Luka Koper Publishes H1 2022 Results

In H1 2022, Luka Koper reported a revenue increase of 35% YoY, an EBITDA increase of 95% YoY, and a net income of EUR 41.1m, an increase of 169% YoY.

Luka Koper’s net revenue amounted to EUR 155.1m, representing an increase of 35% YoY, as well as a 29% increase compared to the H1 2022 plan. The increase was driven by an increase in maritime throughput, which increased by 13% YoY, and 11% compared to the H1 2022 plan, amounting to 11.7m tonnes. Container throughput increased by 3% both YoY and compared to the plan, amounting to 526.5k TEUs. Cars throughput also increased, by 11% YoY and 6% compared to the H1 2022 plan, amounting to 367.3k units. In particular, the higher net revenue can be attributed to warehousing due to the slower dispatch of goods resulting from the current situation in the global logistic market. Luka Koper also notes that as the situation normalizes, the growth of these revenues is expected to decline. Higher revenues can also be attributed to rising prices and increased volume of throughput and additional services.

Growth can be seen across almost all the cargo groups. General cargoes increased by 25% YoY and amounted to 700.7k tonnes, mainly as a result of increased throughput of steel products and caoutchouc. At the same time, a 20% lower export of timber was also recorded, but the trend of containerisation of these goods has been positive, which is reflected in the increase of additional services of container stuffing. Container throughput also increased, growing by 3% and amounting to 526.5k TEUs, despite the deviations in land shipments for and from ports, mainly as a result of shipment delays from the congestion of major Chinese ports. It should be noted, however, that the throughput of containers in terms of tonnes remained roughly the same YoY, at 5.03m tonnes. Meanwhile, 367.3k cars were transhipped, which is 11% higher YoY (if we were to look in terms of tonnes, this amounts to 639.7k tonnes, which is 18% higher YoY). The main increase was in the segment of electric vehicles. The Group notes, however, that car manufacturers are still facing semiconductor and other automotive parts shortages, which is also exacerbated by the war in Ukraine, which is also causing certain stoppages in production.

Maritime throughput in tonnes (H1 2022 vs H1 2021)

Liquid cargo throughput increased by 41% YoY, generated by all cargoes of this type, but foremost by resumed throughput of jet fuel, which increased by 37% YoY. Finally, dry and bulk cargo increased by 20% YoY, especially in the throughput of industrial salt and other dry bulk cargo. The share of the dry bulk and bulk cargoes increased by 2 p.p. YoY, whilst the share of the liquid cargoes increased by 1 p.p. YoY. The share of cars remained unchanged.

Structure of the maritime throughput by cargo groups (H1 2022 vs. H1 2021, %)

Meanwhile, operating expenses grew by 11% or EUR 10.4m, with all types of costs increasing. Costs of material and energy were the ones which increased the most, due to higher consumption of motor fuel and higher electricity prices, as well as higher costs of spare parts due to higher volume of maintenance works. At the same time, higher maritime throughput and higher revenue increased the cost of port services, as well as the transshipment and concession fees. Labour costs also increased due to a higher number of employees, higher payments for job performance, and adjustments of salaries for inflation. Higher amortization costs were also recorded due to new purchases of assets, while other op. expenses increased due to value adjustments of trade receivables and higher costs of compensation for the use of construction land. Even so, op. expenses to sales amounted to 70.3%, 15.7 p.p. lower YoY. With the faster revenue than op. expenses growth, EBITDA increased significantly, amounting to EUR 61.9m, up 95% YoY. The net financial result increased by 27% YoY, mainly as a result of higher financial income, while the financial expenses increased only slightly. In the end, Luka Koper’s net income increased by 169% YoY and amounted to EUR 41.1m.

The Company also commented on its investments, which amounted to EUR 31.9m in H1 2022, representing an increase of 6% YoY and 62% compared to the plan. This will be mainly towards investments into property, plant and equipment, property investments, and intangible fixed assets. In particular, the following investments were made: The purchase of two SPPX cranes for the needs of the container terminal, continued extension of Pier 1, and upgrading of the anti-dust system, among many others.

Luka Koper key financials (H1 2022 vs. H1 2021, EUR)

Impact of the Russia-Ukraine conflict on Luka Koper

Luka Koper also commented on the Russia-Ukraine conflict’s impact on the Company’s performance and said that it has no relevant impact on the Company’s strategic direction and goals. Due to the small volume of business in the affected region and consequently lower exposure, adverse conditions will not materially impact the operating result. Low indebtedness, increased volume of business, favourable liquidity position, as well as the fact that the Company’s liabilities are settled to maturity, are also helping the Company’s situation. Luka Koper also has no direct financial exposure to Russia, Ukraine, or Belarus, but as developments on the stock market materialized in H1 2022, the value of the Company’s stock decreased. A negative impact on the Company’s financial accounts, which may be the effect of the war, was the change of the surplus from the change of the revaluation surplus of finance investments of companies exposed to countries related to the conflict, in the amount of EUR 10.7m. Furthermore, Luka Koper estimates the war may indirectly impact the Group’s performance in 2022, with an effect to supply chains and logistics. Current trends in energy, raw materials, and food markets affected by the war show additional inflationary pressures, which will also affect the Company, leading to higher op. costs.

Luka Koper’s objectives until 2025

Luka Koper also commented on a set of objectives for 2025. They target a total op. revenue increase of 24%, by using the synergies in the logistics chains, acquiring new strategic markets, applying a renewed long-term and targeted commercial policy, and ensuring that the revenue structure is targeted at higher value-added groups. The Group is also targeting an increase in total transshipment to 27.3m tonnes by 2025. The investment will be made towards increasing the capacity and throughput of the port by 2025, while awaiting the renewed twin-track line to be ready, thus increasing the advantages and opportunities of this route. The goal is to increase the transshipment quantities by rail to 60%, while after the track renewal is complete, to 70%.

Also, we would like to remind you that tomorrow, 30 August 2022, is the ex-dividend date for Luka Koper. If you would like to read more about the dividend, click here.

Mihael Antolić
Category : Blog

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