In H1 2023, Atlantska Plovidba recorded a sales revenue decrease of 44% YoY, an EBITDA decrease of 65%, and a net income of EUR -1.04m, (H1 2022: EUR 16.9m).
The trends in the shipping industry have been on a downward trajectory for over a year now, under the effect of the war in Ukraine, high inflation and interest rates in the world, and the uncertain future, among other things. This has led to a reduction in demand for shipping, which in this case is reflected in Atlantska Plovidba’s results. According to the Company, they recorded a sales revenue of EUR 22.6m, representing a decrease of 44.2% YoY. This was influenced by the lower average daily rate of USD 12,752, representing a decrease of 41% YoY, with the level in June falling even lower, just slightly below USD 10,000 (June 2022: USD 22,000).
Besides this, the decrease in revenue was also under the influence of a lower amount of transported cargo, which amounted to 2.29m tonnes of cargo in H1 2023, a decrease of 28% YoY. Breaking this down further, coal was the most transported good, amounting to 1.08m tonnes, or 47.3% of the total, followed by minor bulk goods at 677.7k tonnes, or 29.5%, iron ore, at 367.8k tonnes, or 16%, and finally, grain, at 164.3k tonnes, or 7.2% of the total.
In terms of the fleet, Atlantska Plovidba currently possesses 11 ships, with a total transport capacity of 693.121 dwt. Of this, 5 ships are in the Panamax category, 4 ships in the Supramax category, and 2 ships are in the Handy category. Furthermore, Atlantska Plovidba has 2 more ships in construction, in the Kamsarmax category. In H1 2023, the fleet utilization rate was 98.86%, up by almost 2 p.p. YoY. Finally, the NAV of the fleet amounts to USD 202.12m, or on a per share basis, USD 85.12.
Coming back to the financial side, operating expenses amounted to EUR 20.57m, a decrease of 4.9% YoY, mainly due to lower other op. expenses (EUR 3.25m, -22.9% YoY), with material costs remaining almost the same, while staff costs only increased slightly (EUR 4.63m, +2.9% YoY). This led to an EBITDA of EUR 8.76m, a decrease of 65% YoY, implying an EBITDA margin of 38.7%, representing a decrease of over 23 p.p. YoY.
Meanwhile, the net financial result remained negative and amounted to EUR -4.51m (H1 2022: EUR -2.68m), representing a decline of 68% YoY. This came mainly as a result of higher financial expenses (EUR 5.16m, +58% YoY), driven by higher interest rates, higher FX losses, as well as higher other financial expenses. On the other hand, the financial income increased by 10.7% and amounted to EUR 649.9k. All taken together, this led to a net income of EUR -1.04m, (H1 2022: EUR 16.9m), meaning that the net income margin also turned negative, at -2.57% (H1 2022: 41.6%).
Atlantska Plovidba key financials (H1 2023 vs. H1 2022, EURm)
Source: Atlantska Plovidba, InterCapital Research
Taking a quick look at the share price, we can see that during the H1 period, it remained mostly unchanged, and on a YTD basis, it grew by only 1.8%.
Atlantska Plovidba share price development (2019 – 2023 YTD, EUR)
Source: Atlantska Plovidba, InterCapital Research
