CEO review

CEO Rolf Jansson: 

For January-March 2026, I am happy with the continued strong development of Telko, whereas ESL Shipping’s performance suffered from the challenging market and operating environment. Aspo’s priority for 2026 is to improve profitability from last year via executing Telko-wide synergies, benefitting from the investments made in new vessels of ESL Shipping and executing various measures for improving efficiency. In parallel, Aspo will continue to implement the communicated vision of splitting ESL Shipping and Telko into two separate companies, either via a partial demerger of Aspo or a divestment of ESL Shipping.

On March 2, the divestment of Leipurin to Lantmännen was completed with a purchase price of EUR 62 million (enterprise value of EUR 63 million). This was a major milestone for Aspo and it strengthened significantly the company’s balance sheet and in particular the ability of Telko to execute further acquisitions.

In Aspo’s first quarter of 2026, comparable EBITA from continuing operations declined slightly compared to the first quarter of the previous year, reaching EUR 7.1 (7.3) million. ESL Shipping’s profitability weakened, whereas positive financial performance for Telko and reduced Aspo Group level costs contributed positively to Aspo’s profitability.

The comparable EBITA of ESL Shipping declined in the first quarter to EUR 3.3 (4.1) million, due to overall weak demand in the early part of the quarter and increased fuel costs due to the war in Iran.

Telko experienced significant volume growth during the first quarter of 2026, despite modest demand in most market areas. Average market prices were below those of the previous year. The first quarter comparable EBITA of 2026 increased to EUR 4.7 (4.4) million because of successful margin management and some positive impact from prices increasing towards end of the quarter.

The immediate impact of the war in Iran is somewhat negative for ESL Shipping, as higher fuel costs are passed on to the clients with a small delay. However, there is a positive impact for Telko, as old inventory can partly be sold against positively developing market prices. However, a prolonged crisis could have a negative indirect impact on both of Aspo’s businesses, because of a possible slow-down in economic growth.

We see strong signs that the developed business strategies are successful. The next generation vessels of ESL Shipping are more profitable compared to the old fleet, and the focus on long-term customer partnerships creates stability. Telko’s successful acquisitions and focus on specialty products and value-added services have improved sales margins and created resilience. In both cases, we have been able to build foundations for developing the businesses into strong stand-alone companies.