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Luka Koper Publishes Business Plan And Forecasts Reduced Profit

Luka Koper publishes business plan and forecasts reduced profit

Source: Luka Koper
Koper, Slovenia (PortSEurope) December 14, 2020 – A summary of the business plan for 2021 and estimate of the business performance in 2020 of Luka Koper, d.d., and Luka Koper group has been published. Forecast of business performance in 2021 In view of a favourable projection of the economic growth and on the basis of the estimates of global logistic providers, in 2021, Luka Koper,
d. d., and Luka Koper Group, in comparison with the estimate for 2020, will generate a 6% increase in revenue from net sales and 5% increase in total maritime throughput. The growth is planned in all product groups. In the strategic group of containers, 3% growth in container throughput (TEU), in comparison to the estimate for 2020 is planned as well as maintaining its position as a leading port in the Adriatic. Container shipping companies project a gradual throughput growth to the level from 2019 for the Northern Adriatic area in the beginning of 2021, since trade flows should be redirected from air cargo to maritime transport, whilst the return to normal situation is expected in 2022. Due to the COVID-19 pandemic outbreak, the world automotive industry was of the most affected sectors. Among European car ports, Luka Koper, d.d. recorded the lowest fall in car transhipment. Alongside the economy recovery in 2021, car sales are expected to increase in 2021. In the strategic product group of cars, 8% increase is projected in 202i in the car transhipment. In 2021, Luka Koper, d. d., will continue the undertaken investments in the port infrastructure and which are primarily related to the increase of the container terminal capacities. In the first quarter of 2021, the first stage of the extension of the Pier I will be completed, and namely the extension of the quayside for 100 metres. The works will continue with the construction of the second stage, which will be implemented at the end of 2022 and in which additional storage areas at the Pier I, measuring almost 25 thousand square meters, are planned. In the first quarter of the next year, also the garage with 6.000 parking lots will be constructed. In the same period, a new, third truck entrance to the Port is projected to be put in use. The construction of new storage capacities for general cargoes is planned in the Business plan. Luka Koper Group will continue the construction of road and railway infrastructure in the port and the digital transformation. Estimate of business performance in 2020 The impact of the COVID-19 pandemic on global trade flows has been affecting the performance of Luka Koper Group. Notwithstanding, the throughput of the strategic product group of containers is stable, whilst the throughput downturn will mark other product groups. The impact of the pandemic in liquid cargoes is directly resulting from the reduced sale of oil products, mainly in the aviation industry. The decline in vehicle production has affected the whole supply chain, which is reflected in the general cargoes throughput, and namely in iron ore products for carindustry and at the bulk cargoes terminal, where raw materials destined to the steel industry are handled. Bulk cargoes are affected by the reduced consumption of the thermal coal as result of higher environmental taxes on emissions. In addition, the competitivity of neighbouring ports and difficulties in the railwayconnection between the Port of Koper and the hinterland in previous years have been increasing , and consequently some logistic companies established alternative connections. The throughput of cars from the half-year 2020 onwards has been even rising, mostly due to the export to the Far East. Therefore, it is supposed that by the end of 2020, the maritime throughput of Luka Koper Group should achieve 19.5 million tonnes, which is 14% decline from the achieved throughput in 2019 and 19 percent below the plan. Accordingly to current estimates, net sales of Luka Koper Group in 2020 will amount to €207.9 million, a 9% decrease in comparison with 2019 and 13% below the plan. In 2020, earnings before interest and tax (EBIT) will amount to €26.1 million, (a 42% decrease over last year resp. 21% below the planned), whilst net profit or loss will amount to €25.1 million (38% decline over last year resp. 21% decline from the planned). Estimated indicators arise from the coronavirus epidemic and related measures, economic downturn and higher labour costs due to higher number of employees as result of implementing the port service provision strategy. Copyright (C) PortSEurope. All Rights Reserved. 2020.

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