In the fourth quarter, both sales revenue (+13%), adjusted EBITDA (+6%) and profit (+14%) increased. Growth in passenger volume and ferry calls increased revenue in the Passenger harbours segment, which made the biggest contribution to the improvement in the Group’s financial performance. However, profitability indicators improved less than revenue because surging energy prices and some major maintenance and repair works

In 2021, the Group’s revenue increased to EUR 110.1 million (+3%) supported by all segments, adjusted EBITDA was EUR 54 million (–8%) and profit amounted to EUR 25.6 million (–10%). Adjusted EBITDA margin decreased by 5.3 percentage points; the volume of investments was EUR 14.7 million (–60%). Due to the impact of the ongoing global COVID-19 crisis, the number of passengers passing through the Group’s harbours in 2021 decreasing to EUR 3.5 million (–18%), cargo volume, on the other hand, reached the past six years’ highest level of 22.4 million tonnes (+5%).

According to Valdo Kalm, Chairman of the Management Board of Tallinna Sadam, the company was able to increase revenue in all business areas despite the negative impact of the pandemic. In addition to the corona virus crisis, the Group's financial results were also affected by the energy crisis. "However, in the last quarter of the year we already saw a sharp increase in the number of passengers and passenger ship calls, which is a sign that the impact of the pandemic on the passenger business is starting to recede. We welcome the return of cruise passengers and the reopening of the Tallinn-Stockholm route. In terms of cargo volume, we made a record volume in the last six years and we continued at steady course in shipping. We believe that in the coming years, the pandemic will affect our business less and less," said Kalm.

"Despite the crisis, we continued to invest and in the summer the cruise terminal, the promenade and the Admiral Bridge were completed in the Old City Harbour, which will connect the harbour area with the urban space and create an attractive environment for the real estate development of the Old City Harbour in the near future," Kalm noted. "Last year, we continued to reduce the negative footprint of our business - greenhouse gas emissions from our direct sources of pollution decreased by 10%. The shipping companies connected their ships calling at the Old City Harbour to onshore power, and automated mooring operations started from December, reducing air pollution and noise in the Old City Harbour and saving valuable time. At the beginning of last year, we switched to the consumption of electricity produced only from renewable sources, and in business development we are intensively engaged in the development of offshore wind farms and the application of hydrogen technology in port operations.”

Tallinna Sadam will present the financial results of the Group at a webinar on 28 February at 11:00 (EET), to attend, please click here. The webinar will be held in English.

Key figures (in million EUR):

  Q4 Q4 +/– 2021 2020 +/–
  2021 2020 %     %
Revenue 28.5 25.3 12.8 110.1 107.4 2.5
Adjusted EBITDA 12.8 12.1 5.7 54.0 58.4 –7.5
Adjusted EBITDA margin 44.9% 47.9% –3.0 49.1% 54.4% –5.3
Operating profit 6.6 6.3 6.3 29.8 35.6 –16.3
Income tax 0,0 0.0 – –3.3 –4.9 –33.3
Profit for the period 6.5 5.7 14.2 25.6 28.5 –10.2
Investments 4.5 8.2 –45.2 14.7 37.1 –60.4


 31.12.202131.12.2020 +/–
Total assets 629.5 628.1 0.2%
Interest bearing debt 203.3 211.6 –3.9%
Other liabilities 45.3 41.1 10.3%
Equity 380.9 375.4 1.5%
Number of shares 263.0 263.0 0.0%

Major events in Q4:

  • The impact of the COVID-19 pandemic continued
  • Past six years’ record cargo volume in 2021 – 22.4 million tons
  • Increase in the number of passengers in Q4 +93% year-on-year due to lifting of travel restrictions
  • Establishment of a remuneration committee
  • Worldwide Caro Establishment’s appeal denied by court
  • Rene Pärt was appointed as a new member of the supervisory board of OÜ TS Laevad
  • Court dispute over port dues with AS Tallink Grupp (compromise agreement reached in the beginning of 2022)
  • Cruise terminal and promenade was awarded as “Tallinn Development Project 2021”
  • Admiral Bridge was awarded as “Structure of the Year 2021”
  • Automated mooring system started to serve ships sailing on the Tallinn-Helsinki route

Revenue
Revenue for 2021 was EUR 110.1 million, EUR 2.7 million (+2.5%) up from a year earlier. Most revenue streams showed growth. The increase was the largest in electricity sales, which grew by EUR 1.8 million (+40%), mainly due to a sharp rise in the electricity price and the launch of onshore power supply service. Passenger fee revenue decreased the most, dropping by 1.4 million euros (–19%) to EUR 5.7 million consistent with the decrease in the number of passengers.
Revenue for the fourth quarter of 2021 grew to EUR 28.5 million (+13%). Revenue growth was mainly attributable to a rise in the number of passengers and ferry calls, which increased passenger fee and vessel due revenues in the Passenger harbours segment, and growth in the charter fee revenue from the icebreaker Botnica.
Annual revenue of the Passenger harbours segment remained stable year on year. Passenger fee revenue decreased by EUR 1.4 million due to a decline in the number of passengers due to the COVID-19 restrictions. This was offset by growth in revenue from vessel dues on cruise ship calls (there were no cruise ship calls in 2020). The fourth quarter revenue of the Passenger harbours segment grew to EUR 8.4 million (+36%).
Annual revenue of the Cargo harbours segment increased mainly through the effect of revenue from the sale of electricity, which grew due to a sharp rise in the electricity price. Cargo charge revenue increased in connection with growth in cargo volumes. Revenue from vessel dues decreased, particularly due to lower volumes of liquid bulk cargo and stiff competition that lowered margins. The fourth quarter revenue of the Cargo harbours segment decreased to EUR 10.4 million (–1.7%).
Annual revenue of the Ferry segment grew mostly through the effect of the indexation of the contractual fee rates to the price indices and a higher number of trips made (in spring 2020 the number of trips was reduced due to the COVID-19 restrictions). The fourth quarter revenue grew to EUR 7.4 million (+6.7%).
Annual revenue of the segment Other grew because at the request of the Canadian customer the summer charter of the icebreaker Botnica was extended. Revenue growth was supported by the indexation of the icebreaking and summer charter fee rates to the inflation index. The fourth quarter revenue grew to EUR 2.3 million (+45%).

EBITDA
Adjusted EBITDA dropped by EUR 4.4 million (–7.5%) to EUR 54.0 million due to a decrease in the Cargo harbours, Passenger harbours and Ferry segments. Adjusted EBITDA margin declined from 54.4% to 49.1%. Adjusted EBITDA for the fourth quarter grew by EUR 0.7 million (+5.7%) year on year.

Profit
The Group’s net profit for 2021 amounted to EUR 25.6 million, which is EUR 2.9 million (–10%) less than a year earlier. Net profit for the fourth quarter was EUR 6.5 million (+14%).

Investments
The Group’s capital investments in 2021 totalled EUR 14.7 million (–60%), which is the past five years’ lowest level because most major works carried out in recent years were completed in 2020. The main capital investments in 2021 were again made at Old City Harbour, where the largest completed projects included the construction of a cruise terminal with a promenade and a movable footbridge across the canal of the Admiralty Basin. The Group started to reconstruct the outdoor area surrounding Terminal D. The largest works at Muuga Harbour were related to developing the conditions of ro-ro traffic and improving traffic conditions in the harbour area. In the Ferry segment, the largest works included scheduled dry-dock maintenance of ferries and development of electronic interfaces for customer service. The investment in the sixth ferry, which was planned a year earlier, was not made, as the state decided to order the vessel not through OÜ TS Laevad, but through the Transport Administration. On the icebreaker Botnica, the machinery control system was renewed and other technical systems were upgraded.
Fourth quarter capital investments amounted to EUR 4.5 million (–45%).

Interim condensed consolidated statement of financial position:

In thousands of euros 31 December 2021 31 December 2020
ASSETS   
   
Current assets   
Cash and cash equivalents 34,840 26,679
Trade and other receivables 14,151 10,183
Inventories 399 360
Non-current assets held for sale 0 114
Total current assets 49,390 37,336
   
Non-current assets   
Investments in associates 1,559 1,147
Other long-term receivables 896 0
Property, plant and equipment 575,563 587,506
Intangible assets 2,130 2,104
Total non-current assets 580,148 590,757
   
Total assets 629,538 628,093
   
LIABILITIES   
   
Current liabilities   
Loans and borrowings 15,916 17,266
Derivative financial instruments 0 102
Provisions 1,572 1,289
Government grants 1,223 1,919
Taxes payable 890 744
Trade and other payables 10,348 9,149
Total current liabilities 29,949 30,469
   
Non-current liabilities   
Loans and borrowings 187,398 194,314
Government grants 29,835 26,145
Other payables 1,461 1,733
Total non-current liabilities 218,694 222,192
   
Total liabilities 248,643 252,661
   
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 25,612 28,518
Total equity 380,895 375,432
   
Total liabilities and equity 629,538 628,093

Interim condensed consolidated statement of profit or loss:

     
In thousands of euros  Q4 2021  Q4 2020 2021 2020
     
Revenue 28,540 25,303 110,051 107,358
Other income 742 223 1,779 3,015
Operating expenses –10,508 –7,576 –35,962 –30,858
Personnel expenses –5,807 –5,426 –20,920 –19,491
Depreciation, amortisation and impairment –6,258 –6,199 –24,761 –24,094
Other expenses –60 –68 –429 –368
Operating profit 6,649 6,257 29,758 35,562
     
Finance income and costs     
Finance income 35 7 95 36
Finance costs –296 –410 –1,378 –1,705
Finance costs – net –261 –403 –1,283 –1,669
     
Share of profit of an associate accounted
for under the equity method 		146 –130 412 –462
Profit before income tax 6,534 5,724 28,887 33,431
     
Income tax 0 0 –3,275 –4,913
Profit for the period 6,534 5,724 25,612 28,518
Attributable to owners of the Parent  6,534  5,724  25,612  28,518
         
Basic and diluted earnings per share (in euros) 0.02 0.02 0.10 0.11
Basic and diluted earnings per share
 – continuing operations (in euros) 		0.02 0.02 0.10 0.11

Interim condensed consolidated statement of cash flows:

   
In thousands of euros 2021 2020
   
Cash receipts from sale of goods and services 117,001 114,378
Cash receipts related to other income 144 94
Payments to suppliers –44,427 –41,354
Payments to and on behalf of employees –18,665 –15,713
Payments for other expenses –451 –376
Other payments 0 –2,600
Income tax paid on dividends –3,440 –4,913
Cash from operating activities 50,162 49,516
   
Purchases of property, plant and equipment –14,535 –35,811
Purchases of intangible assets –641 –661
Proceeds from sale of property, plant and equipment 2,573 2,863
Government grants received 409 3,561
Interest received 3 15
Cash used in investing activities –12,191 –30,033
Redemption of debt securities 0 –9,000
Loans received 0 20,000
Repayments of loans received –8,266 –7,266
Dividends paid –20,085 –30,008
Interest paid –1,458 –1,694
Other payments related to financing activities –1 –19
Cash from/used in financing activities –29,810 –27,987
NET CASH FLOW 8,161 –8,504
Cash and cash equivalents at beginning of the period 26,679 35,183
Change in cash and cash equivalents 8,161 –8,504
Cash and cash equivalents at end of the period 34,840 26,679

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 2021 totalled EUR 110 million, adjusted EBITDA EUR 54 million and profit EUR 26 million.

Additional information:

Marju Zirel
Head of Investor Relations
Tel. +372 5342 6591

m.zirel@ts.ee

Attachments

  • Tallinna Sadam Q4 2021 ENG
  • Tallinna-Sadam-Financial-Results-Q4-2021-Data
  • Tallinna Sadam Q4 2021 webinar ENG

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