In the second quarter, Tallinna Sadam earned 32 million euros in sales revenue and 4 million euros in profit. The revenue for six months was 60 million euros and the profit exceeded 9 million euros. In the second quarter, the volume of investments increased to 7 million euros, in the first half of the year we invested a total of 25 million euros.
In the second quarter, sales revenue (10%), adjusted EBITDA (27%) and profit (201%) increased year-on-year. Semiannually, the revenue increased (4%) and cost reduction resulted in positive changes for adjusted EBITDA (9%) and profit (32%).
“Considering the general global background and macroeconomic environment, we can be satisfied with the results," comments Valdo Kalm, the Chairman of the Management Board. "The number of passengers has increased, and we see stabilization in terms of cargo volumes. In terms of goods, ro-ro and container volumes have shown the most increase. We are pleased with the efficiency of operations - we have managed to reduce operating costs and we hope to continue in this direction in the future. In the long term, the company's operations will be positively affected by winning the tender for ferry services and signing the chartering contract for the multi-functional icebreaker Botnica for the next five years.
The financial results of six months were affected by an increase in the number of passengers and stabilized cargo volumes. In shipping, both ferries and the icebreaker Botnica showed growth. Botnica started offshore works this year earlier than last year and contributed to the increase in revenue. The group's operating costs have decreased, while financial costs have increased due to high Euribor rates.
Tallinna Sadam management will present the financial results of the Group at a webinars on 12 August, including webinar in Estonian starting at 10.00 (EEST) (link to EST webinar) and webinar in English starting at 11.00 (EEST) (link to ENG webinar).
Key figures (in million EUR):
Q2
Q2
+/–
6M
6M
+/–
2024
2023
%
2024
2023
%
Revenue
31.7
28.8
10.0
59.6
57.2
4.2
Adjusted EBITDA
14.9
11.7
27.1
27.6
25.3
9.2
Adjusted EBITDA margin
47.0%
40.7%
6.3
43.6%
44.2%
–0.6
Operating profit
8.9
5.8
55.1
15.9
12.6
26.9
Income tax
–3.1
–3.0
4.7
–3.1
–3.0
4.7
Profit for the period
4.1
1.4
200.6
9.3
7.1
31.5
Investments
7.1
4.6
53.9
25.0
6.1
307.3
30.06.2024
31.12.2023
+/–
Total assets
618.0
606.2
1.9%
Interest bearing debt
190.0
173.4
9.6%
Other liabilities
60.3
55.1
9.4%
Equity
367.8
377.7
–2.6%
Number of shares
263.0
263.0
0.0%
Major events in Q2:
Winning the tender for ferry services for the period 2026-2033
Icebreaker Botnica charter contract with Baffinland for the period 2024-2028
Icebreaker Botnica charter contract with BP Exploration Operating Copmpany Ltd
Additional trips by the ferry Regula in summer 2024
Signing unsecured loan agreement with Swedbank
Positive judgment in the judicial dispute with SLK and Väinamere Liinid
Extension of the term of office of members of the board in subsidiaries
Court ruling in the case against former board members of Tallinna Sadam.
Revenue Revenue for six months increased by EUR 2.4 million (+4.2%) year on year to EUR 59.6 million, supported by higher revenues from the icebreaker MSV Botnica (charter fees, the segment Other) and ferry service between Estonia’s mainland and two largest islands (the Ferry segment). Revenues from the Passenger harbours and Cargo harbours segments decreased. In terms of revenue streams, the biggest change in the first half-year was in charter fees revenue, which increased by EUR 2.6 million (+45.8%), because the summer charter of the icebreaker MSV Botnica started earlier than last year. However, due to technical issues, the icebreaker’s summer project proved shorter than planned in 2024. Vessel dues revenue declined by EUR 1.2 million (–7.3%) to EUR 14.8 million due to a decrease in ferry, cruise ship and cargo vessel calls. Revenue from other services grew by EUR 0.4 million (+43.0%) as the icebreaker MSV Botnica generated additional revenue from its summer work and the LNG quay in Pakrineeme harbour was put into service at the beginning of this year. Ferry service revenue grew by EUR 0.3 million (+1.7%) to EUR 17.6 million. The number of trips grew by 2.0% year on year. Cargo charges revenue decreased by EUR 0.3 million (–9.0%) to EUR 2.9 million due to a decline in cargo volumes. The decrease in cargo charges revenue was higher than in cargo volumes (–0.3%), because in the same period in 2023 we expected the cargo charges revenue from liquid bulk cargo to be higher by the end of the year than in 2024 and, in accordance with IFRS 15, this had a positive effect on the cargo charges revenue for the comparative period. Electricity sales revenue grew by EUR 0.2 million (+11.2%) to EUR 2.4 million, driven by growth in the Passenger harbours segment where the sales volumes of both electricity and network services grew. Operating lease income increased by EUR 0.1 million (+2.0%) to EUR 6.8 million. Operating lease income grew in the Passenger harbours segment, the Ferry segment and the Cargo harbours segment, driven by an increase in the letting of premises in the cruise terminal and parking charges at Old City Harbour as well as indexation of lease income and income from the rights of superficies. Passenger fees revenue grew by EUR 0.1 million (+2.3%) to EUR 5.3 million, supported by a rise in the number of passengers (+2.4%). Changes in other revenue streams were less significant. In segment terms, half-year revenue grew in the segment Other (MSV Botnica) and the Ferry segment, which offset the revenue decline in the Passenger harbours and Cargo harbours segments.
EBITDA Adjusted EBITDA for six months grew by EUR 2.3 million (+9.2%) year on year to EUR 27.6 million. Adjusted EBITDA grew in the segment Other and the Cargo harbours segment. In the Passenger harbours and Ferry segments, adjusted EBITDA decreased. The adjusted EBITDA of the segment Other increased as revenue grew, while lower non-current asset maintenance and repair costs and fuel costs offset the growth in personnel expenses. The adjusted EBITDA of the Cargo harbours segment increased despite lower revenue, because non-current asset repair costs and the total amount of other expenses decreased. Adjusted EBITDA for the second quarter grew by EUR 3.2 million (+27.1%) year on year. Adjusted EBITDA improved in all segments except Passenger harbours. Adjusted EBITDA margin for six months rose from 44.2% to 46.3% and adjusted EBITDA margin for the second quarter rose from 40.7% to 47.0%.
Profit Profit before tax for six months increased by EUR 2.4 million (+23.5%) year on year to EUR 12.4 million. Profit grew less than operating profit because finance costs (net) increased. The dividend declared in the second quarter of 2024 in an amount of EUR 19.2 million gave rise to income tax expense of EUR 3.1 million, which was EUR 0.1 million larger than the income tax expense on the dividend distributed last year. The amount of the dividend did not change year on year, but last year income tax expense was reduced by the reversal of deferred tax of EUR 0.1 million. Profit for the first six months increased by EUR 2.2 million (+31.5%) year on year. Second-quarter profit amounted to EUR 4.1 million (+EUR 2.7 million; +200.6%) and profit before tax to EUR 7.2 million (+EUR 2.9 million; +66.1%).
Investments In the first six months of 2024, the Group invested EUR 25.0 million, EUR 18.9 million more than a year earlier. The largest capital investments of the period were made in the construction of a new quay in Paldiski South Harbour to serve offshore wind farms, the regular dry-docking of a ferry, the reconstruction of a quay ramp in Old City Harbour, the development of information systems and the acquisition of equipment for ferries. Investments of the second quarter totalled EUR 7.1 million (EUR 4.6 million in the second quarter of 2023).
Interim condensed consolidated statement of financial position:
In thousands of euros
30 June 2024
31 December 2023
ASSETS
Current assets
Cash and cash equivalents
25 890
29 733
Trade and other receivables
15 134
12 118
Contract assets
196
0
Inventories
714
550
Total current assets
41 934
42 401
Non-current assets
Investments in associates
2 402
2 177
Other long-term receivables
0
163
Investment properties
14 069
14 069
Property, plant and equipment
557 424
545 271
Intangible assets
2 204
2 083
Total non-current assets
576 099
563 763
Total assets
618 033
606 164
LIABILITIES
Current liabilities
Loans and borrowings
17 416
15 831
Provisions
848
1 311
Government grants
7 778
7 344
Taxes payable
1 745
876
Trade and other payables
11 725
9 429
Contract liabilities
3 088
63
Total current liabilities
42 600
34 854
Non-current liabilities
Loans and borrowings
172 583
157 566
Government grants
32 214
33 075
Other payables
152
255
Contract liabilities
2 733
2 755
Total non-current liabilities
207 682
193 651
Total liabilities
250 282
228 505
EQUITY
Share capital at par value
263 000
263 000
Share premium
44 478
44 478
Statutory capital reserve
23 304
22 858
Retained earnings
36 969
47 323
Total equity
367 751
377 659
Total liabilities and equity
618 033
606 164
Interim condensed consolidated statement of profit or loss:
In thousands of euros
Q2 2024
Q2 2023
6M 2024
6M 2023
Revenue
31 651
28 783
59 582
57 189
Other income
412
520
767
861
Operating expenses
–10 269
–10 802
–19 300
–19 664
Impairment of financial assets
–286
–120
–466
–403
Personnel expenses
–6 451
–6 355
–12 359
–11 976
Depreciation, amortisation and impairment
–6 084
–6 189
–12 120
–13 227
Other expenses
–42
–79
–172
–225
Operating profit
8 931
5 758
15 932
12 555
Finance income and costs
Finance income
234
329
501
587
Finance costs
–2 151
–1 837
–4 242
–3 230
Finance costs – net
–1 917
–1 508
–3 741
–2 643
Share of profit of an associate accounted for under the equity method
210
98
225
138
Profit before income tax
7 224
4 348
12 416
10 050
Income tax
–3 125
–2 985
–3 125
–2 985
Profit for the period
4 099
1 363
9 291
7 065
Attributable to owners of the Parent
4 099
1 363
9 291
7 065
Basic and diluted earnings per share (in euros)
0.02
0.01
0.04
0.03
Interim condensed consolidated statement of cash flows:
In thousands of euros
6M 2024
6M 2023
Cash receipts from sale of goods and services
64 749
62 283
Cash receipts related to other income
34
181
Payments to suppliers
–24 680
–23 952
Payments to and on behalf of employees
–11 384
–12 569
Payments for other expenses
–179
–204
Income tax paid on dividends
–3 325
–3 264
Cash from operating activities
25 215
22 475
Purchases of property, plant and equipment
–22 559
–4 664
Purchases of intangible assets
–374
–404
Proceeds from sale of property, plant and equipment
17
28
Dividends received
0
357
Interest received
483
555
Cash used in investing activities
–22 433
–4 128
Proceeds from loans received
20 000
0
Repayments of loans received
–3 383
–3 383
Dividends paid
–19 000
–19 012
Interest paid
–4 229
–2 498
Other payments related to financing activities
–13
–5
Cash from/used in financing activities
–6 625
–24 898
NET CASH FLOW
–3 843
–6 551
Cash and cash equivalents at beginning of the period
29 733
44 387
Change in cash and cash equivalents
–3 843
–6 551
Cash and cash equivalents at end of the period
25 890
37 836
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
