Tallink Grupp has reported an unaudited net loss of €56.6 mill for 2021, compared with a net loss of €108.3 mill for 2020.
The Group enjoyed a strong second half of the year, resulting in a marginal net profit for the six month period.
Its unaudited consolidated revenue increased year-on-year, amounting to €476.9 mill (€442.9 mill in 2020) and the group’s unaudited EBITDA for the financial year also increased significantly, compared to the previous year, reaching €58.3 mill (€8 mill in 2020).
The strong result considering the ongoing pandemic challenges was achieved despite the company’s passenger numbers decreasing by 21%, compared to 2020, amounting to 2,961,975 passengers across all the company’s routes.
Cargo transport continued on a steady path with the number of cargo units carried in 2021 increasing by 2.6%, compared to 2020.
Despite the challenges of the first half of the year and the reduced passenger numbers during the full year, as a result of continuing on-and-off travel restrictions, the company managed to secure a net profit in the second half of the year.
This result can partly be attributed to the re-opening of the Tallinn/Stockholm route in July, 2021 after a 15-month suspension and the Helsinki/Stockholm route in August after a 16-month suspension.
Both routes immediately attracted passengers, especially at the time when the vaccination drive in Baltic sea countries had had an initial positive impact on reducing the spread of the virus during summer 2021 and the temporary easing of travel restrictions during 3Q21.
Other positive contributors to the marginal net profit in the second half of the year were the various charters the company managed to secure for its vessels, for ‘Victoria I’ and ‘Romantika’ in the Mediterranean for the majority of 3Q21, and for ‘Silja Europa’ and ‘Romantika’ at COP26 in Glasgow in 4Q21.
In addition to continuing to work towards the restoration of operations and securing of new opportunities for the company’s fleet, the group also continued with key strategic projects in 2021 and investments into the future.
Tallink’s key project continues to be the building of its new shuttle vessel ‘MyStar’, which was christened and launched during 2021 and which is due for completion and delivery this year.
Other than the newbuilding, Tallink only made investments in the technical maintenance of its vessels and key company software, plus other key developments projects, like the continuing roll-out in the Baltics of the Burger King franchise, which, in total, amounted to €20.2 mill in 2021.
Total liquidity buffer (cash, cash equivalents and unused credit facilities) as at the end of the year was €262.4 mill ($147.1 mill as at 31st December 2020).
Commenting on the results, Tallink Grupp’s CEO, Paavo Nõgene (pictured), said: “Achieving this result, particularly the net profit for H2, has required a tremendous team effort from the teams and colleagues in every country where Tallink operates, both on shore and on board. And this has required teamwork on all levels of the company throughout the whole year.
“Restoring routes and operations in extremely challenging conditions, under extremely tight timescales, pushing forward with strategic projects against all odds and despite supply chains under significant pressure around the globe, as well as proving our capabilities and professionalism when securing new business opportunities and delivering significant projects when the eyes of the whole world are upon you, is something that only very strong and experienced teams and companies can do. And the Tallink team did just that in 2021.
“For the second year running, Tallink, with the most dedicated, quick-thinking, hard-working and competent team, has once again run the gauntlet of an on-and-off, open-and-closed year and come out fighting and more determined than ever.
“We have operated flexibly, cleverly and cost-consciously, building our buffers and securing our longer-term sustainability, at the same time always keeping our sights on recovery, restoration and steadily moving forward towards the time when we are once again able to operate to a large scale as before.
“At the same time, we have played an active role as a company in helping society move once again towards greater openness, providing support to our governments and offering services that have enabled us to have as much freedom as possible during these unprecedented times.
“We have faith in 2022 being a year of change for the positive from the COVID pandemic point of view and we are gearing our business up for it. Our customers tell us that they are ready to and want to return to the Baltic sea with us and we have made all the preparations to make this return to cruising on the Baltic sea as memorable and enjoyable for everyone who joins us on board. We have every intention to keep the Baltic sea cruising tradition alive with our colleagues and customers in 2022 and beyond,” he concluded.
