Turismo
AS Tallinna Sadam financial results for 2018 4th quarter and 12 months
In 2018, adjusted EBITDA amounted to EUR 74.4 million, i.e. 11.8% increase compared to 2017. Due to EUR 14.2 million larger income tax expense on record high dividend, 2018 ended in a net profit of EUR 24.4 million, a decrease of EUR 2.0 million compared to the profit earned in 2017.
According to Valdo Kalm, Chairman of the Management Board, the increase in the Group's revenue in the fourth quarter 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.
Key figures (in million EUR):
Revenue
Revenue for the fourth quarter improved by EUR 2.5 million, i.e. 9.2% year on year, and annual revenue for 2018 grew by EUR 9.3 million, i.e. by 7.7%, to a record-high EUR 130.6 million. The annual revenue growth was most affected by the segment “other” (by EUR 4.3 million, i.e. 95% y-o-y) due to the summer season work of the icebreaker Botnica providing escort and ice management services in northern Canada from the end of June until November.
In the ferry segment the revenue grew in the fourth quarter by EUR 0.4 million, i.e. 5% year-on-year, due to a rise in Estonia's consumer and fuel price indexes, which generated higher fee rates of the service. On annual basis, the revenue of the ferry segment increased by EUR 3.0 million, i.e. 11.1% mainly due to an additional ferry put in service for the summer season (June-August).
In the cargo harbours' segment, the revenue increased, mainly due to continuous growth in the volume of liquid bulk cargo in the fourth quarter, increasing the segment's annual revenue to EUR 41.7 million, i.e. 4.9% growth year-on-year.
In the passenger harbours' segment the revenue slightly decreased in fourth quarter. Still, annually it increased, due to the growth in passenger numbers, which was mainly supported by the increase of the number of cruise passengers.
EBITDA
Adjusted EBITDA for the fourth quarter grew by EUR 1.9 million year on year, mainly through the impact of revenue from chartering the icebreaker Botnica out for the summer season which ended in November, and growth in the volume of liquid bulk cargo. Adjusted EBITDA for 2018 grew by EUR 7.9 million to EUR 74.4 million. Adjusted EBITDA margin for 2018 rose from previous year's 54.8% to 56.9%, underpinned by the combined effect of an increase in revenue and a decrease in expenses.
Net profit
Profit before tax grew by EUR 12.2 million, i.e. 32% to EUR 50.6 million in 2018. Fourth-quarter profit before tax grew by EUR 7.6 million. In connection with the declaration of a record high dividend of EUR 105 million in 2018 (2917: EUR 48 million), income tax expense increased by EUR 14.2 million to EUR 26.2 million. Due to larger income tax expense, 2018 ended in a net profit of EUR 24.4 million, a decrease of EUR 2.0 million compared to the profit earned in 2017. The net result for the fourth quarter was a profit of EUR 8.6 million (2017: EUR 1.0 million).
Investments
Investments made in the fourth quarter totalled EUR 3.7 million. In 2018, the Group invested EUR 14.3 million. The figure is 60% smaller than in 2017 when investments totalled EUR 35.8 million of which EUR 20 million was spent on the construction of new ferries. In 2018, the largest investments were made into the reconstruction of traffic areas and the implementation of automated traffic control system (Smart Port) as well as the starting of reconstruction of Terminal D building at the Old City Harbour.
Interim condensed consolidated statement of financial position:
Interim condensed consolidated statement of profit or loss:
Interim condensed consolidated statement of cash flows:
Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which in 2018 serviced 10.6 million passengers and 20.6 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 m/v Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder in an associate AS Green Marine, which provides waste management services.
Marko Raid
CFO, Member of the Management Board
Additional information:
Marju Zirel
Head of Investor Relations
AS Tallinna Sadam
m.zirel@ts.ee
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