Estonia, Financial Services, Good for Business, Port, Transport

Altogether 5.5 mln tons of cargo was carried through the ports of Tallinna Sadam and 3.5 mln passengers were serviced in the third quarter.

Valdo Kalm, chairman of the management board of Tallinna Sadam, said that the company's sales revenue rose 6.2 mln euros or 19% on year in the third quarter, producing most of the increase in the nine-month sales revenue of Tallinna Sadam and taking it to 101.1 mln euros, which is 7.3% more than the year before.

"The increase in sales revenue was mainly driven by the start of the summer job of icebreaker Botnica as an ice management and escort ship in northern Canada at the end of June. A contribution to the revenue was also made by a substantial increase of the liquid bulk volumes and revenue and revenue earned from an additional ferry on the Saaremaa route of subsidiary TS Laevad in the summer period," Kalm said.

Adjusted EBITDA, that is earnings before interest, tax, depreciation and amortization, rose in all segments in the third quarter and amounted to 24 mln euros, which is 6.8 mln euros or 40% more than in the same period the year before. In nine months, the adjusted EBITDA grew by 6 mln euros to 59.7 mln euros.

The company's net profit returned to growth in the third quarter due to the revenue increase, growing by 6.6 mln euros, or 58% y-o-y, amounting to 18.1 mln euros. In connection with the declaration of a record dividend of 105 mln euros in the second quarter of 2018 compared with 48 mln euros in 2017, income tax expense increased by 14.3 mln euros to 26.3 mln euros, which resulted in a profit of 15.8 mln euros for the nine months, showing a decrease of 9.6 mln euros compared to the profit earned in the comparative period.

According to the management estimates, the group shall achieve the profit target set for 2018 and there will be no deviations from the dividend policy.

Investments made in the third quarter totaled 2.9 mln euros, while in nine months the group made investments in the amount of 8.1 mln euros. In the first nine months of 2017, investments totaled 29.5 mln euros, of which around 20 mln euros was related to the construction of new ferries. In the first nine months of 2018, the largest investments were made in the reconstruction of traffic areas and the implementation of automated traffic control systems at the Old City Harbor, the dry docking of icebreaker Botnica, which is carried out every five years, and the start of Terminal D reconstruction works.

In addition to the parent company, the Tallinna Sadam group also includes subsidiaries TS Shipping OU and TS Laevad OU. Tallinna Sadam group is also a shareholder of a joint venture AS Green Marine, which provides waste management services.