OT Logistics expects a good prosperity in key port services for a group of companies.

The OTL Group expects good prosperity in port services, which are to provide over PLN 200 million in revenue this year, reported ISBnews president OT Logistics Konrad Hernik. In addition, the Group intends to raise loans for bond refinancing and planned investments.

"We are currently not seeing any significant disturbance in maritime transport. Uncertainty and risks are rather linked to land transport in relations with the eastern border. In this situation, we note an increased interest in port handling, both bulk and bulk goods. A 50% increase is also recorded in the ro-ro segment, which should translate effectively into more than 30% of the dynamics of our sales in this segment," said ISBnews Hernik.

As he stressed, the situation in global logistics began to stabilise.

"Distortions of supply may include more supply problems of components, but rather no longer due to transport problems, especially maritime ones. In view of the geopolitical risks and turbulence recorded in land supplies, the importance of the open maritime road is growing steadily. We plan that in 2022 and subsequent years OTL Group ports will benefit from this situation. The expected increase in the volume of transhipment will directly affect the increase in OTL Group results," added the President.

On Thursday, the company announced the update of most strategic objectives in 2020-2021. After the sale of C.Hartwig Gdynia plans to achieve consolidated sales revenue of PLN 300 million in 2022, EBITDA of over PLN 45 million and net profit of over PLN 19 million.

According to the company, the current value of the liability debt is less than 1,5x EBITDA. As a result of the 2020-2021 strategy, the OTL Group achieved most of its targets, including the restructuring programme, achieved more than planned savings in overall management costs and sales costs, sold assets not synergistic with port activities, and paid off its liabilities to financial creditors for the funds acquired. The company also paid off bank loans, and liabilities to bondholders amounted to around PLN 60 million for 31.12.2021. Now he intends to obtain loans for bond refinancing and for planned investments. The strategic objective of the OTL is to pay dividends from 2022. The company does not exclude acquisitions.

"After the extensive restructuring and sale of Deutsche Binnenreederei and C.Hartwig Gdynia, we no longer plan to reduce the Group's composition. We foresee the merger of two less important actors in further efforts to simplify the internal structure. We do not rule out the possibility of selling tangible assets, but not companies. However, if this happens, it will be part of wider development activities. We are also looking at possible acquisitions to strengthen market power. For now, however, we focus on investments aimed at automating port operations, which should significantly improve our operating profitability" - said Hernik.

The highest OTL dynamics is expected in 2022 in the ro-ro segment.

"This segment will also develop in subsequent years. This will also be affected by the investments of the Gdynia Maritime Ports Board in the landing of part of the port basin. As a result, about twice the squares dedicated to handling this activity will increase. We are also expecting high dynamics in 2022 for the handling of iron ore, coke and coking coal, as well as steel products," said the President.

OTL Group is a WSE-listed group specialising in transport, forwarding and logistics services. Its consolidated sales revenue reached PLN 853.36 million in 2020.

Source: ISBnews/Sebastian Gawłowski