While revenue remained steady on year, the adjusted EBITDA and profit of the Estonian state-owned port complex operator Port of Tallinn (AS Tallinna Sadam) for the first half of 2023 fell by 12 and 42 percent on year, respectively, due to the pressure of cost growth.
In the second quarter of 2023, the Port of Tallinn earned €29 million in sales revenue and €1.4 million in profit, with sales revenue dropping 5 percent, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) 12 percent and profit 73 percent on year, according to a company market announcement issued Thursday.
In the first half of the year, the port owner earned €57 million in revenue and €7 million in profit. While revenue for the first half remained steady on year, its adjusted EBITDA and profit fell 12 and 42 percent, respectively, due to the pressure of cost growth.
According to the company, its six-month financial results were significantly affected by both the increase in the number of passengers and the decrease in cargo volumes.
"While the passenger business continued to recover steadily on regular lines and there is still growth potential to reach pre-COVID restriction levels, cargo volumes continue to decline due to sanctions and the general decrease in cargo volumes," the Port of Tallinn said.
In the second quarter of this year, the Port of Tallinn's investment volumes increased to €4.6 million, bumping the company's total investments in the first half of 2023 to €6.1 million.
"In shipping, both ferries and the icebreaker [MSV] Botnica showed growth, but regular dock work and costs related to the new charter contract affected Botnica's profitability," the company said. "Rising service prices and wage pressure increased operating costs; financial costs also increased."
The Port of Tallinn (AS Tallinna Sadam), a publicly traded company, is one of the largest cargo and passenger port complexes in the Baltic Sea region, serving an average of 10 million passengers and 20 million tons of cargo annually.
Its subsidiaries include OÜ TS Laevad, which provides ferry services between the Estonian mainland and its largest western islands, OÜ TS Shipping, which charters the MSV Botnica for icebreaking and construction services in Estonia as well as for offshore projects abroad, and waste management services provider AS Green Marine.
Editor: Aili Vahtla