Port of Tallinn's annual turnover falls to €117 million
Port of Tallinn's annual turnover fell by four percent last year to €117 million, while profits were down 38 percent to €16 million, according to the company's unaudited financial results.
Last year's results were most affected by the continuing decline in Port of Tallinn's cargo volumes, which fell 29 percent, due to both Russia's war in Ukraine and the general economic downturn.
Sales revenue fell to €117 million, which was €5 million lower than in 2022. This was mainly due to a decrease in shipping fees, electricity sales and freight revenues. Among different revenue categories, the biggest increases were seen in the fees for ferry services, ship chartering and passenger fees. The largest decrease, of 16 percent, was in shipping fees, as a result of fewer visits to the port by tankers and cruise ships alike.
Passenger numbers increased by 13 percent on year to eight million, with the most growth seen on regular routes. Cruise ship passengers fell by 45 percent, as the region's attractiveness has declined due to perceived geopolitical risks as well as rising costs resulting from environmental requirements.
The rise in interest rates led to increased interest costs, despite the reduction in debt. As a result, net profit fell more than operating profit and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). Port of Tallinn's adjusted EBITDA was €49 million.
The company invested €21 million in 2023, or 50 percent more than in the previous year.
The group's profits for 2023 were €16 million, down by €9.7 million.
Port of Tallinn Chair Valdo Kalm said that times are hard and there has been a succession of crises, but the company continues to make a decent profit.
"At the moment, there is a strong focus on cost savings, while preparing and launching new growth projects, such as offshore wind farms and real estate developments. As an infrastructure company, we need to be prepared to invest during an economic downturn in order to be ready to provide the necessary volume of services and growth for the next upturn," Kalm said.
In view of the company's continuing strong cash flow and its dividend policy, the board of directors has proposed paying out dividends of €0.073 per share to shareholders for the past year, the same as the year before.
--
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Karin Koppel, Michael Cole
