Tallinna Sadam
Interim Management statement

AS Tallinna Sadam financial results for 2020 Q1

In the first quarter of 2020, the revenue of AS Tallinna Sadam (hereinafter “the Group”) amounted to EUR 27.9 million, declining by 2.2% compared to the same period last year. The Group's adjusted EBITDA was EUR 16.2 million in the first quarter, declining by 4.1% year-on-year. Profit decreased by EUR 1.1 million to EUR 10.0 million in the first quarter.

The results of the first quarter were mostly affected by the restrictions on the movement of passengers imposed in mid-March due to the COVID-19 pandemic, as a result of which several passenger ships of international lines stopped their traffic. As a result, Group’s revenues from shipping fees and, due to the lack of passengers, passenger fees decreased even more significantly. However, the continuation of freight transport kept many passenger ships in service, some of them with a sparse schedule.

By segments, the Passenger harbours segment suffered the most in the first quarter due to the COVID-19 pandemic. The financial results of Cargo harbours, Ferry and Other segments were less affected by the pandemic.

In the first quarter, the volume of investments more than doubled compared to the same period last year. Mainly due to the continuation of the construction works of the passenger terminal D and the beginning of the construction of the cruise terminal in the Old City Harbour and the dredging and expansion works of the entrance channel of the Paldiski South Harbour.

Key figures (in million EUR):

Revenue
Revenue for the first quarter of 2020 decreased by EUR 0.6 million, i.e. 2.2%, year on year. In terms of revenue streams, the biggest drop was in electricity sales: EUR 0.5 million, i.e. 28%, due to a decline in the consumption of electricity and network service at harbours (a mild winter being a factor) and a decrease in the price of electricity. Revenue increased in the segments of Ferry and Other but decreased in Passenger harbours and Cargo harbours segments.
Passenger harbours revenue decreased mainly in passenger fees (EUR (–0.4 million) due to a decrease in the number of passengers in the second half of March as a result of movement restrictions imposed in connection with COVID-19. The decrease was offset by an increase of nearly EUR 0.2 million in vessel dues revenue, which resulted mainly from growth in the estimated average annual port call revenue, attributable to a decrease in the average vessel-based discount on tonnage charges resulting from a decline in the annual number of port calls (due to the COVID-19 measures).
The revenue of the Cargo harbours segment decreased by almost EUR 0.4 million, mainly due to a decrease in revenue from electricity and network charges (through the combined effect of a decrease in consumption and the electricity price). Revenue from vessel dues and cargo charges decreased somewhat because of a fall in the number of port calls by container ships and an increase in the volume and share of liquid bulk cargo whose charges are lower than those of other cargo types.
Ferry segment revenue grew by EUR 0.2 million i.e. by 2.8%, 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.

EBITDA
Adjusted EBITDA decreased by EUR 0.7 million (4.1%), slightly less than operating profit because the growth in depreciation, amortisation and impairment expenses did not affect EBITDA. In terms of segments, adjusted EBITDA increased in the Cargo harbours and the Ferry segments but decreased in other segments, particularly in the Passenger harbours segment due to lower revenue and higher expenses. Adjusted EBITDA margin dropped from 59.1% to 58.0%.

Profit
Profit amounted to EUR 10.0 million, EUR 1.0 million (–9,6%) less than in the comparative period last year.

Investments
The Group’s capital investments of the period totaled EUR 8.8 million. The figure is larger than the one for the same period last year when investments amounted to EUR 3.9 million.
The investments were mainly related to the reconstruction of passenger terminal D at the Old City Harbour, the start of the construction of a cruise terminal and dredging works at the Paldiski South Harbour.

Interim condensed consolidated statement of financial position:

Interim condensed consolidated statement of profit or loss:

Interim condensed consolidated statement of cash flows:

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2019 serviced 10.64 million passengers and 19.9 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 2019 totaled EUR 130.5 million, adjusted EBITDA EUR 74.3 million and net profit EUR 44.4 million.

Additional information:

Marko Raid
Chief Financial Officer
m.raid@ts.ee

Attachment

• Tallinna Sadam Q1 2020 ENG