TTS (Transport Trade Services), the main provider of integrated logistics services on the Danube, listed on the Bucharest Stock Exchange, reported a net profit of 31 million lei in the first part of the year, up 75.3%. In the first semester, the TTS Group achieved a total volume of 7.68 million tons of goods transported by river and operated in ports, higher by 4.38%, and the net profit increased by 124.5%, to 61.3 million lei.
The turnover of the TTS Group amounted to 402.4 million lei (+46.9%), while at the individual level TTS reported business of 272.7 million lei (+51.3%).
"From an operational point of view, the TTS Group achieved in the first half of 2022 a total volume of 7.68 million tons of goods transported by river and operated in ports, 4.38% higher than in H1 2021. The most significant increases they recorded the volumes of goods operated in the ports (+19.55% compared to the level reached in the 1st semester of 2021) and the volume of agricultural products transported and operated (+28.47% compared to the level reached in the 1st semester of 2021)", announces the company.
The main markets in which the TTS Group is active - the river transport services market on the Danube and the port operation services market in Constanta, were strongly influenced by the effects of the war in Ukraine. These effects were mainly manifested in the second quarter of the year and led primarily to the massive increase in the flows of agricultural products, fueled by both Ukrainian grain exports and the return of grain flows from Serbia and Hungary - stopped a long time due to distortions in the grain market. At the same time, as a result of the economic sanctions applied to Russia, some of the flows of mineral raw materials (bauxite and raw materials for the steel industry) were significantly reduced and some of the flows of chemical fertilizers disappeared from the market.
"In the conditions generated by the reconfiguration of the logistics chains - effects of the war in Ukraine, which led to substantial changes in the market conditions, the TTS Group recorded increases, both in turnover and in the level of profitability, both at the consolidated level, as well as at the level of TTS (Transport Trade Services)", the company's report shows.
The main consequence of the reconfiguration of the flows of goods transported on the Danube and those operated in the port of Constanta, was the massive increase in the demand for services on these markets. "In the conditions of a service offer limited by the physical transport and operating capacities available, the increase in demand has led to a general increase in the tariffs applied in the market", the report states.
This year, the company accelerated the pace of investments in the expansion of the fleet capacity (over 10.4 million euros in the 1st semester of 2022), including, mainly, investments of over 8 million euros in ship modernizations and recertification's, but also the purchase of 8 barges EUROPA 2, with a cumulative capacity of 13,600 tons.
At the same time, TTS continued the program of modernization of the port facilities. Thus, in May, TTS signed the financing contract from European funds, of a project to modernize the port terminal in Giurgiu with European financing, in a total amount of 23.9 million lei, of which 9.5 million lei represents the contribution of TTS.
To respond to the new market conditions, the TTS Group acted in several directions. On the one hand, the creation of the "just-in-time" logistics chain dedicated to Ukrainian grain exports, with the TTS off-shore buoy terminal in the inner lane of the port of Constanţa as its terminus, directly addressed the lack of available capacity, at the entire level logistic chain, for taking over the flow of Ukrainian goods", the report also states.
The TTS Group is the largest provider of integrated logistics services - shipping, transport on the Danube and port operation of agricultural products, mineral raw materials and chemical fertilizers, from the Lower Danube basin.
The group consists of 16 companies, 11 registered in Romania, 3 registered in Hungary and one each in the Republic of Moldova and Austria, and operates on the entire navigable course of the Danube, from Kelheim to Constanta and to Ismail/Reni in Ukraine.
The TTS Group owns the largest river fleet in the Danube basin, with a capacity of almost 800 thousand tons, 8 floating cranes, as well as port terminals in Constanta and in 7 Danube river ports in Romania and Hungary.
Founded in January 1997, TTS (Transport Trade Services) is active in the segment of international freight forwarding. The company is the central point of the TTS Group and coordinates the group's activity.
In June 2021, the shares issued by TTS were admitted to trading on the regulated market administered by BVB, in the Premium category (symbol: TTS), following the conclusion of a secondary initial public offer for sale, through which the company's shareholders sold 50% of the shares , the company being valued at 107 million euros.
On September 20, 2021, TTS shares were included in the BET index of the most liquid shares traded on the BSE, and on December 20, 2021, they were included in the FTSE Russell index series dedicated to emerging markets, respectively in the FTSE Global Micro Cap index.