Luka Koper Group announces H1, 2024 results

The Luka Koper Group says it ended the first half of 2024 with good results. Most financial indicators exceeded the set targets and despite the gradual cooling of the economy and the situation in the Red Sea, the Group again recorded a gradual increase in throughput in the second quarter, especially in the container segment. Maritime throughput totalled 11.3 million tonnes of goods and net sales revenues amounted to EUR 136.3 million. Earnings before interest and taxes (EBIT) of EUR 37.3 million and net profit of EUR 32.8 million were also above plan.

"Although we recorded slightly lower total maritime throughput in the first months of 2024 due to the uncertain situation in the Middle East and slower-than-expected economic growth, the first half of this year was a successful one," Luka Koper said in a media release.

The Luka Koper Group’s earnings before interest and taxes (EBIT) amounted to EUR 37.3 million and exceeded the target by EUR 7.7 million or 26%, despite a slightly lower (EUR 1.6 million) net sales revenue. This was mainly due to lower operating costs on account of lower energy and material costs and lower maintenance services costs.

Net sales revenue amounted to EUR 163.3 million, which is less than one percent below the target and 3% higher than in the first half of last year. In particular, container stuffing and stripping services and other additional services increased, while less revenue was recorded from warehousing fees due to faster turnaround of goods. The share of operating expenses was also slightly higher compared to the same period in 2023 due to higher labour costs (recruitment and adjustment of salaries to inflation).

The net profit of EUR 32.8 million was higher than both the planned figure (up 24%) and the same period last year (up 3%), driven by a 180% increase in operating profit from financing activities of EUR 1.9 million.

Container throughput up 5% in the second quarter
“The escalation of the conflict in the Middle East at the end of 2023 has brought a new threat to the steady flow of goods from the Far East, with shipowners diverting the majority of their fleet to a route around Africa that would take just over 14 days longer. This was also reflected in slightly lower overall throughput in the first three months of 2024, but the situation has gradually returned to normal since April, with most shipowners reinforcing their services with additional ships, thus stabilising ship arrivals and throughput. The Port of Koper also adapted quickly to the new situation and in the second quarter we again achieved a positive growth trend in container throughput (TEU), almost fully compensating for the decline in turnover in the first months,” said Nevenka Kržan, President of the Management Board of Luka Koper, summarising the Group’s performance in the first half of 2024.

In the first six months of 2024, 548,096 TEUs were handled at the Container Terminal, which is only one per cent less than in the comparable period of 2023. Although the first months were marked by delays in the maritime transport both on the links to the Far East and between ports in the Mediterranean, the situation improved significantly already in April, and we ended the second quarter with a 5% growth in turnover. However, delays in the arrival of ships and the gradual cooling of the car market were reflected in slightly lower (9%) car throughput, which amounted to 409,460 cars in the first six months.

However, growth was recorded at the General Cargo Terminal (9%), where the Group handled more steel products, and at the Liquid Cargo Terminal (4%). In the dry bulk segment, where total cargo throughput was lower due to the gradual decline in coal, Luka Koper handled more fertilisers, wheat and phosphates in the first six months.

At the beginning of 2024, the Port of Koper launched a major investment cycle, which was also defined in the company’s Strategic Business Plan 2024-2028, adopted at the end of 2023. In April, we concluded the construction of several solar power plants with a total capacity of 4.2 MW, which are located on the roofs of our warehouses. We have started construction of Berth 12 at Pier 2 and continued the relocation of the storage blocks at the Container Terminal, the pipelines at Pier 2 and the upgrading of the bunkering points. In the first six months, a total of EUR 20.7 million was invested.

"At the same time, we have launched activities for the construction of additional car storage areas (in the so-called Cassette 6A), a specialised and fully automated warehouse for steel products and the extension of the northern part of the port’s Pier 1," the Group said.