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AS Tallinna Sadam financial results for 2021 Q3

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In the third quarter, year on year, the revenue of AS Tallinna Sadam increased, but adjusted EBITDA and profit decreased. Revenue amounted to EUR 32 million in the third quarter, increasing by 2% year on year. The Group's adjusted EBITDA in the third quarter was EUR 17 million (–14%) and the profit amounted to EUR 11 million (–23%). In the first nine months, revenue was EUR 82 million (–1%), adjusted EBITDA EUR 41 million (–11%) and profit EUR 19 million (–16%).

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. As a result of the restrictions, passenger numbers dropped sharply year on year, particularly in the first quarter but the figure for the third quarter decreased somewhat as well. The number of port calls by ferries grew slightly year on year and there were also 39 port calls by cruise ships, compared with none last year. In Q3 and 9 months, cargo throughput continued to grow vigorously through growth in liquid bulk, ro-ro and dry bulk cargo.

According to Valdo Kalm, Chairman of the Management Board of Tallinna Sadam, in addition to the significant decrease in the number of passengers caused by the pandemic, the company must also take into account the pressure on the cost base by higher prices for services and steeply rising energy prices, which have a direct impact on the transport sector as a whole. The increase in costs was also due to the lower-than-usual reference base due to the austerity measures implemented in 2020. Last year's profit was also supported by a one-time profit from the sale of assets, mainly in Paljassaare Harbor. "However, even in today's difficult situation, a diverse business model will help to maintain strong profits and we will keep the promised dividend level," said Kalm.

The CEO and the head of investor relations of Tallinna Sadam will present the financial results of the Group at a webinar on 10 November at 11:00 Estonian time (EET), to attend, please click here. The webinar will be held in English.

Key figures (in million EUR):

Q3

Q3

+/–

9M

9M

+/–

2021

2020

%

2021

2020

%

Revenue

32.2

31.8

1.6

81.5

82.1

–0.7

Adjusted EBITDA

17.1

19.9

–14.2

41.2

46.3

–10.9

Adjusted EBITDA margin

52.9%

62.7%

–9.8

50.6%

56.4%

–5.8

Operating profit

10.7

14.2

–24.8

23.1

29.3

–21.1

Income tax

0

0

–3.3

–4.9

–33.3

Profit for the period

10.6

13.6

–22.5

19.1

22.8

–16.3

Investments

2.3

11.5

–80.2

10.2

28.9

–64.7


30.09.2021

31.12.2020

+/–

Total assets

622.9

628.1

–1.5%

Interest bearing debt

204.2

211.6

–3.5%

Other liabilities

44.4

41.1

8.0%

Equity

374.4

375.4

–0.3%

Number of shares (mln)

263.0

263.0

0.0%

Significant events in Q3:

  • Opening of cruise terminal and promenade

  • HHLA new container cranes at the Muuga harbor

  • Incident with the ferry Tõll

  • Opening of the Admiral Bridge

  • Investor Day at the cruise terminal

  • Extension of Katoen Natie terminal in Muuga

  • Cruise terminal and promenade was awarded as Tallinn Development Project 2021

Revenue
Revenue for the third quarter grew by EUR 0.5 million (+1.6%).
Revenue for the first 9 months declined by EUR 0.5 million (–0.7%) amounting to EUR 81.5 million. The decrease is attributable to the first quarter because there were no COVID-19-related restrictions or impacts at the beginning of last year.
In terms of revenue streams, the decline appeared in passenger fees revenue (–39%) and vessel dues revenue (–1%), other revenue streams increased, the most in the sale of electricity (+35%), ferry service (+2%) and cargo charge revenue (+6%).
The nine-month revenue of the Passenger harbours segment decreased by EUR 2.2 million (–10%) 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 Q3 the revenue of the Passenger harbours segment decreased by EUR 0.4 million year on year (–4%).
The nine-month revenue of the Cargo harbours segment grew by EUR 1.2 million (+4%) due to the combined effect of various revenue items but mostly through growth in electricity sales. The Q3 revenue of the Cargo harbours segment grew by EUR 0.5 million for the same reasons.
The revenue of the Ferry segment grew by EUR 0.5 million (+2.2%) 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 Q3 revenue of the Ferry segment grew by EUR 0.3 million.
The nine-months revenue of the segment Other remained stable year on year. There was no significant change in the revenue for Q3.

EBITDA
Adjusted EBITDA for Q3 dropped by EUR 2.8 million (–14%), mostly due to Passenger harbours segement (EUR –3.0 million). Adjusted EBITDA for 9 months decreased by EUR 5.1 million (–11%). In segment terms, adjusted EBITDA for Q3 increased slightly in the segment Other and declined in all other segments, the most in the Passenger harbours segment. Adjusted EBITDA margin declined in 9 months from 56.4% to 50.6%. In Q3 the margin fell slightly from 62.7% to 52.9%.

Profit
Profit for the third quarter was EUR 10.6 million, which is EUR 3.1 million less than in the comparative period. Profit for 9 months was EUR 19.1 million (EUR –3.7 million). Profit decreased less than operating profit because net finance costs decreased and the result of the Group’s equity-accounted associate Green Marine improved

Investments
Investments of the third quarter totalled EUR 2.3 million (Q3 2020: EUR 11.5 million). In the first nine months of 2021, the Group invested EUR 10.2 million, significantly less than in the same period last year (EUR 28.9 million). Investments of the period were mostly made in 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

30 September 2021

31 December 2020

ASSETS

Current assets

Cash and cash equivalents

25,724

26,679

Trade and other receivables

12,981

10,183

Contract assets

692

0

Inventories

276

360

Non-current assets held for sale

0

114

Total current assets

39,673

37,336

Non-current assets

Investments in associates

1,412

1,147

Other long-term receivables

530

0

Property, plant and equipment

579,144

587,506

Intangible assets

2,175

2,104

Total non-current assets

583,261

590,757

Total assets

622,934

628,093

LIABILITIES

Current liabilities

Loans and borrowings

17,266

17,266

Derivative financial instruments

0

102

Provisions

1,170

1,289

Government grants

2,011

1,919

Taxes payable

1,542

744

Trade and other payables

8,564

9,149

Total current liabilities

1,821

30,469

Non-current liabilities

Loans and borrowings

186,931

194,314

Government grants

27,688

26,145

Other payables

722

841

Contract liabilities

859

892

Total non-current liabilities

216,200

222,192

Total liabilities

248,574

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

0

–102

Retained earnings (prior periods)

26,534

19,276

Profit for the period

19,077

28,518

Total equity

374,360

375,432

Total liabilities and equity

622,934

628,093

Interim condensed consolidated statement of profit or loss:

In thousands of euros

Q3 2021

Q3 2020

9M 2021

9M 2020

Revenue

32,263

31,767

81,511

82,055

Other income

379

823

1,037

2,793

Operating expenses

–10,081

–7,744

–25,454

–23,281

Personnel expenses

–5,370

–4,581

–15,114

–14,065

Depreciation, amortisation and impairment

–6,405

–5,983

–18,502

–17,895

Other expenses

–116

–89

–369

–302

Operating profit

10,670

14,193

23,109

29,305

Finance income and costs

Finance income

23

5

60

29

Finance costs

–341

–482

–1,082

–1,295

Finance costs – net

–318

–477

–1,022

–1,266

Share of profit of an associate accounted for under the equity method

224

–72

265

–331

Profit before income tax

10,576

13,644

22,352

27,708

Income tax

0

0

–3,275

–4,913

Profit for the period

10,576

13,644

19,077

22,795

Attributable to owners of the Parent

10,576

13,644

19,077

22,795

Basic and diluted earnings per share (in euros)

0.04

0.05

0.07

0.09

Basic and diluted earnings per share – continuing operations (in euros)

0.04

0.05

0.07

0.09

Interim condensed consolidated statement of cash flows:

In thousands of euros

9M 2021

9M 2020

Cash receipts from sale of goods and services

87,777

86,160

Cash receipts related to other income

83

31

Payments to suppliers

–30,919

–31,146

Payments to and on behalf of employees

–13,877

–11,758

Payments for other expenses

–376

–327

Other payments

0

–2,600

Income tax paid on dividends

–3,440

–4,913

Cash from operating activities

39,248

35,447

Purchases of property, plant and equipment

–11,516

–28,134

Purchases of intangible assets

–525

–348

Proceeds from sale of property, plant and equipment

523

1,618

Government grants received

0

2,061

Interest received

2

15

Cash used in investing activities

–11,516

–24,788

Proceeds from loans received

0

10,000

Repayments of loans received

–7,383

–6,383

Dividends paid

–20,085

–30,008

Interest paid

–1,218

–1,331

Other payments related to financing activities

–1

–11

Cash from/used in financing activities

–28,687

–27,733

NET CASH FLOW

–955

–17,074

Cash and cash equivalents at beginning of the period

26,679

35,183

Change in cash and cash equivalents

–955

–17,074

Cash and cash equivalents at end of the period

25,724

18,109

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

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