In the first quarter of 2020, the revenue of AS Tallinna Sadam (hereinafter "the
Group") amounted to EUR 27.9 million, declining by 2.2% compared to the same
period last year. The Group's adjusted EBITDA was EUR 16.2 million in the first
quarter, declining by 4.1% year-on-year. Profit decreased by EUR 1.1 million to
EUR 10.0 million in the first quarter.
The results of the first quarter were mostly affected by the restrictions on the
movement of passengers imposed in mid-March due to the COVID-19 pandemic, as a
result of which several passenger ships of international lines stopped their
traffic. As a result, Group's revenues from shipping fees and, due to the lack
of passengers, passenger fees decreased even more significantly. However, the
continuation of freight transport kept many passenger ships in service, some of
them with a sparse schedule.
By segments, the Passenger harbours segment suffered the most in the first
quarter due to the COVID-19 pandemic. The financial results of Cargo harbours,
Ferry and Other segments were less affected by the pandemic.
In the first quarter, the volume of investments more than doubled compared to
the same period last year. Mainly due to the continuation of the construction
works of the passenger terminal D and the beginning of the construction of the
cruise terminal in the Old City Harbour and the dredging and expansion works of
the entrance channel of the Paldiski South Harbour.
Key figures (in million EUR):
Q1 Q1 +/- %
2020 2019
Revenue 27.9 28.5 -0.6 -2.2%
Adjusted EBITDA 16.2 16.9 -0.7 -4.1%
Adjusted EBITDA margin 58.0% 59.1% -1.1 -
Operating profit 10.5 11.5 -1.0 -8.2%
Income tax 0 0 - -
Profit for the period 10.0 11.0 -1.0 -9.6%
Investments 8.8 3.9 4.8 121.9%
31.03.2020 31.12.2019 +/- %
Total assets 641.0 630.6 10.4 1.7%
Net debt 160.2 160.3 0.0 0.0%
Equity 387.0 377.0 8.3 2.2%
Number of shares 263.0 263.0 0 -
Revenue
Revenue for the first quarter of 2020 decreased by EUR 0.6 million, i.e. 2.2%,
year on year. In terms of revenue streams, the biggest drop was in electricity
sales: EUR 0.5 million, i.e. 28%, due to a decline in the consumption of
electricity and network service at harbours (a mild winter being a factor) and a
decrease in the price of electricity. Revenue increased in the segments of Ferry
and Other but decreased in Passenger harbours and Cargo harbours segments.
Passenger harbours revenue decreased mainly in passenger fees (EUR (-0.4
million) due to a decrease in the number of passengers in the second half of
March as a result of movement restrictions imposed in connection with COVID-19.
The decrease was offset by an increase of nearly EUR 0.2 million in vessel dues
revenue, which resulted mainly from growth in the estimated average annual port
call revenue, attributable to a decrease in the average vessel-based discount on
tonnage charges resulting from a decline in the annual number of port calls (due
to the COVID-19 measures).
The revenue of the Cargo harbours segment decreased by almost EUR 0.4 million,
mainly due to a decrease in revenue from electricity and network charges
(through the combined effect of a decrease in consumption and the electricity
price). Revenue from vessel dues and cargo charges decreased somewhat because of
a fall in the number of port calls by container ships and an increase in the
volume and share of liquid bulk cargo whose charges are lower than those of
other cargo types.
Ferry segment revenue grew by EUR 0.2 million i.e. by 2.8%, 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 decreased by EUR 0.7 million (4.1%), slightly less than
operating profit because the growth in depreciation, amortisation and impairment
expenses did not affect EBITDA. In terms of segments, adjusted EBITDA increased
in the Cargo harbours and the Ferry segments but decreased in other segments,
particularly in the Passenger harbours segment due to lower revenue and higher
expenses. Adjusted EBITDA margin dropped from 59.1% to 58.0%.
Profit
Profit amounted to EUR 10.0 million, EUR 1.0 million (-9,6%) less than in the
comparative period last year.
Investments
The Group's capital investments of the period totaled EUR 8.8 million. The
figure is larger than the one for the same period last year when investments
amounted to EUR 3.9 million.
The investments were mainly related to the reconstruction of passenger terminal
D at the Old City Harbour, the start of the construction of a cruise terminal
and dredging works at the Paldiski South Harbour.
Interim condensed consolidated statement of financial position:
In thousands of euros 31 March 2020 31 December 2019
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ASSETS
Current assets
Cash and cash equivalents 44,605 35,183
Trade and other receivables 13,812 10,614
Contract assets 217 0
Inventories 462 408
Non-current assets held for sale 98 142
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Total current assets 59,194 46,347
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Non-current assets
Investments in associates 1,452 1,609
Other long-term receivables 298 294
Property, plant and equipment 577,980 575,267
Intangible assets 2,070 2,015
Total non-current assets 581,800 579,185
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Total assets 640,994 625,532
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LIABILITIES
Current liabilities
Loans and borrowings 16,266 16,266
Derivative financial instruments 209 243
Provisions 1,044 1,915
Government grants 290 193
Taxes payable 586 893
Trade and other payables 17,847 11,722
Contractual liabilities 2,955 33
Total current liabilities 39,197 31,265
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Non-current liabilities
Loans and borrowings 188,580 191,580
Government grants 25,278 24,754
Other payables 3 2
Contract liabilities 902 913
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Total non-current liabilities 214,763 217,249
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Total liabilities 253,960 248,514
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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 -209 -243
Retained earnings (prior periods) 51,263 6,859
Profit for the period 9,982 44,404
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Total equity 387,034 377,018
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Total liabilities and equity 640,994 625,532
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Interim condensed consolidated statement of profit or loss:
In thousands of euros Q1 2020 Q1 2019
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Revenue 27,890 28,527
Other income 1,767 275
Operating expenses -8,327 -7,397
Personnel expenses -4,677 -4,291
Depreciation, amortisation and impairment -5,989 -5,550
Other expenses -150 -106
Operating profit 10,514 11,458
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Finance income and costs
Finance income 11 13
Finance costs -386 -438
Finance costs - net -375 -425
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Share of profit of an associate accounted for under the
equity method -157 5
Profit before income tax 9,982 11,038
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Income tax 0 0
Profit for the period 9,982 11,038
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Attributable to owners of the Parent 9,982 11,038
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Basic and diluted earnings per share (in euros) 0.04 0.04
Basic and diluted earnings per share - continuing operations
(in euros) 0.04 0.04
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Interim condensed consolidated statement of cash flows:
3 months 3 months
In thousands of euros 2020 2019
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Cash receipts from sale of goods and services 30,041 33,009
Cash receipts related to other income 13 118
Payments to suppliers -8,047 -8,911
Payments to and on behalf of employees -3,661 -3,910
Payments for other expenses -138 -102
Income tax paid on dividends 0 -4,949
Cash from operating activities 18,208 15,255
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Purchases of property, plant and equipment -6,859 -3,837
Purchases of intangible assets -96 -107
Proceeds from sale of property, plant and equipment 1,099 16
Interest received 5 14
Cash used in investing activities -5,270 -3,914
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Repayments of loans received -3,000 -3,000
Interest paid -516 -593
Other payments related to financing activities -0 -4
Cash from/used in financing activities -3,516 -3,597
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NET CASH FLOW 9,422 7,744
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Cash and cash equivalents at beginning of the period 35,183 42,563
Change in cash and cash equivalents 9,422 7,744
Cash and cash equivalents at end of the period 44,605 50,307
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Tallinna Sadam is one of the largest cargo- and passenger port complexes in the
Baltic Sea region, which in 2019 serviced 10.64 million passengers and 19.9
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 2019
totaled EUR 130.5 million, adjusted EBITDA EUR 74.3 million and net profit EUR
44.4 million.
Additional information:
Marko Raid
Chief Financial Officer
m.raid@ts.ee (mailto:m.raid@ts.ee)
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