Published: 2019-02-27 08:00:00 CET
Tallinna Sadam
Interim Management statement

AS Tallinna Sadam financial results for 2018 4th quarter and 12 months

In the fourth quarter and 12 months of 2018, the revenue of AS Tallinna Sadam (hereafter: “the Group”) increased as did the adjusted EBITDA. Revenue amounted to EUR 29.6 million in the fourth quarter and EUR 130.6 million in 2018 in total. In the fourth quarter, the adjusted EBITDA was EUR 14.7.0 million increasing by 14.6%. Net profit increased by EUR 7.6 million in the fourth quarter year-on-year.

In 2018, adjusted EBITDA amounted to EUR 74.4 million, i.e. 11.8% increase compared to 2017. Due to EUR 14.2 million larger income tax expense on record high dividend, 2018 ended in a net profit of EUR 24.4 million, a decrease of EUR 2.0 million compared to the profit earned in 2017.

According to Valdo Kalm, Chairman of the Management Board, the increase in the Group’s revenue in the fourth quarter as well as during the year was mainly influenced by the work of multifunctional icebreaker Botnica as an escort and ice management vessel in the northern part of Canada from June to November; and the growth of liquid cargo volumes and revenues. “The revenue from the trips of the additional ferry on the Saaremaa route in summer also contributed significantly to the annual results,” Kalm explained.

Key figures (in million EUR):

 Q4Q4+/-20182017+/-
 20182017    
Revenue29.627.19.2%130.6121.37.7%
Adjusted EBITDA14.712.814.6%74.466.511.8%
Adjusted EBITDA margin49.7%47.3%2.456.9%54.8%2.1
Operating profit9.01.6471.4%52.140.329.2%
Income tax0.10.013.3%-26.2-12.0119.1%
Profit for the period8.61.0769.6%24.426.4-7.6%
Investments6.16.4-4.1%14.335.8-60.2%


 31.12.201831.12.2017+/-
Total assets623.6597.14.4%
Interest bearing debt213.6235.6-9.3%
Other liabilities42.435.718.8%
Equity367.7325.812.9%
Number of shares263.0185.242.0%

Revenue
Revenue for the fourth quarter improved by EUR 2.5 million, i.e. 9.2% year on year, and annual revenue for 2018 grew by EUR 9.3 million, i.e. by 7.7%, to a record-high EUR 130.6 million. The annual revenue growth was most affected by the segment “other” (by EUR 4.3 million, i.e. 95% y-o-y) due to the summer season work of the icebreaker Botnica providing escort and ice management services in northern Canada from the end of June until November.
In the ferry segment the revenue grew in the fourth quarter by EUR 0.4 million, i.e. 5% year-on-year, due to a rise in Estonia’s consumer and fuel price indexes, which generated higher fee rates of the service. On annual basis, the revenue of the ferry segment increased by EUR 3.0 million, i.e. 11.1% mainly due to an additional ferry put in service for the summer season (June-August).
In the cargo harbours’ segment, the revenue increased, mainly due to continuous growth in the volume of liquid bulk cargo in the fourth quarter, increasing the segment’s annual revenue to EUR 41.7 million, i.e. 4.9% growth year-on-year.
In the passenger harbours’ segment the revenue slightly decreased in fourth quarter. Still, annually it increased, due to the growth in passenger numbers, which was mainly supported by the increase of the number of cruise passengers.

EBITDA
Adjusted EBITDA for the fourth quarter grew by EUR 1.9 million year on year, mainly through the impact of revenue from chartering the icebreaker Botnica out for the summer season which ended in November, and growth in the volume of liquid bulk cargo. Adjusted EBITDA for 2018 grew by EUR 7.9 million to EUR 74.4 million. Adjusted EBITDA margin for 2018 rose from previous year's 54.8% to 56.9%, underpinned by the combined effect of an increase in revenue and a decrease in expenses.

Net profit
Profit before tax grew by EUR 12.2 million, i.e. 32% to EUR 50.6 million in 2018. Fourth-quarter profit before tax grew by EUR 7.6 million. In connection with the declaration of a record high dividend of EUR 105 million in 2018 (2917: EUR 48 million), income tax expense increased by EUR 14.2 million to EUR 26.2 million. Due to larger income tax expense, 2018 ended in a net profit of EUR 24.4 million, a decrease of EUR 2.0 million compared to the profit earned in 2017. The net result for the fourth quarter was a profit of EUR 8.6 million (2017: EUR 1.0 million). 

Investments
Investments made in the fourth quarter totalled EUR 3.7 million. In 2018, the Group invested EUR 14.3 million. The figure is 60% smaller than in 2017 when investments totalled EUR 35.8 million of which EUR 20 million was spent on the construction of new ferries. In 2018, the largest investments were made into the reconstruction of traffic areas and the implementation of automated traffic control system (Smart Port) as well as the starting of reconstruction of Terminal D building at the Old City Harbour.

Interim condensed consolidated statement of financial position:

In thousands of euros31 December 201831 December 2017
ASSETS  
   
Current assets  
Cash and cash equivalents42,5636,954
Trade and other receivables8,0179,271
Inventories305301
Total current assets50,88516,526
   
Non-current assets  
Investments in associates1,5691,256
Other long-term receivables196272
Property, plant and equipment568,965577,125
Intangible assets2,0241,958
Total non-current assets572,754580,611
   
Total assets623,639597,137
   
LIABILITIES  
   
Current liabilities  
Loans and borrowings15,76621,989
Derivative financial instruments425609
Provisions1,9571,503
Government grants 174303
Taxes payable5,844698
Trade and other payables9,5177,810
Total current liabilities33,68332,912
   
Non-current liabilities  
Loans and borrowings197,846213,611
Government grants 23,41823,826
Other payables1,018996
Total non-current liabilities222,282238,433
   
Total liabilities255,965271,345
   
EQUITY  
Share capital at par value263,000185,203
Share premium44,4780
Statutory capital reserve18,52018,520
Hedge reserve-425-609
Retained earnings (prior periods)17,67896,253
Profit for the period24,42326,425
Total equity367,674325,792
   
Total liabilities and equity623,639597,137


Interim condensed consolidated statement of profit or loss:

     
In thousands of euros Q4 2018Q4 201720182017
     
Revenue29,57227,089130,635121,295
Other income1582318164,808
Operating expenses-9,347-9,348-37,360-41,041
Personnel expenses-5,508-4,962-19,420-17,957
Depreciation, amortisation and impairment-5,829-11,397-22,345-26,430
Other expenses-34-35-251-358
Operating profit9,0121,57852,07540,317
     
Finance income and costs    
Finance income20103333
Finance costs-464-619-2,003-2,318
Finance costs - net-444-609-1,970-2,285
     
Share of profit of an associate
accounted for under the equity method
-18-24517348
Profit before income tax8,55094550,62238,380
     
Income tax5145-26,199-11,955
Profit for the period8,60199024,42326,425
Attributable to owners of the Parent 8,601990 24,42326,425
     
Basic and diluted earnings per share (in euros)0.030.010.110.14
Basic and diluted earnings per share –
continuing operations (in euros)
0.030.010.110.14


Interim condensed consolidated statement of cash flows:

   
In thousands of euros20182017
   
Cash receipts from sale of goods and services108,685101,438
Cash receipts related to other income62436
Payments to suppliers-33,466-35,849
Payments to and on behalf of employees-12,364-11,460
Payments for other expenses-293-711
Income tax paid on dividends-21,405-8,657
Cash from operating activities41,21945,197
   
Purchases of property, plant and equipment -8,388-19,887
Purchases of intangible assets-509-524
Proceeds from sale of property, plant and equipment6500
Government grants received0349
Dividends received0178
Interest received314
Cash used in investing activities-8,888-19,370
   
Contributions to share capital119,8830
Issue of debt securities0105,000
Redemption of debt securities-12,650-111,250
Repayments of loans received-6,766-6,766
Change in overdraft (liability)-2,5652,565
Repayments of finance lease principal -7-3
Dividends paid-105,000-48,000
Interest paid-2,023-2,459
Other payments related to financing activities-51-30
Cash from/used in financing activities-9,179-60,943
   
NET CASH FLOW35,609-42,964
   
Cash and cash equivalents at beginning of the period6,95449,918
Change in cash and cash equivalents35,609-42,964
Cash and cash equivalents at end of the period42,5636,954

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2018 serviced 10.6 million passengers and 20.6 million tons of cargo. 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 m/v Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder in an associate AS Green Marine, which provides waste management services.

Marko Raid
CFO, Member of the Management Board

Additional information:

Marju Zirel
Head of Investor Relations
AS Tallinna Sadam
m.zirel@ts.ee

Attachment


Tallinna Sadam Q4 2018 ENG.pdf