According to Port of Tallinn's dividend policy, at least 70 percent of the previous year's profits are to be paid out as dividends. In 2023, the company paid out 75 percent of its 2022 profits, or €19.2 million.

This year, Port of Tallinn opted to pay €19.2 million in dividends. However, with 2022's profits down, the amount paid out this time was 121 percent last year's surplus.

As a listed company, Port of Tallinn also reports its quarterly results. At the end of this March, the company had €22.1 million in its accounts, €7.6 million less than at the same point a year earlier. As dividends are subject to income tax, in this case around €3.1 million, it would be difficult for the infrastructure company to pay dividends and continue its operations without borrowing.

Two days after the dividend payment, on May 14, Port of Tallinn announced that it had taken out a three-year €20 million loan from Swedbank. According to a Tallinn Stock Exchange press release, the loan will be used to finance the company's general business needs, including bridge financing for investments.

Port of Tallinn CEO Valdo Kalm, said that although it appears Port of Tallinn took out a loan to pay dividends, that was not quite the case.

Kalm said that the Port of Tallinn has a greater need for funds at the moment due to the new €64 million quay it is building in the southern port of Paldiski,. The quay is expected to be ready next year and could be used for offshore wind farms, as well as the movement of NATO troops.

"[The loan] just happened to be the same amount as the dividends. But it hasn't been taken out because of that," Kalm said.

Kalm added that Port of Tallinn's 2024 profits could end up being higher than last year's €15.9 million, and it plans to continue paying dividends to the same order of magnitude as it has done previously.

"The expectation is that there will be a slightly better result. At the same time, I would like to emphasize that these large investments will also continue next year, so if you invest, you have to start amortizing, so that will have an impact on the net profit," Kalm said.

Port of Tallinn is a 67 percent state-owned infrastructure company, which owns several Estonian ports, a logistics park, a large real estate portfolio and TS Laevad, which provides ferry services between Estonia's main islands and the mainland. Last year, Port of Tallinn made a profit of €15.9 million on a turnover of €116.6 million.

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