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
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