2015-07-29 13:00:29 CEST
2015-07-29 13:01:33 CEST
BIRTINGARSKYLDAR UPPLÝSNINGAR
Finnlines - Interim report (Q1 and Q3)
Finnlines Plc Interim Report January-June 2015 (unaudited)
Helsinki, Finland, 2015-07-29 13:00 CEST (GLOBE NEWSWIRE) -- FINNLINES PLC
INTERIM REPORT JANUARY-JUNE 2015 (unaudited) Stock Exchange
Release 29 July 2015 at 14:00
JANUARY-JUNE 2015: Result for the period improved EUR 1.4 million
- Revenue EUR 252.0 (270.1 prev. year) million, decrease 6.7 per cent, partly
due to the reduction of cargo related bunker surcharge
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
51.5 (54.6) million, decrease 5.6 per cent
- Result for the reporting period EUR 16.4 (15.0) million, increase 9.2 per cent
- Earnings per share were 0.32 (0.29) EUR/share
- Interest-bearing debt decreased EUR 50.8 million and was EUR 590.1 (640.9)
million at the end of the period
APRIL-JUNE 2015: Best second quarter result ever in ten years
- Revenue EUR 135.2 (143.3 prev. year) million, decrease 5.7 per cent
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR
33.8 (34.4) million, decrease 1.8 per cent
- Result for the reporting period EUR 15.8 (14.7) million, increase 7.3 per cent
- Earnings per share were 0.31 (0.29) EUR/share
KEY FIGURES
MEUR 1-6 2015 1-6 2014 4-6 2015 4-6 2014 1-12 2014
Revenue 252.0 270.1 135.2 143.3 532.9
Result before interest, 51.5 54.6 33.8 34.4 115.4
taxes, depreciation and
amortisation (EBITDA)
Result before interest and 24.0 25.3 20.1 19.8 58.6
taxes (EBIT)
% of revenue 9.5 9.3 14.8 13.8 11.0
Result for the reporting 16.4 15.0 15.8 14.7 41.7
period
EPS, EUR 0.32 0.29 0.31 0.29 0.81
Shareholders' equity/share, 10.10 9.27 10.10 9.27 9.78
EUR
Equity ratio, % 41.1 37.2 41.1 37.2 41.7
Interest bearing debt, MEUR 590.1 640.9 590.1 640.9 552.5
Gearing, % 116.6 138.0 115.0 138.0 113.0
EMANUELE GRIMALDI, PRESIDENT AND CEO, IN CONJUNCTION WITH THE REVIEW:
January-June result shows continuing strong countercyclical performance of
Finnlines Group
“The second quarter result for the period, EUR 15.8 million (EUR 14.7 million),
and the six month result for the period, EUR 16.4 million (EUR 15.0 million)
are a strong indication that we have proactively taken the right measures to
consolidate our position in the market. Regardless of 6.7 per cent turnover
decrease - due to macroeconomic conjuncture, bunker surcharge reduction, vessel
maintenance, retrofits and tonnage adjustment - we have been able to adjust our
operations to be more cost efficient and therefore more competitive in current
recessionary business environment prevailing in Finland. Moreover, Finnlines is
focusing on strengthening its long-term strategic position by acquiring three
vessels and further investing in environmental technology. We will complete our
EUR 100 million Environmental Technology Investment Programme by installing
scrubbers to remaining vessels and also by investing to re-blade and
silicon-paint hulls of several of our vessels for better fuel economy. We
expect our profitability to improve over the previous year due to successful
implementation of our Investment Programme which enables us to use cheaper IFO
fuel compared to more expensive MGO and due to successful implementation of our
Turnaround Programme which improves our operational efficiency. Our interest
bearing debt was reduced by approximately EUR 51 million euros and equity ratio
rose from 37.2 per cent to 41.1 per cent at 30 June 2015 regardless of our high
capital expenditure of EUR 58 million. We expect our interest bearing debt to
decrease further due to lower capex requirement during the second half of the
year, which in turn will improve our credit profile further. Finnlines was one
of the strongest companies in 2014 among the listed companies in the shipping
sector when measured by total return to shareholders and by financial
performance and we are striving to improve our operational and financial
performance.”
FINNLINES PLC, INTERIM REPORT JANUARY-JUNE 2015 (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 25 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 80.61 per cent (on 30 June 2015) 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
decreased by 6 per cent whereas exports increased by 1 per cent (measured in
tons) compared to the same period in 2014. Private and commercial passenger
traffic between Finland and Sweden remained at the same level as in 2014.
Between Finland and Germany the corresponding traffic decreased by 2 per cent
(Finnish Transport Agency).
FINNLINES' TRAFFIC
During the first two quarters Finnlines operated on average 23 (24) vessels in
its own traffic.
In June, Finnlines further expanded the service on main routes between Germany,
Finland and Russia by adding capacity to both Travemünde and Rostock services.
The cargo volumes transported during January-June totalled approximately 313
(325 in 2014) thousand cargo units, 74 (39) thousand cars (not including
passengers' cars) and 959 (1,194) thousand tons of freight not possible to
measure in units. In addition, some 257 (265) thousand private and commercial
passengers were transported.
FINANCIAL RESULTS
January-June 2015
The Finnlines Group recorded revenue totalling EUR 252.0 (270.1) million, a
decrease of 6.7 per cent compared to the same period in 2014. Shipping and Sea
Transport Services generated revenue amounting to EUR 243.0 (261.9) million and
Port Operations EUR 18.0 (20.2) million. The internal revenue between the
segments was EUR -9.0 (-12.0) million.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR
51.5 (54.6) million, a decrease of 5.6 per cent.
Result before interest and taxes (EBIT) was EUR 24.0 (25.3) million. Despite
the increased efficiency of the operations the result was burdened with several
vessels being docked for the installations of scrubbers and new propulsion
systems during the first quarter. During the second quarter the majority of
Finnlines' fleet has been using cheaper IFO fuel instead of MGO which has
further decreased fuel costs.
Net financial expenses decreased and were EUR -9.0 (-11.5) million. Financial
income was EUR 0.5 (0.2) million and financial expenses EUR -9.5 (-11.7)
million. The result for January-June was EUR 16.4 (15.0) million and earnings
per share (EPS) were EUR 0.32 (0.29).
April-June 2015
The Finnlines Group recorded revenue totalling EUR 135.2 (143.3) million, a
decrease of 5.7 per cent compared to the same period in 2014. Shipping and Sea
Transport Services generated revenue amounting to EUR 130.2 (139.1) million and
Port Operations EUR 9.7 (10.2) million. The internal revenue between the
segments was EUR -4.6 (-5.9) 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
33.8 (34.4) million, a decrease of 1.8 per cent.
Result before interest and taxes (EBIT) was EUR 20.1 (19.8) million. The
majority of Finnlines' fleet is using cheaper IFO fuel instead of MGO which has
further decreased fuel costs.
Net financial expenses were EUR -4.8 (-5.7) million. Financial income was EUR
0.1 (0.1) million and financial expenses totalled EUR
-4.9 (-5.8) million. The result for April-June was EUR 15.8 (14.7) million
which is the best second quarter result ever in ten years. Earnings per share
(EPS) rose to EUR 0.31 (0.29).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing debt decreased by EUR 50.8 million and amounted to EUR 590.1
(640.9) million. The equity ratio calculated from the balance sheet improved to
41.1 (37.2) per cent and gearing dropped to 116.6 (138.0) per cent. Vessel
lease commitments decreased by EUR 12.3 million to EUR 5.4 million compared to
the end of June 2014.
At the end of the period, cash and deposits together with unused committed
working capital credits amounted to EUR 83.9 (65.1) million.
Net cash generated from operating activities before investing activities was
EUR 30.4 (31.6) million.
CAPITAL EXPENDITURE
Finnlines Group's gross capital expenditure in the reporting period totalled
EUR 58.0 (6.3) million including tangible and intangible assets. Total
depreciation and amortisation amounted to EUR 27.5 (29.3) million. The
investments consist of the purchase of MS Finnmerchant, normal replacement
expenditure of fixed assets, scrubber and re-blading projects and dry-dockings
of ships. In January, Finnlines signed a purchase agreement of two ro-ro
vessels, and paid a part of the purchase price. The vessels will be delivered
at the turn of the year 2015/2016.
The new stricter environmental regulations for the fuel sulphur limit came into
force as from 1 January 2015. For this reason, Finnlines ordered exhaust gas
cleaning systems for six of its latest series of ro-ro vessels built in
2011-2012, for four of its Star-class ro-pax vessels built in 2006-2007 and for
four of its ro-ro vessels built in 2000-2002. These investments total EUR 65
million and are part of Finnlines Group's EUR 100 million capex programme. The
actual installations of scrubbers started in late 2014 and all of these
installations have been completed. These cleaning systems enable the vessels to
operate in compliance with the new environmental regulations. Finnlines has
also ordered an improvement retrofit to the propulsion system on four
Star-class ro-pax vessels and on two ro-ro vessels. This propulsion upgrading
project started also at the turn of the year and all propulsion upgrades were
done by mid February 2015. The new system has substantially improved the
vessels' relative propulsion efficiency and, as a result, reduced their fuel
consumption.
In beginning of March 2015, Finnlines extended the environmental investment
programme by ordering one additional scrubber for MS Finnmerchant. The
installation on Finnmerchant will take place during the third quarter in 2015.
The Board is considering additional environmental investments.
PERSONNEL
The Group employed an average of 1,595 (1,731) persons during the period,
consisting of 701 (800) persons on shore and 894 (931) persons at sea. The
average number of shore personnel decreased mostly due to employee reductions
in Port Operations. The number of sea personnel decreased due to employee
reductions concerning MS Finnhansa and MS Finnsailor. The number of persons
employed at the end of the period were 1,669 (1,823) in total, of which 720
(789) on shore and 949 (1,034) at sea. The personnel expenses (including social
costs) for the reporting period were EUR -42.7 (-47.2) million.
THE FINNLINES SHARE
The Company's registered share capital on 30 June 2015 was EUR 103,006,282
divided into 51,503,141 shares. A total of 0.4 (3.6) million shares were traded
on the NASDAQ OMX Helsinki during the period. The market capitalisation of the
Company's stock at the end of June was EUR 849.8 (527.4) million, an increase
of 61.1 per cent. Earnings per share (EPS) were EUR 0.32 (0.29). Shareholders'
equity per share was EUR 10.10 (9.27). At the end of the reporting period, the
Grimaldi Group's holding and share of votes in Finnlines was 80.61 per cent.
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 when the aging vessels are scrapped, on the one hand, and as more
stringent sulphur directive requirements have come into force, 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 1.1.2015 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
targeted on 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 2014 Financial statements, published on 24 February 2015, contain a
description of ongoing legal proceedings.
On 27 February 2015, the District Court of Helsinki rendered its decision on
the dispute between Finnlines Plc and the State of Finland. According to
Finnlines Plc the Finnish Act on Fairway Dues in force until 1 January 2006 has
contained provisions which according to EU law were discriminatory. The Company
has been charged excessive fairway dues during 2001-2004. In its decision, the
District Court of Helsinki has ordered the State of Finland to refund to
Finnlines Plc, as plaintiffs, the fairway dues, charged in excessive extent in
the years 2001-2004 totalling about EUR 17.0 million including interest. The
Finnish State has appealed to the Helsinki Court of Appeal. The case is
pending.
The Company's port operation subsidiaries have received summons from 18 former
employees. All employees claim compensation based on groundless termination of
their employment contracts and compensation according to Non-Discrimination
Act. The total amount of the claims is EUR 2.2 million. The subsidiaries
consider the basis of the claims groundless. The processes are under way.
Finnlines Plc's port operation subsidiary has initiated legal action against
the Port of Helsinki. The action has been initiated due to non-respect of the
obligations from the part of the Port of Helsinki under the operative agreement
in force between the parties concerning the rights of the subsidiary to use the
operative area in the port of Vuosaari.
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
Finnlines has been awarded EU funding for environmental upgrading and
sustaining the competitiveness for three of its major liner services. These
time scheduled liner services are part of the European Motorways of the Sea
programme and form an essential part of the necessary infrastructure connecting
Finland to the rest of Europe. Together with partners consisting of ports and
port operators from Finland, Germany, Belgium and Spain, investments of about
EUR 60 million will be done to overcome the challenges brought by the new
sulphur directive and thus avoiding unwanted modal backshift of cargo from sea
to land on these three lines. As part of the Connecting Europe Facility (CEF),
the EU has awarded funding of EUR 17.9 million jointly for Finnlines and the
aforementioned affiliates for these investments.
OUTLOOK AND OPERATING ENVIRONMENT
Finnlines continues its EUR 100 million Environmental Technology Investment
Programme during the latter part of the year and it is expected to be concluded
in spring 2016. The Company has sold vessels to avoid overcapacity and replaced
them with vessels which give more flexibility in fleet optimisation and reduce
operational costs. Also fuel costs and fuel consumption will be reduced
further. Due to lower capex the cash flow will improve further and therefore
the interest bearing debt will decrease. Finnlines Group's result before taxes
is expected to be better in 2015 compared to the same period in the previous
year.
The third interim report of 2015 for the period of 1 January-30 September will
be published on Thursday, 12 November 2015.
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 OMX Helsinki Ltd.
Main media
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 2014 Financial Statements with effect
of 1 January 2015. They did not have any 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 2014.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
EUR 1,000 4-6 2015 4-6 2014 1-6 2015 1-6 2014 1-12 2014
Revenue 135,210 143,337 252,039 270,140 532,889
Other income from 427 551 715 2,169 6,776
operations
Materials and -43,099 -50,332 -85,998 -98,761 -191,445
services
Personnel expenses -21,779 -22,575 -42,731 -47,218 -88,418
Depreciation, -13,706 -14,571 -27,543 -29,305 -56,843
amortisation and
impairment losses
Other operating -36,994 -36,587 -72,528 -71,767 -144,396
expenses
Total operating -115,578 -124,065 -228,800 -247,051 -481,102
expenses
Result before 20,059 19,823 23,954 25,258 58,563
interest and taxes
(EBIT)
Financial income 115 140 469 196 483
Financial expenses -4,906 -5,835 -9,514 -11,683 -22,412
Result before taxes 15,268 14,127 14,909 13,771 36,634
(EBT)
Income taxes 513 581 1,504 1,265 5,079
Result for the 15,781 14,708 16,413 15,036 41,713
reporting period
Other comprehensive
income:
Other comprehensive
income to be
reclassified to
profit and loss in
subsequent periods:
Exchange differences 9 16 48 19 69
on translating
foreign operations
Tax effect, net -2 -2
Other comprehensive 9 15 48 16 69
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 -844
defined benefit
plans
Tax effect, net * 212 353
Other comprehensive 212 -491
income not being
reclassified to
profit and loss in
subsequent periods,
total
Total comprehensive 15,790 14,723 16,461 15,264 41,291
income for the
reporting period
Result for the
reporting period
attributable to:
Parent company 15,785 14,706 16,440 15,061 41,726
shareholders
Non-controlling -4 3 -27 -25 -13
interests
15,781 14,708 16,413 15,036 41,713
Total comprehensive
income for the
reporting period
attributable to:
Parent company 15,794 14,721 16,488 15,289 41,304
shareholders
Non-controlling -4 3 -27 -25 -13
interests
15,790 14,723 16,461 15,264 41,291
Result for the
reporting period
attributable to
parent company
shareholders
calculated as
earnings per share
(EUR/share):
Undiluted / diluted 0.31 0.29 0.32 0.29 0.81
earnings per share
Average number of
shares:
Undiluted / diluted 51,503,141 51,503,141 51,503,141 51,503,141 51,503,141
The majority of amounts included in Comprehensive income relates to tonnage tax
scheme.
* Tax asset has been posted from remeasurement because Finnlines Deutschland
GmbH transferred from tonnage-based taxation to business taxation at the end of
January 2014. The company entered into business taxation as from 1 February
2014.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
EUR 1,000 30 Jun 2015 30 Jun 2014 31 Dec 2014
ASSETS
Non-current assets
Property, plant and equipment 1,019,115 1,044,864 983,183
Goodwill 105,644 105,644 105,644
Intangible assets 5,190 5,719 5,500
Other financial assets 4,576 4,580 4,576
Receivables 838 1,018 838
Deferred tax assets 5,903 1,601 5,353
1,141,265 1,163,426 1,105,092
Current assets
Inventories 7,566 8,268 5,926
Accounts receivable and other 106,085 100,784 76,480
receivables
Income tax receivables 1 123 1
Cash and cash equivalents 2,162 1,771 2,680
115,814 110,946 85,086
Non current assets held for sale 15,121 15,408 20,297
Total assets 1,272,199 1,289,780 1,210,475
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 225 125 178
Fund for invested unrestricted 40,016 40,016 40,016
equity
Retained earnings 352,316 309,914 335,876
520,089 477,587 503,601
Non-controlling interests 279 293 306
Total equity 520,368 477,880 503,907
LIABILITIES
Long-term liabilities
Deferred tax liabilities 55,123 56,272 56,102
Other long-term liabilities 138 2,783 163
Pension liabilities 4,699 3,969 4,705
Provisions 1,820 1,913 1,844
Loans from financial institutions 438,304 497,942 420,722
500,084 562,879 483,536
Current liabilities
Accounts payable and other 81,002 85,589 71,565
liabilities
Current tax liabilities 5 18 72
Provisions 211 103 81
Loans from financial institutions 162,614 154,620 142,967
243,832 240,330 214,685
Total liabilities 743,916 803,209 698,220
Liabilities related to long-term 7,916 8,691 8,348
assets held for sale
Total equity and liabilities 1,272,199 1,289,780 1,210,475
CONSOLIDATED statement of changes in equity 2014, 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- inte
es serve rests
Reported 103,006 24,525 109 40,016 294,641 462,297 360 462,658
equity 1
January
2014
Comprehensiv
e income
for the
repor-
ting period:
Result for 15,061 15,061 -25 15,036
the
repor-
ting period
Exchange 18 18 18
differences
on trans-
lating
foreign
opera-
tions
Tax effect, -2 212 209 209
net
Total 16 15,273 15,289 -25 15,264
comprehensi
ve income
for the
repor-
ting period
Dividend -42 -42
Equity 30 103,006 24,525 125 40,016 309,914 477,587 293 477,880
June
2014
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 strict tained n equity
pre- tion ed 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
Comprehensiv
e income
for the
repor-
ting period:
Result for 16,440 16,440 -27 16,413
the repor-
ting period
Exchange 48 48 48
differences
on
translating
foreign
opera-
tions
Tax effect,
net
Total 48 16,440 16,488 -27 16,461
compre-
hensive
income for
the repor-
ting period
Dividend
Equity 30 103,006 24,525 225 40,016 352,316 520,089 279 520,368
June
2015
CONSOLIDATED CASH FLOW STATEMENT, IFRS
EUR 1,000 1-6 2015 1-6 2014 1-12 2014
Cash flows from operating
activities
Result for the reporting period 16,413 15,036 41,713
Adjustments:
Non-cash transactions 27,412 28,288 51,987
Unrealised foreign exchange -8 -47 -28
gains (-) / losses (+)
Financial income and expenses 9,053 11,534 21,957
Taxes -1,504 -1,265 -5,079
Changes in working capital:
Change in accounts receivable -29,623 -19,778 4,855
and other receivables
Change in inventories -1,641 565 2,906
Change in accounts payable and 17,054 10,235 -9,435
other liabilities
Change in provisions -80 -81 -207
Interest paid -5,037 -7,193 -18,742
Interest received 296 69 141
Taxes paid * -1 -3,788 -3,990
Other financing items -1,906 -1,927 -3,970
Net cash generated from operating activities 30,427 31,647 82,108
Cash flow from investing activities
Investments in tangible and -64,374 -6,190 -29,575
intangible assets
Proceeds from sale of tangible 95 6,100 69,590
assets
Proceeds from sale of investments 1
Dividends received 12 13 13
Net cash used in investing -64,267 -76 40,029
activities
Cash flows from financing activities
Loan withdrawals 185,000 31,708 169,604
Net increase in current interest-bearing 23,872 10,653 7,953
liabilities (+) /
net decrease (-)
Repayment of loans -175,644 -74,032 -298,974
Loans granted -900 -900
Increase (-) / decrease (+) in 90 305 395
long-term receivables
Dividends paid -42 -42
Net cash used in financing 33,318 -32,308 -121,964
activities
Change in cash and cash equivalents -521 -738 173
Cash and cash equivalents 2,680 2,508 2,508
1 January
Effect of foreign exchange 3 0 -1
rate changes
Cash and cash equivalents 2,162 1,771 2,680
at the end of period
* Taxes paid in 2014 include Finnlines Deutschland GmbH's payment of tax
provision EUR 3.6 million.
REVENUE AND RESULT BY BUSINESS SEGMENTS
4-6 2015 4-6 2014 1-6 2015 1-6 2014 1-12 2014
MEUR % MEUR % MEUR % MEUR % MEUR %
Revenue
Shipping 130.2 96.3 139.1 97.0 243.0 96.4 261.9 96.9 517.4 97.1
and sea
trans-
port
services
Port 9.7 7.1 10.2 7.1 18.0 7.2 20.2 7.5 36.9 6.9
opera-
tions
Intra-grou -4.6 -3.4 -5.9 -4.1 -9.0 -3.6 -12.0 -4.4 -21.3 -4.0
p revenue
External 135.2 100.0 143.3 100.0 252.0 100.0 270.1 100.0 532.9 100.0
sales
Result
before
interest
and taxes
Shipping 20.2 20.4 25.2 27.7 61.6
and sea
trans-
port
services
Port -0.1 -0.6 -1.2 -2.4 -3.1
opera-
tions
Result 20.1 19.8 24.0 25.3 58.6
before
interest
and taxes
(EBIT)
total
Finan- -4.8 -5.7 -9.0 -11.5 -21.9
cial items
Result 15.3 14.1 14.9 13.7 36.6
before
taxes
(EBT)
Income 0.5 0.6 1.5 1.3 5.1
taxes
Result for 15.8 14.7 16.4 15.0 41.7
the
repor-
ting
period
PROPERTY, PLANT AND EQUIPMENT 2015
EUR 1,000 Land Buil- Vessels Machi- * Advance Total
dings nery pay-
and ments
equip- &
ment acquisiti
ons
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 72 68,404 1,350,581 43,953 20,696 1,483,706
cost 30 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 depreciation 215 158 373
on reclassify-
cations and disposals
Depreciation -1,101 -25,346 -564 -27,011
for the 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 2015 72 51,094 935,702 11,551 20,696 1,109,115
A part of the Port Operations' assets, book value of 15.1 million euros, is
continued to be classified as assets held for sale.
* Includes mainly advance payments for the scrubber systems.
PROPERTY, PLANT AND EQUIPMENT 2014
EUR 1,000 Land Buil- Vessels Machi-ne Advance pay- Total
dings ry and ments &
equip- acqui-
ment sitions
under
constr.
Acquisition cost 1 72 75,271 1,372,769 73,122 398 1,521,632
January 2014
Exchange rate 20 20
differences
Increases 3,093 20 2,788 5,901
Disposals -2,062 -154 -3,749 -5,965
Reclassifi- -4,369 -28,785 -33,154
cations to
non-current assets
held for sale
Acquisition cost 30 72 68,840 1,375,708 40,628 3,186 1,488,434
June 2014
Accumulated -16,316 -373,866 -47,060 -437,243
depreciation,
amortisation and
write-offs
1 January 2014
Exchange rate -18 -18
differences
Cumulative 1,012 154 3,560 4,727
depreciation on
reclassify-
cations and
disposals
Depreciation for -1,254 -26,076 -1,451 -28,781
the reporting
period
Accumulated -16,558 -399,788 -44,969 -461,315
depreciation,
amortisation and
write-offs
30 June 2014
Reclassifi- 1,132 16,613 17,745
cation to
non-current assets
held for sale *
Book value 30 June 72 53,414 975,920 12,272 3,186 1,044,864
2014
* In 2014, Finnlines Group's Port Operations were negotiating to sell port
assets with book value of around EUR 15.4 million. No impairment losses have
been recognized on the carrying amount of the assets of EUR 15.4 million.
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).
There are no instruments in this category.
During 2015 and the previous year there has been no transfers to or from the
fair value hierarchy level 3.
CONTINGENCIES AND COMMITMENTS
EUR 1,000 30 Jun 30 Jun 31 Dec
2015 2014 2014
Minimum leases payable in relation to
fixed-term leases:
Vessel leases (Group as lessee):
Within 12 months 5,366 12,339 11,409
1-5 years 0 5,366
5,366 17,705 11,409
Vessel leases (Group as lessor)*:
Within 12 months 2,105 2,152 0
1-5 years 7,899 6,390 0
10,004 8,541 0
Other leases (Group as lessee):
Within 12 months 6,409 6,328 6,366
1-5 years 15,250 18,040 17,128
After five years 9,244 10,958 9,274
30,903 35,327 32,768
Other leases (Group as lessor):
Within 12 months 261 307 250
1-5 years 17 0
278 307 250
Collateral given
Loans from financial institutions 484,384 530,730 477,054
Vessel mortgages provided as 973,000 1,035,000 1,035,000
guarantees for the above loans
Other collateral given on own behalf
Cash deposit 850 0
Corporate mortgages 0 606 0
850 606 0
Other obligations ** 28,903 23,599 35,453
Guarantees given by the parent company on 0 6,000 0
behalf of the subsidiaries
VAT adjustment liability related to 4,674 5,993 5,322
real estate investments
* A long-term bareboat agreement was terminated on 17.12.2014 due to the sale
of the vessel, and another bareboat agreement was made during the first quarter
of 2015.
** Includes scrubber system, re-blading obligations and vessel investments.
REVENUE AND RESULT BY QUARTER
MEUR Q1/15 Q1/14 Q2/15 Q2/14
Shipping and sea transport services 112.9 122.8 130.2 139.1
Port operations 8.3 10.0 9.7 10.2
Intra-group revenue -4.4 -6.0 -4.6 -5.9
External sales 116.8 126.8 135.2 143.3
Result before interest and taxes
Shipping and sea transport services 5.0 7.3 20.2 20.4
Port operations -1.1 -1.8 -0.1 -0.6
Result before interest and taxes 3.9 5.4 20.1 19.8
(EBIT) total
Financial items -4.3 -5.8 -4.8 -5.7
Result before taxes (EBT) -0.4 -0.4 15.3 14.1
Income taxes 1.0 0.7 0.5 0.6
Result for the reporting period 0.6 0.3 15.8 14.7
EPS (undiluted / diluted)* 0.01 0.01 0.31 0.29
*Key indicators per share have been adjusted with the share issue adjustment
factor. SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
30 Jun 2015 30 Jun 2014
Number of shares 51,503,141 51,503,141
Market capitalisation, EUR million 849.8 527.4
1-6 2015 1-6 2014
Number of shares traded, million 0.4 3.6
1-6 2015
High Low Average Close
Share price 17.49 14.90 15.99 16.50
EVENTS AFTER THE REPORTING PERIOD
Finnlines has been awarded EU funding for environmental upgrading and
sustaining the competitiveness for three of its major liner services. These
time scheduled liner services are part of the European Motorways of the Sea
programme and form an essential part of the necessary infrastructure connecting
Finland to the rest of Europe. Together with partners consisting of ports and
port operators from Finland, Germany, Belgium and Spain, investments of about
EUR 60 million will be done to overcome the challenges brought by the new
sulphur directive and thus avoiding unwanted modal backshift of cargo from sea
to land on these three lines. As part of the Connecting Europe Facility (CEF),
the EU has awarded funding of EUR 17.9 million jointly for Finnlines and the
aforementioned affiliates for these investments.
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.
© 2024 Nasdaq, Inc. All Rights Reserved |