Transpordi Varahaldus Q3 profits see steep drop
While aviation assets manager Transpordi Varahaldus (TVH) finished the first half of 2024 with a profit of €2.5 million, its third quarter profit slumped to €0.4 million.
TVH, which leases planes to Estonian flag carrier Nordica. It ended last year with a loss of €10.6 million, but managed to remain profitable during the first six months of this year. In the first half of 2024, the company recorded revenues of €5.8 million, with a net profit of €2.5 million.
However, newly published unaudited financial figures for the first nine months of the year reveal that TVH's profits declined sharply in the third quarter. Namely, its third quarter revenues totaled €2.3 million, with a net profit of €0.4 million.
TVH board member Ergo Blumfeldt told ERR that in the first half of the year, the company earned extraordinary income from asset sales, but its third-quarter performance was negatively impacted by increased depreciation.
Fluctuations in the exchange rate for the dollar may have impacted profit figures as well.
"Because we operate in the dollar world, an increase or decrease in the exchange rate can significantly affect this," Blumfeldt noted.
Asked whether aircraft lease payments have been suspended to keep Nordica afloat, which could also impact TVH's financial performance, the board member replied that he could not comment on the matter, as that is between two business entities.
As of the end of the third quarter, TVH's assets amounted to €68.5 million, down €1.1 million from the start of 2024. Equity accounted for €37.6 million.
The sole owner of Transpordi Varahaldus is the Estonian state, and according to the owner's expectations, the company must operate sustainably and profitably to initiate sales processes and map out the most profitable sales opportunities.
The company owns seven Bombardier passenger aircraft, which it has leased out to the Estonian airline Nordica.
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Editor: Karin Koppel, Aili Vahtla