2017-02-16 08:00:02 CET
2017-02-16 08:00:02 CET
REGULATED INFORMATION
Viking Line - Financial Statement Release
Viking Line Abp's Year-End report January - December 2016
Mariehamn, 2017-02-16 08:00 CET (GLOBE NEWSWIRE) --
Viking Line Abp FINANCIAL STATEMENT RELEASE
16.2.2017, 9.00 AM
VIKING LINE ABP'S YEAR-END REPORT JANUARY - DECEMBER 2016
Consolidated sales of the Viking Line Group during the financial year, January
1 – December 31, 2016 was 519.6 million euros (EUR 530.5 M during January 1 –
December 31, 2015). Other operating revenue amounted to EUR 2.0 M (0.5).
Operating income totalled EUR 13.7 M (26.4). Net financial items totalled EUR
-4.1 M (-3.2). Consolidated income before taxes amounted to EUR 9.6 M (23.2).
Income after taxes totalled EUR 8.0 M (18.7).
The Board of Directors proposes to the annual shareholders' meeting that a
dividend of EUR 0.40 per share shall be paid.
SALES AND EARNINGS
FULL CALENDER YEAR
Consolidated sales of the Viking Line Group during the financial year, January
1 – December 31, 2016 was 519.6 million euros (EUR 530.5 M during January 1 –
December 31, 2015). Other operating revenue amounted to EUR 2.0 M (0.5).
Operating income totalled EUR 13.7 M (26.4). Net financial items totalled EUR
-4.1 M (-3.2). Consolidated income before taxes amounted to EUR 9.6 M (23.2).
Income after taxes totalled EUR 8.0 M (18.7).
Passenger-related revenue decreased by 1.5 per cent to EUR 472.6 M (480.0) as a
result of lower passenger volume, while cargo revenue decreased by 4.8 per cent
to EUR 44.3 M (46.5). Net sales revenue decreased by 2.5 per cent to EUR 367.9
M (377.2).
Consolidated operating income declined mainly due to lost revenue in connection
with planned and completed vessel dry-dockings for modernization and
maintenance of vessels as well as lower demand during the latter part of the
reporting period. Salary and other employment benefit expenses increased due to
the limiting of restitution in conjunction with a change in the Seamen’s
Pensions Act in Finland. Consolidated operating expenses increased by 1.4 per
cent to EUR 328.2 M (323.7). The exchange rate trend for the Swedish krona
during the year had a negative effect on consolidated income.
Consolidated bunker expenses decreased by 18.9 per cent to EUR 39.5 M (48.7) as
a result of lower average bunker prices combined with the Group’s continued
efforts to optimize the bunker consumption of its vessels.
FOURTH QUARTER
Consolidated sales of the Viking Line Group during the fourth quarter, October
1 – December 31, 2016, was EUR 122.3 M (EUR 127.4 M during October 1 – December
31, 2015). Operating income during the quarter amounted to EUR -1.1 M (3.9).
Consolidated net financial items during the fourth quarter of 2016 were EUR
-1.0 M (-0.4). Income before taxes during the fourth quarter totalled EUR -2.0
M (3.5).
During the fourth quarter of 2016, cargo revenue was on a par with last year,
at EUR 11.4 M (11.4), while passenger-related revenue decreased by 4.1 per cent
to EUR 110.3 M (115.1).
SERVICES AND MARKET TRENDS
During 2016, 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 in 2015. The extensive vessel modernizations that
were carried out during the spring caused longer service interruptions than
normal, which adversely affected the Group’s market share.
The number of passengers on Viking Line’s vessels during the financial year was
6,502,191 (6,568,684). Viking Line decreased its market share on the Turku
(Finland)–Mariehamn/Långnäs (Åland Islands, Finland)–Stockholm (Sweden) route
by 1.5 percentage points to 54.8 per cent. On the Helsinki
(Finland)–Mariehamn–Stockholm route, market share decreased by 0.8 percentage
points to 42.8 per cent. In cruise services between Stockholm and Mariehamn,
market share increased by 0.2 percentage points to 57.3 per cent. On the
Helsinki–Tallinn (Estonia) route, market share decreased by 0.6 percentage
points to 23.2 per cent. On the short route over the Sea of Åland, market share
increased by 0.1 percentage points to 41.9 per cent. The Group thus had a total
market share in its service area of 33.5 per cent (34.6).
Viking Line’s cargo volume was 131,918 cargo units (133,163). Viking Line
achieved a cargo market share of 20.7 per cent (21.9). Meanwhile the number of
cars transported increased by 32,867 units to 682,194 (649,327).
INVESTMENTS AND FINANCING
On November 23, 2016, Viking Line Abp signed a letter of intent with the
Chinese company Xiamen Shipbuilding Industry Co. Ltd. concerning an order for a
passenger vessel to be delivered in 2020. The aim is to sign a final agreement
during the spring of 2017. The contract price is about 190 million euros. The
letter of intent also includes an option for an additional vessel.
The Group’s investments amounted to EUR 15.8 M (10.0), of which EUR 11.1 M was
related to investments in vessels.
On December 31, 2016 the Group’s non-current interest-bearing liabilities
amounted to EUR 150.6 M (174.0). The equity/assets ratio was 44.1 per cent,
compared to 42.8 per cent a year earlier.
At the end of December 2016, the Group’s cash and cash equivalents amounted to
EUR 94.9 M (110.7). Net cash flow from operating activities amounted to EUR
28.6 M (48.7).
RISK FACTORS
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 bunker
consumption during 2016 and 2017.
The Group is also exposed to various financial risks, among them fluctuations
in currency exchange rates. Revenue is generated in euros and Swedish kronor.
Most operational influx of cash and cash equivalents consists of euros.
Purchase prices of goods for sale and bunker are affected by other currencies,
especially the US dollar. The Group endeavours to maintain good liquidity in
order to be prepared to deal with adverse changes in operational cash flow.
ONGOING LEGAL ACTIONS
On February 27, 2015, the Helsinki District Court announced its ruling in a
case between Viking Line and the Finnish State regarding fairway charges levied
during the years 2001–2004. According to the judgement, the Finnish State was
required to pay approximately EUR 12.4 M in accordance with Viking Line's claim
as well as legal expenses plus interest. Following the appeal by the Finnish
State, on August 8, 2016, the Helsinki Court of Appeal reversed the Helsinki
District Court’s decision and rejected Viking Line’s claim due to the statute
of limitations. Viking Line has filed a leave to appeal with the Supreme Court
of Finland.
ORGANIZATION AND PERSONNEL
The average number of Group employees was 2,742 (2,735), of whom 2,046 (2,040)
worked for the parent company. Shipboard personnel totalled 2,084 (2,066) and
land-based personnel totalled 658 (669).
In addition to the Group’s own employees, the Viking XPRS was staffed by an
average of 250 (241) people employed by a staffing company.
OUTLOOK FOR 2017
Competition in Viking Line’s service area remains tough and implies continued
pressure on prices. The Finnish economy is showing signs of recovery, but
whether Finnish consumers’ purchasing power will improve to the same degree is
an uncertainty factor. Bunker prices are expected to be higher than in 2016,
which should have an adverse effect on consolidated income. However, there will
be fewer planned dry-docking and servicing days, which is expected to have
positive effect on earnings. The Board of Directors' assessment is that
operating income will be higher overall in 2017 than in 2016.
THE BOARD’S PROPOSAL ON DISTRIBUTION OF EARNINGS
According to the balance sheet of Viking Line Abp on December 31, 2016
unrestricted equity totalled EUR 78,701,777.56.
The Board of Directors proposes to the Annual General Meeting that:
A dividend of EUR 0.40 per share be paid, totalling EUR
4,320,000.00
Remaining unrestricted equity EUR
74,381,777.56
No material changes in the Company’s financial position have occurred after the
end of the financial year. In the assessment of the Board of Directors, the
dividend is justifiable in light of the demands with respect to the size of the
equity capital which are imposed by the nature, scope, financing and risks
associated with the business.
CONSOLIDATED INCOME STATEMENT
Oct 1, Oct 1, Jan 1, Jan 1,
2016– 2015– 2016– 2015–
EUR M Dec 31, Dec 31, Dec 31, Dec 31,
2016 2015 2016 2015
--------------------------------------------------------------------------------
SALES 122.3 127.4 519.6 530.5
Other operating revenue 0.1 0.2 2.0 0.5
Expenses
Goods and services 36.0 37.0 151.7 153.2
Salary and other employment benefit 29.8 29.6 122.3 118.1
expenses
Depreciation and impairment losses 7.0 7.3 28.0 27.7
Other operating expenses 50.7 49.7 206.0 205.5
-------------------------------------------
123.5 123.7 507.9 504.6
OPERATING INCOME -1.1 3.9 13.7 26.4
Financial income 1.6 1.2 5.4 5.0
Financial expenses -2.5 -1.6 -9.5 -8.2
INCOME BEFORE TAXES -2.0 3.5 9.6 23.2
Income taxes 0.4 -1.0 -1.5 -4.4
INCOME FOR THE PERIOD -1.7 2.5 8.0 18.7
Income attributable to:
Parent company shareholders -1.7 2.5 8.0 18.7
Earnings per share before and after -0.16 0.23 0.74 1.73
dilution, EUR
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Oct 1, Oct 1, Jan 1, Jan 1,
2016– 2015– 2016– 2015–
EUR M Dec 31, Dec 31, Dec 31, Dec 31,
2016 2015 2016 2015
--------------------------------------------------------------------------------
INCOME FOR THE PERIOD -1.7 2.5 8.0 18.7
Other comprehensive income
Items that may be transferred to the
income statement
Translation differences 0.1 0.5 -0.8 0.5
Investments available for sale 0.3 0.8 0.3 0.7
-------------------------------------------
0.4 1.4 -0.5 1.2
COMPREHENSIVE INCOME FOR THE PERIOD -1.3 3.9 7.5 19.9
Comprehensive income attributable
to:
Parent company shareholders -1.3 3.9 7.5 19.9
CONSOLIDATED BALANCE SHEET
EUR M Dec 31, Dec 31,
2016 2015
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets 1.9 0.8
Land 0.6 1.1
Buildings and structures 9.2 10.0
Renovation costs for rented 2.3 1.2
properties
Vessels 308.5 324.5
Machinery and equipment 5.6 5.5
Investments available for sale 27.1 26.8
Receivables - 0.2
Total non-current assets 355.2 370.0
Current assets
Inventories 18.1 17.2
Income tax assets 1.7 0.5
Trade and other receivables 36.1 29.4
Cash and cash equivalents 94.9 110.7
Total current assets 150.8 157.8
TOTAL ASSETS 506.0 527.8
EQUITY AND LIABILITIES
Equity
Share capital 1.8 1.8
Reserves 1.0 0.7
Translation differences -1.3 -0.4
Retained earnings 221.4 223.6
---------------------
Equity attributable to parent 222.9 225.7
company shareholders
Total equity 222.9 225.7
Non-current liabilities
Deferred tax liabilities 35.9 34.5
Non-current interest-bearing 150.6 174.0
liabilities
Total non-current liabilities 186.5 208.4
Current liabilities
Current interest-bearing liabilities 23.6 23.5
Income tax liabilities 0.0 1.3
Trade and other payables 73.0 68.9
Total current liabilities 96.6 93.7
Total liabilities 283.0 302.1
TOTAL EQUITY AND LIABILITIES 506.0 527.8
CONSOLIDATED CASH FLOW STATEMENT
Jan 1, Jan 1,
2016– 2015–
EUR M Dec 31, Dec 31,
2016 2015
--------------------------------------------------------------------------------
OPERATING ACTIVITIES
Income for the period 8.0 18.7
Adjustments
Depreciation and impairment losses 28.0 27.7
Capital gains from non-current -1.5 0.0
assets
Other items not included in cash 0.9 -0.5
flow
Interest expenses and other 5.1 5.9
financial expenses
Interest income and other financial -0.2 -0.1
income
Dividend income -2.4 -1.6
Income taxes 1.5 4.4
Change in working capital
Change in trade and other -6.7 -0.1
receivables
Change in inventories -0.9 -1.1
Change in trade and other payables 4.3 1.7
Interest paid -4.8 -5.4
Financial expenses paid -0.6 -0.7
Interest received 0.0 0.1
Financial income received 0.2 0.0
Taxes paid -2.5 -0.3
NET CASH FLOW FROM
OPERATING ACTIVITIES 28.6 48.7
INVESTING ACTIVITIES
Investments in vessels -11.1 -7.6
Investments in other intangible and -4.7 -2.4
tangible assets
Divestments of other intangible and 2.6 0.1
tangible assets
Payments received for non-current 0.2 0.2
receivables
Dividends received 2.4 1.6
NET CASH FLOW FROM INVESTING -10.7 -8.1
ACTIVITIES
FINANCING ACTIVITIES
Increase in non-current liabilities 0.2 -
Repayment of non-current liabilities -23.5 -23.5
Dividends paid -10.3 -7.6
NET CASH FLOW FROM FINANCING -33.6 -31.1
ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS -15.8 9.5
Cash and cash equivalents at 110.7 101.1
beginning of period
CASH AND CASH EQUIVALENTS AT END OF 94.9 110.7
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 18.7 18.7
Translation differences 0.0 0.4 0.1 0.5
Remeasurement of investments 0.7 0.7
available for sale
--------------------------------------------------------------------------------
Comprehensive income for the period - 0.7 0.4 18.8 19.9
Dividend to shareholders -7.6 -7.6
Equity, Dec 31, 2015 1.8 0.7 -0.4 223.6 225.7
--------------------------------------------------------------------------------
Income for the period 8.0 8.0
Translation differences 0.0 -0.8 0.0 -0.8
Remeasurement of investments 0.3 0.3
available for sale
--------------------------------------------------------------------------------
Comprehensive income for the period - 0.3 -0.8 8.1 7.5
Dividend to shareholders -10.3 -10.3
Equity, Dec 31, 2016 1.8 1.0 -1.3 221.4 222.9
--------------------------------------------------------------------------------
QUARTERLY CONSOLIDATED INCOME STATEMENT
2016 2016 2016 2016
EUR M Q4 Q3 Q2 Q1
--------------------------------------------------------------------------------
SALES 122.3 159.3 131.1 106.9
Other operating revenue 0.1 0.2 0.2 1.5
Expenses
Goods and services 36.0 45.6 38.4 31.7
Salary and other employment benefit expenses 29.8 31.0 31.0 30.5
Depreciation and impairment losses 7.0 7.0 7.2 6.7
Other operating expenses 50.7 50.6 53.6 51.1
---------------------------
123.5 134.2 130.2 120.0
OPERATING INCOME -1.1 25.3 1.1 -11.6
Financial income 1.6 0.5 2.8 0.5
Financial expenses -2.5 -2.5 -2.4 -2.0
INCOME BEFORE TAXES -2.0 23.2 1.4 -13.1
Income taxes 0.4 -4.7 0.2 2.6
INCOME FOR THE PERIOD -1.7 18.6 1.6 -10.5
Income attributable to:
Parent company shareholders -1.7 18.6 1.6 -10.5
Earnings per share before and after dilution, EUR -0.16 1.72 0.15 -0.97
QUARTERLY CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
2016 2016 2016 2016
EUR M Q4 Q3 Q2 Q1
--------------------------------------------------------------------------------
INCOME FOR THE PERIOD -1.7 18.6 1.6 -10.5
Other comprehensive income
Items that may be transferred to the income
statement
Translation differences 0.1 -0.4 -0.4 -0.1
Investments available for sale 0.3 - - -
---------------------------
0.4 -0.4 -0.4 -0.1
COMPREHENSIVE INCOME FOR THE PERIOD -1.3 18.2 1.2 -10.6
Comprehensive income attributable to:
Parent company shareholders -1.3 18.2 1.2 -10.6
SEGMENT INFORMATION, VIKING LINE GROUP
Jan 1, 2016– Jan 1, 2015–
OPERATING SEGMENTS, EUR M Dec 31, 2016 Dec 31, 2015
---------------------------------------------------------------
Sales
---------------------------------------------------------------
Vessels 516.8 525.1
Unallocated 3.0 5.6
Total, operating segments 519.8 530.7
---------------------------------------------------------------
Eliminations -0.2 -0.2
Total sales of the Group 519.6 530.5
---------------------------------------------------------------
Operating income
---------------------------------------------------------------
Vessels 60.9 71.2
Unallocated -47.2 -44.7
Total operating income of the Group 13.7 26.4
---------------------------------------------------------------
PLEDGED ASSETS AND CONTINGENT LIABILITIES
EUR M Dec 31, Dec 31,
2016 2015
--------------------------------------------------------------------------------
Contingent liabilities 174.1 197.5
Assets pledged for own debt 313.6 313.6
FINANCIAL RATIOS AND STATISTICS
Jan 1, Jan 1,
2016– 2015–
Dec 31, Dec 31,
2016 2015
--------------------------------------------------------------------------------
Equity per share, EUR 20.64 20.89
Dividend per share, EUR 0.40 0.95
Number of shares on balance sheet date 10,800,000 10,800,000
Return on equity (ROE) 3.6 % 8.5 %
Return on investment (ROI) 3.6 % 9.1 %
Equity/assets ratio 44.1 % 42.8 %
Investments, EUR M 15.8 10.0
– as % of sales 3.0 % 1.9 %
Passengers 6,502,191 6,568,684
Cargo units 131,918 133,163
Average number of employees, full time equivalent 2,742 2,735
Earnings per share = (Income before taxes – income taxes +/– minority interest)
/ Average number of shares
Equity per share = Equity attributable to parent company shareholders / Number
of shares on balance sheet date
Return on equity (ROE), % = (Income before taxes - income taxes) /
Equity including minority
interest (average for the year)
Return on investment (ROI), % = (Income before taxes + interest and
other financial expenses)
/ (Total assets - interest-free liabilities [average for
the year])
Equity/assets ratio, % = (Equity including minority interest) /
(Total assets – advances received)
When rounding off items to the nearest EUR 1,000,000,
rounding-off differences of EUR +/– 0.1 M may occur.
The above figures from the financial statements have
been audited.
SHAREHOLDERS’ MEETING
The annual shareholders’ meeting of Viking Line Abp will be held at 12 noon on
Thursday, April 20, 2017 at the Alandica Kultur och Kongress auditorium,
Strandgatan 33, Mariehamn, Åland, Finland.
An electronic version of the Annual Report for the financial year 2016 will be
published during the week of March 13, 2017 on the Company’s website,
Vikingline.com. The printed Annual Report will be published in Swedish and
Finnish during the week of March 27, 2017.
FINANCIAL INFORMATION FOR 2017
During the financial year 2017, Viking Line Abp’s Financial Reports and
Statements will be published for the periods January 1 to March 31, 2017;
January 1 to June 30, 2017; and January 1 to September 30, 2017. The Interim
Management Statement for January–March will be published on May 18, the
Half-Year Financial Report for January–June on August 17 and the Interim
Management Statement for January–September on November 17. The Year-End Report
for the financial year 2017 will be published on February 15, 2018. An
electronic version of the Annual Report will be published on Vikingline.com
during the week of March 5, 2018. The printed Annual Report will be published
in Swedish and Finnish during the week of March 19, 2018.
Mariehamn, Åland, February 15, 2017
VIKING LINE ABP
The Board of Directors
Jan Hanses
President and CEO
CEO Jan Hanses, +358-18-27000, jan.hanses@vikingline.com
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