In the third quarter, year on year, the revenue of AS Tallinna Sadam increased, but adjusted EBITDA and profit decreased. Revenue amounted to EUR 32 million in the third quarter, increasing by 2% year on year. The Group's adjusted EBITDA in the third quarter was EUR 17 million (–14%) and the profit amounted to EUR 11 million (–23%). In the first nine months, revenue was EUR 82 million (–1%), adjusted EBITDA EUR 41 million (–11%) and profit EUR 19 million (–16%).
The Group’s results were still strongly influenced by cross-border travel restrictions between countries put in place due to the COVID-19 pandemic, which had a particularly strong effect on the performance of the passenger harbours segment. As a result of the restrictions, passenger numbers dropped sharply year on year, particularly in the first quarter but the figure for the third quarter decreased somewhat as well. The number of port calls by ferries grew slightly year on year and there were also 39 port calls by cruise ships, compared with none last year. In Q3 and 9 months, cargo throughput continued to grow vigorously through growth in liquid bulk, ro-ro and dry bulk cargo.
According to Valdo Kalm, Chairman of the Management Board of Tallinna Sadam, in addition to the significant decrease in the number of passengers caused by the pandemic, the company must also take into account the pressure on the cost base by higher prices for services and steeply rising energy prices, which have a direct impact on the transport sector as a whole. The increase in costs was also due to the lower-than-usual reference base due to the austerity measures implemented in 2020. Last year's profit was also supported by a one-time profit from the sale of assets, mainly in Paljassaare Harbor. "However, even in today's difficult situation, a diverse business model will help to maintain strong profits and we will keep the promised dividend level," said Kalm.
The CEO and the head of investor relations of Tallinna Sadam will present the financial results of the Group at a webinar on 10 November at 11:00 Estonian time (EET), to attend, please click here. The webinar will be held in English.
Key figures (in million EUR):
Q3
Q3
+/–
9M
9M
+/–
2021
2020
%
2021
2020
%
Revenue
32.2
31.8
1.6
81.5
82.1
–0.7
Adjusted EBITDA
17.1
19.9
–14.2
41.2
46.3
–10.9
Adjusted EBITDA margin
52.9%
62.7%
–9.8
50.6%
56.4%
–5.8
Operating profit
10.7
14.2
–24.8
23.1
29.3
–21.1
Income tax
0
0
–
–3.3
–4.9
–33.3
Profit for the period
10.6
13.6
–22.5
19.1
22.8
–16.3
Investments
2.3
11.5
–80.2
10.2
28.9
–64.7
30.09.2021
31.12.2020
+/–
Total assets
622.9
628.1
–1.5%
Interest bearing debt
204.2
211.6
–3.5%
Other liabilities
44.4
41.1
8.0%
Equity
374.4
375.4
–0.3%
Number of shares (mln)
263.0
263.0
0.0%
Significant events in Q3:
Opening of cruise terminal and promenade
HHLA new container cranes at the Muuga harbor
Incident with the ferry Tõll
Opening of the Admiral Bridge
Investor Day at the cruise terminal
Extension of Katoen Natie terminal in Muuga
Cruise terminal and promenade was awarded as Tallinn Development Project 2021
Revenue Revenue for the third quarter grew by EUR 0.5 million (+1.6%). Revenue for the first 9 months declined by EUR 0.5 million (–0.7%) amounting to EUR 81.5 million. The decrease is attributable to the first quarter because there were no COVID-19-related restrictions or impacts at the beginning of last year. In terms of revenue streams, the decline appeared in passenger fees revenue (–39%) and vessel dues revenue (–1%), other revenue streams increased, the most in the sale of electricity (+35%), ferry service (+2%) and cargo charge revenue (+6%). The nine-month revenue of the Passenger harbours segment decreased by EUR 2.2 million (–10%) year on year, mainly because passenger fees revenue dropped due to a decline in the number of passengers (primarily in the first quarter) in connection with COVID-19-related travel restrictions. In Q3 the revenue of the Passenger harbours segment decreased by EUR 0.4 million year on year (–4%). The nine-month revenue of the Cargo harbours segment grew by EUR 1.2 million (+4%) due to the combined effect of various revenue items but mostly through growth in electricity sales. The Q3 revenue of the Cargo harbours segment grew by EUR 0.5 million for the same reasons. The revenue of the Ferry segment grew by EUR 0.5 million (+2.2%) through slight growth in ferry service revenue as well as lease revenue which in the comparative period was lowered by a decline in passenger traffic caused by travel restrictions. The Q3 revenue of the Ferry segment grew by EUR 0.3 million. The nine-months revenue of the segment Other remained stable year on year. There was no significant change in the revenue for Q3.
EBITDA Adjusted EBITDA for Q3 dropped by EUR 2.8 million (–14%), mostly due to Passenger harbours segement (EUR –3.0 million). Adjusted EBITDA for 9 months decreased by EUR 5.1 million (–11%). In segment terms, adjusted EBITDA for Q3 increased slightly in the segment Other and declined in all other segments, the most in the Passenger harbours segment. Adjusted EBITDA margin declined in 9 months from 56.4% to 50.6%. In Q3 the margin fell slightly from 62.7% to 52.9%.
Profit Profit for the third quarter was EUR 10.6 million, which is EUR 3.1 million less than in the comparative period. Profit for 9 months was EUR 19.1 million (EUR –3.7 million). Profit decreased less than operating profit because net finance costs decreased and the result of the Group’s equity-accounted associate Green Marine improved
Investments Investments of the third quarter totalled EUR 2.3 million (Q3 2020: EUR 11.5 million). In the first nine months of 2021, the Group invested EUR 10.2 million, significantly less than in the same period last year (EUR 28.9 million). Investments of the period were mostly made in the completion of the construction of a cruise terminal and a promenade and the construction of a footbridge at Old City Harbour.
Interim condensed consolidated statement of financial position:
In thousands of euros
30 September 2021
31 December 2020
ASSETS
Current assets
Cash and cash equivalents
25,724
26,679
Trade and other receivables
12,981
10,183
Contract assets
692
0
Inventories
276
360
Non-current assets held for sale
0
114
Total current assets
39,673
37,336
Non-current assets
Investments in associates
1,412
1,147
Other long-term receivables
530
0
Property, plant and equipment
579,144
587,506
Intangible assets
2,175
2,104
Total non-current assets
583,261
590,757
Total assets
622,934
628,093
LIABILITIES
Current liabilities
Loans and borrowings
17,266
17,266
Derivative financial instruments
0
102
Provisions
1,170
1,289
Government grants
2,011
1,919
Taxes payable
1,542
744
Trade and other payables
8,564
9,149
Total current liabilities
1,821
30,469
Non-current liabilities
Loans and borrowings
186,931
194,314
Government grants
27,688
26,145
Other payables
722
841
Contract liabilities
859
892
Total non-current liabilities
216,200
222,192
Total liabilities
248,574
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
19,077
28,518
Total equity
374,360
375,432
Total liabilities and equity
622,934
628,093
Interim condensed consolidated statement of profit or loss:
In thousands of euros
Q3 2021
Q3 2020
9M 2021
9M 2020
Revenue
32,263
31,767
81,511
82,055
Other income
379
823
1,037
2,793
Operating expenses
–10,081
–7,744
–25,454
–23,281
Personnel expenses
–5,370
–4,581
–15,114
–14,065
Depreciation, amortisation and impairment
–6,405
–5,983
–18,502
–17,895
Other expenses
–116
–89
–369
–302
Operating profit
10,670
14,193
23,109
29,305
Finance income and costs
Finance income
23
5
60
29
Finance costs
–341
–482
–1,082
–1,295
Finance costs – net
–318
–477
–1,022
–1,266
Share of profit of an associate accounted for under the equity method
224
–72
265
–331
Profit before income tax
10,576
13,644
22,352
27,708
Income tax
0
0
–3,275
–4,913
Profit for the period
10,576
13,644
19,077
22,795
Attributable to owners of the Parent
10,576
13,644
19,077
22,795
Basic and diluted earnings per share (in euros)
0.04
0.05
0.07
0.09
Basic and diluted earnings per share – continuing operations (in euros)
0.04
0.05
0.07
0.09
Interim condensed consolidated statement of cash flows:
In thousands of euros
9M 2021
9M 2020
Cash receipts from sale of goods and services
87,777
86,160
Cash receipts related to other income
83
31
Payments to suppliers
–30,919
–31,146
Payments to and on behalf of employees
–13,877
–11,758
Payments for other expenses
–376
–327
Other payments
0
–2,600
Income tax paid on dividends
–3,440
–4,913
Cash from operating activities
39,248
35,447
Purchases of property, plant and equipment
–11,516
–28,134
Purchases of intangible assets
–525
–348
Proceeds from sale of property, plant and equipment
523
1,618
Government grants received
0
2,061
Interest received
2
15
Cash used in investing activities
–11,516
–24,788
Proceeds from loans received
0
10,000
Repayments of loans received
–7,383
–6,383
Dividends paid
–20,085
–30,008
Interest paid
–1,218
–1,331
Other payments related to financing activities
–1
–11
Cash from/used in financing activities
–28,687
–27,733
NET CASH FLOW
–955
–17,074
Cash and cash equivalents at beginning of the period
26,679
35,183
Change in cash and cash equivalents
–955
–17,074
Cash and cash equivalents at end of the period
25,724
18,109
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. The group’s sales in 2020 totalled EUR 107.4 million, adjusted EBITDA EUR 58.4 million and profit EUR 28.5 million.
Additional information:
Marju Zirel Head of Investor Relations Tel. +372 5342 6591
Tallinna Sadam AS is an Estonia-based company, which is involved managing and developing port infrastructure and organizing vessel traffic in the port basin. The Company reports three segments: Passenger harbors segment offers passengers transportation from Estonia to Sweden, Finland and Russia; Cargo harbors segment offers transportation of solid and liquid bulk goods, general cargo, as well as the container and rolling stock cargo, and Other segment includes ice-breaking services and various maritime support services. It holds five harbors: Old City, Saaremaa, Muuga, Paljassaare and Paldiski South. The Old City Harbor in the centre of Tallinn, together with the Old City Marina for small vessels and the Saaremaa Harbor, used mostly for receiving cruise liners, are focused on providing passenger port services. Muuga Harbor, Paldiski South Harbor, and the Paljassaare Harbor that services mostly ship repair companies, are focused on providing cargo port services.
AS TALLINNA SADAM 
