Published: 2021-08-10 07:00:00 CEST
Tallinna Sadam
Interim Management statement

AS Tallinna Sadam financial results for 2021 Q2

In the second quarter, the revenue, adjusted EBITDA and profit of AS Tallinna Sadam (hereafter: “the Group”) increased year on year. Revenue amounted to EUR 24 million in Q2, increasing by 8% year-on-year. The adjusted EBITDA of Q2 was EUR 11 million (+9%) and the profit was EUR 1.7 million instead of the EUR 0.8 million loss of the comparison period. In the first half of the year, revenue was EUR 49 million (-2%), adjusted EBITDA EUR 24 million (-9%) and profit EUR 9 million (-7%).

The Group’s results were still strongly influenced by cross-border travel restrictions between countries put in place due to the COVID-19 pandemic, which had a particularly strong effect on the performance of the Passenger harbours segment. In the second quarter, we saw an improvement in the number of passengers, but the decline continued in 6 months, as there were practically no restrictions in the first quarter of last year. The number of port calls by ferries grew somewhat year on year but, like last year, there were no port calls by cruise ships in the first half of the year. Cargo throughput continued to grow vigorously through growth in dry bulk and ro-ro cargo.

Valdo Kalm, Chairman of the Management Board of Tallinna Sadam, is pleased that despite the difficult circumstances, the company paid a dividend according to the dividend policy. "We continued with investments and we are also happy with the growth of ro-ro and dry bulk volumes to a record level," said Kalm.

The management of Tallinna Sadam will present the financial results of the Group at a webinar on 10 August at 11:00 Estonian time (UTC+3), to attend, please click here. The webinar will be held in English.

Key figures (in million EUR):

  Q2 Q2 +/– 6M 6M +/–
  2021 2020 % 2021 2020 %
Revenue 24.3 22.4 8.3 49.3 50.3 –2.1
Adjusted EBITDA 11.1 10.2 8.9 24.2 26.4 –8.5
Adjusted EBITDA margin 45.9% 45.6% 0.3 49.0% 52.5% –3.5
Operating profit 5.2 4.6 13.5 12.4 15.1 –17.7
Income tax –3.3 –4.9 –33.3 –3.3 –4.9 –33.3
Profit or loss for the period 1.7 –0.8 –299.4 8.5 9.2 –7.1
Investments 4.3 8.6 –50.3 7.9 17.4 –54.4


  30.06.2021 31.12.2020 +/–
Total assets 618.6 628.1 –1.5%
Interest bearing debt 208.2 211.6 –1.6%
Other liabilities 46.7 41.1 13.6%
Equity 363.8 375.4 –3.1%
Number of shares 263.0 263.0 0.0%

Significant events in Q2:

  • Record volumes of ro-ro and dry bulk cargo
  • The supervisory board extended the term of office of member of management board Margus Vihman
  • The state decided to change the financing of the construction of a new ferry and shall order the ferry through the Transport Administration, not via OÜ TS Laevad, as was the initial intention
  • Transport Administration will order 536 additional trips to be made by the ferry Regula on the Virtsu-Kuivastu route in summer period
  • Voting on the resolutions of the annual general meeting on 18 – 24 May 2021
  • On 10 July 2021, AS Tallinna Sadam paid the shareholders a dividend of EUR 0.077 per share, that is EUR 20.251 million in total, for the year 2020 (71% of the previous year’s profit)
  • AS Tallinna Sadam achieved again and OÜ TS Laevad achieved for the first time the silver level in the Estonian Responsible Business Forum’s Corporate Social Responsibility Index
  • Tallinna Sadam adopted stricter environmental measures for the vessels calling its harbours
  • Completion of an interim report “Heritage and Community” on a cooperation project with the Estonian Academy of Arts.

Revenue
Revenue for the first six months of 2021 was EUR 49.2 million, EUR 1.0 million (–2.1%) down from a year earlier. The decrease is attributable to the first quarter because there were no COVID-19-related restrictions or impacts at the beginning of last year. Revenue for the second quarter grew by EUR 1.9 million (8.3%).
Revenue decreased the sharpest in passenger fees (–53%) and vessel dues (–2%), revenues from other streams increased, mainly from the sale of electricity (28%) and cargo charges (7,3%).
The six-month revenue of the Passenger harbours segment decreased by EUR 1.9 million (-15%) year-on-year, mainly because passenger fees revenue dropped due to a decline in the number of passengers (primarily in the first quarter) in connection with COVID-19-related travel restrictions. In Q2 the revenue of the Passenger harbours segment increased by EUR 1.1 million year-on-year (+23%).
The six-month revenue of the Cargo harbours segment grew by EUR 0.6 million (+3%) due to the combined effect of various revenue items but mostly through growth in electricity sales (as an agent) and cargo charge revenue. The Q2 revenue of the Cargo harbours segment grew by EUR 0.4 million for the same reasons.
The revenue of the Ferry segment grew by EUR 0.2 million (+1,6%) through slight growth in ferry service revenue as well as lease revenue which in the comparative period was lowered by a decline in passenger traffic caused by travel restrictions. The Q2 revenue of the Ferry segment grew by EUR 0.4 million.
The revenue of the segment Other decreased somewhat, mostly because last year was a leap year and thus there was an extra charter day along with related revenue in February. There was no significant change in the revenue for Q2.

EBITDA
Adjusted EBITDA for the second quarter increased by EUR 0.9 million (+8.9%), mainly due to the Ferry segment (EUR 0.6 million). Adjusted EBITDA for first six months declined by EUR 2.2 million (–8.5%) year on year. In segment terms, adjusted EBITDA for Q2 decreased slightly in the Ferry segment and increased in all other segments, the most in the Passenger harbours segment. Adjusted EBITDA margin declined in 6 months from 52.5% to 49.0%. In Q2 the margin grew slightly from 45.6% to 45.9%.

Profit
Profit for the second quarter (EUR 1.7 million) exceeded the figure for the comparative period (a loss) by EUR 2.5 million, while profit before tax exceeded the figure for the comparative period by around EUR 0.9 million. Profit before tax for the first six months decreased by EUR 2.3 million (–16%) year on year to EUR 11.8 million.

Investments
Investments of Q2 totalled EUR 4.3 million (Q2 2020: EUR 8.6 million).In the first six months of 2021, the Group invested EUR 7.9 million, significantly less than in the same period last year (EUR 17.4 million). Investments of the period were mostly related to the completion of the construction of a cruise terminal and a promenade and the construction of a footbridge at Old City Harbour.

Interim condensed consolidated statement of financial position:

In thousands of euros 31 March 2021 31 December 2020
ASSETS   
   
Current assets   
Cash and cash equivalents 20,391 26,679
Trade and other receivables 10,396 10,183
Contract assets 335 0
Inventories 327 360
Non-current assets held for sale 98 114
Total current assets 31,547 37,336
   
Non-current assets   
Investments in associates 1,188 1,147
Other long-term receivables 454 0
Property, plant and equipment 583,205 587,506
Intangible assets 2,237 2,104
Total non-current assets 587,084 590,757
Total assets 618,631 628,093
   
LIABILITIES   
   
Current liabilities 17,266  
Loans and borrowings 64 17,266
Derivative financial instruments 585 102
Provisions 1,815 1,289
Government grants 943 1,919
Taxes payable 8,225 744
Trade and other payables 3,215 9,149
Total current liabilities 35,563 30,469
   
Non-current liabilities   
Loans and borrowings 190,931 194,314
Government grants 26,764 26,145
Other payables 748 841
Contract liabilities 870 892
Total non-current liabilities 219,313 222,192
Total liabilities 254,876 252,661
   
EQUITY   
Share capital at par value 263,000 263,000
Share premium 44,478 44,478
Statutory capital reserve 21,271 20,262
Hedge reserve –29 –102
Retained earnings (prior periods) 26,534 19,276
Profit for the period 8,501 28,518
Total equity 363,755 375,432
Total liabilities and equity 618,631 628,093

Interim condensed consolidated statement of profit or loss:

     
In thousands of euros  Q2 2021 Q2 2020 2021 2020
     
Revenue 24,260 22,399 49,248 50,289
Other income 335 219 659 1,970
Operating expenses –8,070 –7,210 –15,372 –15,537
Personnel expenses –5,100 –4,807 –9,744 –9,484
Depreciation, amortisation and impairment –6,076 –5,924 –12,098 –11,912
Other expenses –130 –79 –254 –213
Operating profit 5,219 4,598 12,439 15,113
     
Finance income and costs     
Finance income 27 13 37 24
Finance costs –365 –427 –741 –814
Finance costs – net –338 –414 –704 –790
     
Share of profit of an associate accounted for under the equity method 52 –102 41 –259
Profit before income tax 4,933 4,082 11,776 14,064
     
Income tax –3,275 –4,913 –3,275 –4,913
Profit/loss for the period 1,658 –831 8,501 9,151
Attributable to owners of the Parent 1,658 –831 8,501 9,151
         
Basic and diluted earnings per share (in euros) 0.01 0.00 0.03 0.03
Basic and diluted earnings per share – continuing operations (in euros) 0.01 0.00 0.03 0.03

Interim condensed consolidated statement of cash flows:

   
In thousands of euros 6M 2021 6M 2020
   
Cash receipts from sale of goods and services 55 753 55 328
Cash receipts related to other income 34 21
Payments to suppliers –19 123 –20 587
Payments to and on behalf of employees –9 064 –7 956
Payments for other expenses –271 –196
Cash from operating activities 27 329 26 610
   
Purchases of property, plant and equipment –9 255 –16 162
Purchases of intangible assets –426 –272
Proceeds from sale of property, plant and equipment 263 1 101
Government grants received 0 2 061
Interest received 1 15
Cash used in investing activities –9 417 –13 257
Repayments of loans received    
Dividends paid –3 383 –3 383
Interest paid –20 082 0
Cash from/used in financing activities –734 –816
NET CASH FLOW –1 –6
Cash and cash equivalents at beginning of the period –24 200 –4 205
Change in cash and cash equivalents –6 288 9 148
Cash and cash equivalents at end of the period 20 391 44 331

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which serves annually 10 million passengers and 20 million tons of cargo in average. 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. The group’s sales in 2020 totalled EUR 107.4 million, adjusted EBITDA EUR 58.4 million and profit EUR 28.5 million.

Additional information:

Marju Zirel
Head of Investor Relations
Tel. +372 5342 6591

m.zirel@ts.ee

Attachments



Tallinna Sadam Q2 2021 webinar presentation ENG.pdf
Tallinna Sadam Q2 2021 ENG.pdf