ThPA S.A.: Performance growth for 2023 with record container throughput and preferred bidder for Pier 6
Thessaloniki Port Authority S.A., the operator of the port of Thessaloniki and the multi-gateway intermodal network and logistics solution provider for the Balkans and the broader Southeast, Central and Eastern European region, announced the financial results for the financial year 2023.
Specifically, following the approval of the Annual Financial Report from the Board of Directors (BoD) on 17.04.2024, it is announced that consolidated revenue for 2023 was increased to € 85,9 mil., from
€ 85,3 mil. for 2022.
The container terminal posted a significant growth in revenue of over 12% (to € 59,8 mil.); similar growth was posted in the real estate sector and in the cruise & ferry passenger traffic by 18,2% and 31,3% respectively (to € 3,9 mil. and € 0,9 mil. respectively), while conventional cargo terminal posted a decrease in revenue by 21,5% (to € 20,2 mil.). Revenue from the subsidiary in Sofia was formed at insignificant levels.
Regarding the Group performance, there was a net increase in profitability at all levels: Gross Profits increased by 1,9%, to € 37,6 mil., Operating Profits (EBITDA) increased by 3,4% to € 34,1 mil. and the Net Profits after taxes increased by 8,9%, to € 20,3 mil.
The Capital Expenditure (CapEx) plan for 2023 exceeded € 9,2 mil. and mainly involved a new Cruise Terminal “Alexander the Great”, restoration of functional depths, repair and upgrade of quays, power substation upgrades, procurement of loading and unloading equipment and ISPS security systems.
The Executive Chairman of the BoD of ThPA S.A., Mr. Athanasios Liagkos commented: “The implementation of the development plan and the initiatives of ThPA S.A. are constantly strengthening the role of the Port of Thessaloniki in the global port sector. With continuous investments of more than
€ 71,3 million since 2018, upgrading the equipment, infrastructure, services provided, and the specialization of the Organization’s human resources, we achieve the strengthening of our partners’ trust, creating new milestones for the Port of Thessaloniki. An indicative example is the highest container throughput ever recorded at the Port (520.048 TEU). In addition, in 2023 we strengthened our extroversion, with the dynamic participation of ThPA S.A. in national and international prestigious exhibitions and with initiatives to hold events in Thessaloniki, such as the 7th “Posidonia Sea Tourism Forum” and the 1st “Southeast Europe Connectivity Forum”. With a vision to be more than a Port and with an international orientation, in 2024 we aim at initiatives and actions that promote maximum satisfaction of all stakeholders of the Port and facilitate the wider port community, focusing on development and driven by sustainability and investments with consistency and efficiency. In this context, it is announced that “JOINT VENTURE METKA – TEKAL S.A.” has emerged as the preferred bidder of the project “6th Pier, Expansion of the Port Infrastructure” as approved today by the Board of Directors of ThPA S.A.”
ThPA S.A.: Operations Commenced at the 2nd Passenger Terminal of the Port of Thessaloniki
For the first time, the Port of Thessaloniki welcomed two cruise ships at the same time, in two different passenger terminals, as the 2nd Passenger Terminal, in a renovated building on Pier 2, commenced operations.
Specifically, the “Europa 2” cruise ship of Hapag Lloyd Cruises berthed on quay 9, using the new Passenger Terminal, while the “Celestyal Crystal” cruise ship of Celestyal Cruises berthed on quays 4-8, using the “MAKEDONIA” Passenger Terminal, as it happens every Sunday.
The opening of the 2nd Passenger Terminal, which is decorated with photos and dedicated visuals for the destination by Thessaloniki Tourism Organization, was marked by a special reception organized by ThPA S.A. and cooperating bodies of Thessaloniki (Region of Central Macedonia, Municipality of Thessaloniki and Thessaloniki Tourism Organization) and it was combined with a warm welcome, full of music and traditional dances.
In addition, as on every cruise ship arrival, representatives of Thessaloniki Tourism Organization were present at both passenger terminals, to welcome the passengers and the crew of the two vessels and offer them useful information about the destination.
The Executive Chairman of the BoD & Managing Director of ThPA S.A., Thanos Liagkos, said: “At ThPA S.A., we are continuously investing in the development of the infrastructure of the Port of Thessaloniki, to upgrade the services and the level of service provided to its users. The 2nd Passenger Terminal is one more strategically important investment in the Port’s infrastructure, which upgrades our position in the international port industry and creates new development prospects for Thessaloniki and the wider region. Cruise development establishes an additional channel of incoming tourism and creates diverse and multiplying benefits for the local economy and society. Our commitment is to continue working closely with the bodies of Thessaloniki, being a vital part of the initiatives contributing to the destination’s tourism development”.
ThPA S.A.: New Dockworkers’ three-year Collective Labor Agreement
ThPA S.A. announced the successful completion of the constructive dialogue with the Federation of Stevedores of Greece (OFE) and the final agreement for the three-year period (2023-2025) Collective Labor Agreement (CLA) to regulate the terms of wages and working conditions of the Company’s dockworkers’ employees.
The President of OFE, Simeon Leftheriotis, stressed: “Today we agreed with the Management of ThPA S.A. on the new three-year Collective Labor Agreement which is result of positive collective bargaining and is governed by mutually beneficial terms for all parties. The safeguarding of wages and working conditions of dockworkers contributes to strengthening the sense of job security and peaceful working environment”.
The Executive Chairman of the BoD & Managing Director of ThPA S.A., Thanos Liagkos, stated: “The maintenance of a modern working environment is the result of collective effort, close cooperation and productive dialogue and is a key concern of ThPA S.A. In this context, the signing of the three-year Collective Labor Agreement with OFE, highlights our commitment to the continuous development of the Port of Thessaloniki”.
Financial results for the period 1/1 – 30/9/2022 and latest developments on the activity of ThPA S.A.
“Thessaloniki Port Authority S.A.”, in response to the letter received from the Hellenic Capital Market Commission Νο 2707/09.11.2022 – addressed to all issuers in the Athens Stock Exchange (A.S.E.), in order to inform the investing public about their financials amid the overall consequences of the energy crisis and the developments of the war conflicts in Ukraine – announces an increase in revenue for the period of 1/1 – 30/9/2022 (9M 2022), despite the low decrease in the revenue of the third quarter of 2022 (Q3 2022).
Specifically, regarding the Container Terminal, volumes for the third quarter of 2022 decreased by 7,6% to 112k TEUs in Q3 2022, comparatively to 121k TEUs in Q3 2021. Subsequently, the total throughput for the 9-month period 2022 (9Μ 2022) decreased by 4,2%, to 341k TEUs comparatively to 356k TEUs for the corresponding period in 9M 2021. For the same period (9Μ 2022), over 7,1k TEUs were transported through the subsidiary “ThPA Sofia” (using 164 trains), compared to 5,6 k TEUs for the same period in 9M 2021. Regarding the Conventional Cargo Terminal, the volumes for the third quarter of 2022 were decreased by 25,7%, to 746k tons in Q3 2022, from 1.004k tons in Q3 2021. During the 9-month period, volumes decreased by 10,3%, to 2.821k tons in 9M 2022, from 3.144k tons in 9M 2021.
Total consolidated revenues for the third quarter of 2022 decreased by 0,5%, to ~ € 19,6 mil. in Q3 2022, from ~ € 19,7 mil. in Q3 2021 (including the revenues of ThPA Sofia), while Company revenue decreased by 1,8%, to ~ € 19,1 mil. in Q3 2022, from ~ € 19,4 mil. in Q3 2021. For the 9-month period of 2022, a total increase of 5,8% in consolidated revenue was recorded to € 60,4 mil. in 9M 2022, from € 57,1 mil. in 9M 2021, while Company revenue increased by 4,9%, to ~ € 59,2 mil. in 9M 2022, from ~ € 56,4 mil. in 9M 2021. The increase in revenue in the 9th month period of 2022 is attributed to the increase in revenue in all sectors, mainly from the better utilization of the services provided and the general improvement of the organization and operation of the Port. It is pointed out that the war conflict in Ukraine did not have a significant impact on the overall activity of the Port.
In addition, the significant increase in energy prices, combined with the increased cost of consumable materials and spare parts during the 9-month period 2022 (compared to the 9-month of 2021), had a negative impact on the operating costs of ThPA, as well as on the operating result. Towards those axes, the Management of ThPA has launched a series of actions to reduce energy costs. Regarding profitability, Consolidated Earnings Before Interest and Taxes (EBIT) decreased in the third quarter of 2022 by 28,3%, to € 5,2 mil. in Q3 2022, from € 7,3 mil. in Q3 2021, while consolidated EBIT for the 9-month period 2022, decreased by 5,2%, to € 18,6 mil. in 9M 2022, from € 19,6 mil. In 9M 2021.
Company’s EBIT decreased in the third quarter of 2022 by 26,8%, to € 5,6 mil. in Q3 2022,from € 7,6 mil. in Q3 2021, while for the period of 9M 2022, EBIT decreased by 5,9%, to € 19,5 mil. In 9M 2022, from € 20,7 mil. in 9M 2021. Consolidated Operational Earnings (EBITDA) followed a similar trend with Consolidated EBIT of third quarter of 2022, reduced by 20,7%, to € 7 mil. in Q3 2022, from € 8,9 mil. in Q3 2021, while in the 9- month period 2022, consolidated EBITDA decreased by 1,8%, to € 23,8 mil. in 9M 2022, from € 24,2 mil. in 9M 2021. Company’s EBITDA followed a similar trend for the third quarter of 2022, decreasing by 19,9%, to € 7,3 mil. in Q3 2022, from € 9,1 mil. in Q3 2021, while in the 9-month period 2022, Company’s EBITDA decreased by 2,8%, to € 24,4 mil. in 9M 2022, from € 25,1 mil. in 9M 2021.
The performance of the subsidiary “ThPA Sofia” was not profitable for 9M 2022, resulting in losses of € 0,2 mil. for Q3 2022 (approximately same level compared to Q3 2021) and losses of € 0,6 mil. For 9M 2022 at EBITDA level (versus ~€ 0,9 mil. losses for 9M 2021). The low growth in consolidated revenue, was accompanied by a low drop in profitability, attributed mainly to the international drop in throughput cargo, in port operations and less on the pandemic, resulting in lower-than-expected volumes handled.
The Management of ThPA remains positive for the financial performance of the Port both in the medium and in the long term, continuing the improvement of the management procedures of the volumes handled within the Port and through adjustments on the pricing of services provided. The Port also invests in the long-term prospects for the economies of the wider catchment area.
In the period 1/1 – 30/9/2022, there were no significant changes in the lending position and in the capital structure of ThPA. The Company continues to operate debt-free, having distributed dividends of € 15,1 mil., with strong cash and cash equivalents in depos reaching € 99 mil. The capital expenditure program is progressing satisfactorily based on current conditions.
ThPA SA: Contractor for the 6th Pier of Thessaloniki Port
ThPA S.A. announces that the joint venture “MYTILINEOS SA – ROVER MARITIME SL – HDK SA” has been awarded the project “Expansion of the Marine Works Infrastructure of Pier 6” with a budget of 150 million euro, at the current stage of the tender. This project is the most important part of the Mandatory Investments undertaken by ThPA S.A. under the Concession Agreement with the Greek State and will upgrade the position of the Port of Thessaloniki in the port industry by providing the ability to directly serve main liner container vessels (Ultra Large Container Vessels) with a capacity of up to 24.000 TEU.
According to the specifications, the project “Expansion of the Marine Works Infrastructure of Pier 6” includes:
• Construction of a new additional quay wall 513m long, of which 470m will have a depth of -17,7m.• Construction of an additional yard area, 306,5m wide.• All the additional infrastructure works that are required for ensuring full operability of the new quay wall and the yard area.
The implementation and completion of the project contributes substantially to economic and social development with various and multiplier benefits on a local and national level.
Specifically, the Pier 6 expansion project during its implementation period (2022-2025), according to a study by Deloitte, has been estimated that it:
• Generates annual revenues of over €230m throughout the port ecosystem directly or indirectly affected by the expansion of Pier 6 – this amount concerns the port, cooperating companies, suppliers, but also other businesses, especially in the transport sector.• Significantly increases public revenues from direct and indirect taxes over €35m per year.• Generates added value of over €90m per year during the construction period, contributing to the country’s GDP.• Supports, both directly and indirectly, the creation of more than 3.300 jobs, significantly strengthening the critical social sector of employment.
Additionally, in the period 2026-2035, the ten-year full operation of “Pier 6” is expected to:
• Generate annual revenues of €272m throughout the port supply chain, which includes cooperating companies such as suppliers and other businesses, especially in the transport sector.• Significantly increase public revenues from direct and indirect taxes of over €55m per year.• Generate added value of over €177m per year, contributing to the country’s GDP.• Support the creation of over 4.000 jobs, both directly and indirectly, significantly strengthening the critical social sector of employment.
The Executive Chairman of the BoD of ThPA S.A., Mr. Athanasios Liagkos highlighted the following: “The implementation of the project of Pier 6 expansion, contributes substantially to the economic and social growth, offering various and multiplier benefits for ThPA S.A. and more broadly for the businesses associated with port activities, both locally and nationally. The completion of the project marks the substantial upgrading of the position of the Port of Thessaloniki in the global port industry and the supply chain sector, strengthening its leading role in the country’s international development”.
Cooperation Agreement between ThPA S.A. and Suez Canal Economic Zone
ThPA S.A. and the Suez Canal Economic Zone (SCZone) signed a Cooperation Agreement with the aim to develop international trade and increase their business activities by promoting the sea route between Europe and Asia via the Suez Canal and the Port of Thessaloniki.
The main objective of this cooperation is the exchange of knowledge and professional experience between Port Said Ports and Port of Thessaloniki and the development of joint initiatives focusing on commercial and educational actions that will enhance cargo and passenger flows between Egypt and Greece, such as the establishment of a maritime line for perishable goods and bulk cargo and the development of cruise business.
The Cooperation Agreement was signed in an online ceremony in the presence of the Minister of Maritime Affairs and Insular Policy, Mr. Giannis Plakiotakis, the Secretary General of Ports, Ports Policy and Maritime Investments, Mr. Evangelos Kyriazopoulos, the Chairman of SCZone, Eng. Yehia Zaki, the General Manager of Port Said East Port, Captain Aly Assem M. Ibrahim, the Executive Chairman of the BoD of ThPA S.A., Mr. Athanasios Liagkos, the Managing Director – CEO of ThPA S.A., Mr. Franco Nicola Cupolo, the Chief Investment Officer of ThPA S.A., Mr. Artur Davidian, the Chief Commercial Officer of ThPA S.A., Mr. Ioannis Fetanis and other Executives of both parties.
The Minister of Maritime Affairs and Insular Policy, Mr. Giannis Plakiotakis stated: “This agreement creates additional opportunities for further development of the maritime trade between Europe and Asia, which are greatly enhanced by the strategic location of the two parties. We are particularly satisfied that the Port of Thessaloniki provides an evolving, efficient and reliable intermodal network, which secures and upgrades the supply chain, offering added value at an economic and social level”.
The Chairman of SCZone, Eng. Yehia Zaki, highlighted: “This cooperation is motivated by a mutual interest for the development of important trade flows, as well as logistics and port interfaces such as those represented by SCZone and ThPA S.A. and will result in increased traffic for the ports of SCZone. With four industrial areas and six ports, the SCZone is located at the crossroads between Africa, Europe and Asia, and occupies 461 km2 along the banks of the newly expanded Suez Canal, strategically located on the main trade route between Europe and Asia, playing a key role in world trade”.
The Executive Chairman of the BoD of ThPA S.A., Mr. Athanasios Liagkos, said: “The signing of the cooperation agreement with SCZone is part of our strategy to propel the regional supply chain to a new era by providing connectivity that facilitates business growth, fostering economic and social added value and respecting the mandate for a “green” future for our planet and the younger generations. We aspire, to more than a port, to be the multi-gateway intermodal network and logistics solutions provider for the Balkans and the broader Southeast, Central and Eastern European region”.
Memorandum of Understanding between ThPA S.A. the International Hellenic University and the German Hellenic Chamber of Industry and Commerce
ThPA S.A., the International Hellenic University and the Hellenic German Chamber of Industry and Commerce signed a Memorandum of Understanding (MoU) with the aim to share their know-how, infrastructure and capabilities with a view to the future of maritime transport, modern ports and integrated logistics solutions.
This cooperation gives all three organizations the opportunity to co-utilize valuable knowledge, both academic and practical, with the prospect of undertaking joint initiatives, planning educational & research programs and launching new professional synergies in the fields of Port Development and Operation, Freight Transport and Supply Chain Management.
The MoU was signed by Mr. Athanasios Liagkos, Executive Chairman of the BoD of ThPA S.A., Professor, Athanassios Kaissis, President of the International Hellenic University and Dr. Athanassios Kelemis, General Manager and member of the BoD of the German Hellenic Chamber of Industry and Commerce.
On the occasion of the MoU signing, Mr. Athanasios Liagkos, Executive Chairman of the BoD, of ThPA S.A. stated: “Today’s agreement marking our cooperation with the International Hellenic University of Greece and the German Hellenic Chamber of Industry and Commerce is fully in line with our vision for the Port of Thessaloniki as a growth gateway for the economy and society and the main gateway to the South East, Central and Eastern Europe.”
The President of the International Hellenic University, Professor, Athanassios Kaissis stated: “The purpose of the innovative initiative is to promote knowledge in the fields of shipping, port management and intermodal transportation through leveraging the multiple years of experience, know-how and extroversion of the collaborating partners”.
The General Manager and member of BoD at German Hellenic Chamber of Industry and Commerce, Dr. Athanassios Kelemis, commenting the signing of the MoU, declared that: “The partnership of an academic institution, a powerful business entity and a bilateral entrepreneurship support body, aiming at common “investments” in higher education, in research, in vocational training and in technological implementations, can bring only positive results, especially when it is orientated to shipping logistics market. A branch that is located at the cutting edge of the economy, a promising investment area, that creates new working positions, with high prestige and significant earnings. The stimulus for this triple partnership was the common interest for the creation of communication channels between student community, professionals with long experience in logistics and shipping and entrepreneurs with strong investment interest, coming from the biggest economy in Europe, Germany”.
ThPA S.A.: Thessaloniki Port Community Meeting
The Thessaloniki Port Users’ Council meeting took place for the second time this year today, Thursday, October 21, 2021 via teleconference, chaired by the Executive Chairman of the BoD of ThPA S.A., Athanasios Liagkos and with the participation of the Managing Director – Chief Executive Officer of ThPA S.A., Franco Nicola Cupolo and Executives of the Company.
During the meeting, the members of the Port Community discussed the progress of the infrastructure development projects, the equipment modernization program, the services provided, the improvement of connectivity, as well as the excellent tourist development prospects as a result of this year’s dynamic evolution in Cruise and Ferry in the Port of Thessaloniki.
The teleconference was attended by a total of 18 representatives from 17 bodies (users and members of the wider port community) who exchanged views on various issues related to the exceptional operation of the Port of Thessaloniki as the main gateway to the South East, Central and Eastern Europe.
Closing the discussion, the Executive Chairman of the BoD of ThPA S.A., Athanasios Liagkos, stated: “With a common vision and open communication channels, we are moving forward together with the users and members of the wider port community transforming the Port of Thessaloniki into a state-of-the-art port and continuously improving its competitiveness”.
ThPA SA and the University of West Attica signed a Memorandum of Understanding
ThPA S.A. and the Department of Business Administration of the Management Economics and Social Sciences School, of the University of West Attica, through its Postgraduate Program (MSc) “Organization, Operation, Development and Administration of Ports” signed a Memorandum of Understanding focusing on the fields of education, consulting, information, exchange of know-how and research. The MoU was signed by the Executive Chairman of the BoD of ThPA S.A., Mr. Athanasios Liagkos, and the Rector of the University of West Attica, Professor Panagiotis Kaldis.
The main goal of the MoU is the exchange of knowledge and applied best practices. Also, this partnership forms a framework of actions for joint initiatives, that will lead to the broadening of the development prospects in the sectors of international trade and maritime transport.
In this context, the Executive Chairman of the BoD of ThPA S.A., Mr. Athanasios Liagkos, stated: “The Port of Thessaloniki is a gateway to development that leverages business opportunities and promotes innovation, sustainability and social responsibility. The University of West Attica is an important ally in our actions for continuous upgrading and development on multiple levels. The signing of this MoU is a springboard towards new activities, which will create efficient and sustainable practices, with mutual benefits for both sides, the port industry, the economy and society at large.”
The Rector of the University of West Attica, Professor Panagiotis Kaldis stated: “UNIWA, the most developing university in Greece, with a green identity and the emergence of innovations, responds with great pleasure to the educational and research synergy that is developing between ThPA S.A. and the Department of Business Administration of the School of Management, Economics and Social Sciences of the University of West Attica through the Postgraduate Program (MSc) “Organization, Operation, Development and Port Administration”. The Rector also thanked the Executive Chairman of the BoD of ThPA S.A., Mr. Athanasios Liagkos, highlighting that the jointly planned new actions will bring added value to the Port of Thessaloniki, one of the most important ports in Southeastern Europe with direct road and rail connections, an extensive Free Zone and the largest transit port in the country belonging to the Core Network of the Trans-European Transport Networks “.
ThPA S.A.: Financial Results 2020
On April 21st, 2021, the BoD of ThPA S.A. approved the 2020 Annual Financial Report for the Fiscal Year 2020 financial results and activity of ThPA S.A. resulting in increased revenue and profit.
The total revenue increased from € 68,9 mil. in 2019 to € 71,7 mil. in 2020 showing an increase of 4% mainly due to the results at the Container Terminal.
The increased throughput in the Container Terminal resulted in an increase in revenues by 11,3% over the previous year, from € 44,7 mil. in 2019 to € 49,7 mil. in 2020. The main drivers for the increased revenue – despite the negative effects of the pandemic – remained the implementation of improved export procedures, the better handling of the clients and the pricing restructuring actions, recently implemented by the new Management of the Port.
Regarding the Conventional Cargo Terminal, the effects of the pandemic were more significant, resulting in a decrease in total volumes by 16,3%, from 4.469k tons in 2019, to 3.741k tons in 2020, thus lowering the Conventional Port revenues by 9,3%, from € 22,3 mil. in 2019 to € 20,2 mil. in 2020.
Gross Profits increased from € 32,2 mil. in 2019 to € 33,9 mil. in 2020, representing a total increase of 5,3%. The margin ratio improved slightly (46,7% in 2019 and 47,3% in 2020), considering however a change that took place within 2020 in the useful life of certain assets in machinery, that led to a positive effect of lower depreciation charges by € 0,88 mil. in 2020, compared to the previous year.
Net Profits after tax increased by 22,1%, from € 16,45 mil. in 2019 to € 20,10 mil. in 2020, forming the Net Profit Margin from 24% in 2019 to 28% in 2020. Net profits were significantly influenced positively by two main factors, the positive change in the total depreciation charges described above by € 0,88mil. and the reversal of tax provisions by € 1,42 mil., the latter as a positive result of the favorable recent decision from the Administrative Court of Appeal regarding tax audits for the years 2005-2011.
The proposed dividend per share amounts to € 1,42.
Regarding capital expenditure plan, ThPA S.A. has completed significant investments of € 8,1mil. in 2020, approximately € 11mil. within 2021, while additional € 25mil. is expected to be executed during 2021, a satisfactory performance towards gradually meeting its strategic targets.