OT Logistics plans over PLN 45 million EBITDA in this year, more than PLN 70 million in 2025.

OT Logistics plans to obtain about PLN 300 million of consolidated sales revenue, over PLN 45 million of EBITDA result and over PLN 19 million of net result in 2022, results from the company's strategy update. As a result, the planned consolidated EBITDA of the group from 2023 should exceed the level of PLN 55 million and the level of PLN 70 million from 2025.

"As part of the strategy's update, after excluding part of the forwarding activity from consolidation, as a result of the sale of C.Hartwig Gdynia SA, in 2022 the OTL Group plans to obtain about PLN 300 million in sales revenue. More than PLN 200 million, i.e. around 68% of the value of this sale will be port services. The Management Board assumes that, after taking into account the cost optimization effects, this will allow to achieve over PLN 45 million of EBITDA and over PLN 19 million of net result at consolidated level. At the same time, the planned individual results in the OTL will allow for strategic dividend payments starting in 2022" - the Communication states.

Update of assumptions The strategy also included speeding up investment expenditure related to the modernisation of handling equipment, automation and optimisation of cost-effective operating processes in port operations. The total investment expenditure planned for implementation in the port companies OTPG and OTPŚ in the years 2022-2023 will amount to PLN 30-40 million and will be financed mainly by leasing, also given.

"The planned effect of these investments will be to increase the market competitiveness of the OTL Group ports by reducing the handling of key goods and achieving high cost optimizations. As a result of these investments, the planned consolidated EBITDA of the OTL Group from 2023 should exceed the level of PLN 55 million and the level of PLN 70 million from 2025. The increase in the cost burden of leasing new equipment will also coincide with the completion of existing leases and the redemption of port cranes in those years, so that the new charges will not significantly affect the current level of costs of the OTL Group" – we read further.

As regards the planned sources of funding, the company applied to the banks concerned with applications for credit financing to refinance all bonds amounting to PLN 60 million by 30.04.201022 and to finance an investment programme of PLN 30-40 million. Nor does the Company exclude the possibility of other liabilities to refinance bonds and finance planned investments. As a result of the restructuring, the secure debt-to-EBITDA relationship of less than 1.5x indicates the full credit capacity of the company to enlist and operate such financing in the medium term, stresses OT Logistics.

These estimates update the assumptions approved in 2020 of the Medium-term Stability and Development Strategy of the OT Logistics Group for the years 2020-2023. The Company states that as a result of the implementation of the strategy between 2020 and 2021, it achieved most of the goals set. A wide restructuring programme was carried out, over planned savings were achieved in terms of general management costs and sales costs, assets not synergistic with port activities were sold, and the funds raised served to repay liabilities to financial creditors. The company fully repaid bank loans, and liabilities to the bondholders amounted to around PLN 60 million for 31.12.2021.

The above figures do not constitute an official forecast of the OTL Group's results, but the Management Board's estimates constituting the objectives for the OTL Group to be implemented in 2022 and 2023-2025 are also reserved.

Source: ISBnews