Tallink’s passenger numbers up – cargo units down last year

2024-03-01T18:22:33+00:00 March 1st, 2024|Finance|

In 2023, AS Tallink Grupp and its subsidiaries carried 5,705, 600 pax, which is 4.5% more than in the financial year 2022.

However, the number of cargo units transported fell by 20.9%, compared to the previous year.

The Group’s unaudited consolidated revenue amounted to €835.3 mill (€771.4 mill in 2022), up by 8.3% year-on-year. Unaudited EBITDA was €214.5 mill (€135.8 mill in 2022) and the unaudited net profit for the period was €78.9 mill (€13.9 mill in 2022), up by 58% and 466%, respectively.

The following operational factors impacted the Group’s revenue and operating results in the financial year 2023:

  • The volume of cargo and passenger transportation was impacted by less vessels in operations, due to chartering and by less trips made, compared to the same period a year ago.
  • Demand was also impacted by low consumer and business confidence levels, and weak economic environment in all Group’s core markets but also by global geopolitical instability.
  • As at the end of the financial year, the Group operated 15 vessels, including two shuttle vessels, two cargo vessels and five cruise ferries, as well as five vessels that were chartered out (three vessels on long-term and two vessels on short-term charters), plus one in lay-up.
  • During the financial year, two charter agreements ended. The charter of the cruise vessel ‘Romantika’ was terminated in September, 2023 prior to the agreement’s expiration date. The short-term charter of the cruise ferry ‘Victoria I’ ended in July, 2023.
  • In addition, the Group extended the charter agreements of cruise vessels ‘Galaxy I’ and ‘Silja Europa’ until April. 2024 and end of 2024, respectively. The shuttle vessel ‘Oscar Wilde’ (former ‘Star’) was chartered out in May, 2023 for 20 months with the option to extend the charter period by two plus two years and a purchase option.
  • Vessels’ planned maintenance totalled 61 days.
  • The Group operated three hotels in Tallinn and one in Riga.
  • Declining global fuel prices, the optimal fleet size and strict cost control had a positive impact on the Group’s cost base. However, while the fuel prices have dropped the fuel transportation cost component has increased.
  • The Group repaid loans amounting to €487.6 mill, which included refinancing of loans totalling €298 mill. The net repayment of interest-baring loans was €189.6 mill.
  • The Group’s net debt to EBITDA ratio amounted to 2.8 as at the end of the financial year 2023 compared to 5.4 as at the end of the financial year 2022.
  • The Group regularly monitors the developments on its core routes, including the capacity of each route and continues to look for new chartering options for vessels not used on the main routes and to work on extending the existing chartering agreements.

In the financial year 2023, the Group’s total revenue increased by EUR 63.9 million to EUR 835.3 million compared to EUR 771.4 million in the financial year 2022.

Revenue from route operations (the core business) amounted to €645.8 mill, which was €16.9 mill more than for 2022. The 2023 segment result was €107.2 mill, compared to €39.7 mill in 2022.

As at the end of the 2023 financial year, the long-term charters included:

  • ‘Atlantic Vision’ chartered to Canada in November, 2008. The current agreement has been signed until May, 2024 with an extension option for another 12 months.
  • ‘Oscar Wilde’ (ex ‘Star)’ was chartered out from 5th May 2023 for 20 months with the option of extending the charter by two plus two years and an option to purchase the shuttle.
  • ‘Isabelle’ has been on long-term charter since 1st July, 2023 and the charter agreement includes a purchase option.

The short-term charters included:

  • ‘Galaxy I’ was chartered out in September, 2022. In September, 2023, the agreement was extended for six months until April 2024.
  • ‘Silja Europa’ was chartered out in August, 2022. In October, 2023, the charter agreement was extended until the end of 2024.

At the end of the financial year 2023, the Group’s net debt amounted to €607.3 mill, a decrease of €13 mill, compared to the end of third quarter of 2023.

As at the end of the financial year 2023, the Group’s cash and cash equivalents amounted to €41.9 mill (€64.4 mill as at 30th September 2023).

In the fourth quarter of last year, the Group carried 1.3 mill passengers’, which was 3.3% more compared to the same period last year.