2014-05-15 08:00:00 CEST
2014-05-15 08:00:05 CEST
REGULATED INFORMATION
Viking Line - Interim report (Q1 and Q3)
VIKING LINE'S INTERIM REPORT FOR THE PERIOD JANUARY - MARCH 2014
Mariehamn, 2014-05-15 08:00 CEST (GLOBE NEWSWIRE) --
Viking Line Abp INTERIM REPORT 15.5.2014, 9.00
A.M.
VIKING LINE'S INTERIM REPORT FOR THE PERIOD JANUARY - MARCH 2014
Consolidated sales of the Viking Line Group during the first quarter, January 1
- March 31, 2014, decreased by 10.0 per cent to 103.4 million euros compared to
the same quarter of 2013 (EUR 115.0 M). Operating income amounted to EUR -17.1
M (-18.9). Net financial items totalled EUR -2.1 M (-1.9). Consolidated income
before taxes amounted to EUR -19.1 M (-20.7). Income after taxes totalled EUR
-15.6 M (-15.7).
Competition in Viking Line's service area remains tough and implies continued
pressure on prices. Volume and price developments during the remainder of the
financial year will be crucial to the Group's earnings. During the summer 2014
high season - in addition to serving their regular Helsinki-Mariehamn-Stockholm
routes - the Mariella and Gabriella will also temporarily serve the
Helsinki-Tallinn route. The Board of Directors believes that operating income
will improve in 2014 compared to operating income in 2013, excluding the
capital gain from the sale of the Isabella (EUR 11.9 M).
SALES AND EARNINGS
Consolidated sales of the Viking Line Group during the first quarter, January 1
- March 31, 2014, decreased by 10.0 per cent to 103.4 million euros compared to
the same quarter of 2013 (EUR 115.0 M). Operating income amounted to EUR -17.1
M (-18.9). Net financial items totalled EUR -2.1 M (-1.9). Consolidated income
before taxes amounted to EUR -19.1 M (-20.7). Income after taxes totalled EUR
-15.6 M (-15.7).
Passenger-related revenue decreased by 11.8 per cent to EUR 92.7 M (105.0),
while cargo revenue increased by 9.8 per cent to EUR 9.9 M (9.1). Net sales
revenue decreased by 9.7 per cent to EUR 75.0 M (83.1). The Group's operating
expenses decreased by 9.8 per cent to EUR 83.6 M (92.8).
The decrease in consolidated sales was mainly due to a smaller number of
service days compared to the corresponding period of last year. In January 2014
the Viking Cinderella spent 18 days and the Viking XPRS 12 days out of service
because of dry-docking.
The Group's bunker (vessel fuel) expenses decreased during the period by EUR
2.2 M, equivalent to 13.0 per cent. The decrease is explained by lower bunker
consumption because of vessel dry-dockings, a winter with mild ice conditions
and successful optimization work.
The Board of Directors also sees that the Group's action programme aimed at
improving operational efficiency is continuing to have 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 2013.
The number of passengers on Viking Line's vessels during the report period
decreased by 112,706 to 1,234,044 (1,346,750). During the report period, Viking
Line reduced its market share on the Turku (Finland)-Mariehamn/Långnäs (Åland
Islands, Finland)-Stockholm (Sweden) route by 4.7 percentage points to 53.8 per
cent. On the Helsinki (Finland)-Mariehamn-Stockholm route, market share
increased by 2.0 percentage points to 48.6 per cent. In cruise services between
Stockholm and Mariehamn, market share decreased by 6.4 percentage points to
49.6 per cent. On the Helsinki-Tallinn (Estonia) route, market share decreased
by 1.3 percentage points to 22.2 per cent due to a reduced number of
departures. On the short route over the Sea of Åland, market share increased by
8.8 percentage points to 39.6 per cent due to an increased number of
departures. The Group thus had a total market share in its service area of 33.0
per cent (35.1).
Viking Line's cargo volume was 31,200 cargo units (28,747). Viking Line
achieved a cargo market share of 21.6 per cent (21.1).
INVESTMENTS AND FINANCING
The Group's investments amounted to EUR 5.1 M (165.7).
On March 31, 2014 the Group's non-current interest-bearing liabilities amounted
to EUR 213.7 M (237.2). The equity/assets ratio was 34.3 per cent, compared to
28.2 per cent a year earlier.
At the end of March 2014, the Group's cash and cash equivalents amounted to EUR
60.4 M (41.7). Net cash flow from operating activities amounted to EUR -23.1 M
(-16.9).
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
On January 16, 2014, the M/S Rosella was recorded in the Finnish ship register
and on January 22, 2014 the M/S Viking XPRS was recorded in the Estonian ship
register.
The average number of Group employees was 2,728 (2,984), of whom 1,950 (1,921)
worked for the parent company. Land-based personnel totalled 648 (679) and
shipboard personnel totalled 2,080 (2,305).
In addition to the Group's own employees, the Viking XPRS was staffed by an
average of 184 people employed by a staffing company. The expenses for them are
recognized among “Other operating expenses”.
On March 20, 2014, Mikael Backman's employment as President and CEO was
terminated. Deputy CEO Jan Hanses was selected as the new President and CEO. At
the same time, Andreas Remmer, Chief Financial Officer, was appointed Executive
Vice President and Deputy CEO. On April 17, 2014, Peter Hellgren, Head of Sales
and Marketing for Viking Line's Swedish market area, was appointed Executive
Vice President with overall responsibility for the Group's sales and marketing.
ANNUAL GENERAL MEETING
The Annual General Meeting of Viking Line Abp on April 16, 2014 adopted the
parent company and consolidated financial statements and approved the proposal
of the Board of Directors that a dividend of EUR 0.50 per share be paid for the
financial year 2013. The Annual General Meeting discharged the Board of
Directors and the President and Chief Executive Officer from liability for the
financial year.
The Company's current Board of Directors was re-elected, and until the end of
the next Annual General Meeting it thus has the following composition: Ben
Lundqvist (Chairman), Nils-Erik Eklund, Trygve Eriksson, Erik Grönberg, Agneta
Karlsson, Dick Lundqvist and Lars G Nordström plus deputy members Ulrica
Danielsson, Stefan Lundqvist and Johnny Rosenholm.
Johan Kronberg, Authorized Public Accountant (CGR), and Martin Grandell,
Authorized Public Accountant (CGR) were re-elected as auditors, and
PricewaterhouseCoopers Oy, Authorized Public Accountants, was re-elected as
deputy auditor.
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.
Viking Line is continuing its efforts to adapt to the European Union's sulphur
directive, which goes into effect on January 1, 2015.
OUTLOOK FOR THE FULL FINANCIAL YEAR 2014
Competition in Viking Line's service area remains tough and implies continued
pressure on prices. Volume and price developments during the remainder of the
financial year will be crucial to the Group's earnings. During the summer 2014
high season - in addition to serving their regular Helsinki-Mariehamn-Stockholm
routes - the Mariella and Gabriella will also temporarily serve the
Helsinki-Tallinn route. The Board of Directors believes that operating income
will improve in 2014 compared to operating income in 2013, excluding the
capital gain from the sale of the Isabella (EUR 11.9 M).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Jan 1, Jan 1, Jan 1,
2014- 2013- 2013-
EUR M Mar 31, Mar 31, Dec 31,
2014 2013 2013
SALES 103.4 115.0 549.4
Other operating revenue 0.1 0.1 23.5
Expenses
Goods and services 28.4 31.9 150.6
Salary and other employment benefit expenses 31.6 32.9 130.1
Depreciation and impairment losses 8.5 9.3 35.7
Other operating expenses 52.1 59.9 221.9
-----------------------------------
120.6 133.9 538.2
OPERATING INCOME -17.1 -18.9 34.7
Financial income 0.1 0.2 1.2
Financial expenses -2.2 -2.0 -8.3
INCOME BEFORE TAXES -19.1 -20.7 27.7
Income taxes 3.5 5.0 -0.2
INCOME FOR THE PERIOD -15.6 -15.7 27.5
Other comprehensive income
Items that may be transferred to the income
statement
Translation differences -0.1 0.0 -0.4
Investments available for sale - - 0.0
-----------------------------------
-0.1 0.0 -0.4
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -15.8 -15.8 27.1
Income attributable to:
Parent company shareholders -15.6 -15.7 27.5
Total comprehensive income attributable to:
Parent company shareholders -15.8 -15.8 27.1
Earnings per share before and after -1.45 -1.45 2.54
dilution, EUR
CONSOLIDATED BALANCE SHEET
EUR M Mar 31, Mar 31, Dec 31,
2014 2013 2013
ASSETS
Non-current assets
Intangible assets 0.8 1.1 0.8
Land 1.1 1.1 1.1
Buildings and structures 11.5 12.2 11.7
Renovation costs for rented properties 0.7 0.5 0.7
Vessels 361.8 384.6 365.2
Machinery and equipment 7.8 8.1 8.0
Investments available for sale 0.0 0.0 0.0
Receivables 0.5 0.7 0.5
Total non-current assets 384.1 408.2 388.1
Current assets
Inventories 15.6 16.8 15.0
Income tax assets 4.3 5.2 0.2
Trade and other receivables 41.3 39.7 31.0
Cash and cash equivalents 60.4 41.7 96.1
Total current assets 121.7 103.4 142.2
Vessels available for sale - 7.1 -
TOTAL ASSETS 505.9 518.7 530.3
EQUITY AND LIABILITIES
Equity
Share capital 1.8 1.8 1.8
Reserves 0.0 0.0 0.0
Translation differences -0.1 0.0 -0.3
Retained earnings 171.5 144.4 187.5
-----------------------------------
Equity attributable to parent company 173.3 146.2 189.0
shareholders
Total equity 173.3 146.2 189.0
Non-current liabilities
Deferred tax liabilities 29.7 29.7 29.7
Non-current interest-bearing liabilities 213.7 237.2 221.2
Total non-current liabilities 243.3 266.9 250.8
Current liabilities
Current interest-bearing liabilities 15.1 23.6 15.1
Trade and other payables 74.2 82.1 75.4
Total current liabilities 89.3 105.6 90.4
Total liabilities 332.6 372.5 341.3
TOTAL EQUITY AND LIABILITIES 505.9 518.7 530.3
CONSOLIDATED CASH FLOW STATEMENT
Jan 1, Jan 1, Jan 1,
2014- 2013- 2013-
EUR M Mar 31, Mar 31, Dec 31,
2014 2013 2013
OPERATING ACTIVITIES
Income for the period -15.6 -15.7 27.5
Adjustments
Depreciation and impairment losses 8.5 9.3 35.7
Capital gains from non-current assets 0.0 0.0 -22.8
Other items not included in cash flow 0.4 -0.1 -0.4
Interest expenses and other financial 1.7 1.7 7.1
expenses
Interest income and other financial income 0.0 0.0 -0.1
Dividend income - - 0.0
Income taxes -3.5 -5.0 0.2
Change in working capital
Change in trade and other receivables -10.4 -10.6 -1.9
Change in inventories -0.7 -1.6 0.3
Change in trade and other payables 0.3 3.9 -4.1
Interest paid -2.9 -0.2 -3.7
Financial expenses paid -0.2 -0.2 -0.8
Interest received 0.0 0.0 0.1
Financial income received 0.0 0.0 0.1
Taxes paid -0.6 1.7 1.4
NET CASH FLOW FROM
OPERATING ACTIVITIES -23.1 -16.9 38.4
INVESTING ACTIVITIES
Investments in vessels -4.7 -164.8 -168.6
Investments in other tangible and intangible -0.4 -0.9 -3.7
assets
Divestments of vessels - - 29.9
Divestments of other tangible and intangible 0.0 0.0 0.2
assets
Payments received for non-current - 0.0 0.2
receivables
Dividends received - - 0.0
NET CASH FLOW FROM INVESTING ACTIVITIES -5.1 -165.7 -142.0
FINANCING ACTIVITIES
Increase in non-current liabilities - 179.0 179.1
Amortization of non-current liabilities -7.5 0.0 -24.6
NET CASH FLOW FROM FINANCING ACTIVITIES -7.5 179.0 154.4
CHANGE IN CASH AND CASH EQUIVALENTS -35.7 -3.6 50.8
Cash and cash equivalents at beginning of 96.1 45.3 45.3
period
CASH AND CASH EQUIVALENTS AT END OF PERIOD 60.4 41.7 96.1
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, 2014 1.8 0.0 -0.3 187.5 189.0
Income for the period -15.6 -15.6
Translation differences 0.0 0.2 -0.3 -0.1
--------------------------------------------------------------------------------
Total comprehensive income for the - 0.0 0.2 -15.9 -15.8
period
--------------------------------------------------------------------------------
Equity, Mar 31, 2014 1.8 0.0 -0.1 171.5 173.3
Equity, Jan 1, 2013 1.8 0.0 0.1 160.0 162.0
Income for the period -15.7 -15.7
Translation differences 0.0 -0.1 0.0 0.0
--------------------------------------------------------------------------------
Total comprehensive income for the - 0.0 -0.1 -15.7 -15.8
period
--------------------------------------------------------------------------------
Equity, Mar 31, 2013 1.8 0.0 0.0 144.4 146.2
QUARTERLY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2014 2013 2013 2013
EUR M Q1 Q4 Q3 Q2
SALES 103.4 129.7 164.4 140.3
Other operating revenue 0.1 0.3 0.2 22.9
Expenses
Goods and services 28.4 35.7 43.4 39.6
Salary and other employment benefit expenses 31.6 31.5 31.9 33.7
Depreciation and impairment losses 8.5 8.3 8.8 9.3
Other operating expenses 52.1 52.5 53.8 55.6
---------------------------
120.6 128.1 137.9 138.3
OPERATING INCOME -17.1 2.0 26.6 25.0
Financial income 0.1 0.3 0.3 0.4
Financial expenses -2.2 -2.2 -2.0 -2.0
INCOME BEFORE TAXES -19.1 0.1 25.0 23.3
Income taxes 3.5 6.7 -6.1 -5.8
INCOME FOR THE PERIOD -15.6 6.7 18.9 17.6
Other comprehensive income
Items that may be transferred to the income
statement
Translation differences -0.1 0.0 -0.1 -0.2
Investments available for sale - 0.0 - -
--------------------------- -0.1 0.0 -0.1 -0.2
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -15.8 6.7 18.8 17.4
Income attributable to:
Parent company shareholders -15.6 6.7 18.9 17.6
Total comprehensive income attributable to:
Parent company shareholders -15.8 6.7 18.8 17.4
Earnings per share before and after dilution, EUR -1.45 0.62 1.75 1.63
SEGMENT INFORMATION, VIKING LINE GROUP
Jan 1, 2014- Jan 1, 2013- Jan 1, 2013-
OPERATING SEGMENTS, EUR M Mar 31, 2014 Mar 31, 2013 Dec 31, 2013
Sales
Vessels 102.5 113.8 544.7
Unallocated 1.0 1.2 4.9
Total, operating segments 103.5 115.0 549.6
Eliminations 0.0 0.0 -0.2
Total sales of the Group 103.4 115.0 549.4
Operating income
Vessels -5.1 -7.4 81.2
Unallocated -11.9 -11.5 -46.4
Total operating income of the Group -17.1 -18.9 34.7
PLEDGED ASSETS AND CONTINGENT LIABILITIES
EUR M Mar 31, Mar 31, Dec 31,
2014 2013 2013
Contingent liabilities 229.3 262.3 236.9
Assets pledged for own debt 315.7 316.2 315.7
FINANCIAL RATIOS AND STATISTICS
Jan 1, Jan 1, Jan 1,
2014- 2013- 2013-
Mar 31, Mar 31, Dec 31,
2014 2013 2013
Equity per share, EUR 16.04 13.54 17.50
Equity/assets ratio 34.3 % 28.2 % 35.6 %
Investments, EUR M 5.1 165.7 172.3
- as % of sales 4.9 % 144.1 % 31.4 %
Passengers 1,234,044 1,346,750 6,533,650
Cargo units 31,200 28,747 119,704
Average number of employees, full time 2,728 2,984 3,104
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 - June 2014) will be published on August 27,
2014 instead of August 28 as previously announced.
Mariehamn, Åland, May 14, 2014
VIKING LINE ABP
The Board of Directors
Jan Hanses
President and CEO
CEO Jan Hanses, jan.hanses@vikingline.com, +358-(0)18-27000
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