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Published: 2024-08-05 08:00:00 CEST
Infortar
Corporate Action

Aktsiaselts Infortar Unaudited Consolidated Interim Report for second quarter of 2024

Infortar will organize a webinar for introducing 2. quarter 2024 results today. Please join the webinar via the following links:

5 May 2024 at 12:00 (EET) Estonian webinar

5 May 2024 at 14:00 (EET) English webinar

In the first half of the year, Infortar's sales volumes increased by 40 percent, reaching 576 million euros. The company's net profit amounted to 73 million euros. The value of Infortar's assets reached 1.5 billion euros, and investments totalled 41 million euros.

"In the first half of the year, we have strengthened our positions in the Finnish and Baltic energy markets, gained additional market share, increased sales, and filled gas storage capacities for the next season – our fundamental indicators are strong and liquidity position is solid, this is a good platform for continuing our investments," noted Infortar's Chairman of the Board, Ain Hanschmidt.

"The results of Infortar's main investments are strongly linked with seasonality – the energy sector delivers high numbers during the cold period, whereas maritime transportation’s passenger numbers peak in the summer," Hanschmidt added.

In the first half of this year, Infortar invested 41.3 million euros. The company increased its shareholding in Tallink by 4.5 percent to 46.8 percent, acquired a majority shareholding in the Halinga farm in Pärnumaa, and commissioned a solar park in Nica, Latvia. The focus is on expanding operations in Poland and Germany, as well as gaining access to the wholesale gas market in the Netherlands and Belgium. The construction of the RIMI logistics centre and the new bridge in Pärnu have progressed according to planned schedule.

Infortar’s subsidiary Eesti Gaas (Elenger in foreign markets), which is the largest privately owned energy company in the region, increased its sales volume by 40 percent compared to the same period last year, reaching a total of 10 TWh. The company's gas sales market share in the Finnish-Baltic market stands at 25.4 percent.

The number of Tallink passengers on the Helsinki route has increased compared to last year, while the number of travellers between Finland and Sweden has decreased compared to the same period last year. In June, Infortar announced a voluntary takeover offer to Tallink's shareholders. Although the offer applies equally to all investors, it primarily enhances market liquidity, thereby providing a potential exit opportunity for larger investors who might otherwise face difficulties due to low trading volumes on the stock exchange.

As of June 30 of 2024, Infortar's equity amounted to 840 million euros, and its total assets reached 1.5 billion euros. Compared to the results from the six-month period last year, Infortar's EBITDA and net profit decreased by 11 million euros. For the first six months of 2024, EBITDA was 76 million euros, and net profit was 73 million euros.

KEY FIGURES OF FINANCIAL YEAR6 months 20246 months 2023Q2
2024
Q2
2023
Revenue (in thousands of EUR)576 139560 352203 555212 872
Gross profit (in thousands of EUR)53 08988 3513 08522 346
EBITDA (in thousands of EUR)75 51086 5711 50634 011
EBITDA margin %13%15%0,7%16%
Operating profit (in thousands of EUR)63 39580 427-4 22930 748
Net profit (in thousands of EUR)73 01783 68310 95536 906
Earnings per share (EUR)*3,64,10,51,8
Total equity (in thousands of EUR)840 216575 783  
Total liabilities (in thousands of EUR)448 387300 217  

* Earnings per share have been calculated for all reported periods based on the following formula: net profit for the reporting year divided by the number of issued shares as of June 30, 2024 (6 months 2024 = (72´839 * 1,000) / (21,166,239-945´000) = 3.6 euros per share). In 2023 and 2024, share splits and the issuance of new shares occurred. For comparability purposes, the formula uses the currently valid number of shares each time.

Sales Revenue

In the first half of the 2024 financial year, the group's consolidated sales revenue increased by 15.8 million euros, reaching 576.14 million euros (compared to 560.35 million euros in the first half of 2023). The significant positive impact was due to the growth in the regional gas sales market share to 25.4 percent, which allowed for an increase in sales revenue compared to the previous year.

EBITDA and Segment Reporting

Energy Segment: The EBITDA for the energy segment in the first half of the 2024 financial year was 73 million euros (compared to 82 million euros in the first half of 2023).

Maritime transport Segment: The EBITDA for the maritime transport segment in the first half of the 2024 financial year was 81 million euros (compared to 96 million euros in the first quarter of the 2023 financial year). Infortar consolidates the results of AS Tallink Grupp using the equity method, meaning that results of AS Tallink Grupp are reflected in the segment reporting according to Infortar's ownership percentage in AS Tallink Grupp. In segment reporting, 100% of AS Tallink Grupp results (including 100% EBITDA) are accounted for in accordance with applicable accounting rules.

Real Estate Segment: The profitability assessment considers the EBITDA of individual real estate companies. The EBITDA for the real estate segment in the first half of the 2024 financial year was 7 million euros (compared to 6 million euros in the first half of 2023).

Net Profit

The consolidated net profit for the first half of the 2024 financial year was 73 million euros (compared to 84 million euros in the first half of the 2023 financial year).

Financing

Loan and lease liabilities amounted to 448.4 million euros in the first half of the 2024 financial year (compared to 300.2 million euros in the first quarter of the 2023 financial year). The company's net debt decreased by 90.9 million euros compared to the end of 2023, totalling 263 million euros. The net debt to EBITDA ratio is 2.1.

 Numbers presented in thousands of eurosQ2
2024
Q2
2023
6 m 20246 m 2023
Sales Revenue203 555212 872576 139560 352
Cost of Sales-200 420-183 766-522 993-465 051
Impairment of Receivables-50-6 760-57-6 950
Gross Profit3 08522 34653 08988 351
Marketing Expenses-423-369-838-715
General Administrative Expenses-7 018-5 145-14 256-8 588
Profit (Loss) from Biological Assets-270-270
Loss on Changes in Fair Value of Investment Properties001560
Profit (Loss) from Derivative Instruments-13713 71724 522687
Other Operating Income4812301 081757
Other Operating Expenses-190-31-332-65
Operating Profit-4 22930 74863 39580 427
Profit from Investments Accounted for Using the Equity Method16 88514 72418 88515 447
Financial Income and Expenses    
Income from Financial Investments2 73802 738-24
Interest Expense-6 381-4 529-13 126-8 484
Interest Income1 7601 1883 0041 833
Profit (Loss) from Foreign Exchange Rate Changes-2-8-4-137
Other Financial Income and Expenses-60-20
Total Financial Income and Expenses-1 891-3 349-7 390-6 812
Profit Before Tax10 76542 12374 89089 062
Corporate Income Tax190-5 217-1 873-5 379
Profit (Loss) for the Reporting Period10 95536 90673 01783 683
Including:    
Profit (Loss) Attributable to Owners of the Parent Company10 92136 90672 98383 888
Profit (Loss) Attributable to Non-controlling Interests34034-205
Other Comprehensive Income for the Reporting Period  -33 134-69 667
Total Comprehensive income for the Reporting Period
Including:
  39 88314 016
Comprehensive Income (Loss) Attributable to Owners of the Parent Company  39 84914 221
Comprehensive Income (Loss) Attributable to Non-controlling Interests  34-205
Basic Earnings per Share  3,6113,32
Diluted Earnings per Share  3,4813,17
     

* The non-cash revaluations of derivative instruments in comprehensive income do not affect the profitability or cash flow generating ability of AS Eesti Gaas or Infortar's core business operations.

Numbers presented in thousands of euros       
ASSETS  30.06.24 30.06.23 31.12.2023
CURRENT ASSETS       
Cash  185 243 136 026 87 115
Short-term Financial Investments  1 1 0
Short-term Derivative Instruments  2 511 12 618 28 728
Receivables from Realized Derivative Instruments  1 316 365 5 958
Receivables from Customers  84 856 72 006 162 575
Tax Prepayments  1 014 951 925
Other Receivables and Prepayments  11 285 13 066 20 185
Prepayments for Inventories  4 288 1 238 3 493
Inventories  137 177 124 418 146 884
Biological Assets  425 0 0
Total Current Assets  428 116 360 689 455 863
NON-CURRENT ASSETS       
Investments in Associates  386 702 315 434 346 014
Long-term Derivative Instruments  2 172 3 959 1 125
Long-term Loans and Other Receivables  7 418 9 892 9 072
Investment Properties  184 476 165 815 176 024
Property, Plant, and Equipment  456 339 151 780 446 748
Intangible Assets  14 624 9 054 14 366
Right-of-use Assets  12 498 9 384 11 300
Biological Assets  2 797 0 0
        
Total non-current assets  1 067 026 665 318 1 004 649
TOTAL ASSETS  1 495 142 1 026 007 1 460 512
        
        
CURRENT LIABILITIES       
Loan Liabilities  129 674 107 937 184 259
Lease Liabilities  1 734 1 136 1 766
Payables to Suppliers  88 009 67 704 74 751
Tax Liabilities  12 193 14 955 32 822
Customer Prepayments  479 1 037 3 099
Realized Derivative Instruments  7 081 6 200 1 463
Other Short-term Liabilities  11 367 4 783 10 851
Short-term Derivative Instruments  14 065 44 3 659
Total Current Liabilities  264 602 203 796 312 670
NON-CURRENT LIABILITIES       
Long-term Provisions  10 371 7 492 8 399
Deferred Income Tax Liability  33 435 30 268 33 233
Other Long-term Liabilities  29 302 17 524 30 679
Long-term Derivative Instruments  237 0 186
Loan liabilities  306 571 183 082 246 410
Lease liabilities  10 408 8 062 8 725
TOTAL NON-CURRENT LIABILITIES  390 324 246 428 327 632
TOTAL LIABILITIES  654 926 450 224 640 302
EQUITY       
Share Capital  2 117 1 985 2 105
Treasury Shares  -95 -95 -95
Share Premium  32 484 0 29 344
Statutory Reserve  212 205 205
Option Reserve  5 781 2 595 3 864
Hedging Reserve*  -9 103 12 623 24 118
Unrealized Exchange Differences  48 20 -39
Reserve for Post-employment Benefit Obligations  -44 0 -44
Retained Earnings  729 579 474 015 466 140
Profit for the Reporting Period  72 983 83 888 293 778
Equity Attributable to Owners of the Parent Company  832 942 575 236 819 376
Non-controlling Interests

       
  7 274 547 834
TOTAL EQUITY  840 216 575 783 820 210
TOTAL EQUITY AND LIABILITIES  1 495 142 1 026 007 1 460 512

* This represents the change in the accounting hedging position, which affects the comprehensive income result.

                                                                

 Numbers presented in thousands of euros6 months 2024 6 months 2023 2023
Cash Flows from Operating Activities     
Profit for the Reporting Period73 017 83 683 293 830
Adjustments     
Depreciation and Impairment of Fixed Assets12 271 6 144 15 581
Change in Value of Investment Properties-156 0 4 074
Profit/Loss from Equity Investments-18 885 -15 447 -39 639
Change in Value of Derivative Instruments25 168 67 397 54 122
Other Financial Income/Expenses83 -1 792 -161 965
Accrued Interest Expenses13 126 8 484 22 573
Profit/Loss from Disposal of Fixed Assets-173 -31 -91
Income from Targeted Financing Recognized in Revenue-84 -313 784
Accrued Income Tax Expense1 873 5 379 8 610
Income Tax Paid-1 672 -1 -267
Change in Receivables and Prepayments Related to Operating Activities91 407 151 608 54 540
Change in Inventories9 606 -39 323 -61 914
Change in Liabilities Related to Operating Activities-27 452 -35 529 -406
Change in Biological Assets149 0 0
Total Cash Flows from Operating Activities178 278 230 259 189 832
      
Cash Flows from investing activities     
Payments for Purchase of Associates-21 822 -3 927 -10 314
Payments for Purchase of Subsidiaries-5 401 -4 -103 414
Repayments of Loans Granted1 932 5 844 6 652
Interest Received2 686 1 834 2 691
Payments for Acquisition of Investment Properties-8 296 -5 275 -18 304
Payments for Acquisition of Property, Plant and other assets-8 213 -8 968 -18 143
Proceeds from Sale of Investment Properties and Fixed Assets282 33 -252
Total cash Flows from investing activities-38 814 -10 463 -141 084
Cash Flows from Financing Activities     
Change in Overdraft-15 513 7 499 14 348
Loans Received107 712 900 287 606
Repayments of Loans Received-92 357 -135 094 -312 846
Repayments of Principal Portion of Lease Liabilities-928 -922 -2 233
Interest Paid-13 070 -8 280 -22 224
Dividends Paid-30 332 -7 875 -15 750
Proceeds from Issuance of Shares3 152 0 29 464
Total Cash Flows from Financing Activities-41 336 -143 772 -21 635
      
Total cash flows98 128 76 024 27 113
      
Cash and Cash Equivalents at Beginning of Period87 115 60 002 60 002
Cash and Cash Equivalents at End of Period185 243 136 026 87 115
Change in Cash and Cash Equivalents98 128 76 024 27 113

Infortar operates in six countries, the company's main fields of activity are energy, maritime transport, and real estate. Infortar owns a 46,8% stake in AS Tallink Grupp, a 100% stake in AS Eesti Gaas and a versatile and modern real estate portfolio of approx. 113,000 m2. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, agriculture, printing, taxi business and many other areas. A total of 103 companies belong to the Infortar group: 48 subsidiaries, 5 affiliated companies and 50 subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 1,344 people.

Additional information:

Kadri Laanvee
Investor Relations Manager
e-mail: kadri.laanvee@infortar.ee
phone: +372 5156662
https://infortar.ee/en/investor

Attachments



AS INFORTAR Q2 report.pdf
Q2 2024 ENG presentation.pdf