OT Logistics had PLN 9.42 million net profit, PLN 18.37 million EBIT profit in Q2 2021.

Operating profit amounted to PLN 18.37 million compared to PLN 10.22 million loss a year earlier.

Consolidated sales revenue reached PLN 241.3 million in the second quarter of 2021 against PLN 214.23 million the year before.

In the first half of 2021, the company had PLN 56.67 million of consolidated net profit allocated to shareholders of the parent company compared to PLN 50.44 million of losses a year earlier, with sales revenue of PLN 460.53 million compared to PLN 421.47 million a year earlier.

"The results for the first half of 2021 perfectly reflect the effects of the extensive restructuring and cost optimization measures taken in the OTL Group. It is worth noting that we have recorded sales growth in all key business segments, despite the fact that in 2020 we sold some of the activities that were not continued this year. We are stabilising our finances and thus we are on our way to becoming a fully healthy, profitable and dividend company," said Konrad Hernik, quoted in the Communication.

EBITDA amounted to PLN 63.1 million in the first half of 2021 and was higher by 86.3% y/y. Without taking into account one-off events, the OTL Group increased the normalised EBITDA (without taking into account the remaining operations) by more than 31% y/y to PLN 49.61 million, as well.

"The results were also influenced by the market environment, including in particular the increase in freight rates, the implementation of more handling of general goods and bulk related to the steel industry. In the first half of 2021, the costs of management and sales decreased significantly to PLN 30 million from PLN 58.7 million. The cost reduction was possible through the reduction of management staff, the liquidation of a common service centre, the failure to continue economically unjustified investment projects. In addition to restructuring measures, this included the exclusion from consolidation of the costs of Luka Rijek" – we also read.

The largest part of the OTL Group's revenues in the first half. generated freight operations outside port operations, which generated PLN 256.6 million and was 80.3% higher. Port services also increased, both in the category of bulk goods (PLN 84.7 million, increase by 2.6% y/y) and general goods (PLN 99.2 million, increase by 13.6%). A slight decrease of OT Logistics Group was noted in the activity related to rail services, which amounted to PLN 18.7 million and were lower by 0.7% y/y, which resulted from consolidation by the end of the first half of SKK in the sanitation.

"The implementation of our debt reduction agenda will mean that by the end of the year it will be below the two-time annual EBITDA achieved and expected. On the key activity continued, without taking into account the results of Luka Rijeka, from 2022 the OTL Group should reach PLN 38-45 million annually. After the sale of C. Hartwig Gdynia, responsible for container shipping, the OTL Group will reduce revenue levels to around PLN 300 million per year, while increasing the margin on sales to over 17%", added Hernik.

The group will strengthen the market position in port service and among customers using the maritime road. It also intends to benefit from growth in the high-margin handling industry and in general goods.

"The chances of revenue growth are seen primarily in the ro-ro segment and in general loads, but also in the expected increase in bulk cargo handling, such as redheads, coking coal and coke. We are also considering a return to the possibility of increasing engagement in the port of Luka Rijeka, together with financial partners and expanding customer service opportunities in the Adriatic-Baltyk logistics corridor, as well as ultimately the Adriatic-Black Sea-Baltyk," concluded the president.

The net profit in the first half of 2021 amounted to PLN 60.05 million compared to PLN 38.67 million loss a year earlier.

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