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. +372 526 0735
a.ait@ts.ee
