Net profit of Tallinna Sadam up 21% to EUR 39.7 mln in 2013
Based on consolidated preliminary results of 2013 the revenue of Port of Tallinn reached more than 100 million euros for the first time, the company announced. Port of Tallinn’s Chief Financial Officer Marko Raid said that the increase in revenue by 13.6 million euros is based on icebreaker Botnica’s rental income as well as on traditional port charges and building title income growth.
In 2013, cargo volume that passed through Estonia continued to decrease but the decline was remarkably smaller than in 2012. Passenger numbers however hit a whole time record, exceeding 9 million people for the first time.
28.2 million tons of cargo that was handled at the harbours of Port of Tallinn last year fell 4% compared to 2012, but a year earlier cargo volume decreased by 19%. Dry and liquid bulk decreased the most, but container traffic grew by a tenth.
Despite the decline in cargo volume Port of Tallinn managed to increase its income from port charges thanks to some increase in gross tonnage of both cargo and passenger vessels. This is due to both general trends of the freight market, which are bigger passenger and cruise ships, as well as market change regarding tankers used in the Baltic Sea region.
Compared to 2012, last year the number of passengers grew by about 400,000 people that is 4.5% to a record number of 9.2 million passengers. The growth was driven by both the increase of passengers on the most popular Tallinn-Helsinki line and number of cruise passengers that rose up to a record of 530,000 people.
Icebreaker Botnica, which just completed its first operating year, served Estonian harbours during icebreaking season and as a specialized vessel carried out several offshore operations in the Northern Sea during summer and autumn months. For the new icebreaking season Botnica has already been given to the usage of Estonian Maritime Administration according to the service contract.
Based on preliminary results Port of Tallinn’s consolidated EBITDA or earnings before interest, taxes, depreciation and amortization was altogether 67.8 million euros. The EBITDA grew 8 million euros or by 13% compared to 2012.
Both, net profit and EBITDA growth was mainly driven by the increase of operating income by 13.6 million euros or 15%, that exceeded the growth of operating costs (increase 7.4 million or 15%). The increase in costs was mainly due to the costs of Botnica that did not occur before 2013. Traditional operating costs altogether declined slightly. The balance of loan funds decreased by nearly 22 million euros, or 15%, and at the end of the year amounted to slightly more than 127 million euros.
Last year’s biggest onetime investment was the construction of Old City Harbour’s new cruise quay with the cost of 7.2 million euros. The new cruise quay will be opened this spring at the beginning of the cruise season.
Port of Tallinn’s Chairman of the Management Board Ain Kaljurand said that the company has managed to successfully adapt to the challenges caused by market conditions. “Competition between the ports of the Baltic Sea region is very tight and full-scale opening of Ust-Luga port has led to a decline in cargo numbers, mostly regarding volume cargo, “ explained Kaljurand. “In today’s demanding market environment Port of Tallinn has been able to grow both revenue and profit.”
Port of Tallinn is Estonia’s biggest harbour complex as far as both cargo and passengers are concerned. Port of Tallinn is completely state owned and includes five harbours: Old City Harbour, Muuga Harbour, Paldiski South Harbour, Paljassaare Harbour and Saaremaa Harbour.