Re-examination of privatized Thessaloniki Port’s results causes ‘haircut’ of 2017 profits

The Thessaloniki Port Authority (OL.Th) announced a nearly a 50% drop in profitability in 2017 – its last year as a wholly state-controlled entity – despite an increase in turnover of 13%.

The announcement comes after a new board of directors assumed the port authority’s helm, with members appointed by the consortium that won an international tender for a majority of OL.Th’s shares and its management. The results came after the new management incorporated significantly increased amortizations and projections, taking into account, according to reports, results of a report compiled by independent auditors.

It also comes after new port authority president and CEO Sotiris Theofanis indirectly broached the negative results in a recent press conference, where he said, among others, that the organization’s finances and performance were in worse shape than what was presented to would-be investors in the relevant tender documents.

According to port authority sources that spoke with “Naftemporiki” newspaper, the new management has ordered a re-examination and rationalization of financial results, in order to base what it calls a highly ambitious master plan on “realistic foundations”.

In terms of absolute numbers, OL.Th’s turnover in 2017 reached 54.231 million euros, up from 48.061 million in 2016 (+12.84 percent). Container traffic increased by 16.74 percent, reaching 401,947 TEUs, while bulk cargo posted an increase of 8.63 percent, yoy, or 3.598 million tons.

Revenue from leased property rose by 8.01 percent.

On the other hand, EBITDA reached 18.849 million euros, down from 23.877 million euros, for a decrease of 21.06 percent.

Pre-tax profits decreased in 2017 to 12.474 million euros, down from 21.081 million euros in 2016.