AS Tallinna Sadam financial results for 2023 Q1

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 10 May, 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):

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:

Interim condensed consolidated statement of profit or loss:

Interim condensed consolidated statement of cash flows:

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

m.zirel@ts.ee

Attachments

• Presentation Tallinna Sadam Q1 2023 webinar ENG
• Tallinna Sadam Financial Results Q1 2023 Data
• Tallinna Sadam Q1 2023 interim report ENG