Infortar (INF1T) Q2 2024 earnings summary

Executive summary

• Operates in energy, shipping/maritime transport, real estate, and supporting sectors, with 103 companies and 1,344 employees as of June 30, 2024.

• Largest market is Finland, with operations in Estonia, Latvia, Lithuania, Poland, and new activities in Germany; focus on stable, capital-intensive, high-barrier sectors generating strong cash flow.

• Main energy investment is Eesti Gaas, now the largest private energy company in the region; holds a 46.8% stake in Tallink, a leading Baltic ferry company.

• Real estate portfolio includes 17 properties totaling 130,000 sq m, providing stable income; diversified portfolio of 113,000 m², including office buildings, hotels, and logistics centers.

• H1 2024 saw a 4.5% increase in Tallink Grupp stake, acquisition of Halinga dairy farm, and commissioning of the Nica solar park in Latvia.

Financial highlights

• H1 2024 revenue reached €576.1 million, up from €560.4 million year-over-year.

• EBITDA for H1 2024 was €75.5 million (13.1% margin), down from €86.6 million (15.4%) in H1 2023.

• Net profit for H1 2024 was €73.0 million, compared to €83.7 million in H1 2023.

• Asset base grew to €1.5 billion from just over €1 billion a year ago; equity at €840 million and total assets at €1.1 billion.

• Free liquidity after €30 million dividend payment stands at €185 million; cash and cash equivalents increased from €136 million in H1 2023.

Outlook and guidance

• Focus remains on growth, especially in foreign markets, with ongoing investments in energy infrastructure and real estate developments.

• Strong liquidity position supports further expansion and investment; stable cash flow expected to support regular dividend payments.

• Expansion into new markets and sectors, including wholesale gas in Western Europe and agriculture, is a strategic focus.