Polish port company sees huge drop in revenue and net loss

• The financial results of the OTL Group for 2024 are primarily affected by a large decline in sales in the port and forwarding segment.
• The Group was particularly affected by the decline in bulk transshipments in both Gdynia and Świnoujście. There was a surplus of thermal coal on the domestic market, stagnation in the steel industry, and the transit of Ukrainian agro products also decreased significantly.
• - We treat the current situation as temporary. We are consistently implementing our long-term assumptions, according to which seaports remain our key assets of strategic importance - emphasized Kamil Jedynak, president of OT Logistics.

- The results of the OT Logistics Group in 2024 were significantly affected by the exceptionally difficult market situation , which is a consequence of unprecedented economic and geopolitical changes that began with the COVID-19 pandemic and are still ongoing, changing the environment in which we operate every day. An additional factor deepening the decline were the very high base values ​​achieved in 2023, which resulted from both record revenue growth and one-off events, such as the release of the reserve for the put option liability and the sale of Luka Rijeka shares - commented Kamil Jedynak , CEO of OT Logistics, quoted in the release.

As he noted, 2024 was characterized by surpluses of thermal coal on the domestic market, stagnation in the steel industry, a significant decline in the transit of Ukrainian agro cargoes and persistently low grain prices on international markets. These aspects resulted in a significant reduction in transshipment volumes in Polish ports , directly affecting the activities of the group's terminals.

- However, we would like to emphasize that we treat the current situation as temporary . We are consistently implementing our long-term assumptions, according to which seaports remain our key assets of strategic importance. Versatility, i.e. a wide range of goods handled, remains our priority, and we consider the agro segment to be one of the most promising areas of development. At the same time, we are also developing the ro-ro and general cargo transshipment segments and intermodal transport. Our terminal in Świnoujście is being prepared as a natural logistics base for the planned Deepwater Container Terminal, ensuring comprehensive handling of container and intermodal cargo - added the president of OTL.

He also announced that the company will adjust its costs, scale of operations and asset efficiency to changing market conditions.

A large decline in sales in the port and forwarding segment

OTL Group sales were lower in the port segment (-47%), forwarding (-47.5%) and hydrotechnics (-29.9%). Sales increased in the rail segment (+21%). The decline in sales was mainly related to bulk cargo handling.

In the case of OT Port Świnoujście, the significant decrease in bulk cargo transshipment by 36% year-on-year results from the high comparative base of 2022–2023. At that time, due to the war in Ukraine and changes in global logistics chains, a large part of cargo transport was transferred to the sea route - especially coal, coke and ore, which significantly inflated the data of the base period.

In turn, OT Port Gdynia recorded a 38% decrease in bulk cargo handling year-on-year, which was mainly due to the decrease in volumes of agro products, coal and aggregates. At the same time, an increase in general cargo handling was recorded by 18%, covering almost all cargo groups, except for fertilizers.

The Management Board and Supervisory Board recommend not paying a dividend

On April 28, the Management Board decided to recommend not paying a dividend from the profit for 2024 and to allocate the profit of PLN 61.413 million, disclosed in the separate financial statements of OT Logistics, in its entirety to reserve capital.

As justified in the announcement, the Management Board, when making the recommendation deviating from the dividend policy, was guided by the need to ensure the company's financial liquidity and the capital necessary for the further development of its operations and the implementation of ongoing investments despite the currently unfavourable market trends in the market on which the OT Logistics Capital Group operates.

As added, the departure from the dividend policy is of an incidental nature and in the following years the intention of the management board is to adhere to the dividend policy, but each time when making a decision on a dividend recommendation it will take into account its situation and the capital group's situation as well as the market environment.

The management board's motion received a positive assessment from the company's supervisory board on April 28. The final decision will be made by the ordinary general meeting of OT Logistics SA.

Changes in the top management of OT Logistics

The results of the OTL Group were originally to be announced on April 16. On April 25 , Daniel Górecki resigned from his job on the company's board . As reported, due to important, urgent personal matters. Earlier, in March, Katarzyna Mielec, financial director, was appointed to the company's board.

On Monday, at the end of trading, OTL shares were up 7.33 percent , costing PLN 16.70. However, over the past 12 months, they have fallen by over 45 percent.