Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aspo PLC (FRA:ZYD, Financial) reported a strong growth in net sales by 16%, indicating a return to a growth track after previous quarters of stagnation.
- The company successfully executed its strategy by selling two supramax vessels and introducing two green coasters in the Baltic Sea, enhancing its sustainability efforts.
- Aspo PLC (FRA:ZYD) improved its cash flow and strengthened its balance sheet, demonstrating good liquidity and financial health.
- The company made strategic acquisitions in Germany and Sweden, strengthening its market position and expanding its business operations.
- ESL Shipping showed good contract volume demand and improved profitability, supported by favorable market conditions and strategic asset sales.
Negative Points
- Leipurin experienced a 6% decline in sales, impacted by market deflation and strategic shifts away from low-margin products.
- The company faced a flat profitability development in the first half of 2024, with external factors like strikes and weather conditions negatively impacting results by EUR4.2 million.
- Aspo PLC (FRA:ZYD) incurred EUR2.5 million in M&A costs, affecting its comparable EBITDA.
- Telko's market demand remained weak, although the company managed to gain market share, indicating challenges in the broader market environment.
- The sale of supramax vessels resulted in a loss of EUR7.2 million, highlighting the financial impact of strategic asset divestments.
Q & A Highlights
Q: From everything and Telko sees increasing prices, whereas Leipurin faces slightly decreasing prices. Have you seen any changes there? H2 outlook seems to spring months.
A: When it comes to Leipurin, I would say no changes. We think a low level of deflation will continue. For Telko, no change is expected; we anticipate less market support in the second half of the year compared to earlier expectations. Demand and price levels for Telko are growing, but at a slow pace. - Rolf Jansson, CEO
Q: It's kind of the same case for ESL's H2 outlook as well. Could you remind us how many green coasters you will have by the end of this year?
A: The third green coaster will enter commercial traffic by the end of September, making it three vessels operational. The total profit impact of the 12 green coaster vessels will be EUR15 million of EBITDA. Market support for ESL will be limited during H2 this year. - Rolf Jansson, CEO
Q: Regarding decreasing cost to serve, is there a profitability ramp-up curve for a specific vessel, or can it earn profitably from day one?
A: Our objective is for the vessels to be profitable immediately. For example, Electra mode went into commercial traffic immediately after leaving the pier. We aim to have them operational as soon as they are ready. - Rolf Jansson, CEO
Q: Any further questions?
A: If none, I want to thank you for attending this session on behalf of Aspo. Thank you. - Rolf Jansson, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
