During 9M 2022, Luka Koper reported a revenue growth of 39% YoY, an EBITDA increase of 96%, and a net income of EUR 59.4m, an increase of 164% YoY.

Luka Koper’s net revenue amounted to EUR 233.7m, which would mean that it grew by 39% YoY, and 1% compared to the 9M 2022 plan. The increase was driven by the growth in the maritime throughput, which amounted to 17.5m tonnes in 9M 2022, an increase of 11% YoY, and at the level of the 2022 plan. Container throughput amounted to 780.7k TEUs, an increase of 3% YoY, and at the level of the 2022 plan. Car throughput amounted to 567.1k units, an increase of 20% YoY, and 1% compared to the 2022 plan.

Looking at the revenue growth more closely, it came as a result of higher revenue from warehouse fees due to the extended retention time in warehouses due to the current situation in the global logistics market, which in Q3 2022, due to the gradual normalization of the situation, were already somewhat lower as compared to Q2 2022. Further normalization of the situation is expected by the end of the year, and as such revenue is also expected to normalize. The higher revenue can also be attributed to rising prices, increased volume of throughput in all commodity groups, and increased volume of additional services.

Breaking the growth down into cargo groups, growth can be seen across almost all of them. General cargoes increased by 31% YoY, and amounted to 1m tonnes, mainly as a result of higher throughput of steel products and caoutchouc. Lower export was recorded in the maritime throughput of timber. The trend of containerization of these goods has been increasing, which is reflected in the increase of additional services of container stuffing. The throughput of containers amounted to 780.7k TEUs, an increase of 3% YoY, and this was done despite the challenges in the logistical chain. In particular, in Q3 2022, irregular arrivals of ships on both direct connections with the Far East and other Mediterranean ports, which was already recorded earlier in the year, continued.

The throughput of cars was 20% higher YoY and amounted to 988.5k tonnes. These results were above-average, especially in the face of the issues that the automotive industry and global logistics are facing, due to interruptions of the supply chains, congestion of maritime and storage capacities, as well as the impact of unpredictable developments in Ukraine. The higher throughput was recorded both in export, mainly for the Middle and Far East, as well as in imports, where the share of electric vehicles, mostly Chinese, has been increasing significantly. Liquid cargoes increased by 43% YoY, and amounted to 3.41m tonnes, with growth across all cargo types, including the modest recovery of jet fuel throughput. Finally, dry and bulk cargoes increased by 5% YoY, mainly driven by the higher throughput of coal.

Maritime throughput in tonnes (9M 2021 vs. 9M 2022)

Source: Luka Koper, InterCapital Research

Meanwhile, OPEX amounted to EUR 170.2m, an increase of 16% or EUR 23.3m YoY. This was driven by growth across all cost categories, excl. other operating expenses. Within the material expenses, the cost of energy increased due to higher consumption of motor fuel and higher electricity prices, as well as higher costs of spare parts due to a higher volume of maintenance work. Costs of services, and within them, transshipment fees and concession fees also increased, due to higher maritime throughput and higher net revenue achieved. Labor costs were also higher due to the higher number of employees, higher payments for job performance, more overtime work, and the adjustment of salaries for inflation.

Structure of maritime throughput by cargo groups (9M 2021 vs. 9M 2022, %)

Source: Luka Koper, InterCapital Research

However, due to the faster revenue than OPEX growth, the EBITDA increased significantly YoY by 96%, and 5% compared to the 2022 plan, amounting to EUR 89.5m. This would imply an EBITDA margin of 38.3%, an increase of 11.2 p.p. YoY.  All taken together, this resulted in a net profit of EUR 59.4m, an increase of 164% YoY.

Luka Koper key financials (9M 2021 vs. 9M 2022, EUR)

Source: Luka Koper, InterCapital Research

Luka Koper also commented on their investments thus far this year, and they amounted to EUR 37.4m, a decrease of 10% YoY. Investments included the purchase of two SPPX cranes for the needs of the container terminal, continued extension of Pier I, and upgrading the anti-dust system at the dry bulk cargo terminal, among many others.

Luka Koper also set out the targets for their plan for 2025. According to the Company, they are aiming to achieve net revenue of EUR 279.4m, a total throughput of 27.3m, a container throughput of 1.227m TEUs, a car throughput of 0.886m units, an EBIT of EUR 47.8m, an EBITDA margin of 32.1%, and an ROE of 8.1%, among many others.

The Company also commented on the impact of the conflict in Ukraine on its operations. In Q3 2022, the economic prospects in the international environment worsened, with uncertainty and inflationary pressure increasing. The situation in the energy markets is still harsh. Luka Koper’s direct exposure to Russia and Ukraine is relatively small since the throughput through the Port of Koper to those destinations is negligible. Nevertheless, the MB monitors the situation in the markets and will respond in order to ensure smooth business operations.