AS Tallinna Sadam financial results for 2024 Q1

In the first quarter, Tallinna Sadam earned 27.9 million euros in sales revenue and 5.2 million euros in profit. In the first quarter, both sales revenue (-2%), adjusted EBITDA (-6%) and profit (-9%) decreased year-on-year. The adjusted EBITDA margin was 46% and the volume of investments 18.0 million euros.

In the passenger business, the number of passengers continued to grow steadily, and in the cargo business, volumes stabilized. The number of passenger vessel calls decreased mainly due to scheduled docking works of Eckerö Line's ship Finlandia and affected the financial results of the first quarter. In shipping, both ferries and the icebreaker Botnica showed stable results, but the increase in fuel consumption due to the ice conditions of ferries reduced the profitability of the ferry segment. As a result of the increased Euribor, financial costs increased, and salary changes made during the previous year, mainly in shipping, increased personnel expenses. The construction of a quay intended to serve offshore wind farms continued at Paldiks South Harbour, making up the majority of investments in the first quarter.

Tallinna Sadam management will present the financial results of the Group at a webinars on 10 May, including webinar in Estonian starting at 10.00 (EET) (link to EST webinar) and webinar in English starting at 11.00 (EET) (link to ENG webinar).

Key figures (in million EUR):

	Q1 2024	Q1 2023	+/–	%
Revenue	27.9	28.4	–0,5	–1,7
Adjusted EBITDA	12.7	13.6	–0.8	–6,3
Adjusted EBITDA margin	45.5%	47.8%	–2.3	–
Operating profit	7.0	6.8	0.2	3.0
Profit for the period	5.2	5.7	–0.5	–8.9
Investments	17.9	1.5	16.4	1064.2

	31.03.2024	31.12.2023	+/–
Total assets	610.0	606.2	0.6%
Interest bearing debt	170.1	173.4	–1.9%
Other liabilities	57.0	55.1	3.4%
Equity	382.8	377.7	1.4%
Number of shares	263.0	263.0	0.0%

 Major events in Q1:

• Stabilization of the cargo volume
• Submission of a tender to provide ferry service in 2026–2033
• Announcement of a competition to develop vacant areas in Muuga Harbour
• Reorganization proceedings for MPG AgroProduction OÜ initiated by the court
• Positive judgment in the judicial dispute initiated by SLK and Väinamere Liinid
• Changes on the management board - extension of the term of office of Margus Vihman; the supervisory board appointed Rene Pärt as the fourth member of the management board

Revenue
Revenue for the first quarter decreased by EUR 0.5 million (–1.7%) year on year. All revenue streams showed growth, except vessel dues and cargo charges. Revenue from vessel dues decreased the most by EUR 0.8 million (–11%), in connection with a decrease in vessel calls, which in passenger ports was mainly affected by the absence of ships from the line due to dock works, and in cargo ports, decreased revenue from tankers. The decrease in cargo charges revenue (–11%) resulted from the lower cargo charges forecast expected at the end of the year, which, according to the IFRS 15 standard, also had an impact in the first quarter. Revenue grew in the Ferry segment and in the segment Other, but decreased in the Passenger harbours segment and in the Cargo harbours segment.

The revenue of the Passenger harbours segment decreased by EUR 0.5 million (–6%) mainly due to fewer vessel calls, which lowered the segment’s vessel dues and cargo charges revenue (–EUR 0.6 million and –EUR 0.1 million, respectively). Electricity sales revenue grew. Despite fewer vessel calls, the number of passengers and passenger fees revenue increased. The growth in lease income, mainly due to the rental of additional space in the cruise terminal, helped offset the decline in revenue from other services.

The revenue of the Cargo harbours segment decreased by EUR 0.2 million (–2%). Although the number of vessel calls increased, vessel dues revenue decreased, because the number of vessels with lower average dues per GT increased and the number of tankers with higher dues decreased. Cargo charges decreased due to the revenue recognition requirements of IFRS 15. In the first quarter of last year, the Group recognised higher revenue from operators of liquid bulk cargo based on the cargo charge forecast for the full year. The sale of other services grew, because the Group started to operate an LNG quay in Pakrineeme Harbour at the beginning of 2024.

The revenue of the Ferry segment grew by EUR 0.1 million (1,5%) due to the indexation of the variable part of fixed fees, which offset the decrease in the rate for trip fees. The number of trips and passengers increased.

The revenue of the segment Other grew due to a leap year by EUR 44 thousand. The charter fees for the icebreaking season remained unchanged. The charter fees for the icebreaking service will not change until the icebreaking season of 2025/26, when indexation of the fees will be possible.

EBITDA
Adjusted EBITDA declined by EUR 0.8 million as revenue decreased, total expenses increased and the Group’s share of profit of the equity-accounted associate AS Green Marine decreased. In segment terms, adjusted EBITDA grew only in the Cargo harbours segment and declined in the Passenger harbours segment, the Ferry segment and the segment Other. The adjusted EBITDA margin slipped from 47.8% to 45.5%.

Profit
Profit before tax decreased by EUR 0.5 million (–8.9%) to EUR 5.2 million. The Group’s net profit for the first quarter also amounted to EUR 5.2 million, EUR 0.5 million less than a year earlier.

Investments
The Group invested EUR 18,0 million in the first three months of 2024, EUR 16.4 million more than a year earlier. The majority of the investments were related to the construction of a quay at Paldiski South Harbour to serve offshore wind farms and the regular drydocking of a ferry.

Interim condensed consolidated statement of financial position:

In thousands of euros	31 March 2024	31 December 2023
ASSETS
Current assets
Cash and cash equivalents	22 102	29 733
Trade and other receivables	11 512	12 118
Contract assets	104	0
Inventories	579	550
Total current assets	34 297	42 401
Non-current assets	2 192	2 177
Investments in an associate	148	163
Other long-term receivables	14 069	14 069
Property, plant and equipment	557 120	545 271
Intangible assets	2 151	2 083
Total non-current assets	575 680	563 763
Total assets	609 977	606 164
LIABILITIES
Current liabilities
Loans and borrowings	13 556	15 831
Provisions	556	1 311
Government grants	7 375	7 344
Taxes payable	1 528	876
Trade and other payables	8 681	9 429
Contract liabilities	3 180	63
Total current liabilities	34 876	34 854
Non-current liabilities
Loans and borrowings	156 566	157 566
Government grants	32 739	33 075
Other payables	201	255
Contract liabilities	2 743	2 755
Total non-current liabilities	192 249	193 651
Total liabilities	227 125	228 505
EQUITY
Share capital	263 000	263 000
Share premium	44 478	44 478
Statutory capital reserve	22 858	22 858
Retained earnings	52 516	47 323
Total equity	382 852	377 659
Total liabilities and equity	609 977	606 164

Interim condensed consolidated statement of profit or loss:

In thousands of euros	Q1 2024	Q1 2023
Revenue	27 931	28 405
Other income	358	341
Operating expenses	–9 031	–8 862
Impairment of financial assets	–181	–283
Personnel expenses	–5 908	-5 621
Depreciation, amortisation and impairment	-6 036	–7 038
Other expenses	–132	–145
Operating profit	7 001	6 797
Finance income and costs
Finance income	267	258
Finance costs	–2 090	–1 393
Finance costs - net	–1 823	–1 135
Share of loss of an associate accounted for under the equity method	15	39
Profit before income tax	5 193	5 701
Profit for the period	5 193	5 701
Attributable to:
Owners of the Parent	5 193	5 701
Basic earnings and diluted earnings per share (in euros)	0,02	0,02

Interim condensed consolidated statement of cash flows:

in thousands of euros	Q1 2024	Q1 2023
Cash receipts from sale of goods and services	33 449	32 199
Cash receipts related to other income	28	28
Payments to suppliers	–11 823	–13 307
Payments to and on behalf of employees	–5 414	–5 373
Payments for other expenses	–136	–148
Cash flows from operating activities	16 104	13 399
Purchases of property, plant and equipment	–18 460	–1 630
Purchases of intangible assets	–175	–176
Proceeds from sale of property, plant and equipment	5	0
Interest received	258	242
Cash used in investing activities	–18 372	–1 564
Repayments of loans received	–3 000	–3 000
Interest paid	–2 360	–1 263
Other payments related to financing activities	–3	–2
Cash used in financing activities	–5 363	–4 265
NET CASH FLOW	–7 631	7 570
Cash and cash equivalents at beginning of the period	29 733	44 387
Change in cash and cash equivalents	–7 631	7 570
Cash and cash equivalents at end of the period	22 102	51 957

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. [phone]
[e-mail]

Attachments

• Presentation Tallinna Sadam Q1 2024 webinar ENG
• Tallinna Sadam Financial Results Q1 2024 Data
• Tallinna Sadam Q1 2024 interim report ENG