Tallinna Sadam Shares Positive Growth in Latest Financial Updates

Financial Performance Overview of Tallinna Sadam

Tallinna Sadam has reported a strong financial performance for the fourth quarter and the full year of 2024. The sales revenue for the fourth quarter reached €29 million, reflecting a 2.7% increase compared to the same period last year. With an adjusted EBITDA of €12 million, there was an impressive 18% rise, while the profit surged by 50% to €4 million. Annual sales revenue totaled €120 million for 2024, showing a 2.5% growth from the previous year.

Growth in Passenger and Cargo Volumes

The fourth quarter echoed positive trends with a 4.8% increase in passenger traffic and a 12% rise in cargo volumes year-on-year. Throughout 2024, the shipping sector, particularly passenger ferries, witnessed stable growth, with a 4.3% increase in passengers and a 6% rise in vehicles transported. Despite a 18% decline in chartering days of the Botnica icebreaker for the fourth quarter, the overall operational metrics were promising.

CEO Insights

Valdo Kalm, Chairman of the Management Board, expressed satisfaction with the continuous growth in cargo volumes. He noted that most cargo types experienced increased activities; for instance, container volumes grew by 12%, dry bulk by 19%, and ro-ro increased by 2.6%. The number of ship calls also rose significantly, indicating robust activity at the ports despite some operational interruptions earlier in the year.

Strategic Investments and Future Outlook

In terms of investments, Tallinna Sadam allocated €5 million in the fourth quarter and approximately €39 million in total for the year. Kalm highlighted the robustness of the company’s cash flow, proposing to the Council a dividend payment to shareholders of at least 70% of the annual profits, aligning with the company’s dividend policy.

Innovative Projects and Developments

Several major developments occurred in the fourth quarter, including a new agreement with JetGas OÜ for a liquefied methane terminal, which signifies a step toward innovative energy solutions. Additionally, Tallinna Sadam has approved joint projects under the FIN-EST Green Corridor initiative, symbolizing its commitment to sustainability.

Revenue Breakdown

The increase in revenue has been primarily driven by vessel dues, ferry services, and charter fees from the icebreaker Botnica. Revenue from ferry services climbed by 2.2% to €36.2 million due to contract adjustments, while other services and lease income also contributed positively. Notably, passenger revenue was boosted as traffic increased, demonstrating recovery in this segment.

EBITDA and Profit Growth

Adjusted EBITDA demonstrated consistent growth across various segments, totaling €53.1 million for the year, up 8.1% from 2023. Quarterly adjusted EBITDA rose by €1.9 million compared to the same quarter last year, resulting in a remarkable EBITDA margin expansion. The overall profit before tax also increased significantly, highlighting the company's operational efficiency.

Future Considerations

Going forward, Kalm remarked on the promising demand patterns in the offshore business sector, bolstered by the increase in charter rates. He anticipates that the strategic agreements and operational enhancements will solidify Tallinna Sadam's position in the market.

Frequently Asked Questions

1. What were the key financial results for Tallinna Sadam in Q4 2024?

The company reported a €29 million sales revenue, an adjusted EBITDA of €12 million, and a profit of €4 million.

2. How did passenger traffic change in Q4 2024?

Passenger traffic increased by 4.8% compared to the same period in the previous year.

3. What are Tallinna Sadam's plans for dividends?

The board proposed to distribute at least 70% of annual profits as dividends to shareholders.

4. What significant agreements were made in Q4?

Notably, an agreement with JetGas OÜ for a new liquefied methane terminal was established.

5. How has the investment strategy changed in 2024?

The company invested approximately €39 million in total for the year, emphasizing innovation and infrastructure development.

About The Author

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