2016-07-28 14:01:50 CEST
2016-07-28 14:01:50 CEST
REGULATED INFORMATION
Finnlines - Half Year financial report
Finnlines Plc Interim Report January-June 2016 (unaudited)
Helsinki, Finland, 2016-07-28 14:00 CEST (GLOBE NEWSWIRE) -- FINNLINES PLC
INTERIM REPORT JANUARY-JUNE 2016 (unaudited)
Stock Exchange Release 28 July 2016 at 15:00
JANUARY-JUNE 2016: Result for the reporting period improved EUR 14.1 million
- Revenue EUR 230.7 (252.0 prev. year) million, decrease 8.5 per cent, mainly
due to the reduction of cargo related bunker surcharge
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
64.7 (51.5) million, increase 25.6 per cent
- Result for the reporting period EUR 30.5 (16.4) million, increase 85.9 per
cent
- Earnings per share were 0.59 (0.32) EUR
- Interest-bearing debt decreased EUR 87.7 million and was EUR 502.4 (590.1)
million at the end of the period
APRIL-JUNE 2016: Best second quarter result ever
- Revenue EUR 125.6 (135.2 prev. year) million, decrease 7.1 per cent
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
39.4 (33.8) million, increase 16.6 per cent
- Result for the reporting period EUR 22.2 (15.8) million, increase 40.7 per
cent
- Earnings per share were 0.43 (0.31) EUR
KEY FIGURES
MEUR 1-6 2016 1-6 2015 4-6 2016 4-6 2015 1-12 2015
Revenue 230.7 252.0 125.6 135.2 511.2
Result before interest, 64.7 51.5 39.4 33.8 126.9
taxes, depreciation and
amortisation (EBITDA)
Result before interest and 36.7 24.0 25.3 20.1 70.3
taxes (EBIT)
% of revenue 15.9 9.5 20.1 14.8 13.7
Result for the reporting 30.5 16.4 22.2 15.8 56.8
period
EPS, EUR 0.59 0.32 0.43 0.31 1.10
Shareholders’ equity/share, 11.49 10.10 11.49 10.10 10.89
EUR
Equity ratio, % 48.0 41.1 48.0 41.1 45.7
Interest bearing debt, MEUR 502.4 590.1 502.4 590.1 533.7
Gearing, % 87.5 116.6 87.5 116.6 97.1
EMANUELE GRIMALDI, PRESIDENT AND CEO, IN CONJUNCTION WITH THE REVIEW:
Finnlines Group’s January-June result shows expected strong improvement
“The result for the reporting period of the second quarter, EUR 22.2 (15.8)
million, and the result for the reporting period of January-June, EUR 30.5
(16.4) million, were according to our expectations.
We have continued our EUR 100 million Environmental Technology Investment
Programme, which was initiated already in 2014, according to plan and have
successfully completed scrubber installations on 18 out of 22 ro-ro and ro-pax
vessels.
Through various measures - vessel optimisation, scrubber retrofits, hull
silicon paint, new propulsion systems, cost reduction programmes and tonnage
adjustment - Finnlines is, now, more cost-efficient and therefore more
competitive. In addition, successful implementation of our Turnaround
Programme, increased cash flow from operations and lower capital expenditure,
resulted in that our interest bearing debt was reduced by approximately EUR
87.7 million and amounted to EUR 502.4 (590.1) million. Thus, the equity ratio
rose from 41.1 per cent to 48.0 per cent at 30 June 2016.
Our EBITDA margin was over 28 per cent, our solidity is stronger than ever, our
gearing improved to 87.5 (116.6) per cent, our fleet is more environmentally
friendly and more sustainable than our competitors’, and even though we had a
best ever operational result in 2015, we continue to strive for even better
results in 2016.”
FINNLINES PLC, INTERIM REPORT JANUARY-JUNE 2016 (unaudited)
FINNLINES’ BUSINESS
Finnlines is the largest shipping company in the Baltic Sea based on both ro-ro
and ro-pax volumes (source: Baltic Transportation Journal). The Company's
passenger-freight vessels offer services from Finland to Germany and via the
Åland Islands to Sweden, as well as from Sweden to Germany. Finnlines’ ro-ro
vessels operate in the Baltic Sea and the North Sea. The Company has
subsidiaries in Germany, Belgium, Great Britain, Sweden, Denmark and Poland
which all are also sales offices. In addition to sea transportation, the
Company provides port services in Helsinki and Turku.
GROUP STRUCTURE
Finnlines Plc is a Finnish listed company. At the end of the reporting period,
the Group consisted of the parent company and 21 subsidiaries.
Finnlines is part of the Italian Grimaldi Group, which is a global logistics
group specialising in maritime transport of cars, rolling cargo, containers and
passengers. The Grimaldi Group comprises seven shipping companies, including
Finnlines, Atlantic Container Line (ACL), Malta Motorways of the Sea (MMS) and
Minoan Lines. With an owned fleet of about 110 vessels, the Group provides
maritime transport services for rolling cargo and containers between North
Europe, the Mediterranean, the Baltic Sea, West Africa, North and South
America. It also offers passenger services within the Mediterranean and Baltic
Sea. With 98.32 per cent (on 30 June 2016) of the shares, the Grimaldi Group is
the biggest shareholder in Finnlines Plc.
GENERAL MARKET DEVELOPMENT
Based on the statistics by the Finnish Transport Agency for January-May, the
Finnish seaborne imports carried in container, lorry and trailer units
increased by 7 per cent and exports increased by 3 per cent (measured in tons)
compared to the same period in 2015. Private and commercial passenger traffic
between Finland and Sweden increased by 1 per cent. Between Finland and Germany
the corresponding traffic increased by 8 per cent (Finnish Transport Agency).
FINNLINES’ TRAFFIC
During the first two quarters Finnlines operated on average 21 (23) vessels in
its own traffic.
The cargo volumes transported during January-June totalled approximately 321
(313 in 2015) thousand cargo units, 58 (74) thousand cars (not including
passengers’ cars) and 776 (959) thousand tons of freight not possible to
measure in units. In addition, some 280 (257) thousand private and commercial
passengers were transported.
FINANCIAL RESULTS
January-June 2016
The Finnlines Group recorded revenue totalling EUR 230.7 (252.0) million. This
revenue decrease of 8.5 per cent was almost entirely due to the reduction in
cargo-related bunker surcharge which is a compensation passed to our clients.
Shipping and Sea Transport Services generated revenue amounting to EUR 220.6
(243.0) million and Port Operations EUR 19.4 (18.0) million. The internal
revenue between the segments was EUR -9.3 (-9.0) million.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
64.7 (51.5) million, an increase of 25.6 per cent.
Result before interest and taxes (EBIT) was EUR 36.7 (24.0) million. In 2016
most of the vessels were operated using less expensive fuel oil which had a
positive impact on the result.
Net financial expenses decreased and were EUR -7.5 (-9.0) million. Financial
income was EUR 0.2 (0.5) million and financial expenses EUR -7.7 (-9.5)
million. The result for January-June was EUR 30.5 (16.4) million and earnings
per share (EPS) were EUR 0.59 (0.32).
April-June 2016
The Finnlines Group recorded revenue totalling EUR 125.6 (135.2) million. This
revenue decrease of 7.1 per cent was almost entirely due to the reduction in
cargo-related bunker surcharge which is a compensation passed to our clients.
Shipping and Sea Transport Services generated revenue amounting to EUR 120.3
(130.2) million and Port Operations EUR 10.2 (9.7) million. The internal
revenue between the segments was EUR -4.9 (-4.6) million. Compared to the first
quarter the cargo volumes and the amount of passengers have increased due to
the seasonality of the trade.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
39.4 (33.8) million, an increase of 16.6 per cent.
Result before interest and taxes (EBIT) was EUR 25.3 (20.1) million.
Net financial expenses were EUR -3.6 (-4.8) million. Financial income was EUR
0.2 (0.1) million and financial expenses totalled EUR
-3.7 (-4.9) million. The result for April-June was EUR 22.2 (15.8) million
which is the best second quarter result ever. Earnings per share (EPS) rose to
EUR 0.43 (0.31).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing debt decreased by EUR 87.7 million and amounted to EUR 502.4
(590.1) million excluding leasing liabilities EUR 17.1 (18.8) million. The
equity ratio calculated from the balance sheet improved to 48.0 (41.1) per cent
and gearing dropped to 87.5 (116.6) per cent. Due to the expired charter
agreements and redelivery of the remaining chartered tonnage vessel lease
commitments decreased by EUR 5.4 million to EUR 0.0 million compared to the end
of June 2015.
At the end of the period, cash and deposits together with unused committed
credit facilities amounted to EUR 155.5 (83.9) million.
Net cash generated from operating activities was EUR 61.8 (30.4) million.
CAPITAL EXPENDITURE
Finnlines Group’s gross capital expenditure in the reporting period totalled
EUR 34.3 (58.0) million including tangible and intangible assets. Total
depreciation and amortisation amounted to EUR 28.0 (27.5) million. The
investments consist of the final payments related to the purchase and delivery
of MS Finncarrier and MS Finnmaster, normal replacement expenditure of fixed
assets, scrubber and re-blading projects and dry-dockings of ships.
In 2015, Finnlines launched the second phase of the environmental investment
programme which covered scrubber orders for its remaining ro-ro vessels and a
further three of its ro-pax vessels. Moreover, additional energy efficiency
investment was initiated by extending the propulsion upgrading programme.
The second phase of the EUR 100 million Environmental Technology Investment
Programme is well underway with all ro-ro vessels in the Finnlines fleet now
equipped with state of the art scrubber systems. The first out of three ro-pax
vessels to be re-bladed and equipped with scrubbers, M/V Finnclipper, returned
to traffic 19 May 2016 with new scrubber systems and propeller blades
installed. The remaining ro-pax vessel installations will continue after the
summer peak season.
By the end of June 2016, 18 out of 22 ro-ro and ro-pax vessels fully owned and
operated by Finnlines are equipped with scrubbers. These cleaning systems
enable the vessels to operate cost-efficiently in compliance with the new
stricter environmental regulations for the fuel sulphur limit that came into
force as from 1 January 2015.
PERSONNEL
The Group employed an average of 1,631 (1,595) persons during the period,
consisting of 937 (894) persons at sea and 694 (701) persons on shore. The
number of persons employed at the end of the period was 1,725 (1,669) in total,
of which 1,009 (949) at sea and 716 (720) on shore. The number of sea personnel
increased due to the acquisition of new vessels MS Finnmaster and MS
Finncarrier, which joined the Group´s fleet in the beginning of 2016. The
personnel expenses (including social costs) for the reporting period were EUR
45.3 (42.7) million.
THE FINNLINES SHARE
The Company’s registered share capital on 30 June 2016 was EUR 103,006,282
divided into 51,503,141 shares. A total of 2.8 (0.4) million shares were traded
on the Nasdaq Helsinki Ltd during the period. The market capitalisation of the
Company’s stock at the end of June was EUR 916.2 (849.8) million, an increase
of 7.8 per cent. Earnings per share (EPS) were EUR 0.59 (0.32). Shareholders’
equity per share was EUR 11.49 (10.10). At the end of the reporting period, the
Grimaldi Group’s holding and share of votes in Finnlines was 98.32 per cent.
Grimaldi Group S.p.A. ("Grimaldi"), together with Grimaldi Euromed S.p.A. and
Grimaldi Deep Sea S.p.A., both of which are Grimaldi's subsidiaries, has
initiated redemption proceedings in accordance with Chapter 18 of the Finnish
Companies Act to acquire all the shares in Finnlines.
The Arbitral Tribunal appointed by the Redemption Committee of the Finland
Chamber of Commerce rendered a separate interim award after the oral hearing on
21 June 2016. In the interim award, the Arbitral Tribunal has confirmed that
Grimaldi has the right to redeem the minority shares in Finnlines. In addition,
the Arbitral Tribunal confirmed that Grimaldi has the right to obtain title to
the minority shares by lodging a security approved by the Arbitral Tribunal for
the payment of the redemption price and the interest accruing thereon.
RISKS AND RISK MANAGEMENT
Finnlines is exposed to business risks that arise from the capacity of the
fleet existing in the market, counterparties, prospects for export and import
of goods, and changes in the operating environment. The risk of overcapacity is
reduced scrapping of aging vessels, on the one hand, and the more stringent
Sulphur Directive requirements, on the other. Finnlines operates mainly in the
Emissions Control Areas where the emission regulations are stricter than
globally. The sulphur content limit for heavy fuel oil was reduced to 0.10 per
cent as from 1 January 2015 in accordance with the MARPOL Convention. This
increases costs of sea transportation. However, with one of the youngest and
largest fleets in Northern Europe and with investments in engine systems and
energy efficiency, Finnlines is in a strong position to greatly mitigate this
risk. The effect of fluctuations in the foreign trade is reduced by the fact
that the Company operates in several geographical areas. This means that slow
growth in one country is compensated by faster recovery in another. Finnlines
continuously monitors the solidity and payment schedules of its customers and
suppliers. Currently, there are no indications of imminent risks related to
counterparties but the Company continues to monitor the financial position of
its counterparties. Finnlines holds adequate credit lines to maintain liquidity
in the current business environment.
LEGAL PROCEEDINGS
The 2015 Financial statements, published on 25 February 2016, contain a
description of ongoing legal proceedings.
Finnlines Plc’s subsidiary Finnsteve Oy Ab (”Finnsteve”) and the Port of
Helsinki Ltd have signed a contract for the new terms of use of the container
operation areas and the docks at the Vuosaari harbour. With the new agreement,
Finnsteve can grow its ro-ro and container handling related port operations.
Also, the contract ensures more efficient use of the harbour as well as
flexibility in the operations while the container traffic is expected to grow
in the future. Both parties have withdrawn their respective claims from the
Helsinki District Court.
CORPORATE GOVERNANCE
Finnlines applies the Finnish Corporate Governance Code for listed companies.
The Corporate Governance Statement can be reviewed on the corporate website:
www.finnlines.com.
EVENTS AFTER THE REPORTING PERIOD
There are no significant events to report.
OUTLOOK AND OPERATING ENVIRONMENT
Finnlines has chartered out a vessel and the Charterers have an option right to
purchase the vessel. The Charterers have exercised their purchase option under
the Charter by giving on 7 June 2016 the notice for the purchase of the vessel.
The transaction will take place in September 2016. The transaction will
generate a profit before taxes of about EUR 4.4 million and will have the
effect of further improving the average age of the Finnlines fleet.
There is a positive expectation of gradual recovery in Finnish economy.
Although the Company is about to complete its EUR 100 million Environmental
Technology Investment Programme in 2016, the annual capex is lower than
previous year and therefore the cash flow will improve further and reduce the
interest bearing debt. Due to improved efficiency, more suitable fleet with
regard to the current operative environment and lower fuel costs, Finnlines
Group’s 2016 annual result before taxes is expected to improve compared to the
previous year.
The third interim report of 2016 for the period of 1 January-30 September will
be published on Tuesday, 8 November 2016.
Finnlines Plc
The Board of Directors
Emanuele Grimaldi
President and CEO
ENCLOSURES
- Reporting and accounting policies
- Consolidated statement of comprehensive income, IFRS
- Consolidated statement of financial position, IFRS
- Consolidated statement of changes in equity, IFRS
- Consolidated cash flow statement, IFRS
- Revenue and result by business segments
- Property, plant and equipment
- Fair value hierarchy
- Contingencies and commitments
- Revenue and result by quarter
- Shares, market capitalisation and trading information
- Events after the reporting period
- Calculation of ratios
- Related party transactions
DISTRIBUTION
Nasdaq Helsinki Ltd
Main media
www.finnlines.com
This interim report is unaudited.
REPORTING AND ACCOUNTING POLICIES
This interim report included herein is prepared in accordance with IAS 34
(Interim Financial Reporting) standard. The Company adopts new or revised IFRS
standards and IFRIC interpretations from the beginning of the reporting period
corresponding to those described in the 2015 Financial Statements with effect
of 1 January 2016. They did not have an impact on the reported figures.
Finnlines Plc entered into the tonnage taxation regime in January 2013. In
tonnage taxation, shipping operations transferred from taxation of business
income to tonnage-based taxation.
All figures in the accounts have been rounded and, consequently, the sum of
individual figures may deviate from the presented sum figure.
The preparation of the interim financial statements in accordance with IFRS
requires management to make estimates and assumptions and use its discretion in
applying the accounting principles that affect the valuation of the reported
assets and liabilities and other information such as contingent liabilities and
the recognition of income and expenses in the income statement. Although the
estimates are based on the management’s best knowledge of current events and
actions, actual results may differ from the estimates. The uncertainties
related to the key assumptions were the same as those applied to the
consolidated financial statements at the year-end
31 December 2015.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
EUR 1,000 4-6 2016 4-6 2015 1-6 2016 1-6 2015 1-12 2015
Revenue 125,563 135,210 230,739 252,039 511,167
Other income from 526 427 1,351 715 1,810
operations
Materials and -31,316 -43,099 -58,248 -85,998 -161,264
services
Personnel expenses -22,903 -21,779 -45,299 -42,731 -84,186
Depreciation, -14,085 -13,706 -28,022 -27,543 -56,590
amortisation and
impairment losses
Other operating -32,484 -36,994 -63,845 -72,528 -140,654
expenses
Total operating -100,788 -115,578 -195,415 -228,800 -442,694
expenses
Result before 25,301 20,059 36,675 23,954 70,284
interest and taxes
(EBIT)
Financial income 151 115 177 469 934
Financial expenses -3,718 -4,906 -7,680 -9,514 -18,064
Result before taxes 21,734 15,268 29,172 14,909 53,153
(EBT)
Income taxes 466 513 1,341 1,504 3,675
Result for the 22,200 15,781 30,513 16,413 56,829
reporting period
Other comprehensive
income:
Other comprehensive
income to be
reclassified to
profit and loss in
subsequent periods:
Exchange differences -21 9 -59 48 32
on translating
foreign operations
Other comprehensive -21 9 -59 48 32
income to be
reclassified to
profit and loss in
subsequent periods,
total
Other comprehensive
income not being
reclassified to
profit and loss in
subsequent periods:
Remeasurement of 632
defined benefit
plans
Tax effect, net -36
Other comprehensive 596
income not being
reclassified to
profit and loss in
subsequent periods,
total
Total comprehensive 22,179 15,790 30,454 16,461 57,457
income for the
reporting period
Result for the
reporting period
attributable to:
Parent company 22,194 15,785 30,524 16,440 56,841
shareholders
Non-controlling 6 -4 -11 -27 -12
interests
22,200 15,781 30,513 16,413 56,829
Total comprehensive
income for the
reporting period
attributable to:
Parent company 22,173 15,794 30,465 16,488 57,469
shareholders
Non-controlling 6 -4 -11 -27 -12
interests
22,179 15,790 30,454 16,461 57,457
Result for the
reporting period
attributable to
parent company
shareholders
calculated as
earnings per share
(EUR/share):
Undiluted / diluted 0.43 0.31 0.59 0.32 1.10
earnings per share
Average number of
shares:
Undiluted / diluted 51,503,141 51,503,141 51,503,141 51,503,141 51,503,141
Most of the items recognised in the Consolidated Statement of Comprehensive
Income fall under the tonnage tax scheme.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
EUR 1,000 30 Jun 30 Jun 31 Dec
2016 2015 2015
ASSETS
Non-current assets
Property, plant and equipment 1,000,127 1,019,115 997,619
Goodwill 105,644 105,644 105,644
Intangible assets 3,673 5,190 3,758
Other financial assets 4,581 4,576 4,576
Receivables 1,449 838 1,258
Deferred tax assets 6,133 5,903 5,792
1,121,607 1,141,265 1,118,645
Current assets
Inventories 5,332 7,566 4,333
Accounts receivable and other receivables 93,530 106,085 86,019
Income tax receivables 250 1 539
Cash and cash equivalents 1,808 2,162 6,468
100,921 115,814 97,359
Non current assets held for sale 18,999 15,121 15,121
Total assets 1,241,527 1,272,199 1,231,125
EQUITY
Equity attributable to parent company
shareholders
Share capital 103,006 103,006 103,006
Share premium account 24,525 24,525 24,525
Translation differences 150 225 209
Fund for invested unrestricted equity 40,016 40,016 40,016
Retained earnings 423,843 352,316 393,313
591,541 520,089 561,070
Non-controlling interests 176 279 294
Total equity 591,717 520,368 561,363
LIABILITIES
Long-term liabilities
Deferred tax liabilities 51,662 55,123 52,712
Other long-term liabilities 88 138 113
Pension liabilities 3,927 4,699 3,919
Provisions 1,781 1,820 1,810
Loans from financial institutions 342,861 438,304 367,445
400,318 500,084 425,999
Current liabilities
Accounts payable and other liabilities 72,555 81,002 59,191
Current tax liabilities 12 5 14
Provisions 280 211 345
Loans from financial institutions 169,618 162,614 176,736
242,464 243,832 236,287
Total liabilities 642,783 743,916 662,286
Liabilities related to long-term assets held 7,027 7,916 7,476
for sale
Total equity and liabilities 1,241,527 1,272,199 1,231,125
CONSOLIDATED statement of changes in equity 2015, IFRS
EUR 1,000 Equity attributable to parent company
shareholders
Share Share Transl Unre- Re- Total Non-co Total
capital issue a stric tained n equity
pre- tion ted ear- trolli
mium dif equity nings ng
ferenc re- intere
es serve sts
Reported 103,006 24,525 178 40,016 335,876 503,601 306 503,907
equity 1
January
2015
Compre-
hensive
income for
the repor-
ting period:
Result for 16,440 16,440 -27 16,413
the repor-
ting period
Exchange 48 48 48
dif-
ferences on
trans-
lating
foreign
opera-
tions
Tax effect,
net
Total 48 16,440 16,488 -27 16,461
compre-
hensive
income for
the repor-
ting period
Dividend
distri-
bution
Equity 30 103,006 24,525 225 40,016 352,316 520,089 279 520,368
June 2015
CONSOLIDATED statement of changes in equity 2016, IFRS
EUR 1,000 Equity attributable to parent company
shareholders
Share Share Transl Unre- Re- Total Non-co Total
capital issue a stric tained n equity
pre- tion ted ear- trolli
mium dif equity nings ng
ferenc re- intere
es serve sts
Reported 103,006 24,525 209 40,016 393,313 561,070 294 561,363
equity 1
January
2016
Compre-
hensive
income for
the repor-
ting period:
Result for 30,524 30,524 -11 30,513
the repor-
ting period
Exchange -59 6 -53 -53
differences
on trans-
lating
foreign
opera-
tions
Tax effect,
net
Total -59 30,530 30,471 -11 30,460
compre-
hensive
income for
the repor-
ting period
Dividend -106 -106
distributio
n
Equity 30 103,006 24,525 150 40,016 423,843 591,541 176 591,717
June 2016
CONSOLIDATED CASH FLOW STATEMENT, IFRS
EUR 1,000 1-6 2016 1-6 2015 1-12 2015
Cash flows from operating activities
Result for the reporting period 30,513 16,413 56,829
Adjustments:
Non-cash transactions 27,659 27,412 56,192
Unrealised foreign exchange gains (-) / losses 0 -8 -57
(+)
Financial income and expenses 7,503 9,053 17,187
Taxes -1,341 -1,504 -3,675
Changes in working capital:
Change in accounts receivable and other -8,090 -29,623 -2,009
receivables
Change in inventories -999 -1,641 1,592
Change in accounts payable and other liabilities 12,110 17,054 -2,515
Change in provisions -21 -80 -238
Interest paid -4,275 -5,037 -14,240
Interest received 202 296 442
Taxes paid 166 -1 -81
Other financing items -1,666 -1,906 -3,632
Net cash generated from operating activities 61,761 30,427 105,794
Cash flow from investing activities
Investments in tangible and -34,129 -64,374 -78,897
intangible assets *
Proceeds from sale of tangible assets 236 95 799
Purchase of investments -5 0
Dividends received 13 12 12
Net cash used in investing activities -33,885 -64,267 -78,085
Cash flows from financing activities
Loan withdrawals 125,000 185,000 282,000
Net increase in current interest-bearing 0 23,872 32,447
liabilities (+) / net decrease (-)
Repayment of loans -157,427 -175,644 -338,550
Increase (-) / decrease (+) in long-term 90 180
receivables
Dividends paid -106
Net cash used in financing activities -32,534 33,318 -23,922
Change in cash and cash equivalents -4,658 -521 3,787
Cash and cash equivalents 1 January 6,468 2,680 2,680
Effect of foreign exchange rate changes -2 3 1
Cash and cash equivalents at the end of period 1,808 2,162 6,468
* Investments include environmental aid granted by the European Union, of which
the Group has received EUR 5.8 million during the reporting period 2015.
REVENUE AND RESULT BY BUSINESS SEGMENTS
4-6 2016 4-6 2015 1-6 2016 1-6 2015 1-12 2015
MEUR % MEUR % MEUR % MEUR % MEUR %
Reve
nue
Ship 120.3 95.8 130.2 96.3 220.6 95.6 243.0 96.4 492.9 96.4
ping and
sea
transport
ser
vices
Port 10.2 8.1 9.7 7.1 19.4 8.4 18.0 7.2 35.9 7.0
operation
s
Intra-grou -4.9 -3.9 -4.6 -3.4 -9.3 -4.0 -9.0 -3.6 -17.6 -3.4
p re
venue
External 125.6 100.0 135.2 100.0 230.7 100.0 252.0 100.0 511.2 100.0
sales
Re-
sult be
fore
interest
and taxes
Ship 25.1 20.2 37.2 25.2 72.2
ping and
sea
transport
ser
vices
Port 0.2 -0.1 -0.5 -1.2 -1.9
operation
s
Re 25.3 20.1 36.7 24.0 70.3
sult
before
interest
and
taxes
(EBIT)
total
Financial -3.6 -4.8 -7.5 -9.0 -17.1
items
Re 21.7 15.3 29.2 14.9 53.2
sult
before
taxes
(EBT)
Income 0.5 0.5 1.3 1.5 3.7
taxes
Re 22.2 15.8 30.5 16.4 56.8
sult for
the
reporting
pe
riod
PROPERTY, PLANT AND EQUIPMENT 2016
EUR 1,000 Land Buil- Vessels Machi- Advance Total
dings nery payments
and &
equip- acquisi-
ment tions
under
constr. *
Acquisition 72 72,773 1,352,785 65,430 23,459 1,514,518
cost 1 January 2016
Exchange rate -65 -65
differences
Increases 24,233 273 9,673 34,179
Disposals -309 -91 -400
Reclassifi- 6,907 -6,907 0
cations
Reclassifi- -4,369 -21,675 -22,395 -48,439
cation to non-current
assets held for sale
**
Acquisition 72 68,404 1,361,941 43,152 26,225 1,499,795
cost 30 June 2016
Accumulated -19,544 -439,791 -42,444 0 -501,779
depreciation,
amortisation and
write-offs 1 January
2016
Exchange rate 60 60
differences
Cumulative depreciation 308 91 399
on reclassifi
cations and disposals
Depreciation for the -1,097 -26,167 -524 -27,788
reporting period
Accumulated -20,640 -465,649 -42,818 0 -529,107
depreciation,
amortisation and
write-offs 30 June
2016
Reclassification to 1,132 17,797 10,510 29,440
non-current assets
held for sale **
Book value 30 June 2016 72 48,896 914,089 10,845 26,225 1,000,127
Assets classified as
held for sale 1 Jan
2016
Acquisition cost
Transfer to non-current 4,369 21,675 22,395 48,439
assets held for sale
Accumulated
depreciation
Transfer to non-current -1,132 -17,797 -10,510 -29,440
assets held for sale
Carrying value 30 June 3,237 3,878 11,885 18,999
2016
* Includes mainly advance payments for the scrubber systems.
** Finnlines is negotiating a sale of port operations’ assets with carrying
value of EUR 15.1 million. No impairment losses were recognised on the carrying
values of these assets in 2015 or 2016, as according to management’s estimate,
the fair value of the assets classified as held for sale was higher than the
carrying value at the balance sheet date 30 June 2015 and 30 June 2016.
Finnlines has chartered out a vessel. The Charterers have an option right to
purchase the vessel. The Charterers have exercised their purchase option under
the Charter by giving on 7 June 2016 the notice for the purchase of the vessel.
PROPERTY, PLANT AND EQUIPMENT 2015
EUR 1,000 Land Buil- Vessels Machi- Advance Total
dings nery payments
and &
equip- acquisi
ment tions under
constr.
Acquisition 72 72,773 1,287,982 66,273 25,928 1,453,028
cost 1 January 2015
Exchange rate 51 51
differences
Increases 42,237 172 15,354 57,763
Disposals -215 -158 -373
Reclassifi- 20,578 9 -20,586 0
cations
Reclassifi- -4,369 -22,395 -26,763
cation to non-current
assets held for sale
Acquisition cost 30 72 68,404 1,350,581 43,953 20,696 1,483,706
June 2015
Accumulated -17,341 -389,749 -42,459 -449,549
depreciation,
amortisation and
write-offs 1 January
2015
Exchange rate -47 -47
differences
Cumulative 215 158 373
depreciation on
reclassifi-cations
and disposals
Depreciation for the -1,101 -25,346 -564 -27,011
reporting period
Accumulated -18,442 -414,879 -42,912 -476,234
depreciation,
amortisation and
write-offs 30 June
2015
Reclassifi- 1,132 10,510 11,642
cation to non-current
assets held for sale
Book value 30 June 72 51,094 935,702 11,551 20,696 1,019,115
2015
Assets classified as
held for sale 1 Jan
2015
Acquisition cost
Transfer to 4,369 21,675 22,395 48,439
non-current assets
held for sale
Reclassifi- -21,675 -21,675
cation between items
Accumulated
depreciation
Transfer to -1,132 -16,499 -10,510 -28,141
non-current assets
held for sale
Reclassifi- 16,499 16,499
cation between items
Carrying value 30 3,237 0 11,885 15,121
June 2015
Due to the long-term charter contract in February 2015 of the vessel, which was
classified as asset held for sale in the Financial Statement as of 31.12.2014,
the classification had been ceased during the reporting period. A part of the
Port Operations' assets, book value of 15.1 million euros, were continued to be
classified as assets held for sale.
FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived from prices).
The Group has loans from financial institutions and pension loans belonging to
level 2. There is no material difference between carrying values and fair
values of these instruments.
Level 3 - Inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
Level 3 includes unlisted shares amounting to EUR 4.6 million (4.6 in 2015),
which are valued at the lower of acquisition cost or probable value, as their
fair value cannot be reliably measured.
CONTINGENCIES AND COMMITMENTS
EUR 1,000 30 Jun 30 Jun 31 Dec
2016 2015 2015
Minimum leases payable in relation to
fixed-term leases:
Vessel leases (Group as lessee):
Within 12 months 0 5,366 58
0 5,366 58
Vessel leases (Group as lessor):
Within 12 months 2,099 2,105 2,105
1-5 years 5,800 7,899 6,841
7,899 10,004 8,946
Other leases (Group as lessee):
Within 12 months 6,048 6,409 6,015
1-5 years 13,173 15,250 13,788
After five years 6,999 9,244 7,795
26,220 30,903 27,598
Other leases (Group as lessor):
Within 12 months 289 261 257
1-5 years 0 17
289 278 257
Collateral given
Loans from financial institutions 370,914 484,384 402,941
Vessel mortgages provided as guarantees for the 985,000 973,000 973,000
above loans
Other collateral given on own behalf
Cash deposit 0 850
Corporate mortgages 0 1,700
0 850 1,700
Other obligations * 10,153 28,903 36,143
VAT adjustment liability related to real estate 3,378 4,674 4,026
investments
* Includes scrubber system, re-blading obligations and vessel investments.
REVENUE AND RESULT BY QUARTER
MEUR Q1/16 Q1/15 Q2/16 Q2/15
Shipping and sea transport services 100.4 112.9 120.3 130.2
Port operations 9.3 8.3 10.2 9.7
Intra-group revenue -4.4 -4.4 -4.9 -4.6
External sales 105.2 116.8 125.6 135.2
Result before interest and taxes
Shipping and sea transport services 12.1 5.0 25.1 20.2
Port operations -0.8 -1.1 0.2 -0.1
Result before interest and taxes (EBIT) total 11.4 3.9 25.3 20.1
Financial items -3.9 -4.3 -3.6 -4.8
Result before taxes (EBT) 7.4 -0.4 21.7 15.3
Income taxes 0.9 1.0 0.5 0.5
Result for the reporting period 8.3 0.6 22.2 15.8
EPS (undiluted / diluted) 0.16 0.01 0.43 0.31
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
30 Jun 2016 30 Jun 2015
Number of shares 51,503,141 51,503,141
Market capitalisation, EUR million 916.2 849.8
1-6 2016 1-6 2015
Number of shares traded, million 2.8 0.4
1-6 2016
High Low Average Close
Share price 18.68 17.15 17.95 17.79
EVENTS AFTER THE REPORTING PERIOD
There are no significant events to report.
CALCULATION OF RATIOS
Earnings per share (EPS), EUR :
Result attributable to parent company shareholders
------------------------------------------------------
Weighted average number of outstanding shares
Shareholders’ equity per share, EUR :
Shareholders’ equity attributable to parent company shareholders
------------------------------------------------------------------
Undiluted number of shares at the end of period
Gearing, %:
Interest-bearing liabilities - cash and bank equivalents
---------------------------------------------------------- X 100
Total equity
Equity ratio, %:
Total equity
--------------------------------- X 100
Assets total - received advances
Income tax expense is recognised based on the best estimate of the
weighted-average annual income tax rate expected for the full financial year.
In January 2013, the shipping operations of Finnlines Plc transferred to
tonnage-based taxation.
At the end of January 2014, Finnlines Deutschland GmbH transferred from
tonnage-based taxation to business taxation. The company entered into business
taxation as from 1 February 2014.
RELATED PARTY TRANSACTIONS
There were no material related party transactions during the reporting period.
The business transactions were carried out using market-based pricing.
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