Extension of the summer charter contract of the icebreaker Botnica

December 9, 2022 2:21 AM EST

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AS Tallinna Sadam subsidiary OÜ TS Shipping (hereinafter: "TS Shipping") and Baffinland Iron Mines Corporation (hereinafter: "Baffinland") extended the 5-year framework agreement of chartering the icebreaker Botnica signed in 2018 for the summer period of 2023. Baffinland has a call option to continue chartering Botnica under the same conditions from the end of June to the end of November. More detailed decisions regarding charter period will be made by Baffinland by the call option notification due date in February 2023.

In the beginning of summer 2018, TS Shipping, signed an agreement with Baffinland for chartering MPSV Botnica for the 2018 summer period and annual call options for the summer periods in 2019-2022 Baffinland is a Canadian mining company, engaged in the mining of iron ore on Baffin Island in Northern Canada. According to the agreement Botnica provides escort ice management services, oil spill and emergency response services.

In 2018-2022, Botnica assisted Panamax-type cargo vessels in Arctic waters of northern Canada for exporting iron ore from the Milne Inlet port to the ocean. According to an agreement with the Estonian Transport Administration, Botnica provides icebreaking services in Estonian coastal waters from December 20 to April 20. In 2022, the estimated total number of Botnica charter days will be 250 and the annual utilization rate of the ship will be 68%.

In order to maintain a high utilization rate of the vessel, TS Shipping is also actively dealing with the possibility of securing work for the vessel in other offshore projects in the event that Baffinland uses the second call option mentioned above for a shorter charter period.

Tallinna Sadam is one of the largest cargo- and passenger port complexes in the Baltic Sea region, which serves annually 10 million passengers and 20 million tons of cargo in average. In addition to passenger and freight services, Tallinna Sadam group also operates in shipping business via its subsidiaries – OÜ TS Laevad provides ferry services between the Estonian mainland and the largest islands, and OÜ TS Shipping charters its multifunctional vessel Botnica for icebreaking and construction services in Estonia and offshore projects abroad. Tallinna Sadam group is also a shareholder of an associate AS Green Marine, which provides waste management services. The group’s sales in 2021 totalled EUR 110 million, adjusted EBITDA EUR 54 million and profit EUR 26 million.

Additional information:

Marju Zirel
Head of Investor Relations
Tel. +372 5342 6591

[email protected]

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