AS Tallinna Sadam financial results for 2024 9 months and Q3

Tallinna Sadam earned 91 million euros in sales revenue in 9 months, 2.5% more than a year earlier, EBITDA of 41 million euros increased by 5.4%, and the profit was 14.1% higher - 15 million euros. Sales revenue in the third quarter was 31 million euros (-0.7%), EBITDA 13 million euros (-1.7%) and profit nearly 6 million euros (-6.5%). In 9 months, we invested a total of over 33 million euros, including 8 million euros in the third quarter.

"The results of the third quarter in terms of cargo volumes exceeded expectations," comments Valdo Kalm, the Chairman of the Management Board. "Cargo volumes increased in all types, the number of passengers has also increased. We are especially pleased with the increase in the number of ship visits, both for cargo and passenger ships, which account for the majority of port operating revenues. Turnover increased both in ports and ferries. Unfortunately, the otherwise good results were affected by Botnica's technical failure, due to which the cooperation with BP Exploration Operating Company Ltd ended earlier than expected. However, the execution of the new contract in Northern Canada started on time. In September, we signed an agreement for operating ferry services between the mainland and the largest islands until 2033, which in long-term perspective ensures stability and sustainability in our field of shipping. Also, we are optimistic about the development of renewable energy projects and related negotiations in the ports of Muuga and Paldiski."

In 9 months, the number of passengers increased by 3.2% (4.3% in the third quarter) and cargo volumes by 2.0% (7.2% in the third quarter), the number of ship visits increased by 0.4% (5.9% in the third quarter). In shipping, passenger ferries showed stable growth - the number of passengers increased by 1.6% (1.4% in the third quarter) and the number of vehicles by 3.0% (3.0% in the third quarter). Chartering days of Botnica decreased by 58% in the third quarter, while in 9 months they remained at a similar level to the previous year.

Tallinna Sadam management will present the financial results of the Group at webinars on 11 November, including webinar in Estonian starting at 10.00 (EEST) (link to EST webinar) and webinar in English starting at 11.00 (EEST) (link to ENG webinar).

Materials related to the interim report can be found attached to this notice and on our website: https://www.ts.ee/en/investor/interim-reports/
https://www.ts.ee/en/investor/presentations/.

Key figures (in million EUR):

	Q3	Q3	+/–	9M	9M	+/–
	2024	2023	%	2024	2023	%
Revenue	31.2	31.4	–0.7%	90.8	88.6	2.5%
Adjusted EBITDA	13.3	13.5	–1.7%	40.9	38.8	5.4%
Adjusted EBITDA margin	42.6%	43.0%	–0.4	45.0%	43.8%	1.2
Operating profit	7.3	7.4	–2.4%	23.2	20.0	16.0%
Income tax	0.0	0.0	0.0	3.1	3.0	4.7%
Profit for the period	5.6	6.0	–6.5%	14.9	13.0	14.1%
Investments	8.4	4.8	0.8	33.5	10.9	206.9%

	30.09.2024	31.12.2023	+/–
Total assets	613.0	606.2	1.1%
Interest bearing debt	183.7	173.4	5.9%
Other liabilities	56.0	55.1	1.6%
Equity	373.3	377.7	-1.2%
Number of shares	263.0	263.0	0.0%

Major events in Q3:

• Conclusion of the ferry service contract for the period 2026-2033
• EU funding for the joint project of the ports of Tallinn and Helsinki TWIN-PORT VI
• The offshore contract of the icebreaker Botnica with BP Exploration Operating Company Ltd ended earlier than planned
• Aditional trips of passenger ferry Regula in the summer of 2024
• Appeal to the judgment regarding the former managers of the Port of Tallinn
• Termination of OÜ MPG AgroProduction restructuring proceedings and continuation of the bankruptcy process
• Signing an unsecured loan agreement with Swedbank

Revenue
Revenue for nine months increased by EUR 2.2 million (+2.5%) year on year to EUR 90.8 million, supported by higher charter fees from the icebreaker MSV Botnica, higher revenue from ferry service between Estonia’s mainland and two largest islands, higher revenue from other services and higher lease income. In terms of revenue streams, the largest increase in the first nine months was in charter fees, which grew by EUR?0.8 million (+8.9%) to EUR 9.5 million. Despite the fact that the icebreaker MSV Botnica had fewer charter days in the first nine months of this year, charter fees increased due to the projects’ higher charter fee rate per day. In the third quarter, charter fee revenue decreased year on year, because the charter period was shorter due to technical problems with the vessel. Ferry service5 revenue grew by EUR 0.6 million (+2.2%) to EUR 27.8 million, mainly due to higher government support as a result of the indexation of the fees. The number of trips did not change significantly compared to the previous year (+0.8%). Revenue from other services grew by EUR?0.4 million due to the commissioning of the LNG quay in Pakrineeme Harbour this year and higher revenue from the sale of advertising space in Old City Harbour and the provision of catering services on the icebreaker MSV Botnica. Lease income increased by EUR 0.3 million (+3.1%) to EUR 10.7 million. Lease income improved in all segments, but particularly in the Cargo harbours and Passenger harbours segments due to the indexation of lease payments and fees for right of superficies. Passenger fee revenue increased by EUR 0.3 million (+3.1%) to EUR 9.2 million, in line with the rise in passenger numbers (+3.2%). Electricity revenue grew by EUR 0.2 million (+7.3%) to EUR?3.4 million, supported by higher sales volumes and prices for network services. In addition, both on-shore and other electricity consumption increased. Vessel dues revenue decreased by EUR 0.2 million (–1.0%) to EUR 23.9 million due to fewer calls by large tankers. The number of cruise ship calls increased, but their lower GT (gross tonnage) resulted in lower revenue from tonnage charges. Cargo charges revenue decreased by EUR 0.2 million (–3.5%) to EUR 4.5 million. Although cargo volumes increased, cargo charges revenue decreased, partly because cargo charges from operators whose cargo charges depend on full-year forecast cargo volumes are adjusted in accordance with IFRS 15. In the first nine months of 2023, the adjustments to cargo charges were higher than in the same period this year.

EBITDA
Adjusted EBITDA for nine months grew by EUR 2.1 million (+5.4%) year on year to EUR 40.9 million. Adjusted EBITDA grew in the Cargo harbours segment, the segment Other and the Passenger harbours segment. In the Ferry segment, adjusted EBITDA decreased. The adjusted EBITDA of the Cargo harbours segment improved as operating expenses (particularly repair costs) decreased and revenue increased. The improvement in the adjusted EBITDA of the segment Other was supported by revenue growth, which exceeded the growth in operating and personnel expenses. Adjusted EBITDA for the third quarter decreased by EUR 0.2 million (–1.7%) year on year, because the decrease in the segment Other exceeded the combined growth in other segments. Adjusted EBITDA margin for nine months rose from 43.8% to 45.0% and adjusted EBITDA margin for the third quarter dropped from 43.0% to 42.6%.

Profit
Profit before tax for nine months grew by EUR 2.0 million (+12.4%) year on year to EUR 18.0 million. Profit grew less than operating profit because the increase in finance costs (net) (+EUR 1.3 million) exceeded the increase in profit from the equity-accounted associate AS Green Marine (+EUR 0.1?million). The dividend declared in the second quarter of 2024 in an amount of EUR 19.2 million gave rise to income tax expense of EUR 3.1 million, which was EUR 0.1 million larger than the income tax expense on the dividend distributed last year. The amount of the dividend did not change, but last year income tax expense was reduced by the reversal of deferred tax of EUR 0.1 million. Profit for the first nine months increased by EUR?1.8 million (+14.1%) year on year. Third-quarter profit was EUR 5.6 million (–EUR 0.4 million, –6.5%).

Investments
In the first nine months of 2024, the Group invested EUR 33.5 million, EUR 22.6 million more than in the same period last year. The largest investments of the period were made in the construction of a quay in Paldiski South Harbour for the provision of maintenance and construction services to offshore wind farms, the reconstruction of a quay in Muuga Harbour, the reconstruction of a quay ramp in Old City Harbour, the development of information systems, technical design, the regular dry-docking of a ferry and the purchase of equipment for ferries. In the third quarter, investments totalled EUR 8.4 million (EUR 4.8 million in the third quarter of 2023).

Interim condensed consolidated statement of financial position:

In thousands of euros	30 September 2024	31 December 2023
ASSETS
Current assets
Cash and cash equivalents	22 079	29 733
Trade and other receivables	11 501	12 118
Contract assets	417	0
Inventories	330	550
Total current assets	34 327	42 401
Non-current assets
Investments in associates	2 667	2 177
Other long-term receivables	0	163
Investment properties	14 069	14 069
Property, plant and equipment	559 727	545 271
Intangible assets	2 229	2 083
Total non-current assets	578 692	563 763
Total assets	613 019	606 164
LIABILITIES
Current liabilities
Loans and borrowings	12 561	15 831
Provisions	1 153	1 311
Government grants	7 612	7 344
Taxes payable	1 413	876
Trade and other payables	9 303	9 429
Contract liabilities	1 737	63
Total current liabilities	33 779	34 854
Non-current liabilities
Loans and borrowings	171 183	157 566
Government grants	31 881	33 075
Other payables	107	255
Contract liabilities	2 740	2 755
Total non-current liabilities	205 911	193 651
Total liabilities	239 690	228 505
EQUITY
Share capital at par value	263 000	263 000
Share premium	44 478	44 478
Statutory capital reserve	23 304	22 858
Retained earnings	42 547	47 323
Total equity	373 329	377 659
Total liabilities and equity	613 019	606 164

Interim condensed consolidated statement of profit or loss:

In thousands of euros	Q3 2024	Q3 2023	9M 2024	9M 2023
Revenue	31 214	31 426	90 797	88 615
Other income	398	371	1 164	1 231
Operating expenses	–11 651	–11 507	–30 951	–31 171
Impairment of financial assets	–214	–403	–680	–806
Personnel expenses	–6 302	–6 254	–18 661	–18 229
Depreciation, amortisation and impairment	–6 087	–6 129	–18 207	–19 356
Other expenses	–90	–55	–262	–280
Operating profit	7 268	7 449	23 200	20 004
Finance income and costs
Finance income	203	330	703	916
Finance costs	–2 158	–2 073	–6 400	–5 303
Finance costs – net	–1 955	–1 743	–5 697	–4 387
Share of profit of an associate accounted for under the equity method	265	258	491	396
Profit before income tax	5 578	5 964	17 994	16 013
Income tax	0	0	–3 125	–2 985
Profit for the period	5 578	5 964	14 869	13 028
Attributable to owners of the Parent	5 578	5 964	14 869	13 028
Basic and diluted earnings per share (in euros)	0.02	0.02	0.06	0.05

Interim condensed consolidated statement of cash flows:

In thousands of euros	9M 2024	9M 2023
Cash receipts from sale of goods and services	99 181	94 692
Cash receipts related to other income	42	247
Payments to suppliers	–37 612	–38 900
Payments to and on behalf of employees	–17 787	–18 511
Payments for other expenses	–224	–253
Income tax paid on dividends	–3 325	–3 264
Cash from operating activities	40 275	34 011
Purchases of property, plant and equipment	–33 118	–10 063
Purchases of intangible assets	–479	–627
Proceeds from sale of property, plant and equipment	17	28
Dividends received	0	357
Interest received	679	875
Cash used in investing activities	–32 901	–9 430
Proceeds from loans received	20 000	0
Repayments of loans received	–9 583	–7 383
Dividends paid	–19 000	–19 012
Interest paid	–6 427	–4 654
Other payments related to financing activities	–18	–7
Cash from/used in financing activities	–15 028	–31 056
NET CASH FLOW	–7 654	–6 475
Cash and cash equivalents at beginning of the period	29 733	44 387
Change in cash and cash equivalents	–7 654	–6 475
Cash and cash equivalents at end of the period	22 079	37 912

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region. 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 offshore services in Estonia and projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services.

Additional information:

Andrus Ait
Chief Financial Officer
Tel. +372 526 0735
a.ait@ts.ee

Attachments

• 2024 9 Months Interim Report
• 2024 9 Months Main Figures
• 2024 9 Months Webinar