New Zealand markets close in 4 hours 17 minutes
  • NZX 50

    12,699.90
    +63.35 (+0.50%)
     
  • NZD/USD

    0.7172
    -0.0003 (-0.04%)
     
  • NZD/EUR

    0.5993
    +0.0006 (+0.10%)
     
  • ALL ORDS

    7,315.80
    -1.70 (-0.02%)
     
  • ASX 200

    7,055.60
    -3.00 (-0.04%)
     
  • OIL

    63.35
    -0.11 (-0.17%)
     
  • GOLD

    1,765.30
    -1.50 (-0.08%)
     
  • NASDAQ

    14,026.19
    +222.28 (+1.61%)
     
  • FTSE

    6,983.50
    +43.92 (+0.63%)
     
  • Dow Jones

    34,035.99
    +305.10 (+0.90%)
     
  • DAX

    15,255.33
    +46.18 (+0.30%)
     
  • Hang Seng

    28,793.14
    -107.69 (-0.37%)
     
  • NIKKEI 225

    29,716.47
    +73.78 (+0.25%)
     
  • NZD/JPY

    77.9510
    -0.0340 (-0.04%)
     

AS Tallinna Sadam financial results for 2020 Q4 and 12 months

AS Tallinna Sadam
·11-min read

As a result of the ongoing global virus crisis, the revenue, adjusted EBITDA and profit of AS Tallinna Sadam (hereafter: “the Group”) decreased in Q4. Revenue amounted to EUR 25.3 million decreasing by 15.7% in Q4 year-on-year. The adjusted EBITDA of Q4 was EUR 12.1 million (–18.3%) and the profit amounted to EUR 5.7 million (–32.3%).

In 2020, the annual revenue was EUR 107.4 million (–17.8%) and adjusted EBITDA amounted to EUR 58.4 million (–21.4%). Despite the pandemic, the profit for 2020 was EUR 28.5 million (–35.8%). Adjusted EBITDA margin decreased by 2.5 percentage points, but the volume of investments increased to EUR 37.1 million (+26%).

According to Valdo Kalm, Chairman of the Management Board of Tallinna Sadam, the negative impact of the pandemic on the company's financial results was particularly noticeable in the Passenger harnours segment, but the overall impact of the virus on the Group's finances was smaller than feared and the year ended with a strong profit given the circumstances. „The year 2020 proved that the business strategy with diversified risks and the contribution to the four business directions is justified. In a situation where the business related to passengers decreased by almost half, we are able to meet the expectations of investors and continue with the promised dividend policy, i.e. pay at least 70% of the previous year's profit for dividends," explained Kalm.

Kalm says that the large drop in the number of passengers has been compensated by the highest cargo volume of the last five years, the sales revenue of passenger ferries and icebreaker Botnica, which have all remained at levels comparable to 2019. “The resulting stable cash flow and confidence in the recovery of the passenger business have also enabled us to continue investing in passenger services and infrastructure despite the crisis, especially in the Old City Harbour, where we have introduced innovative environmentally friendly solutions such as automatic mooring and on-shore power supply. This year, despite the slump in the passenger segment, several passenger service and real estate development projects in the Old City Harbour will be completed or continued, including the cruise terminal, the front square of the Terminal D and the pedestrian bridge of the Admiralty Canal,” added Kalm.

Please also see Valdo Kalm’s video message.

The management of Tallinna Sadam will present the financial results of the Group at a webinar on 26 February at 11:00, to attend, please click here. The webinar will be held in English.

Key figures (in million EUR):

Q4

Q4

+/–

2020

2019

+/–

2020

2019

%

%

Revenue

25.3

30.0

–15.7

107.4

130.5

–17.8

Adjusted EBITDA

12.1

14.8

–18.3

58.4

74.3

–21.4

Adjusted EBITDA margin

47.9%

49.5%

–1.6

54.4%

56.9%

–2.5

Operating profit

6.3

9.1

–31.1

35.6

51.7

–31.2

Income tax

0.0

0.0

–4.9

–5.8

–14.8

Profit for the period

5.7

8.5

–32.3

28.5

44.4

–35.8

Investments

8.2

10.7

–23.0

37.1

29.5

26.0


31.12.2020

31.12.2019

+/–

Total assets

628.1

625.5

0.4%

Interest bearing debt

211.6

207.8

1.8%

Other liabilities

41.1

40.7

1.0%

Equity

375.4

377.0

–0.4%

Number of shares

263.0

263.0

0.0%

Major events in Q4:

  • The impact of the COVID-19 pandemic continued

  • Compromise with ESTEVE to end legal disputes

  • Appointment of Indrek Randveer as chairman of the Management Board of TS Laevad OÜ

  • Enlight Research started covering Tallinna Sadam

  • The supervisory board approved the company strategy for 2021–2025

  • The results of the mapping of the ecological footprint of Tallinna Sadam

  • Ando Leppiman was elected chairman of the Tallinna Sadam nomination committee

  • Completion of the parking structure of passenger terminal D

  • Past five years’ record cargo volume in 2020 – 21.3 million tons

Revenue
Revenue for Q4 of 2020 decreased by EUR 4.7 million, i.e. 15.7%, year on year mainly due to decline in passenger volumes. Annually, the revenue decreased in total by 17.8% to EUR 107.4 million. Revenue decreased in all revenue streams, the sharpest in passenger fees (–59%) and vessel dues (–20%). The decline is mainly attributable to the cancellation of the cruise season as well as reduced ferry timetables and a slight decrease in the volumes of general, dry bulk and container cargo. Growth in the volume of liquid bulk cargo had a positive effect on revenue.
The revenue of the Passenger harbours segment decreased because the number of passengers declined in connection with COVID-19 related mobility restrictions, which led to the reduction of ferry timetables and the cancellation of the cruise season. The fourth quarter revenue of the Passenger harbours segment decreased to EUR 6.2 million (–41%)Q4 revenue of the Cargo harbours segment grew by EUR 0.2 million (+2.1%) to EUR 10.6 million. Annually, the revenue of the Cargo harbours segment decreased only slightly because cargo throughput grew by 7%. Cargo volume increased primarily due to liquid bulk, but the increase in the volume of liquid bulk with lower charge did not cover the effect of the decrease in the volume of other types of cargo in total cargo charge revenue.
The revenue of the Ferry segment decreased mostly during the summer season when the customer (the state) ordered a smaller number of extra trips and did not order an additional ferry to be put in service. Fourth quarter revenue decreased to EUR 6.9 million (–1.7%).
The revenue of the segment Other decreased both in Q4 and annually, because of the shorter summer charter period of the icebreaker Botnica due to COVID-19 related restrictions, which disrupted the production operations of the Canadian charterer. The indexation of the ice-breaking and charter fee rates to the inflation index had a slight positive effect on revenue. Revenue for the fourth quarter decreased to EUR 1.6 million (–27%).

EBITDA
Adjusted EBITDA for Q4 declined by EUR 2.7 million (–18.3%) year on year. The annual adjusted EBITDA decreased to EUR 58.4 million (–21.4%) due to a fall in the Passenger harbours segment. Adjusted EBITDA margin declined from 56.9% to 54.4%.

Profit
The Group’s net profit for 2020 amounted to EUR 28.5 million, EUR 15.9 million less than a year earlier. Net profit for Q4 was EUR 5.7 million (–32.3%).
Profit before tax decreased by EUR 16.7 million to EUR 33.4 million (–33.4%) in 2020. Profit before tax for the fourth quarter decreased by EUR 2.7 million, year on year. Income tax expense decreased by EUR 0.9 million due to a smaller dividend distribution (EUR 30.2 million) compared with dividend paid in 2019 (EUR 35.2 million).

Investments
Q4 capital investments amounted to EUR 8.2 million, capital investments in 2020 totalled EUR 37.1 million, which is 26% more than in the prior year and the past few years’ highest figure. The main investments were again made at the Old City Harbour, where despite the crisis the Group continued to invest in major improvements to the environment and travel conditions. The largest completed projects were the reconstruction of Terminal D and the construction of a nearby multi-storey parking structure. The installation of on-shore power supply systems and auto-mooring equipment for ferries reached the final phase and the construction of a cruise terminal and a footbridge across the canal of the Admiralty Basin was started. The largest works at the Muuga Harbour were related to improving the conditions of ro-ro traffic. Dredging works were carried out in the turning basin and approach canal of the Paldiski South Harbour. The largest projects in the Ferry segment were the installation of battery bank energy solution on the ferry Tõll in order to achieve energy savings and make the ferry more environmentally friendly and scheduled smaller-scale dry dock maintenance of ferries. On the icebreaker Botnica, the second part of the machinery control system was renewed and other technical systems were also upgraded.

Interim condensed consolidated statement of financial position:

In thousands of euros

31 December 2020

31 December 2019

ASSETS

Current assets

Cash and cash equivalents

26,679

35,183

Trade and other receivables

10,183

10,614

Inventories

360

408

Non-current assets held for sale

114

142

Total current assets

37,336

46,347

Non-current assets

Investments in associates

1,147

1,609

Other long-term receivables

0

294

Property, plant and equipment

587,506

575,267

Intangible assets

2,104

2,015

Total non-current assets

590,757

579,185

Total assets

628,093

625,532

LIABILITIES

Current liabilities

Loans and borrowings

17,266

16,266

Derivative financial instruments

102

243

Provisions

1,289

1,915

Government grants

1,919

193

Taxes payable

744

893

Trade and other payables

9,149

11,755

Total current liabilities

30,469

31,265

Non-current liabilities

Loans and borrowings

194,314

191,580

Government grants

26,145

24,754

Other payables

1,733

915

Total non-current liabilities

222,192

217,249

Total liabilities

252,661

248,514

EQUITY

Share capital at par value

263,000

263,000

Share premium

44,478

44,478

Statutory capital reserve

20,262

18,520

Hedge reserve

–102

–243

Retained earnings (prior periods)

19,276

6,859

Profit for the period

28,518

44,404

Total equity

375,432

377,018

Total liabilities and equity

628,093

625,532

Interim condensed consolidated statement of profit or loss:

In thousands of euros

Q4 2020

Q4 2019

2020

2019

Revenue

25,303

30,005

107,358

130,536

Other income

223

229

3,015

1,017

Operating expenses

–7,576

–9,212

–30,858

–36,669

Personnel expenses

–5,426

–5,740

–19,491

–19,867

Depreciation, amortisation and impairment

–6,199

–6,125

–24,094

–23,037

Other expenses

–68

–77

–368

–301

Operating profit

6,257

9,080

35,562

51,679

Finance income and costs

Finance income

7

13

36

42

Finance costs

–410

–463

–1,705

–1,797

Finance costs – net

–403

–450

–1,669

–1,755

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

–130

–173

–462

244

Profit before income tax

5,724

8,457

33,431

50,168

Income tax

0

0

–4,913

–5,764

Profit for the period

5,724

8,457

28,518

44,404

Attributable to owners of the Parent

5,724

8,457

28,518

44,404

Basic and diluted earnings per share (in euros)

0.02

0.03

0.11

0.17

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

0.02

0.03

0.11

0.17

Interim condensed consolidated statement of cash flows:

In thousands of euros

2020

2019

Cash receipts from sale of goods and services

114,378

138,690

Cash receipts related to other income

94

193

Payments to suppliers

–43,954

–47,210

Payments to and on behalf of employees

–15,713

–16 892

Payments for other expenses

–376

–377

Income tax paid on dividends

–4,913

–10,985

Cash from operating activities

49,516

63,419

Purchases of property, plant and equipment

–35,811

–27,965

Purchases of intangible assets

–661

–550

Proceeds from sale of property, plant and equipment

2,863

39

Government grants received

3,561

0

Dividends received

0

204

Interest received

15

28

Cash used in investing activities

–30,033

–28,244

Redemption of debt securities

–9,000

–9,000

Loans received

20,000

10,000

Repayments of loans received

–7,266

–6,766

Dividends paid

–30,008

–34,970

Interest paid

–1,694

–1,769

Other payments related to financing activities

–19

–50

Cash from/used in financing activities

–27,987

–42,555

NET CASH FLOW

–8,504

–7,380

Cash and cash equivalents at beginning of the period

35,183

42,563

Change in cash and cash equivalents

–8,504

–7,380

Cash and cash equivalents at end of the period

26,679

35,183

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 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
E-mail: m.zirel@ts.ee

Attachments