2015-08-20 08:00:00 CEST
2015-08-20 08:00:06 CEST
REGULATED INFORMATION
Viking Line - Interim report (Q1 and Q3)
VIKING LINE'S INTERIM REPORT FOR THE PERIOD JANUARY - JUNE 2015
Mariehamn, 2015-08-20 08:00 CEST (GLOBE NEWSWIRE) --
Viking Line Abp INTERIM REPORT 20.8.2015, 9.00 Am
VIKING LINE'S INTERIM REPORT FOR THE PERIOD JANUARY - JUNE 2015
Consolidated sales of the Viking Line Group during the period, January 1 - June
30, 2015 was 239.0 million euros (EUR 241.0 M during January 1 - June 30,
2014). Operating income totalled EUR -7.6 M (-12.5). Net financial items
totalled EUR -0.2 M (-5.0). Consolidated income before taxes amounted to EUR
-7.7 M (-17.6). Income after taxes totalled EUR -5.7 M (-14.2).
Competition in Viking Line's service area remains tough and implies continued
pressure on prices. The economic downturn in Finland is an uncertainty factor,
but recent bunker price developments are currently having a favourable effect
on earnings. The overall assessment of the Board of Directors is that in 2015,
operating income will improve compared to operating income in 2014.
SALES AND EARNINGS
Consolidated sales of the Viking Line Group during the period, January 1 - June
30, 2015 was 239.0 million euros (EUR 241.0 M during January 1 - June 30,
2014). Operating income totalled EUR -7.6 M (-12.5). Net financial items
totalled EUR -0.2 M (-5.0). Consolidated income before taxes amounted to EUR
-7.7 M (-17.6). Income after taxes totalled EUR -5.7 M (-14.2).
Passenger-related revenue decreased by 2.9 per cent to EUR 212.8 M (219.2),
while cargo revenue increased by 22.0 per cent to EUR 24.3 M (19.9). Net sales
revenue decreased by 2.6 per cent to EUR 168.9 M (173.4).
Consolidated operating income improved mainly due to lower operating expenses.
Operating expenses decreased by 3.9 per cent to EUR 163.1 M (169.8). The items
that decreased the most were bunker (vessel fuel) expenses and salary and other
employment benefit expenses. The decrease in bunker expenses is explained by
lower average bunker prices combined with the Group's continued efforts to
optimize the bunker consumption of its vessels. Salary and other employment
benefit expenses decreased by EUR 2.9 M or 4.8 per cent.
During the second quarter, April 1 - June 30, 2015, consolidated sales
decreased by 2.5 per cent to EUR 134.1 M compared to the year-earlier quarter
(EUR 137.5 M during April 1 - June 30, 2014). Second quarter operating income
amounted to EUR 2.3 M (4.5).
The Board of Directors sees that the Group's action programme aimed at
improving operational efficiency has a positive impact on operating expenses.
SERVICES AND MARKET TRENDS
The Viking Line Group provides passenger and cargo carrier services using seven
vessels on the northern Baltic Sea. The Group's vessels served the same routes
as during 2014.
The number of passengers on Viking Line's vessels during the report period was
2,939,696 (2,962,436). During the report period, Viking Line decreased its
market share on the Turku (Finland)-Mariehamn/Långnäs (Åland Islands,
Finland)-Stockholm (Sweden) route by 0.1 percentage points to 56.5 per cent. On
the Helsinki (Finland)-Mariehamn-Stockholm route, market share decreased by 2.8
percentage points to 42.9 per cent. In cruise services between Stockholm and
Mariehamn, market share increased by 3.2 percentage points to 54.8 per cent. On
the Helsinki-Tallinn (Estonia) route, market share decreased by 0.2 percentage
points to 23.4 per cent. On the short route over the Sea of Åland, market share
decreased by 0.9 percentage points to 41.5 per cent. In a weaker total market
in Viking Line's market area, the Group succeeded in boosting its total market
share. The Group had a total market share in its service area of 34.2 per cent
(33.7).
Viking Line's cargo volume was 67,639 cargo units (64,428). Viking Line
achieved a cargo market share of 22.5 per cent (21.8).
INVESTMENTS AND FINANCING
The Group's investments amounted to EUR 7.5 M (5.7).
On June 30, 2015 the Group's non-current interest-bearing liabilities amounted
to EUR 185.7 M (209.3). The equity/assets ratio was 38.0 per cent, compared to
32.7 per cent a year earlier.
At the end of June 2015, the Group's cash and cash equivalents amounted to EUR
75.9 M (80.6). Net cash flow from operating activities amounted to EUR 4.2 M
(2.9).
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 2,653 (2,761), of whom 1,977 (2,029)
worked for the parent company. Land-based personnel totalled 639 (646) and
shipboard personnel totalled 2,014 (2,115).
In addition to the Group's own employees, the Viking XPRS was staffed by an
average of 237 (215) people employed by a staffing company.
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
prices. Fluctuations in bunker (vessel fuel) prices have a direct impact on the
Group's earnings. In order to partly offset the risk of higher bunker prices,
the Group has entered into fixed-price agreements related to a portion of its
estimated bunker consumption during the period April 1 until December 31, 2015.
ONGOING LEGAL ACTIONS
On February 27, 2015, the Helsinki District Court announced its judgment in a
case between Viking Line and the Finnish State regarding fairway charges levied
during the years 2001-2004. According to the judgment, the Finnish State will
be required to pay approximately EUR 12.4 M in accordance with Viking Line's
claim as well as legal expenses plus interest. If the judgment becomes final,
it will affect Viking Line's financial statements positively with a
corresponding amount. The Finnish State has appealed the case and the
assessment of Viking Line's Board of Directors is that the judgment will not
become legally binding during the current year.
OUTLOOK FOR THE FULL FINANCIAL YEAR 2015
Competition in Viking Line's service area remains tough and implies continued
pressure on prices. The economic downturn in Finland is an uncertainty factor,
but recent bunker price developments are currently having a favourable effect
on earnings. The overall assessment of the Board of Directors is that in 2015,
operating income will improve compared to operating income in 2014.
CONSOLIDATED INCOME STATEMENT
Apr 1, Apr 1, Jan 1, Jan 1, Jan 1,
2015- 2014- 2015- 2014- 2014-
EUR M Jun 30, Jun 30, Jun 30, Jun 30, Dec 31,
2015 2014 2015 2014 2014
SALES 134.1 137.5 239.0 241.0 527.4
Other operating revenue 0.1 0.3 0.2 0.4 0.7
Expenses
Goods and services 39.5 39.1 70.2 67.6 148.1
Salary and other employment 30.2 30.3 58.9 61.9 120.8
benefit expenses
Depreciation and impairment 7.0 8.0 13.6 16.6 31.8
losses
Other operating expenses 55.2 55.8 104.1 107.9 213.6
------------------------------------------------
131.9 133.3 246.8 253.9 514.3
OPERATING INCOME 2.3 4.5 -7.6 -12.5 13.7
Financial income 2.2 0.1 3.2 0.2 29.0
Financial expenses -1.9 -3.1 -3.4 -5.2 -10.4
INCOME BEFORE TAXES 2.6 1.6 -7.7 -17.6 32.3
Income taxes -0.1 -0.2 2.0 3.3 -1.8
INCOME FOR THE PERIOD 2.5 1.4 -5.7 -14.2 30.6
Income attributable to:
Parent company shareholders 2.5 1.4 -5.7 -14.2 30.6
Earnings per share before and 0.23 0.13 -0.53 -1.32 2.83
after dilution, EUR
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Apr 1, Apr 1, Jan 1, Jan 1, Jan 1,
2015- 2014- 2015- 2014- 2014-
EUR M Jun 30, Jun 30, Jun 30, Jun 30, Dec 31,
2015 2014 2015 2014 2014
INCOME FOR THE PERIOD 2.5 1.4 -5.7 -14.2 30.6
Other comprehensive income
Items that may be transferred
to the income statement
Translation differences 0.1 -0.4 0.3 -0.5 -0.9
Investments available for sale -2.1 0.0 -0.8 - 0.0
------------------------------------------------
-1.9 -0.4 -0.5 -0.5 -0.9
COMPREHENSIVE INCOME FOR THE 0.6 1.0 -6.3 -14.7 29.7
PERIOD
Comprehensive income
attributable to:
Parent company shareholders 0.6 1.0 -6.3 -14.7 29.7
CONSOLIDATED BALANCE SHEET
EUR M Jun 30, Jun 30, Dec 31,
2015 2014 2014
ASSETS
Non-current assets
Intangible assets 0.7 0.7 0.6
Land 1.1 1.1 1.1
Buildings and structures 10.5 11.3 10.8
Renovation costs for rented 0.7 0.6 0.6
properties
Vessels 335.4 353.6 340.1
Machinery and equipment 6.3 7.4 6.7
Investments available for sale 25.3 0.0 26.1
Receivables 0.3 0.5 0.3
Total non-current assets 380.3 375.3 386.3
Current assets
Inventories 18.3 16.2 16.1
Income tax assets 2.9 4.5 0.3
Trade and other receivables 47.0 40.6 29.3
Cash and cash equivalents 75.9 80.6 101.1
Total current assets 144.1 141.8 146.8
TOTAL ASSETS 524.3 517.1 533.1
EQUITY AND LIABILITIES
Equity
Share capital 1.8 1.8 1.8
Reserves -0.8 0.0 0.0
Translation differences -0.6 -0.5 -0.8
Retained earnings 199.1 167.5 212.3
------------------------------
Equity attributable to parent 199.5 168.9 213.3
company shareholders
Total equity 199.5 168.9 213.3
Non-current liabilities
Deferred tax liabilities 31.4 29.7 31.4
Non-current interest-bearing 185.7 209.3 197.5
liabilities
Total non-current liabilities 217.1 239.0 228.9
Current liabilities
Current interest-bearing 19.3 19.3 23.5
liabilities
Income tax liabilities 0.0 0.0 0.0
Trade and other payables 88.5 89.9 67.4
Total current liabilities 107.7 109.2 91.0
Total liabilities 324.8 348.2 319.8
TOTAL EQUITY AND LIABILITIES 524.3 517.1 533.1
CONSOLIDATED CASH FLOW STATEMENT
Jan 1, Jan 1, Jan 1,
2015- 2014- 2014-
EUR M Jun 30, Jun 30, Dec 31,
2015 2014 2014
OPERATING ACTIVITIES
Income for the period -5.7 -14.2 30.6
Adjustments
Depreciation and impairment 13.6 16.6 31.8
losses
Capital gains from non-current 0.0 -0.2 -0.2
assets
Other items not included in -0.6 1.3 2.1
cash flow
Interest expenses and other 3.0 3.4 6.8
financial expenses
Financial income, Alandia - - -27.9
Försäkring Ab
Interest income and other 0.0 0.0 -0.2
financial income
Dividend income -1.6 0.0 0.0
Income taxes -2.0 -3.3 1.8
Change in working capital
Change in trade and other -17.7 -9.6 1.7
receivables
Change in inventories -2.2 -1.2 -1.1
Change in trade and other 21.2 14.7 -7.7
payables
Interest paid -2.7 -3.1 -6.1
Financial expenses paid -0.5 -0.4 -0.8
Interest received 0.0 0.0 0.1
Financial income received 0.0 0.0 0.1
Taxes paid -0.5 -0.9 -0.2
NET CASH FLOW FROM
OPERATING ACTIVITIES 4.2 2.9 30.7
INVESTING ACTIVITIES
Investments in vessels -6.5 -5.1 -6.2
Investments in other intangible -1.0 -0.6 -1.1
and tangible assets
Divestments of other intangible 0.1 0.3 0.3
and tangible assets
Divestments of investments - - 1.6
available for sale
Payments received for - - 0.2
non-current receivables
Dividends received 1.6 0.0 0.0
NET CASH FLOW FROM INVESTING -5.8 -5.4 -5.1
ACTIVITIES
FINANCING ACTIVITIES
Amortization of non-current -16.0 -7.6 -15.2
liabilities
Dividends paid -7.6 -5.4 -5.4
NET CASH FLOW FROM FINANCING -23.6 -13.0 -20.6
ACTIVITIES
CHANGE IN CASH AND CASH -25.2 -15.5 5.0
EQUIVALENTS
Cash and cash equivalents at 101.1 96.1 96.1
beginning of period
CASH AND CASH EQUIVALENTS AT 75.9 80.6 101.1
END OF PERIOD
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY
Equity attributable to parent
company shareholders
Share Translati Retaine Total
on d
EUR M capita Reserve differenc earning equity
l s es s
Equity, Jan 1, 2015 1.8 0.0 -0.8 212.3 213.3
Income for the period -5.7 -5.7
Translation differences 0.0 0.2 0.1 0.3
Remeasurement of investments -0.8 -0.8
available for sale
--------------------------------------------------------------------------------
Comprehensive income for the period - -0.8 0.2 -5.6 -6.3
Dividend to shareholders -7.6 -7.6
--------------------------------------------------------------------------------
Equity, Jun 30, 2015 1.8 -0.8 -0.6 199.1 199.5
Equity, Jan 1, 2014 1.8 0.0 -0.3 187.5 189.0
Income for the period -14.2 -14.2
Translation differences 0.0 -0.2 -0.3 -0.5
--------------------------------------------------------------------------------
Comprehensive income for the period - 0.0 -0.2 -14.6 -14.7
Dividend to shareholders -5.4 -5.4
--------------------------------------------------------------------------------
Equity, Jun 30, 2014 1.8 0.0 -0.5 167.5 168.9
QUARTERLY CONSOLIDATED INCOME STATEMENT
2015 2015 2014 2014
EUR M Q2 Q1 Q4 Q3
SALES 134.1 105.0 126.3 160.1
Other operating revenue 0.1 0.1 0.2 0.1
Expenses
Goods and services 39.5 30.6 36.2 44.3
Salary and other employment benefit expenses 30.2 28.8 28.9 30.1
Depreciation and impairment losses 7.0 6.6 7.2 8.0
Other operating expenses 55.2 48.9 50.0 55.8
---------------------------
131.9 114.9 122.3 138.1
OPERATING INCOME 2.3 -9.8 4.2 22.0
Financial income 2.2 1.0 28.1 0.7
Financial expenses -1.9 -1.6 -3.2 -2.0
INCOME BEFORE TAXES 2.6 -10.4 29.1 20.7
Income taxes -0.1 2.1 -1.1 -4.0
INCOME FOR THE PERIOD 2.5 -8.2 28.1 16.7
Income attributable to:
Parent company shareholders 2.5 -8.2 28.1 16.7
Earnings per share before and after dilution, EUR 0.23 -0.76 2.60 1.55
QUARTERLY CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
2015 2015 2014 2014
EUR M Q2 Q1 Q4 Q3
INCOME FOR THE PERIOD 2.5 -8.2 28.1 16.7
Other comprehensive income
Items that may be transferred to the income
statement
Translation differences 0.1 0.2 -0.4 0.0
Investments available for sale -2.1 1.2 0.0 -
---------------------------
-1.9 1.4 -0.4 0.0
COMPREHENSIVE INCOME FOR THE PERIOD 0.6 -6.8 27.7 16.7
Comprehensive income attributable to:
Parent company shareholders 0.6 -6.8 27.7 16.7
SEGMENT INFORMATION, VIKING LINE GROUP
Jan 1, 2015- Jan 1, 2014- Jan 1, 2014-
OPERATING SEGMENTS, EUR M Jun 30, 2015 Jun 30, 2014 Dec 31, 2014
Sales
Vessels 236.7 238.7 521.7
Unallocated 2.5 2.4 5.8
Total, operating segments 239.1 241.1 527.6
Eliminations -0.1 -0.1 -0.2
Total sales of the Group 239.0 241.0 527.4
Operating income
Vessels 16.8 10.9 58.3
Unallocated -24.3 -23.4 -44.6
Total operating income of the Group -7.6 -12.5 13.7
PLEDGED ASSETS AND CONTINGENT LIABILITIES
EUR M Jun 30, Jun 30, Dec 31,
2015 2014 2014
Contingent liabilities 205.0 229.1 221.1
Assets pledged for own debt 313.6 315.7 315.7
FINANCIAL RATIOS AND STATISTICS
Jan 1, Jan 1, Jan 1,
2015- 2014- 2014-
Jun 30, Jun 30, Dec 31,
2015 2014 2014
Equity per share, EUR 18.47 15.64 19.75
Equity/assets ratio 38.0 % 32.7 % 40.0 %
Investments, EUR M 7.5 5.7 7.2
- as % of sales 3.2 % 2.4 % 1.4 %
Passengers 2,939,696 2,962,436 6,610,146
Cargo units 67,639 64,428 129,255
Average number of employees, full-time 2,653 2,761 2,797
equivalent
Earnings per share = (Income before taxes - income taxes +/- non-controlling
interests) / 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 non-controlling interests) / (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 2015) will be published on
November 12, 2015.
Mariehamn, Åland, August 19, 2015
VIKING LINE ABP
The Board of Directors
Jan Hanses
President and CEO
CEO Jan Hanses, jan.hanses@vikingline.com, +358-18-27000
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