In 2021, TNG recorded an increase in sales of 7.14%, an EBITDA decrease of -39.3%, and a net loss of HRK 86.9m.

In 2021, TNG has recorded an increase in sales of 7.14% (or HRK 16.9m) and amounted to HRK 253.9m. This increase can be attributed to higher exposure to spot market results. At the same time, commissions and voyage related costs amounted to HRK 97.4m,  an increase of 156% YoY. This increase is also attributed to the higher exposure to the spot market in 2021, compared to 2020, when most of the vessels were employed on a time charter. In total, operating expenses amounted to HRK 201.5m, an increase of 40% YoY, mostly driven by the aforementioned increases in commission and voyage related costs.

The Company also notes that during the year, the average TCE (Time Charter Equivalent) net daily rate amounted to USD 11,763, a decrease of 17.5% YoY, mostly due to the lower amount of time the tankers were employed on time charter contracts. At the same time, the daily vessel operating expenses increased slightly to USD 6,897, an increase of 1.1% YoY. Meanwhile, fleet utilization increased as well, growing by 0.9 p.p. to 95.6% in 2021.

The EBITDA decreased by 39.3% and amounted to HRK 59.1m. This decrease can mostly be attributed to the higher operating expenses due to the aforementioned commission and voyage related costs. This would mean that the EBITDA margin in 2021 amounted to 23.3%, a decrease of 17.8 p.p. YoY. The Company also recorded an impairment of HRK 65.5m, after it was determined that the carrying amount of three vessels exceeds the recoverable amount of the asset.

Net interest expenses amounted to HRK 17.8m, while net FX losses amounted to HRK 10.1m.

The Company also recorded a net loss of HRK 86.9m, an increase of HRK 55.3m from the year before. This result can be attributed to several factors: the fact that the global economies are recovering from the lock-down, slow tanker freight markets, the aforementioned impairment, among others.

TNG Financials (2021 vs. 2020, HRKm)

In February 2022, CROBEX decreased by -6.2%, ending the month at 1,999.68 points.

The total equity turnover on the ZSE (Zagreb Stock Exchange) amounted to EUR 44.8m (HRK 337.6m), a slight decrease of -1.23% MoM, and an increase of 80.5% YoY. This would translate into a daily turnover of EUR 2.25m (HRK 16.96m).

The total equity value traded (excluding block transactions) in February amounted to EUR 26.75m (HRK 201.5m). Out of that, the top 10 most traded stocks had a turnover of EUR 16.52m (or HRK 124.48m), representing 61.8% of the total turnover. Breaking this down further, HT generated the most turnover, 11.9% of the entire turnover, followed by Atlantska Plovidba with 9.1%, Podravka with 6.94%, Valamar Riviera with 5.96%, Atlantic Grupa with 5.59%, and Zagrebačka banka with 5.02%. The remaining 4 companies, Ericsson NT, Adris Grupa, AD Plastik, and Span had turnovers in between 5% and 4% of the total.

The main index on the ZSE, CROBEX, decreased by -6.2% MoM, and ended the month at 1,999.68 points. On a YoY basis, this is an increase of 9.3%. At the same time, CROBEX10 experienced a slightly higher decrease, declining by-7.24% MoM. In general, the main reason for this decline was the increasing tension of the Russia-Ukraine uncertainty during the month, which ended with the Russian invasion of the country.

As such, out of the CROBEX10 constituents, companies that have operations in Russia/Ukraine region were hit the hardest. This is most evident by AD Plastik, which declined by 25.4%, and Podravka, which declined by -13.5%. Atlantic Grupa also had a decline of -11.7%, while Valamar Riviera, Adris, and Ericsson NT all had a decrease of over -5%. On the flip side, out of all the Croatian blue chips, the only increase was recorded by Atlantska Plovidba, which increased by 5.2%.

Performance of CROBEX10 constituents in February 2022 (%)

In February 2022, SBITOP decreased by -15.25%, ending the month at 1,093.91 points.

The Ljubljana Stock Exchange has published its trading statistics for February 2022, showing a total equity turnover (including block trades) of EUR 51.8m. This would also mean that the average daily turnover was EUR 2.6m, an increase of 47% MoM.

Meanwhile, the total value that was traded in this period (excluding block trades) amounted to EUR 49.7m. Of that, 58.6% (or EUR 29.1m) was made by Krka, followed by NLB Group with a turnover of EUR 7.47m (or 15%), Petrol with a turnover of EUR 4m (or 8.1%), Triglav, with EUR 2.52m (or 5.1%), and Sava Re, with a turnover of EUR 1.57m or 3.16%. In total, these top 5 most traded stocks amounted to 89.9% of the entire turnover. If we were to look at the top 10 stocks, this would amount to 99.2% or EUR 49.3m.

Looking over to the performance of the Slovenian blue-chips during the month, all 8 companies experienced a negative return, which follows the trend across Europe due to the current Russia-Ukraine conflict escalation. This also means that the majority of this decline happened in the latter part of February. Breaking this down further, the largest decline was experienced by Krka, which decreased by -27.8%. Considering the fact that 35% of the Company’s total sales are in the Eastern Europe region, and app. 21% of that 35% is in Russia, with another 6% in Ukraine, this decrease does not come as a surprise. Next up we have NLB, which declined by -12.8%, followed by Triglav with a decrease of -10.9%, Petrol with -9.3%, Cinkarna Celje with -7.9%, Luka Koper with -7.1%, and Telekom Slovenije, with a decline of -5.2%.

Performance of SBITOP constituents in February 2022 (%)

This is also evident when looking at the total equity market capitalization, which decreased by -17.3% and amounted to EUR 8.03bn at the end of the month. In total, this had a negative influence on the SBITOP index, which declined by -15.25% and ended the month at 1,093.91 points.