The state-owned Port of Tallinn (Tallinna Sadam) is to pay a dividend of €0.115 per share in 2020, down from its proposed dividend of €0.151. Port of Tallinn says the decrease is the result of the coronavirus pandemic and its economic effects.
The Port of Tallinn's supervisory board approved the proposal from the management board for a €0.115 per share dividend, making a total payout of €30.3 million. The earlier €0.151 dividend proposed in March would have paid out €39.7 million.
Port of Tallinn said that the pandemic and resulting uncertainty has had an effect and the revision takes into account changed business prospects, capitalization and the possibility of raising additional loan capital.
Valdo Kalmu, Port of Tallinn management board chair, said the company wants to fulfill promises given to shareholders.
"The positive economic results of 2019 will allow us to adhere to the approved dividend policy and to pay a dividend of the size promised during the IPO this year as well," he said, via a press release.
When making the dividend proposal, the management board proceeded from the dividend policy at the general meeting to pay a dividend of at least 30 million euros this year, and at least 70 percent of the net profit from 2021.
The dividend payout is scheduled for July.
Port of Tallinn's turnover last year was €130.5 million and it reported a profit of €44.4 million.
In 2019, the company conveyed 19.9 million tons of cargo, 3.3 percent less than the previous year.
The number of passengers served increased by 0.2 percent, to a record 10.64 million passengers.
The state has a 67 percent stake in the Port of Tallinn. One third of the company was listed publicly in 2018.
Editor: Andrew Whyte