Luka Koper, the operator of Slovenia's sole maritime port, is looking back at a successful year despite having its net profit slashed by almost a quarter due to higher costs and a drop in storage fees revenue as a result of stabilisation of global logistics.

The group generated €312.8 million in net revenue in 2023, which is on par with 2022, but net profit was down by 24% to €54.4 million. Releasing the figures on 22 February, the company said they exceeded the expectations.

Earnings before interest were down by 27% to €60.9 million. The biggest impact came as a result of storage fees revenue dropping by €21 million due to shorter storage time of containers.

Operating costs were up by a tenth to €258 million as a result of inflationary pressures, higher number of employees and agency workers, but the company said these were mainly set off with revenue from other services. Operating costs as a percentage of net sales increased by 7.6 percentage points to 82.5%.

While total maritime throughput was down 4% by to 22.3 million tonnes, container throughput increased by 5% to 1.1 million TEU, and car throughput was up 14% to 916,700 units. Container and car throughput reached record levels, as did the passenger, refrigerated and liquid cargo terminals.

Tensions in Red Sea affect business

Luka Koper said the impact of tighter financial conditions, weak trade growth and lower business and consumer confidence was increasingly felt at the end of 2023. "Increased geopolitical tensions are again raising uncertainty about the short-term outlook."

The situation in logistics and supply chains has been further exacerbated by attacks in the Red Sea. "Due to the rerouting of ships around Africa at certain shipping services from the Far East, Luka Koper is experiencing delays in ship arrivals, as the average transit time has increased from 10 to 14 days."

The impact of these delays will really only become apparent in the first months of this year, with the company noting that, should the situation not return to normal in the coming months, shipowners could change their established transport routes from Asia to Europe.

The company completed €41.5 million worth of investment in 2023, including to secure additional warehouse capacities, new docking points for refrigerated containers and a new external truck terminal.

The Luka Koper group had 1,922 employees at the end of last year, a 7% increase on 2022.