AS Tallinna Sadam financial results for 2022 Q2 and 6 monthsIn the second quarter, Tallinna Sadam Group's revenue, adjusted EBITDA and profit increased year-on-year. Group revenue amounted to EUR 30 million in the second quarter, increasing by 25% compared to the same period last year. The group's adjusted EBITDA in the second quarter was EUR 15 million (+38%) and the profit was EUR 5.1 million (+205%). In the half-year summary, the revenue was EUR 57 million (+16%), the adjusted EBITDA was EUR 16 million (+31%) and the profit was EUR 12 million (+44%). The Group’s results for the first half of 2022 were strongly affected by the easing of the COVID-19 restrictions and a continuing decline in cargo throughput. As a result of lifting the restrictions and increased passenger confidence, the number of passengers increased nearly threefold in six months, especially on the Helsinki route. The decline in cargo volumes is mainly due to the third consecutive quarter of a decline in dry bulk and liquid bulk cargo volumes. At the same time, ro-ro and container goods showed a considerable increase. In shipping, the strong second quarter was supported by additional voyages of ferry Regula based on growing demand; and chartering of Botnica at the same level as last year. Valdo Kalm, chairman of the management board of Tallinna Sadam, is pleased that despite the difficult circumstances, the company paid a dividend to the extent promised by the dividend policy. "We continued with the planned investments, and in order to secure future business, we decided to invest in the Paldiski South Harbour by building a new quay for the construction and servicing of wind farms," said Kalm. Tallinna Sadam will present the financial results of the Group at a webinar on 10 August at 11:00 (EET), to attend, please click here. The webinar will be held in English. Key figures (in million EUR): | | Q2 | Q2 | +/– | 6M | 6M | +/– | | | 2022 | 2021 | % | 2022 | 2021 | % | | Revenue | 30.4 | 24.3 | 25.2 | 57.1 | 49.3 | 16.0 | | Adjusted EBITDA | 15.4 | 11.1 | 38.2 | | 24.2 | | | Adjusted EBITDA margin | 50.7% | 45.9% | 4.8 | 50.5% | 49.0% | 1.5 | | Operating profit | 9.1 | 5.2 | 74.6 | 16.3 | 12.4 | 31.3 | | Income tax | –4.1 | –3.3 | 25.5 | –4.1 | –3.3 | 25.5 | | Profit for the period | 5.1 | 1.7 | 205.4 | 12.3 | 8.5 | 44.1 | | Investments | 4.3 | 4.3 | –0.5 | 9.0 | 7.9 | 13.1 |
| | 30.06.2022 | 31.12.2021 | +/– | | Total assets | 618.6 | 629.5 | –1.7% | | Interest bearing debt | 199.9 | 203.3 | –1.7% | | Other liabilities | 51.0 | 45.3 | 12.6% | | Equity | 367.6 | 380.9 | –3.5% | | Number of shares | 263.0 | 263.0 | 0.0% |
Major events in Q2: - Investment decision to build a new quay in the Paldiski South Harbour to serve the wind farms
- Record volume in ro-ro cargo (3.5 million tonnes in 6 months)
- Termination of Worldwide Cargo Establishment’s contractual penalty lawsuit
- Voting on the resolutions of the general meeting on 5–25 April 2022, including election of new supervisory board
- AS Tallinna Sadam paid the shareholders a dividend of EUR 0.097 per share, i.e. a total of EUR 25.5 million for 2021 (100% of previous year’s profit)
- AS Tallinna Sadam and the Port of Gdynia signed a letter of intent on cooperation in the field of developing hydrogen solutions
Revenue
Revenue for the six months of 2022 grew by EUR 7.9 million (+16.0%) to EUR 57.1 million. Most of the growth resulted from the second quarter when revenue grew by 25.2%, supported by an increase in the number of passengers as well as higher revenue from the operation of ferry service between Estonia’s mainland and two largest islands. All revenue streams increased, the most being passenger fee (+163%), operating lease (+14%), vessel dues (+12%) and ferry service revenue (+10%).
The six-month revenue of the Passenger harbours segment grew by 57% year on year, mainly due to a rise in passenger fee revenue due to rapid growth in passenger numbers and an increase in vessel dues. The segment also increased its lease income (EUR +0.46 million) by leasing out new premises and electricity sales revenue. In the second quarter, revenue grew by 88% year on year to EUR 10.7 million.
The six-month revenue of the Cargo harbours segment remained at the same level as a year earlier (+0.6%). Its vessel dues revenue dropped (EUR –0.5 million) due to the decline in dry bulk and liquid bulk cargo. The decrease in vessel dues was offset by the growth in cargo charges (EUR +0.3 million) due to changes in the cargo structure, an increase in lease income (EUR +0.2 million) due to changes in lease rates and growth in electricity sales revenue (EUR +0.3 million). In the second quarter, the revenue of the Cargo harbours segment grew by EUR 32 thousand year on year.
The six-month revenue of the Ferry segment grew by EUR 1.6 million (+10.9%) due to growth in both ferry service revenue and lease income. Ferry service revenue increased through a rise in contractual fees due to an increase in the Estonian fuel cost, employment cost and consumer price indices and growth in the number of trips. In the second quarter, the revenue of the Ferry segment grew by EUR 1.0 million year on year (+12.8%).
The revenue of the segment Other grew by 2% in the first half-year and by 3.9% in the second quarter. Revenue growth was supported by the revision of the contractual fee due to a rise in the Estonian consumer price index. EBITDA
Adjusted EBITDA for the first half of the year grew by EUR 4.7 million (+19.5%) to EUR 28.9 million. The strongest contributors to EBITDA growth were the Passenger harbours segment (EUR +4.5 million) and the Ferry segment (EUR +0.7 million). In the second quarter, EBITDA grew by EUR 4.3 million (+38.2%) year on year. Thus 90% of the growth in six-month EBITDA was delivered in the second quarter. The adjusted EBITDA margin for the first half-year increased from 49.0% to 50.5% and the adjusted EBITDA margin for the second quarter increased from 45.9% to 50.7%. Profit
Profit for the first six months amounted to EUR 12.3 million, exceeding the profit for the comparative period by EUR 3.8 million (+44.1%), profit before tax for the first six months grew by EUR 4.6 million (+39%) year on year. Second-quarter profit was EUR 5.1 million (EUR +3.4 million) and profit before tax grew by EUR 4.2 million. Investments
In the first six months of 2022, the Group invested EUR 9.0 million, EUR 1.0 million more than a year earlier. The largest investments were made in reconstructing the outdoor area around Terminal D, upgrading the quay equipment and reconstructing the shoreline reinforcements in Old City Harbour and in increasing the capacity of Muuga Harbour to serve ro-ro cargo. Investments of the second quarter totalled EUR 4.3 million (in the second quarter of 2021 also EUR 4.3 million). Interim condensed consolidated statement of financial position: | In thousands of euros | 30 June 2022 | 31 December 2021 | | ASSETS | | | | | | | | Current assets | | | | Cash and cash equivalents | 31,110 | 34,840 | | Trade and other receivables | 9,453 | 14,151 | | Contract assets | 575 | 0 | | Inventories | 565 | 399 | | Total current assets | 41,703 | 49,390 | | | | | | Non-current assets | | | | Investments in associates | 1,881 | 1,559 | | Other long-term receivables | 896 | 896 | | Property, plant and equipment | 572,082 | 575,563 | | Intangible assets | 2,042 | 2,130 | | Total non-current assets | 576,901 | 580,148 | | | | | | Total assets | 618,604 | 629,538 | | | | | | LIABILITIES | | | | | | | | Current liabilities | | | | Loans and borrowings | 15,916 | 15,916 | | Provisions | 958 | 1,572 | | Government grants | 1,665 | 1,223 | | Taxes payable | 829 | 890 | | Trade and other payables | 12,953 | 10,291 | | Contract liabilities | 3,551 | 57 | | Total current liabilities | 35,872 | 29,949 | | | | | | Non-current liabilities | | | | Loans and borrowings | 184,015 | 187,398 | | Government grants | 29,741 | 29,835 | | Other payables | 552 | 652 | | Contract liabilities | 788 | 809 | | Total non-current liabilities | 215,096 | 218,694 | | | | | | Total liabilities | 250,968 | 248,643 | | EQUITY | | | | Share capital at par value | 263,000 | 263,000 | | Share premium | 44,478 | 44,478 | | Statutory capital reserve | 22,115 | 21,271 | | Retained earnings (prior periods) | 25,791 | 26,534 | | Profit for the period | 12,252 | 25,612 | | Total equity | 367,636 | 380,895 | | Total liabilities and equity | 618,604 | 629,538 |
Interim condensed consolidated statement of profit or loss: | | | | | | | In thousands of euros | Q2 2022 | Q2 2021 | 6M 2022 | 6M 2021 | | | | | | | | Revenue | 30,363 | 24,260 | 57,135 | 49,248 | | Other income | 434 | 335 | 728 | 659 | | Operating expenses | –9,841 | –8,070 | –18,504 | –15,372 | | Personnel expenses | –5,554 | –5,100 | –10,325 | –9,744 | | Depreciation, amortisation and impairment | –6,225 | –6,076 | –12,512 | –12,098 | | Other expenses | –66 | –130 | –194 | –254 | | Operating profit | 9,111 | 5,219 | 16,328 | 12,439 | | | | | | | | Finance income and costs | | | | | | Finance income | 34 | 27 | 63 | 37 | | Finance costs | –323 | –365 | –605 | –741 | | Finance costs – net | –289 | –338 | –542 | –704 | | | | | | | Share of profit of an associate accounted
for under the equity method | 350 | 52 | 577 | 41 | | Profit before income tax | 9,172 | 4,933 | 16,363 | 11,776 | | | | | | | | Income tax | –4,111 | –3,275 | –4,111 | –3,275 | | Profit for the period | 5,061 | 1,658 | 12,252 | 8,501 | | Attributable to owners of the Parent | 5,061 | 1,658 | 12,252 | 8,501 | | | | | | | | Basic and diluted earnings per share (in euros) | 0.02 | 0.01 | 0.05 | 0.03 | Basic and diluted earnings per share
– continuing operations (in euros) | 0.02 | 0.01 | 0.05 | 0.03 |
Interim condensed consolidated statement of cash flows: | | | | | In thousands of euros | 6M 2022 | 6M 2021 | | | | | | Cash receipts from sale of goods and services | 67,852 | 55,753 | | Cash receipts related to other income | 71 | 34 | | Payments to suppliers | –23,580 | –19,123 | | Payments to and on behalf of employees | –9,664 | –9,064 | | Payments for other expenses | –238 | –271 | | Income tax paid on dividends | –4,335 | 0 | | Cash from operating activities | 30,106 | 27,329 | | | | | | Purchases of property, plant and equipment | –9,618 | –9,255 | | Purchases of intangible assets | –261 | –426 | | Proceeds from sale of property, plant and equipment | 77 | 263 | | Proceeds from government grants related to assets | 4,954 | 0 | | Dividends received | 255 | 0 | | Interest received | 2 | 1 | | Cash used in investing activities | –4,591 | –9,417 | | Repayments of loans received | –3,383 | –3,383 | | Dividends paid | –25,287 | –20,082 | | Interest paid | –570 | –734 | | Other payments related to financing activities | –5 | –1 | | Cash from/used in financing activities | –29,245 | –24,200 | | NET CASH FLOW | –3,730 | –6,288 | | Cash and cash equivalents at beginning of the period | 34,840 | 26,679 | | Change in cash and cash equivalents | –3,730 | –6,288 | | Cash and cash equivalents at end of the period | 31,110 | 20,391 |
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. According to unaudited financial results, the group’s sales in 2021 totalled EUR 110 million, adjusted EBITDA EUR 54 million and profit EUR 26 million. Additional information: Marju Zirel
Head of Investor Relations
Tel. +372 5342 6591 m.zirel@ts.ee
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