OT Logistics Capital Group, one of the leaders in the TSL industry in Europe, generated PLN 348.1 million in consolidated sales revenue in the first half of 2016, with a net profit of approximately PLN 4.4 million. The Group also recorded a 2.8% increase in EBITDA to PLN 30.6 million.
In the first half of 2016, the OT Logistics Capital Group generated PLN 348.1 million in revenue, compared to PLN 370.4 million in the same period of 2015. The company’s net profit reached nearly PLN 4.4 million, compared to PLN 5.8 million a year ago. EBITDA for the first half of 2016 rose to PLN 30.6 million, compared to PLN 29.8 million the year before. This is, among other things, the result of improved efficiency in the port segment as well as in the freight forwarding area. At the same time, the EBITDA margin increased to 8.8% from 8.0% a year earlier. Gross sales margin (13.5%) and operating profit margin EBIT (3.7%) remained at an unchanged level. The Group continues to incur costs related to reorganization and optimization activities initiated in Q4 2015. However, the effects of reducing the Group’s operating costs are already visible, particularly in port operations.
– In the first half of this year, we made decisions regarding important investments that increase our Group’s potential. We signed an agreement to acquire Sealand Logistics, a company that is one of the leaders in container shipping in Poland. We also have a conditional agreement to acquire the railway company STK Group – says Zbigniew Nowik, President of the Management Board of OT Logistics.
The agreement to acquire Sealand Logistics was completed at the end of July this year. As of the date of publication of the financial report for H1 2016, the conditions precedent for the acquisition of the STK Group have not yet been met.
– We continue to observe an unfavorable economic situation in the coal and steel market, which affects our port segment. The decrease in revenue was also influenced by the completion of hydrotechnical works in the upper Oder region and in Germany. We see the growing importance of trade in agricultural goods, which is why we are investing in transshipment capacities and storage capabilities for agro-goods in our ports. This is an element of implementing our Group’s new development strategy, adopted in April. Greater involvement in the transport and transshipment of grain increases diversification and partially reduces dependence on the coal and steel market. We are also expanding our presence in Southern Europe; we have established the company C.Hartwig Adria in Croatia. We want to leverage the potential of the logistics services market in the countries of the North-South corridor – adds Zbigniew Nowik.
The Group is recording positive results from the operations of the Baltic ports belonging to OT Logistics. The volume of transshipments at OT Port Gdynia in the first half of this year amounted to 1.6 million tons, which is an improvement of almost 24% year-on-year. Handling of, among other things, agro-goods (soybean meal and grain) increased in the Gdynia port by 13% to 629 thousand tons. OT Port Świnoujście, which is more dependent on the transshipment of goods such as coal or metal ores, recorded a 4.6% decrease in transshipments. However, thanks to the optimization of organizational processes and an increase in the transshipment of agro-goods, the port achieved higher margins and a high total operating result.
The largest share in the Group’s revenue structure in H1 2016 was held by freight forwarding services: 58%, transport and other transport services: 27%, and port services (transshipment and storage of goods): 12%. Other services provided by companies in the Group generate approximately 3% of OT Logistics’ revenue.
– We are closely watching the government’s plans for the revitalization and modernization of waterways in Poland. Our fleet can successfully serve in specialized works for the reconstruction of navigation on Polish rivers. The use of our vessels in hydrotechnical works can positively influence the results and margins of our transport segment. The Group will also be a beneficiary of the renewal of waterways. We will be able to effectively carry out transport via inland shipping in Poland, which is not possible in many cases today. We are ready to provide support and use our international experience in Poland if the need arises – says Zbigniew Nowik.