In Q4 2019, of the revenue and the adjusted EBITDA of AS Tallinna Sadam (hereafter: “the Group”) increased. Revenue amounted to EUR 30.0 million increasing by 1.5% in Q4 and the adjusted EBITDA was EUR 14.8 million increasing by 1.1%.
In 2019, the annual revenue was EUR 130.5 million and adjusted EBITDA amounted to EUR 74.3 million, both decreasing by 0.1% staying to the level of previous year. However, the profit for the year was an all-time record of EUR 44.4 million, exceeding the previous year's profit by EUR 20.0 million due to lower dividend income tax expenses, as in 2018 the Group paid an extraordinarily large amount of dividends of EUR 105 million.
According to Valdo Kalm, Chairman of the Management Board, the year 2019 was another eventful year for Tallinna Sadam and the divergent changes also influenced the financial results of the Group, which ultimately reached a high level of successful year 2018 and, thanks to a strong Q4, also achieved an all-time record in annual profit. “Passenger record, the rapid development of the Muuga-Vuosaari line, the increase in dry bulk volumes supported by a good grain season, the longer summer work period of the icebreaker Botnica in northern Canada and the revenue from the trips of the additional ferry on the Saaremaa route in summer contributed significantly to the annual results. On the other hand, the results were pressured by fluctuations and general drop in liquid cargo volumes and regular docking of several passenger vessels at the beginning of the year,” Kalm explained.
According to Valdo Kalm, Chairman of the Management Board, the increase in the Group’s revenue in Q4 as well as during the year was mainly influenced by the work of multifunctional icebreaker Botnica as an escort and ice management vessel in the northern part of Canada from June to November; and the growth of liquid cargo volumes and revenues. “The revenue from the trips of the additional ferry on the Saaremaa route in summer also contributed significantly to the annual results,” Kalm explained.
Tallinna Sadam will present the financial results of the Group at a webinar on 28 February at 11:00 EET, to attend, please register here. The webinar will be held in English.
Key figures (in million EUR):
| Q4 | Q4 | +/- | 2019 | 2018 | +/- | |
| 2019 | 2018 | |||||
| Revenue | 30.0 | 29.6 | 1.5% | 130.5 | 130.6 | -0.1% |
| Adjusted EBITDA | 14.8 | 14.7 | 1.1% | 74.3 | 74.4 | -0.1% |
| Adjusted EBITDA margin | 49.5% | 49.7% | -0.2 | 56.9% | 56.9% | 0.0 |
| Operating profit | 9.1 | 9.0 | 0.8% | 51.7 | 52.1 | -0.8% |
| Income tax | 0.0 | 0.1 | -100.0% | -5.8 | -26.2 | -78.0% |
| Profit for the period | 8.5 | 8.6 | -1.7% | 44.4 | 24.4 | 81.8% |
| Investments | 10.7 | 6.1 | 74.2% | 29.5 | 14.3 | 106.9% |
| 31.12.2019 | 31.12.2018 | +/- | |
| Total assets | 625.5 | 623.6 | 0.3% |
| Interest bearing debt | 207.8 | 213.6 | -2.7% |
| Other liabilities | 40.7 | 42.4 | -4.0% |
| Equity | 377.0 | 367.7 | 2.5% |
| Number of shares | 263.0 | 263.0 | 0.0% |
Revenue
Revenue for Q4 of 2019 grew by EUR 0.4 million, i.e. 1.5%, year on year but annual revenue decreased by EUR 0.1 million, i.e. 0.1%, to EUR 130.5 million. In 2019, in terms of segments, the most significant annual revenue change was in the Cargo harbours segment where revenue declined by EUR 1.6 million, i.e. 3.8%, attributable to a decline in the volume of liquid bulk cargo, which on the other hand was offset by the increase in dry bulk volumes and the addition of a new vessel to the Muuga-Vuosaari line in the second half of the year.
The revenue of the Passenger harbours segment remained at the same level as in 2018 due to increase in line- and cruise passenger volumes and despite of the regular dry docking of several passenger ships at the beginning of the year.
The revenue of the Ferry segment grew, mainly due to changes in the contractual fee rates, which are linked to the Estonian consumer and fuel price indices and wage inflation.
The revenue of the segment Other increased, mostly due to longer charter period during the summer season and the indexation of the ice-breaking and charter fees to the inflation index, regarding both winter and summer period works.
EBITDA
Adjusted EBITDA for Q4 grew by EUR 0.2 million, i.e. 1.1% year on year. The annual adjusted EBITDA remained at the level of 2018, decreasing by EUR 0.1 million to EUR 74.3 million, i.e. by 0.1%. The adjusted EBITDA margin remained stable at 56.9%.
Profit
Due to lower income tax expense, profit for 2019 reached an all-time high of EUR 44.4 million, exceeding profit for 2018 by EUR 20.0 million. Net profit for Q4 amounted to EUR 8.5 million.
Profit before tax decreased by EUR 0.5 million, i.e. 0.9%, to EUR 50.2 million in 2019. Profit before tax for the fourth quarter decreased by EUR 0.1 million year on year. Income tax expense decreased by EUR 20.4 million because in 2018 the Group declared a record dividend of EUR 105 million compared with EUR 35.2 million in 2019.
Investments
In Q4, capital investments totalled EUR 10.7 million. In 2019, the Group’s capital investments totalled EUR 29.5 million. This is more than twice the amount invested in 2018, when investments amounted to EUR 14.3 million. Investments of 2019 were mainly related to the Old City Harbour, where work continued on the reconstruction of passenger terminal D and the installation of on-shore power supply systems for passenger ships, and the Group co-financed the construction of the road Reidi tee. Dredging works were carried out in the approach canal and waters of the Paldiski South Harbour, quays and supplier routes were reconstructed at Muuga harbour, machinery and technical systems were renewed on board of the icebreaker Botnica, and scheduled dry docking work was done and service areas were rebuilt on the ferries.
Interim condensed consolidated statement of financial position:
| In thousands of euros | 31 December 2019 | 31 December 2018 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 35,183 | 42,563 |
| Trade and other receivables | 10,614 | 8,017 |
| Inventories | 408 | 305 |
| Non-current assets held for sale | 142 | 0 |
| Total current assets | 46,347 | 50,885 |
| Non-current assets | ||
| Investments in associates | 1,609 | 1,569 |
| Other long-term receivables | 294 | 196 |
| Property, plant and equipment | 575,267 | 568,965 |
| Intangible assets | 2,015 | 2,024 |
| Total non-current assets | 579,185 | 572,754 |
| Total assets | 625,532 | 623,639 |
| LIABILITIES | ||
| Current liabilities | ||
| Loans and borrowings | 16,266 | 15,766 |
| Derivative financial instruments | 243 | 425 |
| Provisions | 1,915 | 1,957 |
| Government grants | 193 | 174 |
| Taxes payable | 893 | 5,844 |
| Trade and other payables | 11,755 | 9,517 |
| Total current liabilities | 31,265 | 33,683 |
| Non-current liabilities | ||
| Loans and borrowings | 191,580 | 197,846 |
| Government grants | 24,754 | 23,418 |
| Other payables | 915 | 1,018 |
| Total non-current liabilities | 217,249 | 222,282 |
| Total liabilities | 248,514 | 255,965 |
| EQUITY | ||
| Share capital at par value | 263,000 | 263,000 |
| Share premium | 44,478 | 44,478 |
| Statutory capital reserve | 18,520 | 18,520 |
| Hedge reserve | -243 | -425 |
| Retained earnings (prior periods) | 6,859 | 17,678 |
| Profit for the period | 44,404 | 24,423 |
| Total equity | 377,018 | 367,674 |
| Total liabilities and equity | 625,532 | 623,639 |
Interim condensed consolidated statement of profit or loss:
| In thousands of euros | Q4 2019 | Q4 2018 | 2019 | 2018 |
| Revenue | 30,005 | 29,572 | 130,536 | 130,635 |
| Other income | 229 | 158 | 1,017 | 816 |
| Operating expenses | -9,212 | -9,347 | -36,669 | -37,360 |
| Personnel expenses | -5,740 | -5,508 | -19,867 | -19,420 |
| Depreciation, amortisation and impairment | -6,125 | -5,829 | -23,037 | -22,345 |
| Other expenses | -77 | -34 | -301 | -251 |
| Operating profit | 9,080 | 9,012 | 51,679 | 52,075 |
| Finance income and costs | ||||
| Finance income | 13 | 20 | 42 | 33 |
| Finance costs | -463 | -464 | -1,797 | -2,003 |
| Finance costs - net | -450 | -444 | -1,755 | -1,970 |
| Share of profit of an associate accounted for under the equity method | -173 | -18 | 244 | 517 |
| Profit before income tax | 8,457 | 8,550 | 50,168 | 50,622 |
| Income tax | 0 | 51 | -5,764 | -26,199 |
| Profit for the period | 8,457 | 8,601 | 44,404 | 24,423 |
| Attributable to owners of the Parent | 8,457 | 8,601 | 44,404 | 24,423 |
| Basic and diluted earnings per share (in euros) | 0.03 | 0.03 | 0.17 | 0.11 |
| Basic and diluted earnings per share - continuing operations (in euros) | 0.03 | 0.03 | 0.17 | 0.11 |
Interim condensed consolidated statement of cash flows:
| In thousands of euros | 2019 | 2018 |
| Cash receipts from sale of goods and services | 138,690 | 138,746 |
| Cash receipts related to other income | 193 | 104 |
| Other receipts | 0 | 2,600 |
| Payments to suppliers | -47,210 | -46,260 |
| Payments to and on behalf of employees | -16 892 | -16,461 |
| Payments for other expenses | -377 | -366 |
| Income tax paid on dividends | -10,985 | -21,250 |
| Cash from operating activities | 63,419 | 57,113 |
| Purchases of property, plant and equipment | -27,965 | -11,941 |
| Purchases of intangible assets | -550 | -618 |
| Proceeds from sale of property, plant and equipment | 39 | 12 |
| Dividends received | 204 | 204 |
| Interest received | 28 | 18 |
| Cash used in investing activities | -28,244 | -12,325 |
| Contributions to share capital | 0 | 119,883 |
| Redemption of debt securities | -9,000 | -12,650 |
| Loans received | 10,000 | 0 |
| Repayments of loans received | -6,766 | -6,766 |
| Change in overdraft (liability) | 0 | -2,565 |
| Repayments of finance lease principal | 0 | -7 |
| Dividends paid | -34,970 | -105,000 |
| Interest paid | -1,769 | -2,023 |
| Other payments related to financing activities | -50 | -51 |
| Cash from/used in financing activities | -42,555 | -9,179 |
| NET CASH FLOW | -7,380 | 35,609 |
| Cash and cash equivalents at beginning of the period | 42,563 | 6,954 |
| Change in cash and cash equivalents | -7,380 | 35,609 |
| Cash and cash equivalents at end of the period | 35,183 | 42,563 |
Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2019 serviced 10.64 million passengers and 19.9 million tons of cargo. 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. Tallinna Sadam group's sales in 2019 totalled EUR 130.5 million, adjusted EBITDA EUR 74.3 million and net profit EUR 44.4 million.
Additional information:
Marju Zirel
Head of Investor Relations
AS Tallinna Sadam
m.zirel@ts.ee
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