In Q1 2022, sales increased by 69.5%, EBITDA increased by 134.4%, while net profit increased more than fivefold and reached HRK 67.4m.
In the first three months of 2022, the company transported 1.7m tons of cargo. Of that, coal makes up roughly 60%, followed by minor bulk and iron ore with c.25% and 12%, respectively.
Atlantska Plovidba operated with 12 vessels, of which 5 are classified as Panamax, 5 as Supramax and 2 as Handy. Of those, 4 vessels were employed on a long-term lease (> 1 year), while 8 were employed on a short-term lease (< 1 year). In the mentioned period, the fleet utilization rate amounted to 98%.
According to the company reports, the average daily freight rate in Q1 of 2022 rose sharply to roughly USD 21,021 per day. We also note that the company’s average freight rate fell on an MoM basis and as of March stood just slightly below USD 20,000.
As a result of the favorable environment, in the first quarter of 2022, the company observed a steep increase in sales of 72.7%, amounting to HRK 153.8m.
Operating expenses in Q1 observed an increase of 18.3% YoY, amounting to HRK 77m. The aforementioned increase could be attributed to higher material costs (+21.4% YoY) and higher employee costs (20.5% YoY).
Therefore, as a result of higher growth in sales than operating expenses, EBITDA increased more than 2x and reached HRK 97m (+134.4%). Such a result led to the EBITDA margin being significantly higher as well, at 63.7% (+16.8 p.p.). Going further down the P&L, the company recorded EBIT of HRK 76.85m compared to EBIT of HRK 25.7m in Q1 of 2021.
At the same time, Atlantska Plovidba recorded a net financial loss of HRK -9.5m, which represents a decrease in loss of HRK 13.9m on a YoY basis. The mentioned decrease could be attributed to somewhat lower interest payments in Q1 2022. As a result of all of the above, the company’s bottom line increased more than fivefold, reaching HRK 67.4m, compared to a profit of HRK 12.0m in Q1 of 2021.
We should also emphasize that Company announced the selling of one of its boats, classified as Supramax. Transaction price amounted to HRK 140.1m. Atlantska Plovidba will deliver the boat in the last quarter of 2022 and will be operating the boat meanwhile. Transaction will positively impact on Company’s cash flow.