According to the audited results of OÜ Transpordi Varahaldus (TVH) for 2023, the company’s net profit, excluding the effect of asset impairment, was EUR 1.8 million (EUR 2.3 million in 2022) and the annual turnover was EUR 10.61 million. However, the financial year closed with a loss of EUR 10,6 million due to the asset revaluation.

Ergo Blumfeldt, member of TVH’s Management Board, explained that last year was a good year for the company in terms of business performance, with the company’s revenue from the lease of aviation assets increasing by €2.1 million compared to the previous financial year (€8.4 million in 2022).

Blumfeldt added that the economic difficulties of the lessee of the aircraft owned by TVH also had a negative impact on the value of TVH’s assets, which led to a negative result for the year. “In accordance with the international accounting standards (IFRS), we revalued TVH’s fixed assets and as a result the accounting loss for the last financial year was approximately EUR 10.6 million,” Blumfeldt explained.

At the end of May the Estonian Minister of Climate, as the sole shareholders´ representative of TVH, updated the company’s owner’s expectations, which foresee the privatisation of the company. The privatisation is due to the decision of Republic of Estonia to exit the aviation business, as the current business model does not serve a public purpose. The privatisation will take place either through the sale of the TVH (shareholding) or through the sale of its assets and the subsequent winding-up of the company.

Tõnis Tamme, member of TVH’s Management Board, said that after the COVID crisis that badly hit the world aviation, the demand in the regional aviation market has now recovered and airlines are showing strong interest in the aircraft owned by TVH. This, in turn, creates good prospects for a successful privatisation of TVH or its aviation assets.

TVH is a state-owned company whose purpose is to act as an investment company by financing and managing investments into fixed assets in the transport sector. The company owns seven Bombardier CRJ900NG 88-seat jet airliners, aircraft engines and other aviation assets.

The Minister of Climate, who exercises the rights of sole shareholder of TVH, approved the company’s annual accounts at a shareholders’ meeting on June 25th, 2024. The annual accounts of company were audited by AS KPMG Baltics.