total liabilities and equity 608,687 623,639
----------------------------------------------------------------------
Interim condensed consolidated statement of profit or loss:
6 months 6 months
In thousands of euros Q2 2019 Q2 2018 2019 2018
-------------------------------------------------------------------------------
Revenue 32,822 32,752 61,350 62,166
Other income 305 241 580 444
Operating expenses -9,319 -10,004 -16,717 -17,587
Personnel expenses -4,817 -4,782 -9,108 -8,972
Depreciation, amortisation and impairment -5,643 -5,546 -11,193 -10,949
Other expenses -75 -50 -181 -152
Operating profit 13,273 12,611 24,731 24,950
-------------------------------------------------------------------------------
Finance income and costs
Finance income 14 8 27 8
Finance costs -443 -527 -881 -1,038
Finance costs - net -429 -519 -854 -1,030
-------------------------------------------------------------------------------
Share of profit of an associate accounted
for under the equity method 81 74 86 74
Profit before income tax 12,925 12,166 23,963 23,994
-------------------------------------------------------------------------------
Income tax -5,764 -26,250 -5,764 26,250
Profit for the period 7,161 -14,084 18,199 -2,256
-------------------------------------------------------------------------------
Attributable to owners of the Parent 7,161 -14,084 18,199 -2,256
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Basic and diluted earnings per share (in
euros) 0.03 -0.07 0.07 -0.01
Basic and diluted earnings per share -
continuing operations (in euros) 0.03 -0.07 0.07 -0.01
-------------------------------------------------------------------------------
Interim condensed consolidated statement of cash flows:
6 months 6 months
In thousands of euros 2019 2018
-----------------------------------------------------------------------------
Cash receipts from sale of goods and services 65,769 67,535
Cash receipts related to other income 151 56
Payments to suppliers -20,480 -20,676
Payments to and on behalf of employees -8,791 -8,019
Payments for other expenses -216 -185
Income tax paid on dividends -4,949 0
Cash from operating activities 31,484 38,711
-----------------------------------------------------------------------------
Purchases of property, plant and equipment -9,975 -5,908
Purchases of intangible assets -233 -385
Proceeds from sale of property, plant and equipment 24 0
Interest received 25 2
Cash used in investing activities -10,159 -6,291
-----------------------------------------------------------------------------
Contributions to share capital 0 122,287
Redemption of debt securities 0 -1,250
Repayments of loans received -3,383 -3,383
Change in overdraft (liability) 0 -2,566
Repayments of finance lease principal 0 -1
Dividends paid -34,970 -85,000
Interest paid -887 -1,020
Other payments related to financing activities -10 -37
Cash from/used in financing activities - 39,250 29,030
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
NET CASH FLOW -17,925 61,450
-----------------------------------------------------------------------------
Cash and cash equivalents at beginning of the period 42,563 6,954
Change in cash and cash equivalents -17,925 61,450
Cash and cash equivalents at end of the period 24,638 68,404
-----------------------------------------------------------------------------
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
m.zirel@ts.ee (mailto:m.zirel@ts.ee)
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