Luka Koper published their FY 2020 results last week, showing an -8% YoY decrease in sales. Meanwhile, EBITDA fell -15%, while net profit amounted to EUR 32m (-21% YoY).
In FY 2020, Luka Koper’s sales decreased by -8% YoY, amounting to EUR 209.9m. Net revenue from sale from market activities amounted to EUR 203.6m (-8% YoY), whilst revenue from the performance of the public utility service fell by 24% YoY, amounting to EUR 6.3m. The reason behind the drop in sales was, of course, the outbreak of the COVID-19 pandemic.
The total amount of throughout in tons decreased by -14% YoY, amounting to 19.5m. Other than the outbreak of the pandemic, the drop in the throughput of dry bulk and bulk cargoes was additionally affected by the EU legislation, which forecasts complete decarbonisation in the coming years and the introduction environmental taxes on CO2 emission, due to which some consumers started to abandon the use of the coal for the production of energy yet in 2020.
Maritime throughput in tons per cargo groups in 2020 and 2019
However, the throughput of two strategic product groups, containers and cars remained stable, mainly the throughput of containers, which in 2020 decreased by only 1% YoY (in TEU).
Throughput of containers (number containers and TEU) and cars (in units) in 2020 and 2019
EBITDA fell by 15%, amounting to EUR 61.8m. The decrease was mainly due to lower sales, as operating expenses were down -1% YoY. Namely, cost of material, services and other operating expenses decreased, whilst labour costs increased. The increase of labour costs resulted from a higher number of employees and payments of crisis supplement to the employees in compliance with the provisions of the Act determining the intervention measures to contain the COVID-19 epidemic and mitigate its consequences for citizens and economy.
As a result of the abovementioned, net profit amounted to EUR 32m, representing a -21% YoY decline.
CAPEX almost doubled, amounting to EUR 68.1m (+74% YoY), with the aim of increasing the port’s facilities. Namely, a new RO-RO berth was constructed and put into use, additional railway tracks were laid–both in the rear areas of the Basin III for the needs of the Car terminal. The construction of parking garage continued, works at the new, third Bertoki truck entrance are to be finalized, the transhipment equipment and a new fire-fighting vehicle. However, the most important investment in 2020 was the start of construction of the extension of the container quayside, which jointly with other planned additional areas in the front of the Pier I is a key investment in order to maintain the competitive position in containers. Note that despite everything, CAPEX in 2020 lagged 22% behind planned.
Luka Koper Key Financials (EUR)