16 May 2018

Revenues of the OT Logistics Capital Group higher by 3% than the previous year, increased to PLN 226.7 million in the first quarter of 2018.

OT Logistics Capital Group, the biggest port operator in Poland and a leader in inland shipping in Central and Eastern Europe, made consolidated sales revenues of PLN 226.7 million in the first quarter of 2018. The EBITDA result in the amount of PLN 18.2 million was comparable year-on-year. The group reduced its debt by 8% to the level of PLN 427.3 million quarter-on-quarter.

The increase in revenue is an effect of greater effectiveness of the Group after the consolidation as well as a result of favorable economic situation in Poland, which accelerates demand for transportation and forwarding services. Animation is visible mainly on the part of companies from the sector of industrial production (including construction companies) and companies with exposure to the consumer sector. The increase in transshipments in OT Port Świnoujście played a significant part in increasing the revenues as well. The scope of increase in revenue from external entities was limited by the change of role of the rail sector, which to a higher degree supplies services to companies within the Group as a subcontractor.

The first quarter of 2018 was a period of continued expansion of the OT Logistics Group on foreign markets. The Group established two new companies meant to service clients in Belarus (OT Bel) and the Balkan States (OTL Forwarding) in order to increase the participation of transshipment of goods streams flowing through the New Silk Road and build a transportation channel from the North to the South between the Baltic and Adriatic Sea.

“We are gradually implementing our strategy that implies the achievement of leading position in the transport, forwarding and logistics sector in our region. The establishment of new companies on neighboring markets in the first quarter will allow us to improve the quality and comfort of customer service, which should translate itself to an increase in scope of activity through winning over new trading partners. We are also glad about the positive effects of consolidation of the companies incorporated to the Group within the last couple of quarters, which is especially visible in the sector of logistics, in which we note an increase in revenue and margins,” says Zbigniew Nowik, OT Logistics Management Board President.

Since the first quarter of 2018, the Capital Group has effected a new division of revenue into 4 main segments of activity: port services, forwarding, rail services, and inland navigation together with other kinds of traffic. Broken down into segments, the biggest segment of forwarding noted an increase in revenue from external recipients by 9% YOY to PLN 119.3 million. The EBITDA in this segment increased by almost one fourth to PLN 4.5 million. The results reflect the positive influence of simplification of the Group’s structure and the operational fusion between C.Hartwig Gdynia and Sealand Logistics, increased demand for transportation services on part of, i.e., construction sector and companies with exposure to the sector of private consumption as well as increase in prices of container freight.

The transport segment noted an increase in revenue by 16% YOY to 54.4 million in the first quarter. The increase in revenue was supported by the return to regular coal freight on the Oder. The profitability of the sector suffered greatly in the first quarter due to the turbulences in the German sector of industrial production, which had an influence on the lack of execution of full volumes on chosen contracts. Weather conditions, which in March aggravated the navigability of waterways, also influenced the volume and profitability of transits.

In the port sector, the Group noted a significant increase in revenue (PLN 35.1 million in 1 qtr. 2018 in comparison with 17.0 million the previous year), mainly as a result of strong increase in transshipment of coal and ore in OT Świnoujście. Suppression of sales and stockpiling of cereals by their producers due to the low prices after last year’s harvest has a negative influence on the revenue in the sector. However, the situation can change before this year’s harvest. Entities that trade cereals have to make room in their warehouses and the liquidation of warehoused cereals may support the volume of agro transshipment in subsequent quarters.

Significant changes are visible in the results of the rail sector. OT Logistics rail subsidiaries play an ever greater role of subcontractors for other companies within the Capital Group, which aims at making them independent from the biggest external forwarders. As a consequence, the level of revenue from external entities decreased by 43% to PLN 17.7 million in the first quarter of 2018 and simultaneously the overall revenue in the sector was maintained at a comparable YOY level. The sector noted a perceptible increase in transportation activity in the reporting period – it increased by over 53%, amounting to 245.5 million of ton-miles. The EBITDA profit in the segment increased from PLN 2.2 million a year to PLN 7.6 million

Basic financial data for OT Logistics CG (in millions of PLN)


Data in millions of PLN 1Q 2018 1Q 2017 Change
Sales revenue 226.7 219.5 3%
Operating profit (loss) 3.2 9.3 -66%
EBITDA 18.2 18.9 -4%
Net profit (loss) -4.1 3.4

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