During 9M 2023, Atlantska Plovidba recorded revenue decline of 44% YoY, an EBITDA decrease of 13%, and a net income of EUR -2.7m (9M 2022: EUR 19.1m). Furthermore, in Q3 2023, revenue also declined by 44% YoY, EBITDA by 13%, while the net income amounted to EUR -1.6m (9M 2022: EUR 2.3m).
Last week, Atlantska Plovidba published its 9M 2023 results, and in this brief analysis, we’re bringing you the most important points. The uncertainty regarding the shipping industry has continued in 2023, driven by the macroeconomic and geopolitical situation which does not foster shipping expansion. This is due to elevated inflation rates across the world, higher costs of trade (due to most trade transactions being in dollars, and the value of the dollar increasing due to higher interest rates in the US), as well as the geopolitical uncertainty due to the war in Ukraine, and the conflict in the Middle East between Israel and Hamas. In this environment, Atlantska Plovidba’s results also suffered.
Currently, Atlantska Plovidba has 10 ships in operation, 4 in Panamax, 4 in Supramax, and 2 in the Handy categories. 2 more ships are under construction, in the Kamsarmax category. During 9M 2023, Atlantska Plovidba transported a total of 3.8m tonnes of dry bulk cargo, a 13% reduction YoY. Of this, coal recorded a 25% reduction to 1.98m tonnes, iron ore 32% to 200k tonnes, while on the other hand, minor bulk cargo increased by 9% to 1.4m, while grain cargo recorded the largest relative increase, of 69% to 194.6k. Meanwhile, the average daily rate of transportation amounted to USD 11.7k, marking a 45% reduction YoY.
Because of these developments, in 9M 2023, Atlantska Plovidba recorded revenue of EUR 33m, a 44% decline YoY, while in Q3, it recorded revenue of EUR 10.4m, also a 44% decrease. This is a clear indication that the situation as of Q3 hasn’t improved, at least when the top line is concerned. With the reduction in overall transportation activity, Atlantska Plovidba’s operating expenses also decreased, by 23% to EUR 30.5m on a 9M basis, and by 45% YoY to EUR 9.9m on a Q3 basis.
Decreases were recorded both in material expenses and employee expenses, of 57% to EUR 5.7m, and 65% to EUR 2.4m, respectively, on a 9M basis. Furthermore, on a Q3 basis, material expenses declined by 68% YoY to EUR 3.5m, and 67% to EUR 2.3m, respectively. However, due to the larger absolute decrease in revenue as opposed to OPEX, EBITDA decreased by 56% YoY to EUR 13m during 9M, and 13% YoY to EUR 4.3m during Q3. This would also mean that the EBITDA margin declined by 11 p.p. to 39.6%, and 14.9 p.p. to 41.6% during 9M and Q3, respectively.
The net financial result did somewhat improve in both 9M and Q3, by 27% and 42%, respectively. However, it still remains negative at EUR -1.5m and EUR -3.3m, respectively, mostly due to lower financial income and still elevated financial expenses, which stem mostly from interest expenses. All taken together, this led to a net income of EUR -2.7m in 9M 2023 (9M 2022: EUR 19.1m), and EUR -1.6m in Q3 2023 (Q3 2022: EUR 2.3m). As such, the net income margin decreased significantly on both 9M and Q3 basis, to -8% and -15.6%, respectively.
Atlantska Plovidba key financials (9M 2023 vs. 9M 2022, EURm)
Source: Atlantska Plovidba, InterCapital Research
Atlantska Plovidba key financials (Q3 2023 vs. Q3 2022, EURm)
Source: Atlantska Plovidba, InterCapital Research
