2016-08-18 08:00:01 CEST
2016-08-18 08:00:01 CEST
REGULATED INFORMATION
Viking Line - Half Year financial report
Viking Line's half year financial report for the period 1.1.2016 - 30.6.2016
Mariehamn, 2016-08-18 08:00 CEST (GLOBE NEWSWIRE) --
Viking Line Abp HALF YEAR FINANCIAL REPORT 18.8.2016, 9.00
AM
VIKING LINE'S HALF YEAR FINANCIAL REPORT FOR THE PERIOD 1.1.2016 - 30.6.1016.
Consolidated sales of the Viking Line Group for the period January 1 – June 30,
2016 was 238.0 million euros (EUR 239.0 M for the period January 1 – June 30,
2015). Operating income totalled EUR -10.5 M (-7.6). Net financial items
totalled EUR -1.1 M (-0.2). Consolidated income before taxes totalled EUR -11.6
M (-7.7). Income after taxes totalled EUR -8.9 M (-5.7).
Competition in Viking Line’s service area means there is greater pressure on
prices as well as volumes. The economic trend in Finland is still an
uncertainty factor. However, the bunker price has so far had a favourable
effect on earnings. The Board of Directors' assessment is now that operating
income will be lower in 2016 than in 2015. The Board's previous assessement was
that operating income would be somewhat lower.
SALES AND EARNINGS
Consolidated sales of the Viking Line Group for the period January 1 – June 30,
2016 was 238.0 million euros (EUR 239.0 M for the period January 1 – June 30,
2015). Operating income totalled EUR -10.5 M (-7.6). Net financial items
totalled EUR -1.1 M (-0.2). Consolidated income before taxes totalled EUR -11.6
M (-7.7). Income after taxes totalled EUR -8.9 M (-5.7).
Passenger-related revenue increased by 0.6 per cent to EUR 214.0 M (212.8),
while cargo revenue decreased by 7.2 per cent to EUR 22.5 M (24.3).
Consolidated operating income declined mainly due to higher operating expenses
and lost revenue in connection with planned and completed vessel dry-dockings
for modernization and maintenance of vessels. Consolidated expenses for
salaries and other employment benefits increased due to the limiting of
restitution in conjunction with a change in the Seamen’s Pensions Act in
Finland. However, the cost effect of this is expected to decrease during the
financial year. Operating expenses increased by 1.9 per cent to EUR 166.6 M
(163.1).
During the second quarter, April 1 – June 30, 2016, consolidated sales
decreased by 2.2 per cent to EUR 131.1 M compared to the year-earlier quarter
(EUR 134.1 M for the period April 1 – June 30, 2015). Second quarter operating
income amounted to EUR 1.1 M (2.3).
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 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 report period
amounted to 2,900,796 passengers (2,939,696). During the report period, Viking
Line decreased its market share on the Turku (Finland)–Mariehamn/Långnäs (Åland
Islands, Finland)–Stockholm (Sweden) route by 1.1 percentage points to 55.4 per
cent. On the Helsinki (Finland)–Mariehamn–Stockholm route, market share
decreased by 1.1 percentage points to 41.7 per cent. In cruise services between
Stockholm and Mariehamn, market share increased by 2.5 percentage points to
57.3 per cent. On the Helsinki–Tallinn (Estonia) route, market share decreased
by 1.3 percentage points to 22.2 per cent. On the short route over the Sea of
Åland between Mariehamn and Kapellskär (Sweden), market share decreased by 0.7
percentage points to 40.8 per cent. The Group thus had a total market share in
its service area of 32.8 per cent (34.2).
Viking Line’s cargo volume was 67,035 cargo units (67,639). Viking Line
achieved a cargo market share of 21.2 per cent (22.5).
INVESTMENTS AND FINANCING
The Group’s investments amounted to EUR 11.9 M (7.5).
In March 2016 Viking Line Abp sold Park Alandia Hotell, which resulted in a
minor increase in consolidated other operating revenue. The hotel served as a
support unit for vessel operations and did not have a material effect on the
Group’s sales, operating income or assets.
On June 30, 2016 the Group’s non-current interest-bearing liabilities totalled
EUR 162.3 M (185.7). The equity/assets ratio was 40.3 per cent, compared to
38.0 per cent a year earlier.
At the end of June 2016, the Group’s cash and cash equivalents amounted to EUR
84.3 M (75.9). Net cash flow from operating activities amounted to EUR 6.7 M
(4.2).
FINANCIAL REPORTING
This Half-year Financial 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
judgements 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. The Half-year Financial Report is unaudited.
ORGANIZATION AND PERSONNEL
The average number of Group employees was 2,650 (2,653), of whom 1,985 (1,977)
worked for the parent company. Land-based personnel totalled 645 (649) and
shipboard personnel totalled 2,005 (2,004).
In addition to the Group’s own employees, the Viking XPRS was staffed by an
average of 247 (237) 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 in the immediate future are primarily related to bunker (vessel
fuel) prices. Fluctuations in bunker 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 2016.
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 is considering filing an appeal with the Supreme
Court of Finland.
OUTLOOK FOR THE FULL FINANCIAL YEAR 2016
Competition in Viking Line’s service area means there is greater pressure on
prices as well as volumes. The economic trend in Finland is still an
uncertainty factor. However, the bunker price has so far had a favourable
effect on earnings. The Board of Directors' assessment is now that operating
income will be lower in 2016 than in 2015. The Board's previous assessment was
that operating income would be somewhat lower.
CONSOLIDATED INCOME STATEMENT
Apr 1, Apr 1, Jan 1, Jan 1, Jan 1,
2016– 2015– 2016– 2015– 2015–
EUR M Jun 30, Jun 30, Jun 30, Jun 30, Dec 31,
2016 2015 2016 2015 2015
SALES 131.1 134.1 238.0 239.0 530.5
Other operating revenue 0.2 0.1 1.7 0.2 0.5
Expenses
Goods and services 38.4 39.5 70.1 70.2 153.2
Salary and other employment 31.0 30.2 61.4 58.9 118.1
benefit expenses
Depreciation and impairment 7.2 7.0 13.9 13.6 27.7
losses
Other operating expenses 53.6 55.2 104.7 104.1 205.5
------------------------------------------------
130.2 131.9 250.2 246.8 504.6
OPERATING INCOME 1.1 2.3 -10.5 -7.6 26.4
Financial income 2.8 2.2 3.3 3.2 5.0
Financial expenses -2.4 -1.9 -4.5 -3.4 -8.2
INCOME BEFORE TAXES 1.4 2.6 -11.6 -7.7 23.2
Income taxes 0.2 -0.1 2.8 2.0 -4.4
INCOME FOR THE PERIOD 1.6 2.5 -8.9 -5.7 18.7
Income attributable to:
Parent company shareholders 1.6 2.5 -8.9 -5.7 18.7
Earnings per share before and 0.15 0.23 -0.82 -0.53 1.73
after dilution, EUR
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Apr 1, Apr 1, Jan 1, Jan 1, Jan 1,
2016– 2015– 2016– 2015– 2015–
EUR M Jun 30, Jun 30, Jun 30, Jun 30, Dec 31,
2016 2015 2016 2015 2015
INCOME FOR THE PERIOD 1.6 2.5 -8.9 -5.7 18.7
Other comprehensive income
Items that may be transferred
to the income statement
Translation differences -0.4 0.1 -0.5 0.3 0.5
Investments available for sale - -2.1 - -0.8 0.7
------------------------------------------------
-0.4 -1.9 -0.5 -0.5 1.2
COMPREHENSIVE INCOME FOR THE 1.2 0.6 -9.3 -6.3 19.9
PERIOD
Comprehensive income
attributable to:
Parent company shareholders 1.2 0.6 -9.3 -6.3 19.9
CONSOLIDATED BALANCE SHEET
EUR M Jun 30, Jun 30, Dec 31,
2016 2015 2015
ASSETS
Non-current assets
Intangible assets 1.1 0.7 0.8
Land 0.6 1.1 1.1
Buildings and structures 9.5 10.5 10.0
Renovation costs for rented 1.6 0.7 1.2
properties
Vessels 320.3 335.4 324.5
Machinery and equipment 5.7 6.3 5.5
Investments available for sale 26.8 25.3 26.8
Receivables 0.2 0.3 0.2
Total non-current assets 365.7 380.3 370.0
Current assets
Inventories 18.8 18.3 17.2
Income tax assets 3.0 2.9 0.5
Trade and other receivables 39.5 47.0 29.4
Cash and cash equivalents 84.3 75.9 110.7
Total current assets 145.6 144.1 157.8
TOTAL ASSETS 511.3 524.3 527.8
EQUITY AND LIABILITIES
Equity
Share capital 1.8 1.8 1.8
Reserves 0.7 -0.8 0.7
Translation differences -1.0 -0.6 -0.4
Retained earnings 204.5 199.1 223.6
------------------------------
Equity attributable to parent 206.1 199.5 225.7
company shareholders
Total equity 206.1 199.5 225.7
Non-current liabilities
Deferred tax liabilities 34.5 31.4 34.5
Non-current interest-bearing 162.3 185.7 174.0
liabilities
Total non-current liabilities 196.8 217.1 208.4
Current liabilities
Current interest-bearing 19.3 19.3 23.5
liabilities
Income tax liabilities 0.0 0.0 1.3
Trade and other payables 89.2 88.5 68.9
Total current liabilities 108.5 107.7 93.7
Total liabilities 305.3 324.8 302.1
TOTAL EQUITY AND LIABILITIES 511.3 524.3 527.8
CONSOLIDATED CASH FLOW STATEMENT
Jan 1, Jan 1, Jan 1,
2016– 2015– 2015–
EUR M Jun 30, Jun 30, Dec 31,
2016 2015 2015
OPERATING ACTIVITIES
Income for the period -8.9 -5.7 18.7
Adjustments
Depreciation and impairment 13.9 13.6 27.7
losses
Capital gains from non-current -1.5 0.0 0.0
assets
Other items not included in 0.7 -0.6 -0.5
cash flow
Interest expenses and other 2.6 3.0 5.9
financial expenses
Interest income and other -0.1 0.0 -0.1
financial income
Dividend income -2.4 -1.6 -1.6
Income taxes -2.8 -2.0 4.4
Change in working capital
Change in trade and other -10.1 -17.7 -0.1
receivables
Change in inventories -1.6 -2.2 -1.1
Change in trade and other 20.5 21.2 1.7
payables
Interest paid -2.5 -2.7 -5.4
Financial expenses paid -0.3 -0.5 -0.7
Interest received 0.0 0.0 0.1
Financial income received 0.1 0.0 0.0
Taxes paid -1.0 -0.5 -0.3
NET CASH FLOW FROM
OPERATING ACTIVITIES 6.7 4.2 48.7
INVESTING ACTIVITIES
Investments in vessels -9.6 -6.5 -7.6
Investments in other intangible -2.2 -1.0 -2.4
and tangible assets
Divestments of other intangible 2.6 0.1 0.1
and tangible assets
Payments received for - - 0.2
non-current receivables
Dividends received 2.4 1.6 1.6
NET CASH FLOW FROM INVESTING -6.9 -5.8 -8.1
ACTIVITIES
FINANCING ACTIVITIES
Increase in non-current 0.2 - -
liabilities
Amortization of non-current -16.0 -16.0 -23.5
liabilities
Dividends paid -10.3 -7.6 -7.6
NET CASH FLOW FROM FINANCING -26.1 -23.6 -31.1
ACTIVITIES
CHANGE IN CASH AND CASH -26.3 -25.2 9.5
EQUIVALENTS
Cash and cash equivalents at 110.7 101.1 101.1
beginning of period
CASH AND CASH EQUIVALENTS AT 84.3 75.9 110.7
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, 2016 1.8 0.7 -0.4 223.6 225.7
Income for the period -8.9 -8.9
Translation differences 0.0 -0.5 0.1 -0.5
--------------------------------------------------------------------------------
Comprehensive income for the period - 0.0 -0.5 -8.8 -9.3
Dividend to shareholders -10.3 -10.3
--------------------------------------------------------------------------------
Equity, Jun 30, 2016 1.8 0.7 -1.0 204.5 206.1
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
QUARTERLY CONSOLIDATED INCOME STATEMENT
2016 2016 2015 2015
EUR M Q2 Q1 Q4 Q3
SALES 131.1 106.9 127.4 164.1
Other operating revenue 0.2 1.5 0.2 0.1
Expenses
Goods and services 38.4 31.7 37.0 46.0
Salary and other employment benefit expenses 31.0 30.5 29.6 29.6
Depreciation and impairment losses 7.2 6.7 7.3 6.7
Other operating expenses 53.6 51.1 49.7 51.7
130.2 120.0 123.7 134.0
OPERATING INCOME 1.1 -11.6 3.9 30.1
Financial income 2.8 0.5 1.2 0.5
Financial expenses -2.4 -2.0 -1.6 -3.2
INCOME BEFORE TAXES 1.4 -13.1 3.5 27.4
Income taxes 0.2 2.6 -1.0 -5.4
INCOME FOR THE PERIOD 1.6 -10.5 2.5 22.0
Income attributable to:
Parent company shareholders 1.6 -10.5 2.5 22.0
Earnings per share before and after dilution, EUR 0.15 -0.97 0.23 2.03
QUARTERLY CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
2016 2016 2015 2015
EUR M Q2 Q1 Q4 Q3
INCOME FOR THE PERIOD 1.6 -10.5 2.5 22.0
Other comprehensive income
Items that may be transferred to the income
statement
Translation differences -0.4 -0.1 0.5 -0.3
Investments available for sale - - 0.8 0.6
---------------------------
-0.4 -0.1 1.4 0.3
COMPREHENSIVE INCOME FOR THE PERIOD 1.2 -10.6 3.9 22.3
Comprehensive income attributable to:
Parent company shareholders 1.2 -10.6 3.9 22.3
SEGMENT INFORMATION, VIKING LINE GROUP
Jan 1, 2016– Jan 1, 2015– Jan 1, 2015–
OPERATING SEGMENTS, EUR M Jun 30, 2016 Jun 30, 2015 Dec 31, 2015
Sales
Vessels 236.4 236.7 525.1
Unallocated 1.7 2.5 5.6
Total, operating segments 238.1 239.1 530.7
Eliminations -0.1 -0.1 -0.2
Total sales of the Group 238.0 239.0 530.5
Operating income
Vessels 13.8 16.8 71.2
Unallocated -24.3 -24.3 -44.7
Total operating income of the Group -10.5 -7.6 26.4
PLEDGED ASSETS AND CONTINGENT LIABILITIES
EUR M Jun 30, Jun 30, Dec 31,
2016 2015 2015
Contingent liabilities 181.6 205.0 197.5
Assets pledged for own debt 313.6 313.6 313.6
FINANCIAL RATIOS AND STATISTICS
Jan 1, Jan 1, Jan 1,
2016– 2015– 2015–
Jun 30, Jun 30, Dec 31,
2016 2015 2015
Equity per share, EUR 19.08 18.47 20.89
Equity/assets ratio 40.3 % 38.0 % 42.8 %
Investments, EUR M 11.9 7.5 10.0
– as % of sales 5.0 % 3.2 % 1.9 %
Passengers 2,900,796 2,939,696 6,568,684
Cargo units 67,035 67,639 133,163
Average number of employees, full-time 2,650 2,653 2,735
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 2016) will be published on
November 16, 2016.
Mariehamn, Åland, August 17, 2016
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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