In Q1 2024, Atlantska Plovidba recorded revenue growth of 13% YoY, an EBITDA increase of 53%, and a net income of EUR 2.23m (Q1 2023: EUR 203k).
Last week, Atlantska Plovidba published its Q1 2024 results, and in this overview, we’re bringing you the highlights. Starting with the revenue, it amounted to EUR 12m, growing by 13% YoY. As a dry bulk shipping company, this was of course influenced by the market dynamics during the quarter.
Atlantska Plovidba transported 1.09m tonnes of dry bulk cargo during this period, representing a decrease of 4% YoY. Breaking this down into cargo types, it transported 717k tonnes of coal, an increase of 77.2% YoY, 33.9k tonnes of grain, a decrease of 77.3% YoY, 282.8k tonnes of minor bulk, a decrease of 16% YoY, and 55.9k tonnes of iron ore, a decrease of 76.6% YoY. There are several interesting tidbits to be seen here. While the Company transports cargo across the world on different charters/routes, several changes in cargo types can be linked to macroeconomic developments. For example, the higher demand for coal is in line with the higher energy needs in Europe and Asia, especially China. For Europe, this could be directly linked to the reduced supply of gas from Russia following the war in Ukraine and the sanctions on the country. Grain transport was also reduced, which could indicate that supply & demand of this commodity have largely stabilized after a period of uncertainty following the start of the war, as Russia & Ukraine as amongst the largest producers in the world. Lastly, reduced iron ore demand could also be linked to reduced demand from China, as the country’s economy has been under a lot of pressure recently, especially its real estate sector which accounts for app. 1/3 of the GDP.
Coming back to Atlantska Plovidba, this transport was achieved across a fleet of 11 ships, 4 of which were in the Panamax category, 4 in the Supramax, 2 in the Handy category, and 1 in the Kamsarmax category. The average daily rate of transport amounted to USD 12k, a reduction of 11% YoY. Fleet utilization rate meanwhile, stood at 94.7%, a reduction of app. 4.2 p.p. YoY.
Moving further down the P&L, OPEX saw a slight 2% reduction to EUR 9.9m in Q1, mainly as a result of lower material expenses, while employee expenses increased slightly. As a result of the revenue growth & OPEX reduction, EBITDA experienced a significant 53% improvement YoY and amounted to EUR 6.7m. This would also imply an EBITDA margin of 56%, an increase of 14.5 p.p. YoY.
Meanwhile, the net financial result amounted to EUR -1.8m (Q1 2023: EUR -1.58m), mainly as a result of higher financial expenses due to higher interest rates. Finally, net income amounted to EUR 2.2m, increasing by almost 10x YoY. This would also mean that the net income margin improved significantly, from 1.9% to 18.6%, an increase of 16.7 p.p. YoY.
Atlantska Plovidba key financials (Q1 2024 vs. Q1 2023, EURm)
Source: Atlantska Plovidba, InterCapital Research
