Tallink Grupp has today published its 2021 third quarter financial results to the stock exchange with the company, which has been hard hit by the Covid crisis since 2020, reporting its first quarterly profit since the start of the pandemic.
In the third quarter of 2021 the Group’s unaudited net profit was EUR 5.5 million (net loss of EUR 23.9 million in Q3 2020). Third quarter EBITDA was EUR 35.1 million (EUR 5.7 million in Q3 2020). The Group’s unaudited revenue for the third quarter in 2021 increased by 18.6% compared to the same period in 2020, totalling EUR 170.5 million (EUR 143.7 million in Q3 2020). The biggest contributors to the revenue increase being on board restaurant and shop sales, ticket revenue and charter revenue.
During the third quarter of 2021, the company strengthened its liquidity position by taking out the loan from the Nordic Investment Bank and carrying out an additional shares emission of the company’s stock in early September. This has enabled the company to secure new capital, creating a strong liquidity buffer for the challenging low season ahead. The total liquidity buffer (cash, cash equivalents and unused credit facilities) as at 30 September 2021 amounted to EUR 252.5 million (EUR 115.0 million at 30 September 2020).
The Group’s investments in third quarter of 2021 amounted to EUR 3.7 million (EUR 54 million in Q3 2020).
In the first 9 months (1 January – 30 September) the Group’s unaudited revenue decreased by 14.7% compared to the same period in 2020 and amounted to EUR 310.3 million. Unaudited EBITDA for the first 9 months was EUR 33.2 million (EUR 6.9 million in 2020) and the unaudited net loss was EUR 53.2 million (EUR 81.5 million loss in 2020).
Commenting on the financial results of the third quarter and the first nine months of 2021, Tallink Grupp’s CEO Paavo Nõgene said:
„Despite high fuel prices and the continuing COVID impacts on our sector and company, I am pleased that we have been able to earn the first quarterly profit since the start of the continuing pandemic. This result has been achieved through a great team effort from everyone at Tallink across all our shores as well as extremely tight cost control measures. It is the first ray of light we have seen after a period where we have made a net loss of more than EUR 151 million in roughly a year and a half.
„The quarter’s results were supported by the re-opening of some of our routes for the first time since the start of the pandemic in March 2020 and short-term charter agreements for two of our vessels. For the first time since spring 2020, we only had one vessel suspended in port and all others operating, which has meant revenue, but most importantly work for our people whose numbers at the end of quarter three this year totalled just over 4500.
„Although investments were not as significant in Q3 2021 as they were this time last year, we made significant progress with the construction of our new vessel MyStar, celebrating the significant milestones of christening and launching of the vessel in August. I am sure all our customers are awaiting the new vessel as eagerly as all our employees and we are looking forward to establishing our green bridge between Tallinn and Helsinki with two LNG vessels, using the greenest available fuel option in the maritime sector right now, from spring 2022 onwards.
„So, although the Q3 results have given us a glimmer of hope, we have unfortunately just reached the low season and the high COVID rates in Estonia and Latvia, in addition to the challenging employment market and high fuel prices, are all indicating it will be yet another tough winter ahead. Taking out the loans and the company’s shareholders’ further investments into the business through the share emission have therefore all been vital for the long-term sustainability of the company and for the company being well prepared for the tough winter months and low season ahead. We remain hopeful that late spring and early summer 2022 will show improvement in the overall situation and we anticipate seeing a marked increase in the number of passengers then.“
AS Tallink Grupp is one of the leading providers of passenger and cargo transport services in the northern Baltic Sea region. The company’s fleet consists of 15 vessels and the company operates various routes under the brands of Tallink and Silja Line. Tallink Grupp’s shares are listed on the Nasdaq Tallinn Stock Exchange and Nasdaq Helsinki Stock Exchange.