Aspo - A challenging quarter
Aspo’s Q2 results fell short of estimates especially due to the loss-making Supramax vessels and certain other dry bulk market challenges, while Telko’s business suffered from declining prices.
- Aspo Q2 revenue from continuing operations amounted to EUR 132.6m, compared to the EUR 143.2m/138.1m Evli/consensus estimates.
- Adjusted EBIT was EUR 3.6m vs the EUR 6.5m/6.5m Evli/consensus estimates. The shortfall was due to both ESL and Telko, whereas Leipurin met estimates.
- ESL Q2 revenue was EUR 44.0m, compared to our EUR 52.2m estimate, while adjusted EBIT landed at EUR 3.3m vs our EUR 4.9m estimate. Weak spot market demand for the two Supramax vessels had an especially negative impact. Pricing of time-chartered vessels, dockings and specific supply chain conditions also had a negative impact. Q2 is a seasonally slow quarter, so there’s to be some pick up in demand after the summer although steel and forest industry demand is unlikely to be that high this year.
- Telko revenue amounted to EUR 54.2m vs our EUR 55.3m estimate, whereas adjusted EBIT came in at EUR 0.9m vs our EUR 2.1m estimate. Prices declined and plastics demand was soft. Higher Asian imports caused competition, while development in chemicals and especially lubricants was more positive. The overall price outlook for H2 looks somewhat more stable, but perhaps still on the soft side.
- Leipurin revenue landed at EUR 34.4m, compared to our EUR 35.7m estimate, while adjusted EBIT was EUR 1.1m vs our EUR 1.2m estimate.
- Other operations cost EUR 1.7m vs our EUR 1.7m estimate.
- Aspo guides comparable operating profit to be EUR 25-35m in FY ’23 (EUR 55.3m in FY ’22).