Published: 2020-08-14 08:00:00 CEST
Tallinna Sadam
Interim Management statement

AS Tallinna Sadam financial results for 2020 Q2 and 6 months

The impact of the COVID-19 pandemic was greatest in the second quarter of 2020, which resulted in a decrease in revenue, adjusted EBITDA and profit of AS Tallinna Sadam (hereafter: “the Group”). In Q2 2020, the revenue amounted to EUR 22.4 million decreasing by 31.8% compared to the same period previous year. The adjusted EBITDA was EUR 10.2 million decreasing by 45.7%. The loss in Q2 amounted to EUR 831 thousand.

The results of Q2 were mostly affected by the restrictions on passenger movement due to the corona pandemic. The restrictions mainly affected the Passenger harbours segment, as the number of passengers as well as passenger vessel calls decreased significantly due to cross-border traffic restrictions. Also, there were no cruise ship calls in the second quarter. According to Valdo Kalm, Chairman of the Management Board, COVID-19 had no effect on the revenue of Cargo harbours, as the volume of liquid bulk increased in the first half of the year, compensating for the decrease in dry bulk and container cargo. “Because of lower operating volumes and revenue, primarily related to passengers, we also reduced operating expenses, but due to a large share of fixed costs, the cut in operating expenses was not comparable in size to the decline in revenue, therefore the profitability decreased. However, due to the diversification of business areas, we were able to mitigate the impact of the crisis on the Group's financial results, and the negative impact of the second quarter was offset by the strong result of the first quarter, which resulted in a profit of more than EUR 9 million for the first half of the year,” stated Kalm. Kalm considers it substantial that even in a difficult economic environment, the company was able to adhere to the dividend policy and pay dividends of EUR 30.2 million and continue with ongoing investments.

Tallinna Sadam will present the financial results of the Group at a webinar on 14 August at 11:00, to attend, please register here. The webinar will be held in English.

Key figures (in million EUR):

  Q2 Q2 +/- 6M 6M +/-
  2020 2019   2020 2019  
Revenue 22.4 32.8 -31.8% 50.3 61.4 -18.0%
Adjusted EBITDA 10.2 18.8 -45.7% 26.4 35.7 -26.1%
Adjusted EBITDA margin 45.6% 57,4% -11.8 52.5% 58.2% -5.7
Operating profit 4.6 13.3 -65.4% 15.1 24.7 -38.9%
Income tax -4.9 -5.8 -14.8% -4.9 -5.8 -14.8%
Profit for the period -0.8 7.2 -111.6% 9.2 18.2 -49.7%
Investments 8.6 7.1 21.1% 17.4 11.1 57.0%


  30.06.2020 31.12.2019 +/-
Total assets 640,7 625,5 2,4%
Interest bearing debt 160,1 172,7 -7,3%
Other liabilities 356,0 377,0 -5,6%
Equity 263,0 263,0 0,0%
Number of shares 640,7 625,5 2,4%

Revenue
Revenue for the first six months of 2020 decreased by EUR 11.1 million, i.e. 18%. The decrease occurred almost entirely in Q2 mainly influenced by the decline in revenues from ferries and cruise ships due to restrictions on cross-border passenger movements imposed in connection with the COVID-19 pandemic. Revenues increased only from the icebreaker Botnica's charter fee through the indexation of contractual fees and a slightly earlier start of the summer work. In both Q2 and the first half of the year, revenue increased in the segment Other, but decreased in the segments of Passenger harbours, Cargo harbours and Ferry.
The revenue of the Cargo harbours segment was not significantly affected by the restrictions related to the COVID-19 pandemic. Revenue declined because the ferries operating on the Muuga-Vuosaari route were temporarily rerouted to the Old City Harbour (Passenger harbours segment). In the first half of the year, revenue decreased by 6% due to the combined effect of various items of revenue, mostly because the volume of electricity sold (as an agent) and cargo charge revenue decreased. Cargo charge revenue declined due to the combined effect of an increase in the volume of liquid bulk cargo whose cargo charges are lower and a decrease in the volumes of other cargo types.
The revenue of the Ferry segment decreased slightly because the Estonian state did not order an additional vessel for extra trips during the summer season. Instead, the additional trips are made by an existing replacement ferry Regula. The decline was partly offset by a rise in fee rates, which are linked to the Estonian consumer and fuel price indices and wage inflation.
The revenue of the segment Other increased through the indexation of the contractual fees of the icebreaker Botnica to the Estonian and Canadian consumer price indices and a slightly earlier start of the work in Canadian waters during the summer season.

EBITDA
Adjusted EBITDA for Q2 decreased by EUR 8.6 million year-on-year mostly due to the Passenger harbours segment (EUR 7.9 million) but also in the Cargo harbours segment (EUR 0.6 million). Adjusted EBITDA margin decreased from 58.2% to 52.5% in 6 months influenced by the result of Q2, when the margin decreased from 57.4% to 45.6%. In 6 months, adjusted EBITDA was 26.4 million euros, decreasing by EUR 9.3 million compared to the same period last year.  

Profit
In the second quarter of 2020, the Group declared a dividend of EUR 30.2 million and related income tax expense amounted to EUR 4.91 million, EUR 0.85 million less than in the previous year. The result for Q2 (a loss of EUR 0.8 million) fell short of the profit for the comparative period by EUR 8.0 million. Profit for the first six months was EUR 9.2 million, which was EUR 9 million less year-on-year.

Investments
In the first six months of 2020, the Group invested EUR 17.4 million, significantly more than in the same period last year (EUR 11.1 million). Investments were mostly related to phase 2 of 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. Investments of the second quarter totaled EUR 8.6 million.

Interim condensed consolidated statement of financial position:

In thousands of euros 30.06.2020 31.12.2019
ASSETS   
   
Current assets   
Cash and cash equivalents 44,331 35,183
Trade and other receivables 11,243 10,614
Contract assets 353 0
Inventories 297 408
Non-current assets held for sale 98 142
Total current assets 56,322 46,347
   
Non-current assets   
Investments in associates 1,349 1,609
Other long-term receivables 259 294
Property, plant and equipment 580,707 575,267
Intangible assets 2,025 2,015
Total non-current assets 584,340 579,185
   
Total assets 640,662 625,532
   
LIABILITIES   
   
Current liabilities   
Loans and borrowings 16,266 16,266
Derivative financial instruments 173 243
Payables to owners 30,245 0
Provisions 1,035 1,915
Government grants 1,794 193
Taxes payable 715 893
Trade and other payables 16,612 11,722
Contract liabilities 3,482 33
Total current liabilities 70,322 31,265
   
Non-current liabilities   
Loans and borrowings 188,197 191,580
Government grants 25,219 24,754
Other payables 16 2
Contract liabilities 914 913
Total non-current liabilities 214,346 217,249
   
Total liabilities 284,668 248,514
   
EQUITY   
Share capital at par value 263,000 263,000
Share premium 44,478 44,478
Statutory capital reserve 20,262 18,520
Hedge reserve -173 -243
Retained earnings (prior periods) 19,276 6,859
Profit for the period 9,151 44,404
Total equity 355,994 377,018
   
Total liabilities and equity 640,662 625,532

Interim condensed consolidated statement of profit or loss:

     
In thousands of euros  Q2 2020 Q2 2019 6M 2020 6M 2019
     
Revenue 22,399 32,822 50,289 61,350
Other income 219 305 1,980 580
Operating expenses -7,210 -9,319 -15,537 -16,717
Personnel expenses -4,807 -4,817 -9,484 -9,108
Depreciation, amortisation and impairment -5,924 -5,643 -11,912 -11,193
Other expenses -79 -75 -213 -181
Operating profit 4,598 13,273 15,113 24,731
     
Finance income and costs     
Finance income 13 14 24 27
Finance costs -427 -443 -814 -881
Finance costs - net -414 -429 -790 -854
     
Share of profit of an associate accounted for under the equity method -102 81 -259 86
Profit before income tax 4,082 12,925 14,064 23,963
     
Income tax -4,913 -5,764 -4,913 -5,764
Profit/loss for the period -831 7,161 9,151 18,199
Attributable to owners of the Parent  -831  7,161  9,151  18,199
         
Basic and diluted earnings per share (in euros) 0.00 0.03 0.03 0.07
Basic and diluted earnings per share - continuing operations (in euros) 0.00 0.03 0.03 0.07

Interim condensed consolidated statement of cash flows:

   
In thousands of euros 6M 2020 6M 2019
   
Cash receipts from sale of goods and services 55,328 65,769
Cash receipts related to other income 21 151
Payments to suppliers -20,587 -20,480
Payments to and on behalf of employees -7,956 -8,791
Payments for other expenses -196 -216
Income tax paid on dividends 0 -4,949
Cash from operating activities 26,610 31,484
   
Purchases of property, plant and equipment -16,162 -9,975
Purchases of intangible assets -272 -233
Proceeds from sale of property, plant and equipment 1,101 24
Government grants received 2,061 0
Interest received 15 25
Cash used in investing activities -13,257 -10,159
Repayments of loans received -3,373 -3,383
Dividends paid 0 -34,970
Interest paid -816 -887
Other payments related to financing activities -6 -10
Cash from/used in financing activities -4,205 -39,250
NET CASH FLOW 9,148 -17,925
Cash and cash equivalents at beginning of the period 35,183 42,563
Change in cash and cash equivalents 9,148 -17,925
Cash and cash equivalents at end of the period 44,331 24,638

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 Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services. According to audited financial results, 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:

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

Attachment


Tallinna Sadam Q2 2020 ENG.pdf