AS Tallinna Sadam (TSM1T) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw cargo volume growth of 7.2% and passenger volume growth of 4.3%, with increased vessel calls and the launch of Estonia’s first methanol-powered container ship at Muuga.

• Revenue for Q3 was €31.2 million, down 0.7% year-over-year, while nine-month revenue rose 2.5% to €90.8 million, driven by ferry and charter growth.

• Profit for the nine months increased 14.1% to €14.9 million, with operating profit up 16% to €23.2 million.

• Investments surged 77% in Q3 and 206.9% for nine months to €33.5 million, mainly for quay construction and ferry upgrades.

• Efficiency initiatives included a 6% reduction in employees and digitalization of processes.

Financial highlights

• Q3 adjusted EBITDA was €13.3 million (margin 42.6%), down 1.7% year-over-year; nine-month adjusted EBITDA up 5.4% to €40.9 million (margin 45%).

• Q3 profit was €5.6 million, down 6.5% year-over-year; nine-month profit €14.9 million, up 14.1%.

• Free cash flow for nine months was €7.4 million, down from €24.6 million in 2023.

• Net debt at period end was €161.7 million, up €19.6 million from prior year.

• Cash from operating activities for nine months increased by €6.3 million to €40.3 million.

Outlook and guidance

• Passenger and cargo volumes are expected to continue recovering, with bookings for cruise vessels increasing and new ro-ro/container lines planned.

• Paldiski offshore wind farm port expected to generate revenue from 2027, with ongoing developer interest in offshore wind infrastructure.

• The company maintains a dividend policy targeting at least 70% of prior year profit, subject to market conditions.