What results does Prime Transaction expect Transport Trade Services to have in the second quarter?

• The company will present its results today after the close of trading

The analysis team of the brokerage house Prime Transaction anticipates that the river carrier and port operator Transport Trade Services (TTS) will report a turnover of 211 million lei for the second quarter of the year, about 20% below that of the same period last year, while net profit is expected to fall 64%, according to the attached analysis report.

"We believe that the element "Agricultural Products" will register the most important decrease, of 62%, due to several factors, the most important being the volumetric decrease in the influx of Ukrainian agricultural products in the ports where the company operates. Considering the tendency of the conflict in Ukraine to stabilize, we anticipate the resumption of transport through Ukrainian Black Sea ports, but this scenario can change very quickly depending on the evolution of the conflict. The second element that negatively influences the evolution of these incomes is the dry climate this year, causing farmers to reduce the amount of agricultural products to be sold", the report states.

Thus, Prime estimates that TTS will obtain revenues from the transport of "Agricultural Products" of 46.3 million lei, compared to 120.6 million lei, in the second quarter of last year.

On the other hand, from the operations with "Mineral Products", analysts estimate that Transport Trade Services will obtain revenues of 98.7 million lei, an increase of 36%, while the revenues from the operations with "Chemical Products" will amount to 29.9 million lei, 60% higher, integrating a growth rate similar to that encountered in the last quarters, according to the report.

• Operating result of 28 million lei, down 63%

Prime estimates that TTS will report operating expenses of 191.6 million lei, down slightly from last year's second quarter of 194.1 million lei.

"Analyzing the company's expenses, we used a significant decrease in the element "Cost of Goods Sold", considering that the company will restrict its activities of selling goods. Amortization and Depreciation will in turn register large developments, of 51%, against the background of the massive investments made in 2023. The most important category of expenses, those with subcontractors, will decrease by 22%, being directly influenced by the decrease in transported volumes". the report shows.

Based on these premises, those from Prime achieved an operational result of 28 million lei, 63% lower than in the second quarter of last year. "Integrating the expenses with Amortization and Depreciation, we obtain an EBITDA of 55.9 million lei, marking a negative dynamic of 41% compared to the same period of the previous year", the report states.

Taking into account an estimated financial loss of 0.97 million lei, analysts expect that, for the second quarter of the year, Transport Trade Services will report a gross result of 27.8 million lei, 64% below the from the same period last year, while the estimated net profit is 23.6 million lei, compared to the value of 65.8 million lei in the second quarter of 2023.

The river carrier and port operator will present, today, its results for the second quarter, respectively the first half of the year, after the close of the trading session.