In 9M of 2020, the company recorded a decrease in sales of 16.3% YoY, decrease in EBITDA of 49.2% and a net loss of HRK -51.07m.

As Atlantska Plovidba published their 9M 2020 report, we are bringing you key takes from it. According to the report, in the first nine months of 2020, the company transported 4.84m tons of cargo, representing a decrease of 13.6% YoY. Of that, coal makes up for roughly two thirds, followed by minor bulk and iron ore.

Currently, Atlantska Plovidba operates with 12 vessels, of which 5 are classified as Panamax, 5 as Supramax and 2 as Handy. Of those, 6 vessels are employed on a long-term lease (> 1 year), while 6 are employed on short term lease (< 1 year). In the mentioned period, the fleet utilization rate amounted to 97.57%, being down 0.91%.

According to the company reports, average daily freight rate in 9m of 2020 amounted to roughly USD 8,200 per day (roughly -22% YoY). However, the figure was still quite higher than the BDI freight rate which amounted slightly above USD 7,800 per day.

As a result of the worsened environment, in the first nine months of 2020 the company observed a decrease in sales of 16.3%, amounting to HRK 216.2m.

Operating expenses observed an increase of 4.9% YoY, amounting to HRK 222.2m. The aforementioned increase could be attributed to higher material costs of 8.6% or HRK 6.14m. This was somewhat offset by lower amortization (lower by HRK 1.4m).

Therefore, as a result of both lower operating revenue and higher operating expenses, EBITDA almost halved to 55.6m. Such a result led to EBITDA margin being significantly affected which stood at 25.83% compared to 42.56% in the same period of the previous year. However, it is worth adding that the margin has been improving each in each quarter and when looking solely at Q3, EBITDA margin stood at 40.86%.

As a result of the above mentioned, the company recorded EBIT of HRK -5.93m compared to HRK 46.8m in 9M of 2019.

Going further down the P&L, in 9M of 2020, the company recorded a net financial loss of HRK -45.14m, which represents a decrease in loss of HRK 8m. The mentioned decrease could be attributed to somewhat lower interest payments in 9M 2020.

Such a result only widened the loss on the bottom line, leading to a net loss of HRK -51.07m compared to HRK 6.37 in 9M of 2019.

By looking at the latest announcement from the Tax Administration of the Republic of Croatia, being tracked for Covid-19 pandemic purposes, in the period from 24 Feb till 25 Oct 2020 the value of taxable invoices decreased by 17.62% YoY.

A higher frequency data is compiled by Croatian Tax Administration, a department of the Ministry of Finance, who stated that the value of taxable invoices dropped by 17.62% YoY (or HRK 24.93bn) in the period from 24 February till 18 October. Meanwhile total taxable invoices in the mentioned period amounted to HRK 116.57bn.

Drop in taxable invoices in wholesale and retail trade in the same period was only at 9.2% (or HRK 8.315bn) while drop in accommodation and food services was at 46.33% (or HRK 10.75bn).

The value of taxable invoices in the 3rd week of October 2020, continued to drop, witnessing a double digit decrease for the first time this month. To be specific in the 3rd week of October taxable invoices decreased by 10.47% YoY (or HRK 366.07m). Drop in taxable invoices in the wholesale and retail trade was relatively low at -3.21% YoY, while drop in accommodation and food services was at -41.95% YoY.

If we were to compare it on a WoW basis, the value of invoices is down by 5.8%, which can be attributed to introduction of further epidemiological measures as number of newly infected spiked.