Published: 2020-05-15 08:00:00 CEST
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):

  Q1 Q1 +/- %
  2020 2019   
Revenue 27.9 28.5 –0.6 –2.2%
Adjusted EBITDA 16.2 16.9 –0.7 –4.1%
Adjusted EBITDA margin 58.0% 59.1% –1.1
Operating profit 10.5 11.5 –1.0 –8.2%
Income tax 0 0
Profit for the period 10.0 11.0 –1.0 –9.6%
Investments 8.8 3.9 4.8 121.9%


  31.03.2020 31.12.2019 +/- %
Total assets 641.0 630.6 10.4 1.7%
Net debt 160.2 160.3 0.0 0.0%
Equity 387.0 377.0 8.3 2.2%
Number of shares 263.0 263.0 0

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:

In thousands of euros 31 March 2020 31 December 2019
ASSETS   
   
Current assets   
Cash and cash equivalents 44,605 35,183
Trade and other receivables 13,812 10,614
Contract assets 217 0
Inventories 462 408
Non-current assets held for sale 98 142
Total current assets 59,194 46,347
   
Non-current assets   
Investments in associates 1,452 1,609
Other long-term receivables 298 294
Property, plant and equipment 577,980 575,267
Intangible assets 2,070 2,015
Total non-current assets 581,800 579,185
   
Total assets 640,994 625,532
   
LIABILITIES   
   
Current liabilities   
Loans and borrowings 16,266 16,266
Derivative financial instruments 209 243
Provisions 1,044 1,915
Government grants 290 193
Taxes payable 586 893
Trade and other payables 17,847 11,722
Contractual liabilities 2,955 33
Total current liabilities 39,197 31,265
   
Non-current liabilities   
Loans and borrowings 188,580 191,580
Government grants 25,278 24,754
Other payables 3 2
Contract liabilities 902 913
Total non-current liabilities 214,763 217,249
   
Total liabilities 253,960 248,514
   
EQUITY   
Share capital at par value 263,000 263,000
Share premium 44,478 44,478
Statutory capital reserve 18,520 18,520
Hedge reserve -209 -243
Retained earnings (prior periods) 51,263 6,859
Profit for the period 9,982 44,404
Total equity 387,034 377,018
   
Total liabilities and equity 640,994 625,532

Interim condensed consolidated statement of profit or loss:

   
In thousands of euros  Q1 2020 Q1 2019
   
Revenue 27,890 28,527
Other income 1,767 275
Operating expenses –8,327 –7,397
Personnel expenses –4,677 –4,291
Depreciation, amortisation and impairment –5,989 –5,550
Other expenses –150 –106
Operating profit 10,514 11,458
   
Finance income and costs   
Finance income 11 13
Finance costs –386 –438
Finance costs - net –375 –425
   
Share of profit of an associate accounted for under the equity method -157 5
Profit before income tax 9,982 11,038
   
Income tax 0 0
Profit for the period 9,982 11,038
Attributable to owners of the Parent 9,982 11,038
     
Basic and diluted earnings per share (in euros) 0.04 0.04
Basic and diluted earnings per share - continuing operations (in euros) 0.04 0.04

Interim condensed consolidated statement of cash flows:

  3 months 3 months
In thousands of euros 2020 2019
   
Cash receipts from sale of goods and services 30,041 33,009
Cash receipts related to other income 13 118
Payments to suppliers –8,047 –8,911
Payments to and on behalf of employees –3,661 –3,910
Payments for other expenses –138 –102
Income tax paid on dividends 0 –4,949
Cash from operating activities 18,208 15,255
   
Purchases of property, plant and equipment –6,859 –3,837
Purchases of intangible assets –96 –107
Proceeds from sale of property, plant and equipment 1,099 16
Interest received 5 14
Cash used in investing activities -5,270 -3,914
   
Repayments of loans received -3,000 -3,000
Interest paid -516 -593
Other payments related to financing activities -0 -4
Cash from/used in financing activities -3,516 -3,597
   
NET CASH FLOW 9,422 7,744
   
Cash and cash equivalents at beginning of the period 35,183 42,563
Change in cash and cash equivalents 9,422 7,744
Cash and cash equivalents at end of the period 44,605 50,307

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.pdf