In the first quarter of 2019, the revenue of Port of Tallinn and subsidiaries amounted to EUR 28.5 million, declining by 3% compared to the same period last year. The Group's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was EUR 16.9 million in the first quarter, declining by 4.2% year-on-year. Net profit decreased by EUR 0.8 million to EUR 11.0 million in the first quarter.
According to Valdo Kalm, Chairman of the Management Board of Port of Tallinn, the most significant impact on the results of the first quarter was the planned maintenance of passenger vessels, which resulted in a temporary break of service of several passenger vessels. “According to international maritime regulations, all passenger vessels must undergo regular maintenance and dock. Due to the maintenance, Tallink, Viking Line and Eckerö Line vessels were out of service and therefore the volumes of passengers as well as ro-ro cargo passing through the harbours declined in the first months of the year,” explained Kalm.
Company’s revenue decrease in the first three months of 2019 was also impacted by a drop in the volume of liquid bulk. “The volume of liquid bulk handled at the harbours of the Group decreased mainly at the beginning of the year, as a result of which both vessel fees and cargo fees decreased. Liquid bulk volumes have stabilized at the end of the quarter, and we see this trend continuing,” noted Valdo Kalm.
The revenue of the shipping segment slightly grew through the indexation of the contractual fees.
Port of Tallinn invested EUR 3.9 million in the first quarter of 2019. The figure is larger than in the same period last year when investments totalled EUR 1.9 million. Investments of the period were mostly related to the reconstruction of passenger terminal D at the Old City Harbour.
Despite the modest decline in revenue and profit at the beginning of the year, the Management Board estimates that the profit target set for 2019 will be achieved and deviations from the set dividend policy will not occur.
In addition to the parent company, the Port of Tallinn Group includes subsidiaries OÜ TS Shipping, OÜ TS Laevad and an associate AS Green Marine.