Tallink Grupp has published the financial results for the second quarter of 2023 (April 1-June 30), showing a return to profit after the smaller loss made in Q1.
The Group's vessels carried a total of 1,541,081 passengers in Q2, which is 0.7 % less than in the same quarter of 2022 (1,552,174 in Q2 2022). The company transported 22 % fewer cargo units in the second quarter of 2023 compared to the same period last year, a total of 85,359 units in Q2 2023 (109,380 cargo units in Q2 2022). The reason for the decline is that the company had fewer vessels in service in Q2 2023 compared to the same period last year (18 % fewer departures across the routes), which reduced overall capacity.
Despite the reduced number of departures and reduced passenger and freight units, the company's unaudited revenue increased by 11.5 % in the second quarter of 2023 compared to the same period in 2022, amounting to EUR 229.7 million (EUR 206.0 million in the second quarter of 2022). The Group's unaudited EBITDA in Q2 2023 increased by 138.7 % compared to the previous year, amounting to EUR 68.5 million (EUR 28.7 million in Q2 2022). The strong performance and positive results in several areas resulted in a net profit of EUR 33.4 million for the second quarter of 2023 (net loss of EUR 671,000 in the second quarter of 2022).
The strong performance for the second quarter of the year means that the company has delivered a profitable first half of the year for the first time since 2015. The total number of passengers travelling on the company's seven passenger ships in regular service during the first half of 2023 (in addition to the two cargo ships) was 2,590,858, which is 14 % more than in the first half of 2022 (2,272,435 in H1 2022). The number of cargo units transported during the first half of 2023 decreased by 18.6 % compared to the same period last year and amounted to 172,091 units (211,318 units in H1 2022). In addition to fewer ships in regular service in 2023 due to several charter agreements, the company has one less cargo ship in service this year as the ship Sea Wind was sold in the spring of 2022.
The Group's unaudited revenue increased by 28.4 % in the first half of 2023 compared to the same period in 2022 and amounted to EUR 400.9 million (EUR 312.2 million in H1 2022). The Group's unaudited EBITDA for the first half of 2023 was EUR 95.6 million, which is 439 % higher than the first half of 2022 (EUR 17.7 million in H1 2022). The unaudited net profit at the end of the first half of 2023 was EUR 28.0 million (net loss of EUR 40.7 million at the end of the first half of 2022).
Tallink continues with the repayment of loans, and the Group's net debt has decreased by EUR 73.7 million compared to 31 December 2022. The company continues to maintain strong liquidity at the end of the second quarter of 2023 with cash and cash equivalents of EUR 57.6 million in the Group (EUR 90.6 million at the end of Q2 2022) and EUR 135.0 million in undrawn credit facilities (EUR 116.7 million at 30 June 2022). The total liquidity buffer (cash and undrawn credit facilities) at the end of the second quarter of 2023 amounted to EUR 192.6 million (EUR 207.3 million at 30 June 2022). The company's net debt to EBITDA after 12 months was 3.1. The total number of shareholders was 39,149 at the end of the first half of 2023.
The company continued to invest in the modernization and technical upgrades of its vessels in the first half of 2023, with investments totaling EUR 16.2 million.
”"The results for the first half of 2023 are proof that we have made the right decisions in recent years, including in terms of chartering out some of our vessels. Our current strategy, to operate our regular routes with the most optimal number of vessels and charter out the remaining vessels, helps us on our path to recovery," says Tallink Grupp CEO Paavo Nõgene.
”Our focus is now on maintaining profitability over the next two quarters of 2023, while continuing to reduce our debt accumulated during the crises of recent years. The ships we currently have in service on our four main routes are performing well, with some room for growth if the number of passengers from countries other than our home markets increases in the coming year. The short-term plan is to continue operating on the same business model as in recent years, with a mix of scheduled traffic and charter agreements, until demand on our current routes or elsewhere increases and would thus justify an increased capacity.
”"We remain grateful to our customers and employees who have always understood the necessity of the operational decisions we have made, and to our loyal shareholders for their continued confidence in our business to overcome all challenges.".
According to the press release.
