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AS Tallinna Sadam unaudited financial results for 2022 and Q4
In 2022, revenue increased to 121.7 million euros (+11%), adjusted EBITDA to 55.8 million euros (+3.3%) and profit was 25.6 million euros (–0.1%). The adjusted EBITDA margin decreased by 3.2 percentage points; the volume of investments was 13.9 million euros (–5.9%).
Last year's results were most affected by lifting of restrictions related to the pandemic, which boosted the activity of passenger ports, and the start of the Russian-Ukraine war and sanctions, which led to a decrease in cargo harbours’ volumes. The number of passengers increased by 98% to 7.0 million passengers, but the cargo volume decreased by 20.7% to 17.8 million tons. At the same time, the number of vessel calls was relatively stable, decreasing by only 3% to 7130 visits. High energy prices, rising service prices and wage pressures increased operating costs.
In the fourth quarter, revenue was 28.2 million euros (–1%), adjusted EBITDA was 8.9 million euros (–30%) and profit was 1.6 million euros (–75%). The decline was influenced by the reduced number of vessel calls, the lowering of vessel dues in passenger harbours, the drop in cargo volumes resulting from sanctions and the shorter charter period of Botnica. The ferry segment showed an increase in both revenue and profit margin due to the effect of fee indexation.
According to Valdo Kalm, chairman of the management board of Tallinna Sadam, despite the impact of the war and sanctions on the cargo business and the rapid increase in input prices, the company was still able to increase its revenue and adjusted EBITDA, which once again proves the effectiveness of a balanced business model. "The recovery of the passenger business from the pandemic has been faster than expected, and in the cargo business, in addition to the negative effects of the war to the liquid bulk, we also see opportunities for the growth of other types of cargo. We continued with investments and opened the front square of the passenger terminal D, with which we are moving towards developing the port area into a more human-friendly and attractive living environment. In the real estate business, a very important step forward was the public display of the sketches of the detailed plans of the Old City Harbour at the end of the year. Looking to the future, we also started the implementation of the offshore wind farm construction quay and back area project in Paldiski South Harbour. I believe that ports will play an important role in supporting green energy production and infrastructure development in the future," said Kalm.
Tallinna Sadam management will present the financial results of the Group at a webinars on 28 February, including webinar in Estonian starting at 13.00 (EET) (link to EST webinar) and webinar in English starting at 14.00 (EET) (link to ENG webinar).
Key figures (in million EUR):
| Q4 | Q4 | +/– | 2022 | 2021 | +/– |
| 2022 | 2021 | % | % | ||
Revenue | 28.2 | 28.5 | –1.0 | 121.7 | 110.1 | 10.6 |
Adjusted EBITDA | 8.9 | 12.8 | –30.2 | 55.8 | 54.0 | 3.3 |
Adjusted EBITDA margin | 31.7% | 44.9% | –13.2 | 45.9% | 49.1% | –3.2 |
Operating profit | 2.6 | 6.6 | –60.7 | 30.8 | 29.8 | 3.5 |
Income tax | –0.1 | 0.0 | – | –4.2 | –3.3 | 28.0 |
Profit for the period | 1.6 | 6.5 | –75.0 | 25.6 | 25.6 | –0.1 |
Investments | 1.4 | 4.5 | –68.2 | 13.9 | 14.7 | –5.9 |
| 31.12.2022 | 31.12.2021 | +/– |
Total assets | 621.2 | 629.5 | –1.3% |
Interest bearing debt | 187.4 | 203.3 | –7.8% |
Other liabilities | 52.9 | 45.3 | 16.6% |
Equity | 381.0 | 380.9 | 0.0% |
Number of shares | 263.0 | 263.0 | 0.0% |
Major events in Q4:
Implementation of additional sanctions on liquid bulk at the beginning of December
We reached 72% of the number of passengers from the pre-pandemic level
Tallinn City Government put on public display four sketches of the detailed plan of the Old City Harbour area
We opened the city square in front of the passenger terminal D
We extended the icebreaker Botnica's summer work contract with Baffinland
Changes in the management board of OÜ TS Laevad, a subsidiary of AS Tallinna Sadam
The air quality study of the Old City Harbour was completed
Revenue
The annual revenue grew by EUR 11.7 million (+10.6%) year on year to EUR 121.7 million. Revenue grew in all revenue streams except vessel dues. Growth was the fastest in passenger fee revenue, which grew by EUR 4.6 million (+81%) to EUR 10.2 million. Ferry service revenue grew by EUR 3.8 million (+13%), rising to EUR 33.6 million. The only revenue stream that decreased was revenue from vessel dues, which declined by EUR 0.2 million (–0.5%) to EUR 37.2 million due to a smaller number of vessel calls and a lower tonnage charge rate for ferries visiting Old City Harbour.
Revenue for the fourth quarter of 2022 declined by EUR 0.3 million (–1%) to EUR 28.2 million. The main reasons were a decrease in vessel dues (EUR –1.8 million, –19.2%), primarily through fewer vessel calls in the Passenger harbours and the Cargo harbours segments, and the lowering of port dues for all ferry operators.
The annual revenue of the Passenger harbours segment increased through higher passenger numbers. Passenger fee revenue grew by EUR 4.6 million due to the lifting of the COVID-19 restrictions. Passenger traffic increased both on regular routes and in cruise travel. Revenue from the sale of electricity grew due to a sharp rise in electricity prices and higher consumption. Lease income increased through letting of premises in the cruise terminal, higher parking charge income and termination of rent concessions. The fourth quarter revenue of the Passenger harbours segment decreased by EUR 0.3 million (–4%) to EUR 8.1 million.
The annual revenue of the Cargo harbours segment dropped mainly due to the impact of vessel dues revenue, which declined because sanctions reduced the number of vessel calls. Fewer vessel calls also lowered revenue from other services. Despite smaller cargo volumes, cargo charge revenue grew slightly because cargo with lower charge rates was replaced by cargo with higher charge rates. Rising electricity prices supported growth in revenue from electricity sales. In addition to sanctions, the performance of the Cargo harbours segment was affected by the sale of the electricity distribution network at Paljassaare Harbour at the end of 2021. The fourth quarter revenue of the Cargo harbours segment decreased by EUR 0.5 million (–5%) to EUR 9.9 million.
The annual revenue of the Ferry segment grew mostly due to the indexation of the contractual fee rates and a higher number of trips made. The segment’s fourth quarter revenue grew by EUR 0.9 million (+12%) to EUR 8.3 million.
The revenue of the segment Other grew, although the summer charter of the icebreaker Botnica was shorter than a year earlier when the Canadian customer extended the charter. Revenue growth was supported by the indexation of the icebreaking and summer charter fee rates to the inflation index. The segment’s fourth quarter revenue decreased by EUR 0.4 million (–16%) to EUR 1.9 million (there were more charter days in the fourth quarter a year earlier).
EBITDA
Adjusted EBITDA grew by EUR 1.8 million (+3.3%) to EUR 55.8 million due to adjusted EBITDA growth in the Passenger harbours segment and the Ferry segment. Adjusted EBITDA margin decreased from 49.1% to 45.9%. Adjusted EBITDA for the fourth quarter fell by EUR 3.9 million (–30%).
Profit
The Group’s net profit for 2022 amounted to EUR 25.6 million, which is EUR 20 thousand (–0.1%) smaller than a year earlier. Net profit for the fourth quarter was EUR 1.6 million (EUR –4.9 million, –75%).
Investments
The Group’s capital investments in 2022 totalled EUR 13.9 million, which is EUR 0.9 million (6%) less than in the prior year and the past six years’ lowest level.
The main capital investments in 2022 were again made at Old City Harbour, where the largest completed project (the last works were completed in early 2023) was the reconstruction of the outdoor area around Terminal D which began in 2020. At Muuga Harbour, the largest investments were related to developing the conditions for ro-ro traffic and improving traffic conditions in the harbour area. No major works were carried out on the icebreaker Botnica. In the Ferry segment, the largest works included scheduled dry-dock maintenance of the ferries and upgrades to the customer service and ticket sale systems.
The fourth quarter capital investments amounted to EUR 1.4 million, which is EUR 3.1 million less than in the fourth quarter of 2021.
Interim condensed consolidated statement of financial position:
In thousands of euros | 31 December 2022 | 31 December 2021 |
ASSETS |
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Current assets |
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Cash and cash equivalents | 44 387 | 34 840 |
Trade and other receivables | 7 477 | 14 151 |
Inventories | 749 | 399 |
Non-current assets held for sale | 100 | 0 |
Total current assets | 52 713 | 49 390 |
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Non-current assets |
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Investments in associates | 2 099 | 1 559 |
Other long-term receivables | 303 | 896 |
Property, plant and equipment | 564 379 | 575 563 |
Intangible assets | 1 735 | 2 130 |
Total non-current assets | 568 516 | 580 148 |
Total assets | 621 229 | 629 538 |
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LIABILITIES |
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Current liabilities |
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Loans and borrowings | 15 916 | 15 916 |
Provisions | 2 013 | 1 572 |
Government grants | 8 578 | 1 223 |
Taxes payable | 1 060 | 890 |
Trade and other payables | 9 832 | 10 291 |
Contract liabilities | 37 399 | 57 |
Total current liabilities | 15 916 | 29 949 |
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Non-current liabilities |
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Loans and borrowings | 171 482 | 187 398 |
Government grants | 30 156 | 29 835 |
Other payables | 1 216 | 1 461 |
Total non-current liabilities | 202 854 | 218 694 |
Total liabilities | 240 253 | 248 643 |
EQUITY |
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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 | 25 592 | 25 612 |
Total equity | 380 976 | 380 895 |
Total liabilities and equity | 621 229 | 629 538 |
Interim condensed consolidated statement of profit or loss:
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In thousands of euros | Q4 2022 | Q4 2021 | 2022 | 2021 |
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Revenue | 28 243 | 28 540 | 121 703 | 110 051 |
Other income | 301 | 742 | 1 441 | 1 779 |
Operating expenses | –12 152 | –10 508 | –43 418 | –35 962 |
Personnel expenses | –6 955 | –5 807 | –23 165 | –20 920 |
Depreciation, amortisation and impairment | –6 609 | –6 258 | –25 312 | –24 761 |
Other expenses | –213 | –60 | –462 | –429 |
Operating profit | 2 615 | 6 649 | 30 787 | 29 758 |
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Finance income and costs |
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Finance income | 119 | 35 | 216 | 95 |
Finance costs | –1 002 | –296 | –2 013 | –1 378 |
Finance costs – net | –883 | –261 | –1 797 | –1 283 |
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Share of profit of an associate accounted | –19 | 146 | 795 | 412 |
Profit before income tax | 1 713 | 6 534 | 29 785 | 28 887 |
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Income tax | –82 | 0 | –4 193 | –3 275 |
Profit for the period | 1 631 | 6 534 | 25 592 | 25 612 |
Attributable to owners of the Parent | 1 631 | 6 534 | 25 592 | 25 612 |
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Basic and diluted earnings per share (in euros) | 0.01 | 0.02 | 0.10 | 0.10 |
Basic and diluted earnings per share | 0.01 | 0.02 | 0.10 | 0.10 |
Interim condensed consolidated statement of cash flows:
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In thousands of euros | 2022 | 2021 |
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Cash receipts from sale of goods and services | 130 099 | 117 001 |
Cash receipts related to other income | 188 | 144 |
Payments to suppliers | –53 548 | –44 427 |
Payments to and on behalf of employees | –19 899 | –18 665 |
Payments for other expenses | –368 | –451 |
Income tax paid on dividends | –4 335 | –3 440 |
Cash from operating activities | 52 137 | 50 162 |
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Purchases of property, plant and equipment | –15 189 | –14 535 |
Purchases of intangible assets | –455 | –641 |
Proceeds from sale of property, plant and equipment | 191 | 2 573 |
Proceeds from government grants related to assets | 15 001 | 409 |
Dividends received | 255 | 0 |
Interest received | 83 | 3 |
Cash used in investing activities | –114 | –12 191 |
Redemption of debt securities | –7 650 | 0 |
Repayments of loans received | –8 266 | –8 266 |
Dividends paid | –25 287 | –20 085 |
Interest paid | –1 264 | –1 458 |
Other payments related to financing activities | –9 | –1 |
Cash from/used in financing activities | –42 476 | –29 810 |
NET CASH FLOW | 9 547 | 8 161 |
Cash and cash equivalents at beginning of the period | 34 840 | 26 679 |
Change in cash and cash equivalents | 9 547 | 8 161 |
Cash and cash equivalents at end of the period | 44 387 | 34 840 |
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.
Additional information:
Marju Zirel
Head of Investor Relations
Tel. +372 5342 6591
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