In the third quarter, Tallinna Sadam Group's revenue, adjusted EBITDA and profit increased year-on-year. Group revenue amounted to EUR 36 million in the third quarter, increasing by 13% compared to the same period last year. The group's adjusted EBITDA in the third quarter was EUR 18 million (+5%) and the profit was EUR 12 million (+11%). In the 9-month summary, the revenue was EUR 93 million (+15%), the adjusted EBITDA was EUR 47 million (+14%) and the profit was EUR 24 million (+26%).

The Group’s results were strongly affected by the lifting of the COVID-19 restrictions and recovery of passenger numbers, as well as the continued decline in cargo volumes. As a result of lifting the restrictions and increased passenger confidence, the number of passengers more than doubled in 9 months, especially on the Helsinki route (+137%), in addition, the number of cruise passengers more than tripled. However, compared to the pre-pandemic level of 2019, we are still 40% below in passenger numbers. The decline in cargo volumes is mainly due to the fourth consecutive quarter of decline in dry bulk and liquid bulk cargo volumes. In shipping, the strong third quarter was supported by additional voyages of ferry Regula based on growing demand; and chartering of Botnica at 100% utility rate.

The revenue and profit growth in both 9 months and the third quarter was driven by the continued strong recovery of the passenger business, which also covered the negative effects of the sanctions on cargo business. The 9-month revenue and adjusted EBITDA of the passenger harbours segment even exceeded the segment’s result of full year 2021. At the same time, the pressure of inflation on operating and labor costs strengthened, which reduced the EBITDA margin. The negative impact of the imposed sanctions has turned out to be smaller than expected, in 2022 it is estimated at EUR 2.5 million, as the sanctions have been implemented gradually during the year.

Tallinna Sadam management will present the financial results of the Group at a webinars on 10 November, including webinar in Estonian starting at 10.00 (EET) (link to EST webinar) and webinar in English starting at 11.00 (EET) (link to ENG webinar).

Key figures (in million EUR):

  Q3 Q3 +/– 9M 9M +/–
  2022 2021 % 2022 2021 %
Revenue 36.3 32.3 12.6 93.5 81.5 14.7
Adjusted EBITDA 18.0 17.1 5.4 46.9 41.2 13.7
Adjusted EBITDA margin 49.6% 52.9% -3.3 50.2% 50.6% -0.4
Operating profit 11.8 10.7 11.0 28.2 23.1 21.9
Income tax 0 0 0 –4.1 –3.3 25.5
Profit for the period 11.7 10.6 10.7 24.0 19.1 25.6
Investments 3.5 2.3 51.3 12.4 10.2 21.6


  30.09.2022 31.12.2021 +/–
Total assets 622.4 629.5 –1.1%
Interest bearing debt 159.5 203.3 –21.5%
Other liabilities 47.1 45.3 3.9%
Equity 379.3 380.9 –0.4%
Number of shares 263.0 263.0 0.0%

Major events in Q3:

  • Closing of operations in Paljassaare Harbour
  • The Competition Authority terminated supervision proceedings regarding the contractual penalty of Worldwide Cargo Establishment
  • The state will not exercise the option to purchase the ferries
  • New composition of the supervisory board took office in July, changes on the audit committee and remuneration committee
  • Changes in the supervisory boards of TS Shipping and Green Marine
  • AS Tallinna Sadam investor day ‘In the Winds of the Future’

Revenue
Revenue for the 9 months of 2022 grew by EUR 11.9 million (+14.7%) year on year to EUR 93.5 million. Growth was driven by 25% revenue growth in the second quarter, supported by an increase in the number of passengers as well as higher revenue from the operation of ferry service between Estonia’s mainland and two largest islands. All revenue streams increased except cargo charge, which fell slightly. The most increase came from passenger fee (+111%), operating lease (+13%), vessel dues (+6%) and ferry service revenue (+13%).
The nine-month revenue of the Passenger harbours segment grew by 46% year on year, mainly due to growth in passenger fee revenue through a surge in passenger numbers and growth in vessel dues. The segment also increased its lease income by leasing out new premises and electricity sales revenue which was supported by a rise in electricity prices. In the third quarter, revenue grew by 34% year on year to EUR 13.0 million.
The nine-month revenue of the Cargo harbours segment decreased by EUR 1.4 million year on year (–4.6%). The segment’s vessel dues revenue dropped by EUR 2.0 million (–13%) due to a decline in dry bulk and liquid bulk cargo. Cargo charges decreased (EUR –143 thousand) as well but the decline in cargo charges was significantly smaller than the decrease in cargo throughput due to changes in the cargo structure. Lease income grew by EUR 281 thousand due to changes in lease rates and electricity sales revenue increased by EUR 659 thousand.
In the third quarter, the revenue of the Cargo harbours segment decreased by EUR 1.5 million year on year.
The nine-month revenue of the Ferry segment grew by EUR 3.2 million (+13.7%) due to growth in both ferry service revenue and lease income. Ferry service revenue grew through a rise in contractual fees due to an increase in the Estonian fuel cost, employment cost and consumer price indices and growth in the number of trips. In the third quarter, the revenue of the Ferry segment grew by EUR 1.6 million year on year (+18.5%).
The revenue of the segment Other grew by 10.2% in the first nine months and by 22.2% in the third quarter. Revenue growth was supported by the revision of the contractual fee due to the indexation of the fee rates.

EBITDA
Adjusted EBITDA for the first nine months grew by EUR 5.6 million (+13.7%) year on year to EUR 46.9 million. The strongest contributors were the Passenger harbours segment (EUR +6.7 million) and the Ferry segment (EUR +1.4 million). In the Cargo harbours segment, adjusted EBITDA decreased by EUR 3.2 million due to smaller cargo throughput. In the third quarter, EBITDA grew by EUR 0.9 million (+5.4%) year on year. The strongest contributor was the Passenger harbours segment (EUR +2.1 million). The adjusted EBITDA margin for nine months decreased from 50.6% to 50.2% and the adjusted EBITDA margin for the third quarter decreased from 52.9% to 49.6% compared with the same period last year.

Profit
Profit for the first nine months amounted to EUR 24.0 million, exceeding the profit for the comparative period by EUR 4.9 million (+25.6%). Third-quarter profit was EUR 11.7 million (EUR +1.1 million). Profit before tax for the first nine months grew by EUR 5.7 million (+25.6%) compared with the same period last year, rising to EUR 28.1 million.

Investments
In the first nine months of 2022, the Group invested EUR 12.4 million, EUR 2.2 million more than a year earlier. Investments were mainly made in reconstructing the outdoor area around Terminal D, upgrading the quay equipment and reconstructing the shoreline reinforcements in Old City Harbour and increasing the capacity of Muuga Harbour to serve ro-ro cargo. Investments of the third quarter totalled EUR 3.5 million (Q3 2021: EUR 2.3 million).

Interim condensed consolidated statement of financial position:

In thousands of euros 30 September 2022 31 December 2021
ASSETS   
   
Current assets   
Cash and cash equivalents 36 416 34 840
Trade and other receivables 11 117 14 151
Contract assets 457 0
Inventories 507 399
Total current assets 48 497 49 390
   
Non-current assets   
Investments in associates 2 118 1 559
Other long-term receivables 379 896
Property, plant and equipment 569 384 575 563
Intangible assets 2 006 2 130
Total non-current assets 573 887 580 148
Total assets 622 384 629 538
   
LIABILITIES   
   
Current liabilities   
Loans and borrowings 15 916 15 916
Provisions 1 253 1 572
Government grants 551 1 223
Taxes payable 1 603 890
Trade and other payables 10 159 10 291
Contract liabilities 1 839 57
Total current liabilities 31 321 29 949
   
Non-current liabilities   
Loans and borrowings 180 015 187 398
Government grants 30 422 29 835
Other payables 504 652
Contract liabilities 778 809
Total non-current liabilities 211 719 218 694
Total liabilities 243 040 248 643
EQUITY   
Share capital at par value 263 000 263 000
Share premium 44 478 44 478
Statutory capital reserve 22 115 21 271
Retained earnings (prior periods) 25 791 26 534
Profit for the period 23 960 25 612
Total equity 379 344 380 895
Total liabilities and equity 622 384 629 538

Interim condensed consolidated statement of profit or loss:

     
In thousands of euros  Q3 2022  Q3 2021 9M 2022 9M 2021
     
Revenue 36 325 32 263 93 460 81 511
Other income 412 379 1 140 1 037
Operating expenses –12 763 –10 081 –31 267 –25 454
Personnel expenses –5 885 –5 370 –16 210 –15 114
Depreciation, amortisation and impairment –6 191 –6 405 –18 703 –18 502
Other expenses –55 –116 –249 –369
Operating profit 11 843 10 670 28 171 23 109
     
Finance income and costs     
Finance income 32 23 97 60
Finance costs –404 –341 –1 011 –1 082
Finance costs – net –372 –318 –914 –1 022
     
Share of profit of an associate accounted
for under the equity method 		237 224 814 265
Profit before income tax 11 708 10 576 28 071 22 352
     
Income tax 0 0 –4 111 –3 275
Profit for the period 11 708 10 576 23 960 19 077
Attributable to owners of the Parent 11 708 10 576 23 960 19 077
         
Basic and diluted earnings per share (in euros) 0.04 0.04 0.09 0.07
Basic and diluted earnings per share
 – continuing operations (in euros) 		0.04 0.04 0.09 0.07

Interim condensed consolidated statement of cash flows:

   
In thousands of euros 9M 2022 9M 2021
   
Cash receipts from sale of goods and services 101 077 87 777
Cash receipts related to other income 135 83
Payments to suppliers –38 682 –30 919
Payments to and on behalf of employees –14 673 –13 877
Payments for other expenses –296 –376
Income tax paid on dividends –4 335 –3 440
Cash from operating activities 43 226 39 248
   
Purchases of property, plant and equipment –12 932 –11 516
Purchases of intangible assets –346 –525
Proceeds from sale of property, plant and equipment 91 523
Proceeds from government grants related to assets 4 924 0
Dividends received 255 0
Interest received 3 2
Cash used in investing activities –8 005 –11 516
Repayments of loans received –7 383 –7 383
Dividends paid –25 287 –20 085
Interest paid –968 –1 218
Other payments related to financing activities –7 –1
Cash from/used in financing activities –33 645 –28 687
NET CASH FLOW 1 576 –955
Cash and cash equivalents at beginning of the period 34 840 26 679
Change in cash and cash equivalents 1 576 –955
Cash and cash equivalents at end of the period 36 416 25 724

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 interim report Q3 2022 ENG
  • Tallinna Sadam Financial Results Q3 2022 Data
  • Tallinna Sadam Q3 2022 webinar ENG

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