Tallink Grupp stays in profit in H2 2021 and halves net loss for the year compared to first pandemic year
Tallink Grupp has today published its 2021 financial results to the stock exchange and reported an unaudited net loss of EUR 56.6 million (net loss of 108.3 million reported for the full year 2020) with a strong second half of the year resulting in a marginal net profit for H2.
The group’s unaudited consolidated revenue increased year-on-year, amounting to EUR 476.9 million (EUR 442.9 million in 2020), and the group’s unaudited EBITDA for the financial year also increased significantly compared to the previous year, reaching EUR 58.3 million (EUR 8.0 million in 2020). The strong result considering the ongoing pandemic challenges was achieved despite the company’s passenger numbers decreasing by 21% compared to 2020 and amounting to a total of 2 961 975 passengers in 2021 across all the company’s routes. The company’s cargo transportation continued on a steady path with the number of cargo units carried in 2021 increasing by 2.6% compared to the full year 2020.
Despite the challenges of the first half of the year and the reduced passenger numbers during the year overall 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. The 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 Q3 2021.
Other positive contributors to the marginal net profit in H2 were the various charters the company had managed to secure for its vessels, both for Victoria I and Romantika in the Mediterranean for the majority of Q3, and for Silja Europa and Romantika at COP26 in Glasgow in Q4.
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. The company’s key project into the future continues to be the build of the company’s new shuttle vessel MyStar, which celebrated the key milestones of christening and launching during 2021 and which is now due for completion and delivery in 2022. Other than the construction of MyStar, the company only made investments into the technical maintenance of its vessels and key company software, and key developments projects, like the continuing roll-out in the Baltics of the Burger King franchise. In total, Tallink Grupp made investments in the amount of EUR 20.2 million in 2021. The total liquidity buffer (cash, cash equivalents and unused credit facilities) as at the end of the year on 31 December 2021 amounted to EUR 262.4 million (EUR 147.1 million at 31 December 2020).
Part of the efforts to ensure liquidity in 2021 also included omitting dividend distribution and the Management Board will propose not paying a dividend in 2022 as well.
Commenting on the results for 2021, Tallink Grupp’s CEO Paavo Nõgene, 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. Only great companies and teams 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.”
As at 31 December 2021 Tallink Grupp had 37 334 shareholders, out of whom 9 571 were shareholders on Nasdaq Helsinki.
