2013-08-15 08:00:00 CEST
2013-08-15 08:00:03 CEST
REGULATED INFORMATION
Viking Line - Interim report (Q1 and Q3)
VIKING LINES INTERIM REPORT FOR THE PERIOD JANUARY - JUNE 2013
Mariehamn, 2013-08-15 08:00 CEST (GLOBE NEWSWIRE) --
Viking Line Abp INTERIM REPORT 15.8.2013, 9.00
A.M.
VIKING LINES INTERIM REPORT FOR THE PERIOD JANUARY - JUNE 2013
Consolidated sales of the Viking Line Group during the report period, January 1
- June 30, 2013, increased by 9.5 per cent to EUR 255.3 M compared to the
corresponding period of 2012 (EUR 233.1 M during January 1 - June 30, 2012).
Operating income amounted to EUR 6.1 M (-17.9). Net financial items totalled
EUR -3.5 M (-0.7). Consolidated income before taxes amounted to EUR 2.6 M
(-18.6). Income after taxes totalled EUR 1.9 M (-14.2).
Competition in Viking Line's service area remains tough and implies continued
pressure on prices. Market growth is very low, but service on the Viking Grace
is expected to continue its positive performance. The Group has an ongoing
action programme to improve efficiency of its operations.The Board of Directors
believes that operating income excluding capital gains will improve in 2013
compared to operating income in 2012. Income before taxes, excluding the
capital gain from the sale of the Isabella, is expected to be at about the same
level as last year. In addition, the capital gain related to the sale of the
Isabella will improve operating income by EUR 22.8 M
SALES AND EARNINGS
Consolidated sales of the Viking Line Group during the report period, January 1
- June 30, 2013, increased by 9.5 per cent to EUR 255.3 M compared to the
corresponding period of 2012 (EUR 233.1 M during January 1 - June 30, 2012).
Operating income amounted to EUR 6.1 M (-17.9). Net financial items totalled
EUR -3.5 M (-0.7). Consolidated income before taxes amounted to EUR 2.6 M
(-18.6). Income after taxes totalled EUR 1.9 M (-14.2).
Viking Line's market share increased to approximately 34.4 per cent (33.8).
Passenger-related revenue increased by 10.3 per cent to EUR 235.3 M (213.3),
while cargo revenue increased by 0.8 per cent to EUR 18.2 M (18.1). Net sales
revenue increased by 10.9 per cent to EUR 183.8 M (165.8). The Viking Grace's
successful service was the main reason for the improved passenger-related
revenue. Otherwise the market trend was weak and the earnings trend generally
somewhat worse than last year. Earnings were also pulled down by the Viking
Grace's start-up expenses as well as the Gabriella's unforeseen dry-docking and
23-day service interruption during the late spring of 2013. The Group's
operating expenses increased by 9.2 per cent to EUR 200.8 M (183.9).
Consolidated income before taxes, excluding a capital gain of EUR 22.8 M from
the sale of the Isabella, totalled EUR -20.2 M (-18.6).
Consolidated sales during the second quarter, April 1 - June 30, 2013,
increased by 6.4 per cent to EUR 140.3 M compared to the same quarter of 2012
(EUR 131.9 M during April 1 - June 30, 2012). Operating income in the second
quarter, excluding the capital gain on the Isabella, amounted to EUR 2.2 M
(1.6). Including the capital gain on the Isabella, operating income was EUR
25.0 M.
SERVICES AND MARKET TRENDS
The Viking Line Group provides passenger and cargo carrier services using seven
vessels on the northern Baltic Sea. In January 2013, the Isabella was replaced
by the Group's new flagship, the Viking Grace, on the Turku
(Finland)-Mariehamn/Långnäs (Åland Island, Finland)-Stockholm (Sweden) route.
The Isabella was sold in April 2013.
The number of passengers on Viking Line's vessels during the report period
increased by 87,012 to 3,015,144 (2,928,132). Viking Line's cargo volume was
59,364 cargo units (61,494). Viking Line achieved a cargo market share of
approximately 20.8 per cent (20.6).
During the report period, Viking Line strengthened its market share on the
Turku-Mariehamn/Långnäs-Stockholm route by 8.9 percentage points to 58.8 per
cent. Market share decreased on the Helsinki (Finland)-Mariehamn-Stockholm
route by 0.3 percentage points to 45.3 per cent. In cruise services between
Stockholm and Mariehamn, market share decreased by approximately 0.7 per cent
to 49.9 per cent. On the Helsinki-Tallinn route, market share decreased by
approximately 1.3 percentage points to 23.1 per cent. On the short route over
the Sea of Åland, market share decreased by 5.4 percentage points to 40.2 per
cent, primarily due to a reduced number of departures. The Group thus had a
total market share in its service area of approximately 34.4 per cent (33.8).
INVESTMENTS AND FINANCING
The Viking Grace was delivered from the STX Finland Oy shipyard as planned on
January 10, 2013. The cost of the vessel amounted to EUR 224.4 M. During the
first half of 2013 the Group's investment in the Viking Grace totalled EUR
163.4 M, while its other investments amounted to EUR 5.3 M. The Group's total
investments were thus EUR 168.7 M (21.1). Viking Line Abp took out a loan of
EUR 179.0 M in order to finance the Viking Grace.
The Isabella was sold to Hansalink Limited on April 22, 2013. The sale of the
Isabella was a planned step in the financing of Viking Line's new cruise vessel
Viking Grace. The total sale price was about EUR 30 M and represented a capital
gain of EUR 22.8 M.
On June 30, 2013 the Group's non-current interest-bearing liabilities amounted
to EUR 232.9 M (77.5). The equity/assets ratio was 30.0 per cent, compared to
41.9 per cent a year earlier.
At the end of June 2013, the Group's cash and cash equivalents amounted to EUR
82.5 M (44.0). Net cash flow from operating activities amounted to EUR 1.1 M
(-1.2).
FINANCIAL REPORTING
This Interim Report was prepared in compliance with International Financial
Reporting Standards (IFRSs) and was drawn up as a summary of the financial
statements for the period in compliance with IAS 34. Estimates and judgments as
well as accounting principles and calculation methods are the same as in the
latest annual financial statements. Recognized income taxes are based on an
estimated average tax rate, which is expected to apply throughout the fiscal
year. This Interim Report is unaudited.
ORGANIZATION AND PERSONNEL
The average number of Group employees was 3,069 (2,966), of whom 1,951 (1,820)
worked for the parent company. Land-based personnel totalled 697 (712) and
shipboard personnel totalled 2,372 (2,254).
Andreas Remmer, LL.M, was appointed Head of Finance and IT (Chief Financial
Officer, CFO) and joined Viking Line in August 2013. Mr Remmer will become a
member of Group Management starting on September 1, 2013 when he succeeds
Executive Vice President Kent Nyström, who will retire on January 31, 2014.
RISK FACTORS
Since the Year-End Report was published, no changes have occurred that affect
the Group's short-term assessment of the risks in its business operations.
Special risks during the immediate future are primarily related to bunker
(vessel fuel oil) prices.
OUTLOOK FOR THE FULL FINANCIAL YEAR 2013
Competition in Viking Line's service area remains tough and implies continued
pressure on prices. Market growth is very low, but the service on the Viking
Grace is expected to continue its positive performance. The Group has an
ongoing action programme to improve efficiency of its operations. The Board of
Directors believes that operating income excluding capital gains will improve
in 2013 compared to operating income in 2012. Income before taxes, excluding
the capital gain from the sale of the Isabella, is expected to be at about the
same level as last year. In addition, the capital gain related to the sale of
the Isabella will improve operating income by EUR 22.8 M.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Apr 1, Apr 1, Jan 1, Jan 1, Jan 1,
2013- 2012- 2013- 2012- 2012-
EUR M Jun 30, Jun 30, Jun 30, Jun 30, Dec 31,
2013 2012 2013 2012 2012
SALES 140,3 131,9 255,3 233,1 516,1
Other operating revenue 22,9 0,1 23,0 0,2 0,4
Expenses
Goods and services 39,6 38,3 71,5 67,3 149,6
Salary and other employment 33,7 31,4 66,6 62,5 125,2
benefit expenses
Depreciation and impairment 9,3 7,0 18,6 14,2 28,5
losses
Other operating expenses 55,6 53,7 115,6 107,2 210,7
------------------------------------------------
138,3 130,3 272,2 251,1 514,1
OPERATING INCOME 25,0 1,6 6,1 -17,9 2,4
Financial income 0,4 0,3 0,6 0,6 1,6
Financial expenses -2,0 -0,6 -4,1 -1,3 -2,5
INCOME BEFORE TAXES 23,3 1,3 2,6 -18,6 1,6
Income taxes -5,8 -0,4 -0,8 4,4 -0,7
INCOME FOR THE PERIOD 17,6 0,9 1,9 -14,2 0,9
Translation differences -0,2 0,0 -0,3 0,0 0,1
TOTAL COMPREHENSIVE INCOME FOR 17,4 0,9 1,6 -14,1 1,0
THE PERIOD
Income attributable to:
Parent company shareholders 17,6 0,9 1,9 -14,2 0,9
Total comprehensive income
attributable to:
Parent company shareholders 17,4 0,9 1,6 -14,1 1,0
Earnings per share before and 1,63 0,08 0,17 -1,31 0,09
after dilution, EUR
CONSOLIDATED BALANCE SHEET
EUR M Jun 30, Jun 30, Dec 31,
2013 2012 2012
ASSETS
Non-current assets
Intangible assets 1,0 1,0 0,9
Land 1,1 1,1 1,1
Buildings and structures 12,0 8,9 12,3
Renovation costs for rented 0,5 0,5 0,5
properties
Vessels 377,9 184,7 174,2
Machinery and equipment 8,5 6,3 8,1
Advance payments - 41,5 61,1
Investments available for sale 0,0 0,0 0,0
Receivables 0,7 0,8 0,7
Total non-current assets 401,7 244,8 258,9
Current assets
Inventories 16,6 16,0 15,2
Income tax assets 0,4 6,6 1,9
Trade and other receivables 43,8 39,2 29,1
Cash and cash equivalents 82,5 44,0 45,3
Total current assets 143,2 105,8 91,5
TOTAL ASSETS 544,9 350,6 350,4
EQUITY AND LIABILITIES
Equity
Share capital 1,8 1,8 1,8
Reserves 0,0 0,0 0,0
Translation differences -0,2 0,0 0,1
Retained earnings 161,9 144,9 160,0
------------------------------
Equity attributable to parent 163,6 146,8 162,0
company shareholders
Total equity 163,6 146,8 162,0
Non-current liabilities
Deferred tax liabilities 29,7 31,2 29,7
Non-current interest-bearing 232,9 77,5 73,1
liabilities
Total non-current liabilities 262,6 108,7 102,8
Current liabilities
Current interest-bearing 23,6 8,7 8,7
liabilities
Income tax liabilities 0,9 0,0 -
Trade and other payables 94,4 86,5 76,9
Total current liabilities 118,8 95,1 85,6
Total liabilities 381,4 203,8 188,4
TOTAL EQUITY AND LIABILITIES 544,9 350,6 350,4
CONSOLIDATED CASH FLOW STATEMENT
Jan 1, Jan 1, Jan 1,
2013- 2012- 2012-
EUR M Jun 30, Jun 30, Dec 31,
2013 2012 2012
OPERATING ACTIVITIES
Income for the period 1,9 -14,2 0,9
Adjustments
Depreciation and impairment 18,6 14,2 28,5
losses
Other items not included in -23,1 0,0 0,1
cash flow
Interest expenses and other 3,5 1,0 1,6
financial expenses
Interest income and other 0,0 -0,3 -0,4
financial income
Dividend income 0,0 0,0 0,0
Income taxes 0,8 -4,4 0,7
Change in working capital
Change in trade and other -14,8 -10,2 -0,2
receivables
Change in inventories -1,3 -2,3 -1,6
Change in trade and other 14,8 16,6 7,1
payables
Interest paid -0,5 -1,0 -1,6
Financial expenses paid -0,4 -0,1 -0,1
Interest received 0,0 0,2 0,5
Financial income received 0,0 0,0 0,1
Taxes paid 1,6 -0,7 -2,7
NET CASH FLOW FROM
OPERATING ACTIVITIES 1,1 -1,2 32,8
INVESTING ACTIVITIES
Investments in vessels -166,4 -1,7 -4,0
Investments in other property, -2,3 -4,3 -11,0
plant and equipment
Advance payments - -15,1 -34,7
Divestments of vessels 29,9 - -
Divestments of other property, 0,2 0,0 0,1
plant and equipment
Change in non-current 0,0 0,0 0,2
receivables
Dividends received 0,0 0,0 0,0
NET CASH FLOW FROM INVESTING -138,6 -21,0 -49,5
ACTIVITIES
FINANCING ACTIVITIES
Increase in non-current 179,0 0,3 1,0
liabilities
Amortization of non-current -4,3 -4,3 -9,4
liabilities
Dividends paid - -5,4 -5,4
NET CASH FLOW FROM FINANCING 174,7 -9,4 -13,7
ACTIVITIES
CHANGE IN CASH AND CASH 37,2 -31,7 -30,4
EQUIVALENTS
Cash and cash equivalents at 45,3 55,7 55,7
beginning of period
Change in held-to-maturity - 20,0 20,0
investments
CASH AND CASH EQUIVALENTS AT 82,5 44,0 45,3
END OF PERIOD
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY
Equity attributable to parent
company shareholders
Share Translatio Retaine Total
n d
EUR M capita Reserve difference earning equity
l s s s
Equity, Jan 1, 2013 1,8 0,0 0,1 160,0 162,0
Dividend to shareholders 0,0
Translation differences 0,0 -0,3 0,0 -0,3
Income for the period 1,9 1,9
Total comprehensive income for the 0,0 -0,3 1,9 1,6
period
Equity, Jun 30, 2013 1,8 0,0 -0,2 161,9 163,6
Equity, Jan 1, 2012 1,8 0,0 0,1 164,4 166,3
Dividend to shareholders -5,4 -5,4
Translation differences 0,0 0,0 0,0 0,0
Income for the period -14,2 -14,2
Total comprehensive income for the 0,0 0,0 -14,1 -14,1
period
Equity, Jun 30, 2012 1,8 0,0 0,0 144,9 146,8
QUARTERLY CONSOLIDATED INCOME STATEMENT
2013 2013 2012 2012
EUR M Q2 Q1 Q4 Q3
SALES 140,3 115,0 126,6 156,4
Other operating revenue 22,9 0,1 0,1 0,1
Expenses
Goods and services 39,6 31,9 38,2 44,2
Employee expenses 33,7 32,9 31,9 30,8
Depreciation and impairment losses 9,3 9,3 7,3 7,0
Other operating expenses 55,6 59,9 50,0 53,4
---------------------------
138,3 133,9 127,4 135,5
OPERATING INCOME 25,0 -18,9 -0,7 21,0
Financial income 0,4 0,2 0,3 0,8
Financial expenses -2,0 -2,0 -0,5 -0,7
INCOME BEFORE TAXES 23,3 -20,7 -0,9 21,1
Income taxes -5,8 5,0 0,1 -5,2
INCOME FOR THE PERIOD 17,6 -15,7 -0,8 15,8
Translation differences -0,2 0,0 -0,1 0,2
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 17,4 -15,8 -0,8 16,0
Income attributable to:
Parent company shareholders 17,6 -15,7 -0,8 15,8
Total comprehensive income attributable to:
Parent company shareholders 17,4 -15,8 -0,8 16,0
Earnings per share before and after dilution, EUR 1,63 -1,45 -0,07 1,47
SEGMENT INFORMATION, VIKING LINE GROUP
Jan 1, 2013- Jan 1, 2012- Jan 1, 2012-
OPERATING SEGMENTS, EUR M Jun 30, 2013 Jun 30, 2012 Dec 31, 2012
Sales
Vessels 252,8 230,8 511,1
Unallocated 2,6 2,4 5,3
Total, operating segments 255,4 233,2 516,3
Eliminations -0,1 -0,1 -0,2
Total sales of the Group 255,3 233,1 516,1
Operating income
Vessels 29,8 7,0 52,5
Unallocated -23,7 -24,8 -50,0
Total operating income of the Group 6,1 -17,9 2,4
PLEDGED ASSETS AND CONTINGENT LIABILITIES
EUR M Jun 30, Jun 30, Dec 31,
2013 2012 2012
Contingent liabilities 257,9 87,1 84,1
Assets pledged for own debt 316,2 134,7 112,2
Investment commitments not included in the - 213,0 191,9
accounts
- contractual amount - 252,5 253,0
FINANCIAL RATIOS AND STATISTICS
Jan 1, Jan 1, Jan 1,
2013- 2012- 2012- Jun 30, Jun 30, Dec 31,
2013 2012 2012
Equity per share, EUR 15,14 13,59 15,00
Equity/assets ratio 30,0 % 41,9 % 46,2 %
Investments, EUR M 168,7 21,1 49,7
- as % of sales 66,1 % 9,0 % 9,6 %
Passengers 3 015 144 2 928 132 6 349 903
Cargo units 59 364 61 494 116 906
Average number of employees, full time 3 069 2 966 3 014
equivalent
Earnings per share = (Income before taxes - income taxes +/- minority interest)
/ Average number of shares
Equity per share = Equity attributable to parent company shareholders / Number
of shares on balance sheet date
Equity/assets ratio, % = (Equity including minority interest) / (Total assets -
advances received)
When rounding off items to the nearest EUR
1,000,000, rounding-off differences of EUR +/-
0.1 M may occur.
The next Interim Report (January - September 2013) will be published on
November 14, 2013.
Mariehamn, Åland, August 14, 2013
VIKING LINE ABP
The Board of Directors
Jan Hanses
Executive Vice President and Deputy CEO
EVP Jan Hanses, jan.hanses@vikingline.com, +358-(0)18-27000
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