Following a strong performance in 2024, Mariner Finance is projecting a 3.55 per cent increase in group revenue to €20.75 million for FY2025, largely driven by growth in income from container handling and related services, stronger rental income.

Together with a 1.61 per cent decrease in operating expenses, the projected results are expected to lead to an an 8.52 per cent increase in EBITDA for the year, reaching €11.07 million.

FY2025 Outlook for Mariner Finance group

The 3.55 per cent increase in revenue, to €20.75 million, is expected to be mainly driven by a 3.48 per cent increase in container handling and related services to €20.28 million, alongside a 6.55 per cent rise in property rental income to €0.47 million.

Net operating expenses are forecast to decrease slightly by 1.61 per cent to €9.68 million, boosting EBITDA by 8.52 per cent to €11.07 million and lifting the EBITDA margin to 53.35 per cent.

After depreciation, amortisation, and taxes, net profit is projected to remain stable at €5.63 million, with a net margin of 27.15 per cent.

While returns on equity and assets are set to ease slightly, return on invested capital is forecast to improve to 7.10 per cent, supported by an almost 9 per cent rise in operating profit to €8.67 million.

SIA Baltic Container Terminal (BCT)

Mariner Finance serves as the financial arm of SIA Baltic Container Terminal (BCT), a Latvia-based company that operates Riga Free Port No. 48. The company’s activities encompass end-to-end terminal logistics, ranging from quay-side operations and yard handling to warehousing, gate management, and rail services.

Revenue is projected to rise by 3.48 per cent to €20.28 million, driven by a 0.84 per cent increase in container throughput, reaching 353,558 twenty-foot equivalent units (TEU). A TEU is the standard measure used in the shipping industry, representing the capacity of one 20-foot container. The anticipated increase in revenue is primarily driven by improved performance in container handling and cargo storage operations.

Container services are expected to generate €13.35 million –⁠ a 10.27 per cent year-on-year increase –⁠ while cargo storage is set to rebound strongly, rising by 15.57 per cent to €2.76 million.

In contrast, revenue from other ancillary services is projected to decline significantly, falling by 18.29 per cent to €4.17 million.

In FY2025, cargo loading and unloading are expected to remain the core revenue drivers, together accounting for approximately 65.82 per cent of total income. The share of revenue from cargo storage is projected to increase modestly to 13.62 per cent, up from 12.19 per cent in FY2024.

Meanwhile, income from ancillary services –⁠ including additional handling, mooring and unmooring, and other sources –⁠ is forecast to decline, making up 20.56 per cent of revenue compared to 26.04 per cent the previous year.

Profitability is forecasted to strengthen in line with the projected revenue growth. EBITDA is forecast to rise by 6.42 per cent to €10.77 million, reflecting a margin improvement to 53.09 per cent, bringing it close to the FY2023 level of 53.13 per cent.

Operating profit is set to increase by 6.21 per cent to €8.36 million, with the margin advancing to 41.23 per cent. Similarly, net profit is projected to grow by 4.03 per cent to €7.18 million, accompanied by a modest increase in net margin to 35.42 per cent.

BCT’s competitive landscape

Latvia’s three main ports –⁠ Liepaja, Riga, and Ventspils –⁠ primarily handle cargo transit, with the Freeport of Riga standing out as the only port with significant container-handling capacity.

Within this port, BCT is the only specialised container terminal in the Freeport of Riga, handling most of the containerised cargo and surpassing competitors like (Riga Central Terminal) RCT and (Riga Universal Terminal) RUT in technology, infrastructure, and operational capabilities.

BCT’s main competitors are specialised container terminals in neighbouring countries, including those in Lithuania, Estonia, Finland, and Russia. However, “competition from these terminals has diminished due to geopolitical developments,” including the sanctions imposed on Russia and Belarus. Competition now mainly exists for Central Asian cargo and some Belarusian shipments not affected by sanctions, mostly between Latvia and Lithuania.

Merkela Building

Mariner Finance also owns, operates, and leases the Merkela Building in Riga, which offers approximately 2,480 square metres of net rentable space. The property was last valued at €5.01 million in FY2024.

Currently, 25 per cent of the building is leased to McDonald’s Latvia, under a long-term agreement set to expire in 2038. The remaining space is rented out to tenants in the accommodation sector, with lease terms of up to 10 years.

For FY2025, rental income is expected to rise to €0.47 million, driven by an increase in occupancy to 75 per cent. This follows a slight dip in FY2024, when rental income declined to €0.44 million, with occupancy holding steady at 61 per cent.