OT Logistics plans to obtain approx. PLN 300 million in consolidated sales revenues, over PLN 45 million in EBITDA result and over PLN 19 million in net result in 2022, according to the company’s strategy update. As a result of the investments planned for 2022-2023 in the amount of PLN 30-40 million, 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, it was also announced.
As part of updating the assumptions of the strategy, after excluding some of the forwarding activities from the consolidation, as a result of the sale of C.Hartwig Gdynia SA, in 2022 the OTL Group plans to obtain approximately PLN 300 million of sales revenues. Over PLN 200 million, i.e. approximately 68% of the value The company’s management board assumes that, taking into account the effects of cost optimization, it will allow for the achievement of over PLN 45 million in EBITDA and over PLN 19 million in net profit on a consolidated level, starting from 2022, according to the company.
The update of the strategy assumptions also included the acceleration of capital expenditure related to the modernization of transshipment equipment, automation and cost optimization of operational processes in port operations. The total investment expenditure planned for implementation at the port companies OTPG and OTPŚ in 2022-2023 will amount to PLN 30-40 million and will be financed mainly by leasing, it was also announced.
The planned effect of these investments will be to increase the market competitiveness of the ports of the OTL Group by shortening the handling rate of key goods and achieving high cost optimization. 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 costs due to the leasing of new equipment will also coincide with the termination of existing leases and the purchase of port cranes in these years, so that the new charges will not significantly affect the current cost level of the OTL Group, the company further announced.
In terms of the planned sources of financing, the company applied to the interested banks for loan financing to refinance the entire bond in the amount of PLN 60 million by April 30, 2022 and to finance the investment program in the amount of PLN 30-40 million. The company does not exclude the possibility of incurring other liabilities in order to refinance bonds and finance planned investments. The safe debt-to-EBITDA ratio achieved as a result of the restructuring, in the amount below 1.5x, indicates the company’s full creditworthiness to incur and service such financing in the medium-term horizon, emphasizes OT Logistics.
The above estimates are an update of the assumptions of the Medium-Term Strategy for Stabilization and Development of the OT Logistics Capital Group for 2020-2023, approved in 2020. The company reports that as a result of the implementation of the strategy in 2020-2021, it achieved most of its goals. An extensive restructuring program was carried out, over-planned savings were achieved in general and administrative costs and selling costs, assets not synergistic with the port activity were sold, and the funds obtained were used to repay liabilities to financial creditors. The company fully repaid its bank loans, and liabilities to bondholders amounted to approximately PLN 60 million as at December 31, 2021.
The above values do not constitute an official forecast of the results of the OTL Group, but the management board’s estimates that are goals for the OTL Group to be implemented in 2022 and 2023-2025, also reserved.
The OTL Group is a group listed on the Warsaw Stock Exchange specializing in transport, forwarding and logistics services. Its consolidated sales revenues reached PLN 853.36 million in 2020.
Source: OT Logistics and ISBnews
