Posted on May 2, 2022
Tallink Grupp has today published its 2022 Q1 financial results to the stock exchange. While the end of COVID pandemic is in sight, the low season quarter results were still strongly impacted by the Omicron wave of the pandemic and the start of the war in Ukraine in late February. The latter resulted in a sharp increase in fuel, food and commodities prices as well as some decrease in traveller confidence in the second half of the quarter. The results were also impacted by the planned dockings of several of the company’s vessels, including dockings brought forward from autumn 2022, to ensure there are fewer traffic interruptions in Q4 this year.
The group’s unaudited consolidated revenue in the first quarter (1 January – 31 March) of 2022 was EUR 106.1 million, up by 97.5% compared to Q1 2021 (total revenue in Q1 2021 was EUR 53.7 million). Despite increased passenger numbers and revenue compared to the same period in 2021, the company’s net loss in the first quarter of 2022 amounted to EUR 40.0 million (net loss of EUR 34.4 million in Q1 2021). The group’s unaudited EBITDA in Q1 2022 was EUR -11.0 million (EUR -6.3 million in Q1 2021). Compared to Q1 2021 the fuel cost increased by EUR 17.1 million in the first quarter of 2022.
With high expectations for the end of the COVID pandemic and in preparation of the 2022 summer high season, the company carried out technical maintenance of several vessels in its fleet in Q1 2022 with the majority of the company’s EUR 8.9 million in investments in the quarter dedicated to the maintenance and repairs of its vessels (total investments in Q1 2021 amounted to EUR 4.2 million).
As at 31 March 2022, the Group’s cash and cash equivalents amounted to EUR 101.0 million (EUR 14.8 million at 31 March 2021) and the Group had EUR 123.4 million in unused credit lines (EUR 81.7 million at 31 March 2021). The total liquidity buffer (cash, cash equivalents and unused credit facilities) amounted to EUR 224.4 million (EUR 96.4 million at 31 March 2021).
Commenting on the first quarter results, Tallink Grupp’s CEO Paavo Nõgene said:
“The first quarter is historically our low season and the COVID years have not been an exception in this with the pandemic and restrictions dragging the results down even further over the last few years. And if that wasn’t enough to impact the results, then this year we can add to the mix also the war in Ukraine and the resulting price increases and traveller confidence issues. It is clear that despite all our efforts over the last years to make our business as lean as possible and extremely tight cost control measures, the external factors we are facing have made it very difficult for us to achieve a desired result in this quarter. Whatever strides ahead we managed to make with increased passenger numbers and revenues, were cancelled out by the huge fuel price hike.
„We took several steps in Q1 to minimise losses at a time when travel demand was once again dampened due to the spread of the Omicron variant, temporarily suspending some of our vessels in January and February. We took advantage of the down-time to carry out the technical maintenance and repairs of several of our vessels, which means they are now shipshape for the summer season. All these steps in a normal year would have meant we were well prepared for the high season starting from late April, but in the Ukraine war and global security crisis context today, we know we need to continue working and work even harder to counter the effects of the new economic situation we have all found ourselves in.
„The positives we can hope for from the second quarter, however, based on what we saw in Q1 after the lifting of the COVID restrictions, are that traveller numbers will continue to bounce back and will bounce back faster than the original forecasts would have allowed us to hope. The fact that we have already seen departures in April where the vessels are at maximum passenger capacity, gives us hope that travelling on all our routes currently operated will increase rapidly in the coming quarters.
„Similarly to 2021, we will also continue to source alternative opportunities and work for our vessels with Romantika commencing its charter already in March and Isabelle securing a contract as a refugee accommodation vessel for at least four months this year. All such activities and contracts enable us to reduce risks and volatility for our business in these uncertain times. Our goal is to end the year 2022 with a net profit and the whole company continues to work towards this goal.”
For more information, please contact:
Katri Link
Communications Director
Tallink Grupp
Tel. +372 53042121
E-mail: katri.link@tallink.ee
Tallink Grupp
AS Tallink Grupp is one of the leading providers of passenger and cargo transport services in the northern Baltic Sea region. The company’s fleet consists of 14 vessels and the company operates various routes under the brands of Tallink and Silja Line. Tallink Grupp’s shares are listed on the Nasdaq Tallinn Stock Exchange and Nasdaq Helsinki Stock Exchange.
