Atlantska Plovidba recorded a revenue increase of 147%, EBITDA growth of 663%, and a net profit of HRK 447.2m.
In 2021, Atlantska Plovidba transported 7.01m tons of cargo, which is an increase of 4.1% YoY. Of that cargo, 63.6% was coal, 25.2% was minor bulk, 9.3% was iron ore, while grain made up the remaining 1.86%.
At the moment, the Company operates 12 vessels, out of which 5 are classified as Panamax, 5 are classified as Supramax, and 2 are classified as Handy. Out of those, 4 are employed on a long-term lease (> 1 year), while 8 are employed on a short-term lease (< 1 year). In 2021, the fleet utilization rate amounted to 95.4%.
According to the Company, the average daily freight rate in 2021 increased steadily during the entire year, only starting to decline in December 2021. This means that in January 2021, it amounted to USD 11,428, while at its highest point, in November 2021, it amounted to USD 23,428, a 105% increase, declining to USD 22,529 in December, still representing a large 97% increase from the beginning of the year. This would mean that the average daily freight rate in 2021 amounted to USD 17,062.
Average Daily Freight Rate (USD)
The Company noted that since the beginning of 2021, a recovery on the market, especially driven by the Chinese economy (and its demand for coal and iron ore) had a positive impact on its operations. Combined with the Chinese government’s decision to ban coal imports from Australia, this caused more delays and redirection of exports towards Indonesia. This is most evidenced on the average daily rates on the spot market, with the Capesize category reaching USD 87,000, Panamax reaching USD 38,000, Supramax reaching USD 32,000, and Handysize reaching USD 30,000. Combined with the price of scrap increasing from USD 400/lt to USD 600/lt due to higher freight rates, this had an influence on the Company’s decision to start negotiating the construction of two new ships, in the Kamsarmax category.
In total, all these developments had a positive influence on the Company’s operating revenue, which increased by 147% and amounted to HRK 793.8m. Operating expenses amounted to HRK 297m, a 7% decrease YoY, mostly driven by value adjustments in the previous period. Material costs increased by 14%, while staff costs remained roughly the same.
With the higher operating revenue and lower operating expenses, EBITDA amounted to HRK 564.5m, an increase of 663% YoY. This would also mean that the EBITDA margin was significantly higher, amounting to 70.7% (as compared to 22.9% in 2020). Moving further down the P&L, the Company recorded an EBIT of HRK 496.7m, as compared to HRK 3.1m in 2020.
This would also mean that the Company’s net income to majority increased significantly, amounting to HRK 447.2m, as compared to a net loss of HRK -46.7m in 2020.
Atlantska Plovidba Key Financials (HRKm)