Andmed seisuga: 27.11.2024 14:15 (GMT+2)
Tallinna Sadam FINANCIAL RESULTS 11/03/2005
AUDITED FINANCIAL RESULTS
PERFORMANCE RESULTS
For Port of Tallinn the year 2004 was characterised by increase of competition
in cargo handling, increase in the number of passengers and growing
investments into the infrastructure of the port. The management board of Port
of Tallinn has developed a new long-term strategy of the company, whose main
goals are risk reduction through the inclusion of new cargo flows and the
continuation of increase in the number of passengers. The port strives to grow
faster than competing Finnish and Baltic transit ports and to create a stable
investment climate for all members of the port community.
Cargo Volume
The cargo volume that passed through the ports belonging to Port of Tallinn in
2004 grew by 2.5 million tons (or 7%) and reached 37.4 million tons. The main
source for this growth was the volume of liquid cargo that increased as a
result of high oil prices in the world market. As a result of toughening
competition, the differences of port operators in the goods handling and in
the ability to guarantee cargo flows became more visible in 2004 than before.
The main reasons for these changes include the introduction of new cargo ports
in Russia as well as the interest of cargo owners in increasing their control
over local railway and port operators.
Regardless of the general increase in the cargo volume, the market share of
Port of Tallinn among larger ports on the eastern coast of the Baltic Sea
decreased from 13.3% to 12.2%. According to cargo types, liquid cargo gave the
main share of the cargo volume with 69%, followed by solid bulk with 15% and
rolling stock with 8% (the relevant indicators in 2003 were 68%, 16% and 8%).
According to transport directions, 83% of the cargo volume came from transit,
9% from export and 8% from import (the relevant indicators in 2003 were 82%,
10% and 8%).
Number of Passengers
A record number of passengers passed through the ports belonging to Port of
Tallinn in 2004 – 6.74 million which is as much as 15% more than in 2003 (the
relevant indicators in 2003 were 5.86 million and a decrease of 1.5%). The
increase in the number of passengers exceeded all expectations that were based
on pessimistic projections regarding the effect of EU accession on tax free
trade onboard of ships. The positive impact of EU accession was confirmed by
the faster increase in the number of passengers in the third and fourth
quarters of the year or after the EU accession.
The number of regular line passengers increased on all lines. The number of
passengers who travelled the Tallinn-Helsinki line exceeded the number of
passengers in 2003 by a million (growth of 22%) and the number of passengers
on the Tallinn-Stockholm line grew by almost a half to 0.54 million. The
number of passengers on the Paldiski-Kapellskär line increased by 10%. The
number of traditional cruise passengers in 2004 remained almost on the same
level as in 2003 by increasing 1% to 206 thousand passengers. At the same
time, the number of visits by cruise ships in 2004 dropped by 2 visits (234
visits (62 ships) when compared to 236 visits (64 ships) in 2003). The new
quay for cruise ships that was opened in 2004 allows to receive two bigger
than the average cruise ships at the same time and under more flexible
conditions, which means that the port has created good pre-conditions for an
increase in the number of cruise passengers for the next years.
Revenue and Expenses
For the first time the sales revenue of Port of Tallinn exceeded 1 billion
kroons in 2004 and totalled 1.06 billion kroons (67.86 million euros), growth
10.5% (the relevant indicators in 2003 were 960.6 million kroons (61.39
million euros) and growth 0.2%). Revenue grew mainly on account of increases
in port dues and passenger fees, which grew by 47 million kroons (93.0 million
euros) (9%) and 35 million kroons (2.24 euros) (38%) respectively. In addition
to the increase in cargo volume and number of passengers, the number of ships
that visited the ports belonging to Port of Tallinn also increased by 15% in
2004, which brought along an increase in port dues. The increase in passenger
fees was caused by the increase in the number of passengers as well as by the
abolishment of the progressing passenger fee scale in 2004 (the passenger fee
tariff decreased as the number of passengers services by one passenger
operator increased) that had been implemented in 2003.
The operating profit in 2004 was 540 million kroons (34.51 million euros),
which exceeds the relevant indicator in 2003 by 136 million kroons (8.69
million euros). Decrease of operating expenses also contributed to the
increase in the operating profit together with the growth of revenue.
Operating expenses amounted to 522 million kroons (33.36 million euros),
decreasing by 35 million kroons. The biggest decrease occurred in depreciation
of fixed assets (decrease by 6.1 million kroons (0.39 million euros)) in
association with making the remaining useful life of leased out fixed assets
correspond to the terms of lease contracts. Sponsorship and advertising costs,
labour costs, representation costs, miscellaneous operating expenses and the
costs related to receipt of ships, which were partially associated with the
difficult ice conditions in 2003, were also reduced during the year.
The operating margin of the company was 50.9% (the relevant indicator in 2003
was 42.1%). Profitability increased due to planned development activities (the
investments prescribed in the company’s strategy and taking into use the land
acquired within the last few years) and savings on expenses, but also due to
better weather conditions than in 2003.
EBITDA and Net Profit
The EBITDA (operating profit plus depreciation6) for 2004 was 691 million
kroons (44.16 million euros) as opposed to 561 million kroons (35.85 million
euros) in 2003 (an increase of 130 million kroons (8.31 million euros) or
23%). The net profit for 2004 was 399 million kroons (25.50 million euros),
exceeding the net profit for 2003 by 168 million kroons (10.74 million euros).
Dividend payments of companies that are 100% in state ownership have been
subject to taxation with income tax since 2003, which means that the net
profits of Port of Tallinn in different years can’t be compared without
adjustments. When we adjust the net profit for 2004 with income tax on
dividends in the amount of 106.6 million kroons (6.81 million euros), the
“adjusted net profit” for 2004 is 505 million kroons (32.28 million euros).
When we adjust the net profit for 2003 with income tax on dividends in the
amount of 48.4 million kroons (3,09 million euros) and with the financing of
icebreaking costs in Estonian ports in the amount of 119.3 million kroons
(7.62 million euros), the “adjusted net profit” for 2003 is 397 million kroons
(25.37 million euros). The increase in the “adjusted net profit” for 2004 by
108 million kroons (6.90 million euros) when compared to 2003 was caused
mainly by the increase of revenue in the amount of 101 million kroons (6.46
million euros), decrease of operating expenses by 35 million kroons (2.24
euros) and an increase in financial expenses by 28 million kroons (1.79
million euros).
Return and Dividends
The return on assets of Port of Tallinn (net profit divided by the annual
average volume of assets) increased to 7.5% from 5.3% in 2003. The return on
assets in 2003 was more than twice below the previous years’ returns mainly
due to costs associated with the financing of icebreaking work. Although in
2004 the return on assets exceeds the result for 2003, it still remains below
the returns achieved in previous years. When calculating the return on assets
in 2003 and 2004 on the basis of “adjusted net profit”, then the result is
9.0% in 2003 and 9.5% in 2004. The difference in adjusted return on assets as
opposed to return on assets in 2002 arises mainly from the increase in asset
volume in association with long-term and extensive investments, the income
from which is realised in future periods.
The return on equity of Port of Tallinn in 2004 was 10.1%. The year 2004 is
characterised by an improvement in the rate of return on equity as a result of
the continued increase in the share of loan capital. The difference between
return on equity and return on assets will increase even more in the coming
years, given the need to finance extensive investment program and continuation
of the current dividend policy with substantial amount of loan financing.
* The amount for 2003 includes icebreaking work and income tax on dividends,
the amount for 2004 includes income tax on dividends
303.5 million kroons (19.40 euros) was paid out to the owner as dividends in
2004 and income tax on dividends in the amount of 106.6 million kroons (6.82
million euros) was added to this, the two amounts totalling 410.2 million
kroons (26.22 million euros).
INVESTMENTS AND DEVELOPMENT PROSPECTS
In 2004, Port of Tallinn invested a record high of 1.04 billion kroons (66.47
million euros) in new infrastructure objects and in the improvement of
existing infrastructure, 12% more than the year before (the relevant
indicators in 2003 were 934 million kroons (39.69 million euros) and increase
of 175%). The main share of investments, a total of 754 million kroons (48.19
million euros) or 72% of total investments went into water transport
facilities. The major investment objects were associated with Muuga Port: coal
terminal quays and land plots with 470 million kroons (30.04 million euros)
and the new container terminal quays with 206 million kroons (13.17 million
euros). 60 million kroons (3.83 million euros) was invested into railways, 56
million kroons (3.58 million euros) into the building of roads and viaducts.
In addition to investments, Port of Tallinn incurs substantial annual research
and development expenses totalling 8.8 million kroons in 2004 (0.56 million
euros) as opposed to 11.6 million kroons (0.74 million euros) in 2003. The
major part of research and development expenses are targeted at attracting new
cargo flows with good prospects and development of new projects in terms of
their economic returns and technical solutions.
Within the next 5 years, Port of Tallinn plans to invest approximately 5.8
billion kroons (370.69 million euros) into the completion and improvement of
the port’s infrastructure with 768 million kroons (49.08 million euros)
planned to invest already in 2005 (incl. 5 million kroons (0.32 million euros)
from European Union funds). This ambitious development plan will offer best
quality and modern technology to the port operators and cargo owners, which
would contribute to the growth of the cargo volume ensuring competitive
advantage and the market share of Port of Tallinn under increasingly
competitive market conditions.
The major share of new investments is targeted at the development of Muuga
Port (77% of total) and Paldiski South Harbour (16% of total). The major long-
term projects at Muuga Port are the development of metal terminal and general
and dry bulk terminals, construction of the breakwater in the eastern part of
the port and construction of an additional liquid bulk deep-water quay. The
continued development of Paldiski South Harbour is ensured by planned
investments in the establishment of a dry bulk and general cargo terminals
together with a breakwater in the medium long-term perspective.
Investments related to passenger traffic are aimed at increasing the number of
cruise passengers and better servicing of existing line passengers.
Port of Tallinn is expecting to increase the share of loan capital in the
capital structure of the company in order to finance new investments. 5 years’
goal is to achieve a 40/60 debt to equity ratio thus ensuring higher return on
equity while lowering the total cost of invested capital. Port of Tallinn does
not anticipate significant changes in the debt to equity ratio after the 40/60
ratio has been achieved, in order to maintain its borrowing ability.
BALANCE SHEET, audited, in thousands of EEK
Group Group Parent Parent
company company
ASSETS 31.12.04 31.12.03 31.12.04 31.12.03
CURRENT ASSETS
Cash and bank 99 409 155 516 94 506 151 083
Shares and other securities at fair 0 10 041 0 10 041
value
Customer receivables 87 971 83 719 87 971 83 719
Other receivables and prepayments 13 777 73 933 13 526 73 933
Inventories 1 333 2 354 1 333 2 354
Total current assets 202 490 325 563 197 336 321 130
NON-CURRENT ASSETS
Investments in subsidiaries 0 0 4 485 2 485
Other shares and securities at cost 2 855 4 655 2 855 4 655
Other long-term receivables 10 955 14 763 10 955 14 763
Tangible fFixed assets 5 380 873 4 563 763 5 380 201 4 563 763
Total non-current assets 5 394 683 4 583 181 5 398 496 4 585 666
TOTAL ASSETS 5 597 173 4 908 744 5 595 832 4 906 796
LIABILITIES
Current liabilities
Current portion of long-term debt 69 540 0 69 540 0
Supplier payables 85 090 207 860 85 090 207 860
Taxes payable 8 429 21 041 8 383 21 041
Payables to shareholders 0 100 000 0 100 000
Short-term provisions 2 084 1 222 2 084 1 222
Other payables 59 426 39 268 59 350 39 268
Total current liabilities 224 569 369 391 224 447 369 391
Non-current liabilities
Long-term borrowings 1 391 714 725 866 1 391 714 725 866
Long-term provisions 2 778 3 426 2 778 3 426
Government grant 458 0 0 0
Other long-term liabilities 3 384 17 997 3 384 17 997
Total non-current liabilities 1 398 334 747 289 1 397 876 747 289
Total liabilities 1 622 903 1 116 680 1 622 323 1 116 680
OWNER’S’ EQUITY
Share capital at nominal value 2 750 000 2 650 000 2 750 000 2 650 000
Statutory reserve 265 000 262 111 265 000 262 111
Hedging reserve -11 918 0 -11 918 0
Retained earnings 571 584 647 206 571 596 647 206
Profit for the year 398 209 230 787 398 831 230 799
Capital and reserves attributable the 3 972 875 3 790 104 3 973 509 3 790 116
Company’s equity holdersowners
Minority interest 1 395 1 960 0 0
OWNER’S’ EQUITY 3 974 270 3 792 064 3 973 509 3 790 116
TOTAL LIABILITIES AND OWNER’S’ EQUITY 5 597 173 4 908 744 5 595 832 4 906 796
BALANCE SHEET, audited, in thousands of EUR
Group Group Parent Parent
company company
31.12.04 31.12.03 31.12.04 31.12.03
CURRENT ASSETS
Cash and bank 6 353 9 939 6 040 9 656
Shares and other securities at 0 642 0 642
fair value
Customer receivables 5 622 5 351 5 622 5 351
Other receivables and 881 4 725 864 4 725
prepayments
Inventories 85 150 85 150
Total current assets 12 941 20 807 12 612 20 524
NON-CURRENT ASSETS
Investments in subsidiaries 0 0 287 159
Other shares and securities at 182 298 182 298
cost
Other long-term receivables 700 944 700 944
Tangible fFixed assets 343 900 291 678 343 858 291 678
Total non-current assets 344 783 292 919 345 027 293 077
TOTAL ASSETS 357 725 313 726 357 639 313 601
LIABILITIES
Current liabilities
Current portion of long-term 4 444 0 4 444 0
debt
Supplier payables 5 438 13 285 5 438 13 285
Taxes payable 539 1 345 536 1 345
Payables to shareholders 0 6 391 0 6 391
Short-term provisions 133 78 133 78
Other payables 3 798 2 510 3 793 2 510
Total current liabilities 14 353 23 608 14 345 23 608
Non-current liabilities
Long-term borrowings 88 947 46 391 88 947 46 391
Long-term provisions 178 219 178 219
Government grant 29 0 0 0
Other long-term liabilities 216 1 150 216 1 150
Total non-current liabilities 89 370 47 760 89 341 47 760
Total liabilities 103 722 71 369 103 685 71 369
OWNER’S’ EQUITY
Share capital at nominal value 175 757 169 366 175 757 169 366
Statutory reserve 16 937 16 752 16 937 16 752
Hedging reserve -762 0 -762 0
Retained earnings 36 531 41 364 36 532 41 364
Profit for the year 25 450 14 750 25 490 14 751
Capital and reserves 253 913 242 232 253 954 242 233
attributable the Company’s
equity ownersholders
Minority interest 89 125 0 0
OWNER’S’ EQUITY 254 002 242 357 253 954 242 233
TOTAL LIABILITIES AND OWNER’S’ 357 725 313 726 357 639 313 601
EQUITY
INCOME STATEMENT, audited, in tousands of EEK
Group Group Parent Parent
company company
2004 2003 2004 2003
Sales revenue 1 061 822 960 560 1 061 822 960 560
Other income 13 356 20 249 13 356 20 249
Operating expenses -230 135 -253 480 -229 458 -253 468
Personnel expenses -141 545 -145 733 -141 027 -145 733
Depreciation and impairment -151 257 -157 350 -151 257 -157 350
Other expenses -13 306 -138 829 -13 306 -138 829
OPERATING PROFIT 538 935 285 417 540 130 285 429
Financial income and expenses
Interest expense -34 002 -8 405 -34 002 -8 405
Other financial income and -647 2 153 -655 2 153
expenses
Total financial income and -34 649 -6 252 -34 657 -6 252
expenses
Profit from ordinary activities 504 286 279 165 505 473 279 177
Income tax -106 642 -48 378 -106 642 -48 378
NET PROFIT FOR THE PERIOD 397 644 230 787 398 831 230 799
Attributable to:
Equity holders of the Company 398 209 230 787 398 831 230 799
Minority interest ´ -565 0 0 0
INCOME STATEMENT, audited, in tousands of EUR
Group Group Parent Parent
company company
2004 2003 2004 2003
Sales revenue 67 863 61 391 67 863 61 391
Other income 854 1 294 854 1 294
Operating expenses -14 708 -16 200 -14 665 -16 200
Personnel expenses -9 046 -9 314 -9 013 -9 314
Depreciation and impairment -9 667 -10 056 -9 667 -10 056
Other expenses -850 -8 873 -850 -8 873
OPERATING PROFIT 34 444 18 241 34 521 18 242
Financial income and expenses
Interest expense -2 173 -537 -2 173 -537
Other financial income and -41 138 -42 138
expenses
Total financial income and -2 214 -400 -2 215 -400
expenses
Profit from ordinary activities 32 230 17 842 32 306 17 843
Income tax -6 816 -3 092 -6 816 -3 092
NET PROFIT FOR THE PERIOD 25 414 14 750 25 490 14 751
Attributable to:
Equity holders of the Company 25 450 14 750 25 490 14 751
Minority interest -36 0 0 0
Erik Sakkov
Marketing Director
+372 631 8067
Sisukaart