In the first quarter, revenue increased to 28.4 million euros (+6%) and adjusted EBITDA to 13.6 million euros (+0.6%), and profit was 5.7 million euros (-21%). The adjusted EBITDA margin was 48% and the volume of investments 1.5 million euros (–67%).
In the passenger business, strong growth continued both in the number of passengers and in passenger vessel calls, including a record for vessel calls on the Tallinn-Helsinki line. The cargo volumes of liquid bulk and dry bulk decreased due to the sanctions imposed on goods of Russian origin, but its economic impact was significantly smaller than the decrease in volume, as the volume of goods with a lower tariff rate decreased in particular. In shipping, both ferries and the icebreaker Botnica showed growth. Rising service prices and wage pressure increased operating costs, financial costs also increased.
Tallinna Sadam management will present the financial results of the Group at a webinars on 10May, including webinar in Estonian starting at 13.00 (EET) (link to EST webinar) and webinar in English starting at 14.00 (EET) (link to ENG webinar).
Key figures (in million EUR):
Q1 2023
Q1 2022
+/–
%
Revenue
28.4
26.8
1,6
6.1
Adjusted EBITDA
13.6
13.5
0.1
0.6
Adjusted EBITDA margin
47.8%
50.4%
–2.6
–
Operating profit
6.8
7.2
–0.4
–5.8
Profit for the period
5.7
7.2
–1.5
–20.7
Investments
1.5
4.7
–3.2
–67.2
31.03.2023
31.12.2022
+/–
Total assets
627.2
621.2
1.0%
Interest bearing debt
184.4
187.4
–1.6%
Other liabilities
56.2
52.9
6.2%
Equity
386.7
381.0
1.5%
Number of shares
263.0
263.0
0.0%
Major events in Q1:
Record vessel calls on Tallinn-Helsinki line
Icebreaker Botnica contract with Baffinland for 2023 summer
Positive court ruling to end the legal dispute with SLK and Väinamere Lines
MOU with OÜ Utilitas Wind for the development of offshore wind farms
Announcement of the passenger terminal A architecture competition
Public discussion of sketch designs of the detail plans of Old City Harbour
Revenue Revenue for the first quarter grew by EUR 1.6 million (+6.1%) year on year. All revenue streams showed growth, except cargo charges and sale of electricity. Passenger fee revenue grew the most, increasing by EUR 0.7 million (+47%) in connection with an increase in the number of passengers, the effect of which was lowered by a 10% reduction in the fee rate for passengers arriving at or departing from Old City Harbour on regularly operated ferry routes as from March 2022. Decline in cargo charges (–9%) was significantly lower than the decrease in cargo volumes (–31%) as volumes decreased mostly for cargo with lower charge rates. Revenue grew in the Passenger harbours segment, the Ferry segment and in the segment Other, but decreased in the Cargo harbours segment by EUR 1.7 million due to lower cargo volumes.
The revenue of the Passenger harbours segment grew by EUR 2.0 million (33%) mainly through higher revenue from vessel dues and passenger fees (+EUR 1.0 million and +EUR 0.7 million, respectively), which increased due to growth in vessel calls and passenger numbers. Lease income grew (+EUR 0.2 million) due to the addition of new premises as well as higher income from the cruise terminal. Revenue from other services was mainly supported by revenue on the sale of advertising space. In the Cargo harbours segment, revenue decreased by EUR 1.7 million (–18%) due to a decline in cargo volumes and the number of vessel calls. Revenue from vessel dues (–EUR 1.0 million), electricity sales (–EUR 0.4 million) and cargo charges (–EUR 0.2 million) decreased the most. The decline in electricity sales revenue was attributable to both lower electricity prices and smaller consumption due to lower operating volumes. The revenue of the Ferry segment grew by EUR 1.0 million (13%), driven by a rise in the contractual fee rates (due to an increase in the Estonian fuel cost, employment cost and consumer price indices) and supported by a higher number of trips. The revenue of the segment Other grew by EUR 0.4 million (10%) in connection with a higher charter fee rate for the icebreaking season, which took effect in December 2022 under a new agreement signed with the Estonian Transport Administration.
EBITDA Adjusted EBITDA grew by EUR 0.082 million because revenue growth exceeded growth in expenses excluding depreciation, amortisation and impairment, although profit on the investment in the equity-accounted associate AS Green Marine decreased. In terms of segments, adjusted EBITDA grew in the Passenger harbours segment, the Ferry segment and the segment Other and decreased in the Cargo harbours segment. Adjusted EBITDA margin declined from 50.4% to 47.8%.
Profit Profit before tax decreased by EUR 1.49 million (–20.7%) to EUR 5.7 million. Net profit for the period was also EUR 5.7 million, EUR 1.49 million smaller than a year earlier.
Investments The Group invested EUR 1.5 million in the first three months of 2023, EUR 3.2 million less than a year earlier. The largest investments were made in completing the reconstruction of the outdoor area around terminal D and increasing the capacity of Muuga Harbour to serve ro-ro cargo.
Interim condensed consolidated statement of financial position:
In thousands of euros
31 March 2023
31 December 2022
ASSETS
Current assets
Cash and cash equivalents
51 957
44 387
Trade and other receivables
11 264
7 477
Contract assets
215
0
Inventories
735
749
Non-current assets held for sale
0
100
Total current assets
64 171
52 713
Non-current assets
Investments in associates
2 138
2 099
Other long-term receivables
303
303
Property, plant and equipment
558 806
564 379
Intangible assets
1 812
1 735
Total non-current assets
563 059
568 516
Total assets
627 230
621 229
LIABILITIES
Current liabilities
Loans and borrowings
15 916
15 916
Provisions
543
2 013
Government grants
8 240
8 578
Taxes payable
1 044
1 060
Trade and other payables
8 984
9 770
Contract liabilities
3 072
62
Total current liabilities
37 799
37 399
Non-current liabilities
Loans and borrowings
168 482
171 482
Government grants
32 905
30 156
Other payables
622
449
Contract liabilities
745
767
Total non-current liabilities
202 754
202 854
Total liabilities
240 553
240 253
EQUITY
Share capital at par value
263 000
263 000
Share premium
44 478
44 478
Statutory capital reserve
22 115
22 115
Retained earnings (prior periods)
51 383
25 791
Profit for the period
5 701
25 592
Total equity
386 677
380 976
Total liabilities and equity
627 230
621 229
Interim condensed consolidated statement of profit or loss:
In thousands of euros
Q1 2023
Q1 2022
Revenue
28 405
26 771
Other income
341
295
Operating expenses
–9 145
–8 663
Personnel expenses
–5 621
–4 771
Depreciation, amortisation and impairment
–7 038
–6 287
Other expenses
–145
–128
Operating profit
6 797
7 217
Finance income and costs
Finance income
258
31
Finance costs
–1 393
–284
Finance costs – net
–1 135
–253
Share of profit of an associate accounted for under the equity method
39
227
Profit before income tax
5 701
7 191
Profit for the period
5 701
7 191
Attributable to owners of the Parent
5 701
7 191
Basic and diluted earnings per share (in euros)
0.02
0.03
Basic and diluted earnings per share – continuing operations (in euros)
0.02
0.03
Interim condensed consolidated statement of cash flows:
In thousands of euros
Q1 2023
Q1 2022
Cash receipts from sale of goods and services
32 199
31 849
Cash receipts related to other income
28
20
Payments to suppliers
–13 307
–12 493
Payments to and on behalf of employees
–5 373
–4 359
Payments for other expenses
–148
–146
Cash from operating activities
13 399
14 871
Purchases of property, plant and equipment
–1 630
–5 318
Purchases of intangible assets
–176
–50
Proceeds from sale of property, plant and equipment
0
28
Government grants received
242
1
Interest received
–1 564
–5 339
Cash used in investing activities
Repayments of loans received
–3 000
–3 000
Interest paid
–1 263
–356
Other payments related to financing activities
–2
–2
Cash from/used in financing activities
–4 265
–3 358
NET CASH FLOW
7 570
6 174
Cash and cash equivalents at beginning of the period
44 387
34 840
Change in cash and cash equivalents
7 570
6 174
Cash and cash equivalents at end of the period
51 957
41 014
Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which serves annually 10 million passengers and 20 million tons of cargo in average. 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 construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services.
Additional information:
Marju Zirel Head of Investor Relations Tel. +372 5342 6591
