Croatia’s Luka Ploce boosts pre-tax profit in 2023

The operator of the Adriatic port of Ploce handled 4.779 million tonnes of cargo last year, which is a decrease of 14% in comparison to the same period of 2022, the company said in an unaudited consolidated interim financial report for 2023 published on Thursday.

It attributed the decrease to a decline of 21% in bulk cargo volumes, primarily due to a drop in the throughput of coal (-9%), scrap iron (-59%) and sugar (-55%).

Earnings before interest and tax (EBIT) increased to 14.4 million euro from 13.7 million euro. EBITDA also rose, to almost 17.3 million euro from 15.9 million euro.

Sales income edged up 1.0% to 38.08 million euro.

"It is necessary to note that the Russian-Ukrainian crisis which emerged in 2022 contributed positively to the Company's operations as a result of the disruption noted across global logistics flow chains and it continues to contribute positively during 2023 albeit to a lesser extent," the port operator said.

Its total throughput was 22% higher in the fourth quarter of last year compared to the same period in 2021 as increased vessel insurance costs further contributed to the growth in overall costs of logistics across the Black Sea, coupling with already prominent congestion present on that route, the company explained.

Operating expenses fell to 60.5 million euro in 2023 from 81.3 million euro in 2022. However, operating expenses excluding the cost of goods sold rose 1.0% in 2023.

Luka Ploce's shares last traded on Thursday, ending 0.72% lower at 138 euro, Zagreb Stock Exchange data showed.

($ = 0.925 euro)