Tallinna Sadam earned 91 million euros in sales revenue in 9 months, 2.5% more than a year earlier, EBITDA of 41 million euros increased by 5.4%, and the profit was 14.1% higher - 15 million euros. Sales revenue in the third quarter was 31 million euros (-0.7%), EBITDA 13 million euros (-1.7%) and profit nearly 6 million euros (-6.5%). In 9 months, we invested a total of over 33 million euros, including 8 million euros in the third quarter.
"The results of the third quarter in terms of cargo volumes exceeded expectations," comments Valdo Kalm, the Chairman of the Management Board. "Cargo volumes increased in all types, the number of passengers has also increased. We are especially pleased with the increase in the number of ship visits, both for cargo and passenger ships, which account for the majority of port operating revenues. Turnover increased both in ports and ferries. Unfortunately, the otherwise good results were affected by Botnica's technical failure, due to which the cooperation with BP Exploration Operating Company Ltd ended earlier than expected. However, the execution of the new contract in Northern Canada started on time. In September, we signed an agreement for operating ferry services between the mainland and the largest islands until 2033, which in long-term perspective ensures stability and sustainability in our field of shipping. Also, we are optimistic about the development of renewable energy projects and related negotiations in the ports of Muuga and Paldiski."
In 9 months, the number of passengers increased by 3.2% (4.3% in the third quarter) and cargo volumes by 2.0% (7.2% in the third quarter), the number of ship visits increased by 0.4% (5.9% in the third quarter). In shipping, passenger ferries showed stable growth - the number of passengers increased by 1.6% (1.4% in the third quarter) and the number of vehicles by 3.0% (3.0% in the third quarter). Chartering days of Botnica decreased by 58% in the third quarter, while in 9 months they remained at a similar level to the previous year.
Tallinna Sadam management will present the financial results of the Group at webinars on 11 November, 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).
Conclusion of the ferry service contract for the period 2026-2033
EU funding for the joint project of the ports of Tallinn and Helsinki TWIN-PORT VI
The offshore contract of the icebreaker Botnica with BP Exploration Operating Company Ltd ended earlier than planned
Aditional trips of passenger ferry Regula in the summer of 2024
Appeal to the judgment regarding the former managers of the Port of Tallinn
Termination of OÜ MPG AgroProduction restructuring proceedings and continuation of the bankruptcy process
Signing an unsecured loan agreement with Swedbank
Revenue Revenue for nine months increased by EUR 2.2 million (+2.5%) year on year to EUR 90.8 million, supported by higher charter fees from the icebreaker MSV Botnica, higher revenue from ferry service between Estonia’s mainland and two largest islands, higher revenue from other services and higher lease income. In terms of revenue streams, the largest increase in the first nine months was in charter fees, which grew by EUR 0.8 million (+8.9%) to EUR 9.5 million. Despite the fact that the icebreaker MSV Botnica had fewer charter days in the first nine months of this year, charter fees increased due to the projects’ higher charter fee rate per day. In the third quarter, charter fee revenue decreased year on year, because the charter period was shorter due to technical problems with the vessel. Ferry service5 revenue grew by EUR 0.6 million (+2.2%) to EUR 27.8 million, mainly due to higher government support as a result of the indexation of the fees. The number of trips did not change significantly compared to the previous year (+0.8%). Revenue from other services grew by EUR 0.4 million due to the commissioning of the LNG quay in Pakrineeme Harbour this year and higher revenue from the sale of advertising space in Old City Harbour and the provision of catering services on the icebreaker MSV Botnica. Lease income increased by EUR 0.3 million (+3.1%) to EUR 10.7 million. Lease income improved in all segments, but particularly in the Cargo harbours and Passenger harbours segments due to the indexation of lease payments and fees for right of superficies. Passenger fee revenue increased by EUR 0.3 million (+3.1%) to EUR 9.2 million, in line with the rise in passenger numbers (+3.2%). Electricity revenue grew by EUR 0.2 million (+7.3%) to EUR 3.4 million, supported by higher sales volumes and prices for network services. In addition, both on-shore and other electricity consumption increased. Vessel dues revenue decreased by EUR 0.2 million (–1.0%) to EUR 23.9 million due to fewer calls by large tankers. The number of cruise ship calls increased, but their lower GT (gross tonnage) resulted in lower revenue from tonnage charges. Cargo charges revenue decreased by EUR 0.2 million (–3.5%) to EUR 4.5 million. Although cargo volumes increased, cargo charges revenue decreased, partly because cargo charges from operators whose cargo charges depend on full-year forecast cargo volumes are adjusted in accordance with IFRS 15. In the first nine months of 2023, the adjustments to cargo charges were higher than in the same period this year.
EBITDA Adjusted EBITDA for nine months grew by EUR 2.1 million (+5.4%) year on year to EUR 40.9 million. Adjusted EBITDA grew in the Cargo harbours segment, the segment Other and the Passenger harbours segment. In the Ferry segment, adjusted EBITDA decreased. The adjusted EBITDA of the Cargo harbours segment improved as operating expenses (particularly repair costs) decreased and revenue increased. The improvement in the adjusted EBITDA of the segment Other was supported by revenue growth, which exceeded the growth in operating and personnel expenses. Adjusted EBITDA for the third quarter decreased by EUR 0.2 million (–1.7%) year on year, because the decrease in the segment Other exceeded the combined growth in other segments. Adjusted EBITDA margin for nine months rose from 43.8% to 45.0% and adjusted EBITDA margin for the third quarter dropped from 43.0% to 42.6%.
Profit Profit before tax for nine months grew by EUR 2.0 million (+12.4%) year on year to EUR 18.0 million. Profit grew less than operating profit because the increase in finance costs (net) (+EUR 1.3 million) exceeded the increase in profit from the equity-accounted associate AS Green Marine (+EUR 0.1 million). 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, but last year income tax expense was reduced by the reversal of deferred tax of EUR 0.1 million. Profit for the first nine months increased by EUR 1.8 million (+14.1%) year on year. Third-quarter profit was EUR 5.6 million (–EUR 0.4 million, –6.5%).
Investments In the first nine months of 2024, the Group invested EUR 33.5 million, EUR 22.6 million more than in the same period last year. The largest investments of the period were made in the construction of a quay in Paldiski South Harbour for the provision of maintenance and construction services to offshore wind farms, the reconstruction of a quay in Muuga Harbour, the reconstruction of a quay ramp in Old City Harbour, the development of information systems, technical design, the regular dry-docking of a ferry and the purchase of equipment for ferries. In the third quarter, investments totalled EUR 8.4 million (EUR 4.8 million in the third quarter of 2023).
Interim condensed consolidated statement of financial position:
In thousands of euros
30 September 2024
31 December 2023
ASSETS
Current assets
Cash and cash equivalents
22 079
29 733
Trade and other receivables
11 501
12 118
Contract assets
417
0
Inventories
330
550
Total current assets
34 327
42 401
Non-current assets
Investments in associates
2 667
2 177
Other long-term receivables
0
163
Investment properties
14 069
14 069
Property, plant and equipment
559 727
545 271
Intangible assets
2 229
2 083
Total non-current assets
578 692
563 763
Total assets
613 019
606 164
LIABILITIES
Current liabilities
Loans and borrowings
12 561
15 831
Provisions
1 153
1 311
Government grants
7 612
7 344
Taxes payable
1 413
876
Trade and other payables
9 303
9 429
Contract liabilities
1 737
63
Total current liabilities
33 779
34 854
Non-current liabilities
Loans and borrowings
171 183
157 566
Government grants
31 881
33 075
Other payables
107
255
Contract liabilities
2 740
2 755
Total non-current liabilities
205 911
193 651
Total liabilities
239 690
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
42 547
47 323
Total equity
373 329
377 659
Total liabilities and equity
613 019
606 164
Interim condensed consolidated statement of profit or loss:
In thousands of euros
Q3 2024
Q3 2023
9M 2024
9M 2023
Revenue
31 214
31 426
90 797
88 615
Other income
398
371
1 164
1 231
Operating expenses
–11 651
–11 507
–30 951
–31 171
Impairment of financial assets
–214
–403
–680
–806
Personnel expenses
–6 302
–6 254
–18 661
–18 229
Depreciation, amortisation and impairment
–6 087
–6 129
–18 207
–19 356
Other expenses
–90
–55
–262
–280
Operating profit
7 268
7 449
23 200
20 004
Finance income and costs
Finance income
203
330
703
916
Finance costs
–2 158
–2 073
–6 400
–5 303
Finance costs – net
–1 955
–1 743
–5 697
–4 387
Share of profit of an associate accounted for under the equity method
265
258
491
396
Profit before income tax
5 578
5 964
17 994
16 013
Income tax
0
0
–3 125
–2 985
Profit for the period
5 578
5 964
14 869
13 028
Attributable to owners of the Parent
5 578
5 964
14 869
13 028
Basic and diluted earnings per share (in euros)
0.02
0.02
0.06
0.05
Interim condensed consolidated statement of cash flows:
In thousands of euros
9M 2024
9M 2023
Cash receipts from sale of goods and services
99 181
94 692
Cash receipts related to other income
42
247
Payments to suppliers
–37 612
–38 900
Payments to and on behalf of employees
–17 787
–18 511
Payments for other expenses
–224
–253
Income tax paid on dividends
–3 325
–3 264
Cash from operating activities
40 275
34 011
Purchases of property, plant and equipment
–33 118
–10 063
Purchases of intangible assets
–479
–627
Proceeds from sale of property, plant and equipment
17
28
Dividends received
0
357
Interest received
679
875
Cash used in investing activities
–32 901
–9 430
Proceeds from loans received
20 000
0
Repayments of loans received
–9 583
–7 383
Dividends paid
–19 000
–19 012
Interest paid
–6 427
–4 654
Other payments related to financing activities
–18
–7
Cash from/used in financing activities
–15 028
–31 056
NET CASH FLOW
–7 654
–6 475
Cash and cash equivalents at beginning of the period
29 733
44 387
Change in cash and cash equivalents
–7 654
–6 475
Cash and cash equivalents at end of the period
22 079
37 912
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
