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TSM1T - Tallinna Sadam AS News Story

€1.97 -0.0  -0.1%

Last Trade - 22/06/21

Mid Cap
Market Cap £444.4m
Enterprise Value £594.3m
Revenue £89.4m
Position in Universe 74th / 784

Litigation on mandatory cargo volume penalty of Tallinna Sadam’s cargo operator Worldwide Cargo Establishment continues

Thu 29th April, 2021 7:14am
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On 30.05.2018, Worldwide Cargo Establishment (hereinafter “WCE”) filed a
claim with the Harju County Court against AS Tallinna Sadam (hereinafter
referred to as “Tallinna Sadam”) requesting that the minimum cargo volume
in the cooperation agreement should be reduced retroactively from 2015 and
that the contractual penalties paid for 2015-2017 in the amount of EUR 0.45
million plus accrued interest should be repaid.

Although the action was dismissed by the decision of the Harju County Court on
19.01.2021, WCE filed an appeal, which the court accepted. The hearing will
take place in October 2021. In the opinion of Tallinna Sadam and its legal
advisers, the claim is not substantiated, and it is not probable that a
liability will arise, therefore Tallinna Sadam has not considered it necessary
to recognise a provision for the claim.

WCE is a cargo operator of Tallinna Sadam, which owns a grain terminal in
Muuga Harbour and handles grain. According to the long-term co-operation
agreement, WCE has a minimum annual cargo charge obligation of EUR 0.31
million, failing which WCE shall pay Tallinna Sadam a penalty in the amount of
the difference between the mandatory and the actual cargo charge.

Tallinna Sadam is one of the largest cargo- and passenger port complexes in
the Baltic Sea region, which serves annually 10 million passengers and 20
million tons of cargo in average. In addition to passenger and freight
services, Tallinna Sadam group also operates in shipping business via its
subsidiaries – OÜ TS Laevad provides ferry services between the Estonian
mainland and the largest islands, and OÜ TS Shipping charters its
multifunctional vessel Botnica for icebreaking and construction services in
Estonia and offshore projects abroad. Tallinna Sadam group is also a
shareholder of an associate AS Green Marine, which provides waste management
services. The group’s sales in 2020 totalled EUR 107.4 million, adjusted
EBITDA EUR 58.4 million and profit EUR 28.5 million.

Additional information:

Marju Zirel
Head of Investor Relations
Tel. +372 5342 6591

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