Estonia, Port, Transport

Revenue in the fourth quarter amounted to 29.6 mln euros, marking an increase of 9.2% over the same period a year ago, Tallinna Sadam told the stock exchange.

In the fourth quarter, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled 14.7 mln euros, 14.6% more than EBITDA for the same period in 2017. Full-year adjusted EBITDA totaled 74.4 mln euros, 11.8% more than in 2017. 

Net profit in the final quarter of the year totaled 8.6 mln euros. Due to an income tax expense larger by 14.2 mln euros due to a record high dividend, the company ended the year with a net profit of 24.4 mln euros, two mln euros less than the profit earned in 2017.

In the final quarter of the year, five mln tons of cargoes and 2.3 mln passengers passed through the ports of Tallinna Sadam. Year over year, the cargo volume grew by 2 % but the number of passengers decreased by 1%. In the full-year, cargoes totaled 20.6 mln tons, 7.4% more than the year before, while the passenger ports served a record 10.6 mln passengers,  0.6% more than the year before.

Valdo Kalm, chairman of the management board of Tallinna Sadam, said 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 said.

Investments made by the company in the fourth quarter totaled 3.7 mln euros. In the full-year, the group invested 14.3 mln euros, 60% less than in 2017 when investments totaled 35.8 mln euros, of which 20 mln euros 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, or Smart Port, as well as the starting of reconstruction of Terminal D building at the Old City Harbor.

Kalm described the listing of the shares of Tallinna Sadam in the main list of Nasdaq Tallinn as the most significant event for the company in 2018, as a result of which one-third of the shares of the company are freely tradable.  

As other achievements influencing economic performance, the CEO named the employment found by the subsidiary OU TS Shipping for the icebreaker in the the iron ore export project in the Arctic waters of Canada and a record cruise season, on the back of which the company managed to raise passenger numbers for the eleventh year in a row.

In the longer run, new opportunities will be opened up by the agreement concluded with MPG AgroProduction OU on the establishment of a complex for the processing of oil cultures and a logistics complex in Muuga harbor, agreements with Vopak E.O.S. and Alexela Invest on potential establishment of LNG terminals in Muuga harbor and Paldiski, and joint endeavors with the City of Tallinn urban planning authority towards the implementation of the Masterplaan 2030 development plan for the Old City Harbor to develop the harbor area into a modern city center with high-level public spaces, the CEO added. 

In addition to the parent company, AS Tallinna Sadam group is made up of subsidiaries TS Shipping OU and TS Laevad OU and related company AS Green Marine.

On Tuesday, the share of Tallinna Sadam closed at 2.145 euros at Nasdaq Tallinn.