COMMENTS TO FINANCIAL RESULTS
The comments have been prepared on the basis of consolidated indicators.
The consolidated net profit of AS Tallinna Sadam for the first six months in
2008 amounted to EEK 252.6 million (EUR 16.1 million), which meant an increase
of net profit by EEK 23 million (EUR 1.5 million) or 10 % compared with the same
period a year earlier. The consolidated sales amounted to EEK 615.4 million (EUR
39.3 million), decreasing by 5.7% (in 2007, the respective figures were EEK
652.4 million (EUR 41.7 million) and 3.8% growth).
In the first half of 2008, the cargo volume passing through the ports of AS
Tallinna Sadam decreased by 7 million tonnes (or 32%), reaching 14.8 million
tonnes. After steep drop in May 2007, the volume of transit goods (mainly dry
and liquid bulk) arriving to Estonia from Russia by the railway has stabilised
on similar level. Some growth was recorded for container units and rolling stock
volumes, but their positive impact on change of total cargo volume remained
insignificant.
In the first half of 2008 the market share of AS Tallinna Sadam among the major
ports of the eastern coast of the Baltic Sea decreased, from 11.8% to 8%.
The majority of the cargo volume was still made up of liquid cargo with 70%,
followed by rolling stock with 13% and dry bulk by 11%, which dropped third in
rank after losing volume the most (in the first half of 2007, the respective
figures were 60%, 8% and 26%).
By transport directions, the cargo volume included 78% transit, 10% export and
12% import goods (in the first half of 2007, the respective figures were 86%, 8%
and 6%). As the change in cargo volume was driven by decrease of transit cargo
originating from Russia, it brought about the respective change in transport
directions' structure.
After some decrease during two former years the number of passengers increased
in the first half of 2008 and reached new high. In the first half-year the
number of passengers travelling through the ports of AS Tallinna Sadam was 3.3
million, which was 15% more than in the same period a year ago (the respective
figures stood at 2.9 million passengers and a decrease of 4.1%).
The number of passengers grew both for liner and cruise passenger segments. The
largest among lines, Tallinn-Helsinki line saw the growth of passengers by 351
thousand or by 14%, totalling 2.8 million passengers. The number of passengers
on Tallinn-Stockholm line grew by 64 thousand or by 21%, totalling 371 thousand.
Paldiski-Kapellskär line saw a decrease of passengers by 8 thousand or by 32%,
totalling 17 thousand passengers. Considering that the line serves mainly
rolling stock, the number of passengers served in the future is likely also to
remain insignificant.
The number of traditional cruise passengers increased most in relative terms,
growing by 31 thousand passengers or by 30%, reaching to 139 thousand. The
growth in cruise passengers was achieved in Old City Port.
The consolidated sales of AS Tallinna Sadam in the first half of 2008 amounted
to EEK 615.4 million (EUR 39.3 million), decreasing by 5.7% (in 2007, the
respective figures were EEK 652.4 million (EUR 41.7 million) and 3.8% growth).
The decrease in sales was mainly due to the decrease of cargo volume, the effect
of which exceeded the positive effect from the growth in the number of
passengers and liner vessels' capacity. Income from cargo dues decreased by EEK
32 million (EUR 2.0 million or 30%) and income from port dues by EEK 21 million
(EUR 1.3 million or 5%). Income from passengers dues, rent and sale of services
increased respectively by EEK 11 million (EUR 0.7 million), EEK 3 million (EUR
0.2 million) and EEK 1 million (EUR 0.1 million).
The expenses related to the principal business totalled EEK 311 million (EUR
19.9 million), decreasing by 0.3%. Depreciation and impairment of fixed assets
grew slightly (increase by EEK 3.1 million (EUR 0.2 million) or 3.2%) as a
result of growth in the total volume of fixed assets. Operating expenses
decreased by EEK 3.7 million (EUR 0.2 million or 2.6%). The decrease resulted
from decrease in repairs and consultation expenses, exceeding the increase of
land tax cost. Personnel expenses did not change from the previous year. The
rise of wages was compensated by the reduction in average number of employees.
The operating profit amounted to EEK 318 million (EUR 20.3 million), which is
EEK 24.3 million (EUR 1.6 million) less than the respective indicator from the
last year.
The consolidated net profit for the first six months in 2008 amounted to EEK
252.6 million (EUR 16.1 million), which meant an increase of net profit by EEK
23 million (EUR 1.5 million) or 10 % compared with the same period a year
earlier. The increase in the net profit was caused by decreased dividend income
tax expense in relation to smaller amount of dividends declared for 2007 (EEK
100 million (EUR 6.4 million)) than for the previous year (EEK 300 million (EUR
19.2 million)). Profit before income tax amounted to EEK 279 million (EUR 17.8
million), decreasing by EEK 35 million (EUR 2.2 million).
The return on assets of AS Tallinna Sadam (annualised net profit divided by the
average volume of assets for the period) was 7.4%, an increase based on stronger
net profit when compared with last year's figure of 7.1%. When calculating the
return on assets on the basis of adjusted net profit (net profit has been
adjusted by income tax expense on dividends), the return on assets in the first
half of the year will be 8.2% compared with 9.7% a year earlier. Lower return on
assets was caused mainly by decrease of pre-tax profit and to some extent by the
increased average volume of assets.
In the first half of 2008, the return on equity of AS Tallinna Sadam (annualised
net profit divided by the average volume of equity for the period) was 11.1%,
which was higher of the previous year's figure (10.4%). The corresponding figure
based on adjusted net profit was 12.2% (and 14% a year earlier), where the
decrease was associated with decrease of pre-tax profit and also with the
increase in the average volume of equity.
In the first half of 2008, the Group invested a total of EEK 196 million (EUR
12.5 million) in new infrastructure objects and improvement of existing
infrastructure, which was EEK 209 million (EUR 13.4 million) less than the year
earlier. Most of the investments were traditionally related to water transport
facilities (quays and aquatory), of which the largest share formed investment
into a new dry bulk quay in Paldiski South Harbour and dredging works in Muuga
Harbour. Investments were continued for improvement of passenger vessel
reception conditions, into railway runways, purchase of land for port territory,
and for improving the access routes to the port and the general utilities
networks.
CONSOLIDATED BALANCE SHEET
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| in thousands of | EEK | EEK | EUR | EUR |
| (unaudited) | | | | |
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| | 30.06.2008 | 31.12.2007 | 30.06.2008 | 31.12.2007 |
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| ASSETS | | | | |
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| Current assets | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 249 796 | 269 641 | 15 965 | 17 233 |
| equivalents | | | | |
--------------------------------------------------------------------------------
| Available for sale | 2 855 | 2 855 | 182 | 182 |
| financial assets | | | | |
--------------------------------------------------------------------------------
| Derivatives | 8 827 | 11 427 | 564 | 730 |
--------------------------------------------------------------------------------
| Trade and other | 129 923 | 110 880 | 8 304 | 7 087 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Total current assets | 391 401 | 394 803 | 25 015 | 25 232 |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Investments in joint | 3 574 | 2 673 | 228 | 171 |
| ventures | | | | |
--------------------------------------------------------------------------------
| Other long-term | 6 959 | 6 959 | 445 | 445 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 6 490 315 | 6 385 769 | 414 807 | 408 125 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Total non-current assets | 6 500 848 | 6 395 401 | 415 480 | 408 741 |
--------------------------------------------------------------------------------
| Total assets | 6 892 249 | 6 790 204 | 440 495 | 433 973 |
--------------------------------------------------------------------------------
| LIABITLITIES | | | | |
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| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Current portion of bonds | 530 398 | 608 435 | 33 899 | 38 886 |
| and long-term loans | | | | |
--------------------------------------------------------------------------------
| Supplier and other | 143 475 | 195 190 | 9 170 | 12 475 |
| payables | | | | |
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| Payable to shareholders | 100 000 | 0 | 6 391 | 0 |
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| Short-term provisions | 0 | 18 910 | 0 | 1 208 |
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| Total current | 773 873 | 822 535 | 49 460 | 52 569 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Long-term borrowings | 1 453 504 | 1 453 504 | 92 896 | 92 896 |
--------------------------------------------------------------------------------
| Government grants | 11 449 | 11 455 | 732 | 732 |
--------------------------------------------------------------------------------
| Other long-term payables | 10 036 | 9 400 | 641 | 601 |
--------------------------------------------------------------------------------
| Total non-current | 1 474 989 | 1 474 359 | 94 269 | 94 229 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 2 248 862 | 2 296 894 | 143 729 | 146 798 |
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| EQUITY | | | | |
--------------------------------------------------------------------------------
| Share capital at nominal | 2 786 204 | 2 786 204 | 178 071 | 178 071 |
| value | | | | |
--------------------------------------------------------------------------------
| Statutory reserve | 278 620 | 275 562 | 17 807 | 17 612 |
| capital | | | | |
--------------------------------------------------------------------------------
| Hedge reserve | 6 133 | 8 642 | 392 | 552 |
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| Retained earnings | 1 319 845 | 1 087 071 | 84 353 | 69 476 |
--------------------------------------------------------------------------------
| Profit for the period | 252 585 | 335 831 | 16 143 | 21 464 |
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| Total equity | 4 643 387 | 4 493 310 | 296 766 | 287 175 |
--------------------------------------------------------------------------------
| Total liabilities and | 6 892 249 | 6 790 204 | 440 495 | 433 973 |
| equity | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT
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| in thousands of | EEK | EEK | EUR | EUR |
| (unaudited) | | | | |
--------------------------------------------------------------------------------
| | 6 months | 6 months | 6 months | 6 months |
| | 2008 | 2007 | 2008 | 2007 |
--------------------------------------------------------------------------------
| Sales | 615 397 | 652 380 | 39 331 | 41 695 |
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| Other income | 17 609 | 5 544 | 1 125 | 354 |
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| Operating expenses | -138 293 | -141 999 | -8 839 | -9 076 |
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| Personnel expenses | -70 506 | -70 728 | -4 506 | -4 521 |
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| Depreciation and | -102 334 | -99 196 | -6 540 | -6 339 |
| impairment | | | | |
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| Other expenses | -4 131 | -3 948 | -264 | -252 |
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| Operating profit | 317 742 | 342 053 | 20 307 | 21 861 |
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| Finance income and costs | | | | |
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| Finance income | 6 113 | 8 308 | 391 | 531 |
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| Finance costs | -45 589 | -36 178 | -2 914 | -2 312 |
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| Total finance income and | -39 476 | -27 870 | -2 523 | -1 781 |
| costs | | | | |
--------------------------------------------------------------------------------
| Profit/loss from | 901 | 0 | 58 | 0 |
| investments in joint | | | | |
| venture under equity | | | | |
| method of accounting | | | | |
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| Profit before tax | 279 167 | 314 183 | 17 842 | 20 080 |
--------------------------------------------------------------------------------
| Income tax expense | -26 582 | -84 615 | -1 699 | -5 408 |
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| Profit for the period | 252 585 | 229 568 | 16 143 | 14 672 |
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| attributable to: | | | | |
--------------------------------------------------------------------------------
| equity holders of the | 252 585 | 228 565 | 16 143 | 14 608 |
| Parent Company | | | | |
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| minority interest | 0 | 1 003 | 0 | 64 |
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| Basic earnings and | 0,91 | 0,83 | 0,06 | 0,05 |
| diluted earnings per | | | | |
| share (in kroons, euros) | | | | |
--------------------------------------------------------------------------------
Marko Raid
Chief Financial Officer
+372 6318047
Sven Ratassepp
Public Relations Manager
+372 6318064
