The Estonian Government is to loan €100 mill to the Tallink Grupp.
The loan can be issued in €10-40 mill tranches, while the interest rate of the three-year maturity loan is 12-month Euribor +2%. The loan must be secured with the assets of the Company’s consolidation group and will be issued by KredEx.
In the first quarter of this financial year, Tallink Grupp and its subsidiaries carried 1.6 mill passengers, which is 15.6% less than in 1Q19. However, the number of cargo units transported increased by 7%.
The Group’s unaudited consolidated revenue decreased by €23.9 mill or 13.4% to €154.9 mill. Unaudited EBITDA was a negative €1.3 mill (€3.8 mill in 1Q19) and unaudited net loss was €30.2 mill (net loss of €25.3 mill in 1Q19).
In the first quarter, the Group’s revenue and operating results were impacted by the following operational factors:
- Increase in the number of carried passengers in January and February – 12.4% and 8%, respectively.
- Drastic decrease in volumes in March, due to Covid-19 resulting in 59.3% less passengers.
- Planned dockings of five ships, totalling 69 days, which is 48 days less than in the first quarter last year.
- Operations of seven vessels and three hotels suspended since the travel restrictions were imposed in mid-March.
In the first quarter, Tallink’s net debt increased by €35.5 mill to €574.5 mill and the net debt to EBITDA ratio was 3.5 at the reporting date.
At the end of the first quarter, total liquidity buffer (cash, cash equivalents and unused credit facilities) amounted to €79.2 mill. At the same time, the current trade and other payables amounted to €100.7 mill, exceeding the liquidity buffer 1.27 times.
As at 31st March, 2020, the Group’s cash and cash equivalents amounted to €16.5 mill and Tallink had €62.7 mill in unused credit lines.
The physical production process of the new ropax ‘MyStar’ started on 6th April, 2020 at the Rauma shipyard. Prepayment of €49.4 mill will be made in 3Q20.
In April, the Group extended its existing overdraft facility with Danske Bank by €20 mill to help to improve liquidity.