During FY 2023, Atlantska Plovidba recorded a revenue decline of 40.6% YoY, an EBITDA decrease of 15.2%, and a net income of EUR -2.9m (vs. 2022: EUR 5.1m). Furthermore, in Q4 2023, revenue also declined by 38.7% YoY, while the net income amounted to EUR -146k (only Q4 2022: EUR -14m).
Last week, Atlantska Plovidba published its FY 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 11 ships in operation, 4 in Panamax, 4 in Supramax, 2 in the Handy categories and 1 in the Kamsarmax category. During FY 2023, Atlantska Plovidba transported a total of 4.6m tonnes of dry bulk cargo, a 16.5% reduction YoY. Of this, coal recorded a 17.9% reduction to 2.5m tonnes, iron ore 8.4% to 506k tonnes, minor bulk cargo decreased by 38% to 1.1m, while grain cargo recorded the largest relative increase, of 4.2x to 494k. Meanwhile, the average daily rate of transportation amounted to USD 12.2k, marking a 43% reduction YoY.
Because of these developments, in FY 2023, Atlantska Plovidba recorded revenue of EUR 48.9m, a 40.6% decline YoY, while in Q4, it recorded revenue of EUR 13.2m, also a 38.7% decrease. This is a clear indication that the situation as of Q4 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 43.1% to EUR 40.6m on a FY basis, and by 68.3% YoY to EUR 10m on a quarterly basis. However, due to the larger absolute decrease in revenue as opposed to OPEX, EBITDA decreased by 15.2% YoY to EUR 19m during 2023. Taking the lower top-line into account, it would mean that the EBITDA margin increased by 12.8 p.p. to 41.1%.
The net financial result further worsened to EUR -11.1m (vs. 2022 EUR -6m), mostly due to lower financial income & elevated financial expenses, which stem mostly from interest expenses. All taken together, this led to a net income of EUR -2.9m in FY 2023 (2022: EUR 5.1m). As such, the net income margin decreased significantly to -6.1% from a positive 6.4% in 2022.
Atlantska Plovidba key financials (FY 2023 vs. FY 2022, EURm)
Source: Atlantska Plovidba, InterCapital Research
