Published: 2019-05-17 08:00:00 CEST
Tallinna Sadam
Interim Management statement

AS Tallinna Sadam financial results for 2019 1st quarter

In the first quarter of 2019, the revenue of AS Tallinna Sadam (hereinafter “the Group”) amounted to EUR 28.5 million, declining by 3.0% compared to the same period last year. The Group's adjusted EBITDA was EUR 16.9 million in the first quarter, declining by 4.2% year-on-year. Net profit decreased by EUR 0.8 million to EUR 11.0 million in the first quarter.

According to Valdo Kalm, Chairman of the Management Board of the Group, the most significant impact on the results of the first quarter was the planned maintenance of passenger vessels, which resulted in a temporary break of service of several passenger ships and a decrease in the number of vessel calls and passengers, the volume of ro-ro cargo and the revenue of the passenger harbours segment. “According to international maritime regulations, all passenger ships must undergo regular maintenance and dock. Due to the maintenance, Tallink, Viking Line and Eckerö Line vessels were out of service for a while and therefore the volumes of passengers as well as ro-ro cargo passing through the harbours declined in the first months of the year,” said Kalm.

The financial results were also impacted by a drop in the volume of liquid bulk by 11.9% in the cargo harbours segment. “The volume of liquid bulk handled at the harbours of the Group decreased mainly at the beginning of the year, as a result of which both vessel fees and cargo fees decreased. Liquid bulk volumes have stabilized at the end of the quarter, and we see this trend continuing,” noted Valdo Kalm.

In the first quarter, the investments also increased compared to the same period last year due to the reconstruction of the passenger terminal D.

Despite the modest decline in revenue and profit at the beginning of the year, the Management Board estimates that the profit target set for 2019 will be achieved and deviations from the set dividend policy will not occur.

Key figures (in million EUR):

Adjusted EBITDA16.917.6-0.7-4.2%
Adjusted EBITDA margin59.1%59.8%-0.7-
Operating profit11.512.3-0.9-7.1%
Income tax00--
Profit for the period11.011.8-0.8-6.7%

Total assets630.6623.66.91.1%
Net debt160.3171.0-10.7-6.3%
Number of shares263.0263.00-

Revenue for the first quarter of 2019 decreased by EUR 0.9 million, i.e. 3.0%, compared to the same period last year. In terms of revenue streams, the strongest decline occurred in vessel dues that decreased by EUR 0.9 million, i.e. 9%, and passenger fees that decreased by EUR 0.2 million, i.e. around 7%. Revenue increased in the segments of Ferry and Other but decreased in Passenger harbours and Cargo harbours segments.

Passenger harbours revenue decreased by EUR 0.6 million i.e. 7.2%, mainly because several passenger ferries operating on regular routes were temporarily out of service due to planned dry dock or wet berth maintenance. This reduced the number of trips and passengers, which also lowered revenue from vessel dues and passenger fees. The impact of the decrease in ro-ro cargo volume was smaller.

Cargo harbours revenue declined by EUR 0.5 million, i.e. by 4.9%, primarily because the volume of liquid bulk cargo decreased, which lowered vessel dues revenue. Cargo charge revenue was less affected by the drop of liquid bulk volume, as liquid bulk cargo charge rates are lower than those of other cargo types and, quarterly cargo charge revenue is based on the estimated annual cargo charge revenue (IFRS 15).

Ferry segment revenue grew by EUR 0.2 million i.e. by 2.9%, mainly because the fee rates, which are linked to the Estonian consumer and fuel price indices and wage inflation, were higher than in the comparative period.

The revenue of the segment Other grew through the indexation of the contractual fees of the icebreaker Botnica to the Estonian consumer price index. 

Adjusted EBITDA declined by EUR 0.7 million i.e. by 4.2 %, somewhat less than operating profit because growth in depreciation, amortisation and impairment expenses did not affect EBITDA. In terms of segments, adjusted EBITDA grew in the Ferry segment and decreased in all other segments. The decline was the sharpest in the Cargo harbours segment due to the decrease in its revenue. Adjusted EBITDA margin dropped from 59.8% to 59.1%.

Net profit
Net profit amounted to EUR 11.0 million, EUR 0.8 million less than in the comparative period.

The Group invested EUR 3.9 million in the first quarter of 2019. The figure is larger than in the same period last year when investments totalled EUR 1.9 million. Investments of the period were mostly related to the reconstruction of passenger terminal D at the Old City Harbour.

Interim condensed consolidated statement of financial position:

In thousands of euros31 March 201931 December 2018
Current assets  
Cash and cash equivalents50,3,0742,563
Trade and other receivables8,6028,017
Contract assets2180
Total current assets59,42450,885
Non-current assets  
Investments in associates1,5741,569
Other long-term receivables196196
Property, plant and equipment567,425568,965
Intangible assets1,9612,024
Total non-current assets571,156572,754
Total assets630,580623,639
Current liabilities  
Loans and borrowings15,76615,766
Derivative financial instruments382425
Government grants 188174
Taxes payable1,2435,844
Trade and other payables10,7439,485
Contractual liabilities3,47932
Total current liabilities32,68033,683
Non-current liabilities  
Loans and borrowings194,846197,846
Government grants 23,29123,418
Other payables7979
Contract liabilities929939
Total non-current liabilities219,145222,282
Total liabilities251,825255,965
Share capital at par value263,000263,000
Share premium44,47844,478
Statutory capital reserve18,52018,520
Hedge reserve-382-425
Retained earnings (prior periods)42,10117,678
Profit for the period11,03824,423
Total equity378,755367,674
Total liabilities and equity630,580623,639

Interim condensed consolidated statement of profit or loss:

In thousands of euros Q1 2019Q1 2018
Other income275203
Operating expenses-7,397-7,584
Personnel expenses-4,291-4,189
Depreciation, amortisation and impairment-5,550-5,403
Other expenses-106-102
Operating profit11,45812,339
Finance income and costs  
Finance income130
Finance costs-438-511
Finance costs - net-425-511
Share of profit of an associate accounted for under the equity method 50
Profit before income tax11,03811,828
Income tax00
Profit for the period11,03811,828
Attributable to owners of the Parent 11,03811,828
Basic and diluted earnings per share (in euros)0.040.06
Basic and diluted earnings per share - continuing operations (in euros)0.040.06

Interim condensed consolidated statement of cash flows:

 3 months3 months
In thousands of euros20192018
Cash receipts from sale of goods and services33,00935,237
Cash receipts related to other income1183
Payments to suppliers-8,911-8,987
Payments to and on behalf of employees-3,910-3,517
Payments for other expenses-102-99
Income tax paid on dividends-4,9490
Cash from operating activities15,25522,637
Purchases of property, plant and equipment -3,837-2,984
Purchases of intangible assets-107-130
Proceeds from sale of property, plant and equipment160
Interest received140
Cash used in investing activities-3,914-3,114
Repayments of loans received-3,000-3,000
Change in overdraft (liability)0-2,565
Repayments of finance lease principal 0-1
Interest paid-593-707
Other payments related to financing activities-4-16
Cash from/used in financing activities- 3,597-6,289
NET CASH FLOW7,74413,234
Cash and cash equivalents at beginning of the period42,5636,954
Change in cash and cash equivalents7,74413,234
Cash and cash equivalents at end of the period50,30720,188

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. Tallinna Sadam group's sales in 2018 totaled EUR 130.6 million, adjusted EBITDA EUR 74.4 million and net profit EUR 24.4 million.

Additional information:

Marju Zirel
Head of Investor Relations
AS Tallinna Sadam


Tallinna Sadam Q1 2019 ENG.pdf