Covid-19, Estonia, Investments, Port, Tourism, Transport

The impact of the COVID-19 pandemic was greatest in the second quarter of 2020, resulting in a decrease in revenue, adjusted EBITDA and profit of AS Tallinna Sadam. The results for the second quarter of the year were mostly affected by the restrictions on passenger movement due to the coronavirus pandemic. The restrictions mainly affected the passenger harbors segment, as the number of passengers as well as passenger vessel calls decreased significantly due to cross-border traffic restrictions, the company said in the interim report. 

No cruise ship calls took place in the second quarter.

Valdo Kalm, chairman of the management board of Tallinna Sadam, said that COVID-19 had no impact on the revenue of cargo harbours, as the volume of liquid bulk increased in the first half of the year, compensating for the decrease in dry bulk and container cargoes.

"Because of lower operating volumes and revenue, primarily related to passengers, we also reduced operating expenses, but due to a large share of fixed costs, the cut in operating expenses was not comparable in size to the decline in revenue, therefore profitability decreased," the CEO said.

"However, due to the diversification of business areas, we were able to mitigate the impact of the crisis on the group's financial results, and the negative impact of the second quarter was offset by the strong result of the first quarter, which resulted in a profit of more than nine million euros for the first half of the year," Kalm added.

The CEO described it as substantial that even in the difficult economic environment, the company was able to adhere to the dividend policy and pay out 30.2 million in dividends, and continue with ongoing investments.

In the first six months of 2020, the group invested 17.4 million euros, compared with investments in the amount of 11.1 million euros financed during the same period last year. Investments were mostly related to Phase 2 of the reconstruction of passenger terminal D at the Old City Harbor, and the start of the construction of a cruise terminal and dredging works at Paldiski South Harbor. Investments of the second quarter totaled 8.6 million euros.