Containerships Oyj - Interim report (Q1 and Q3)

Containerships plc Interim report July-September 2017

Containerships plc    Stock Exchange Release 14 November 2017 at 5.30 pm EEST

Containerships plc's interim report July-September 2017

- Net sales EUR 55.8 (EUR 48.4) million
- EBITDA EUR 3.7 (EUR 3.4) million
- Net profit EUR 0.0 million (-EUR 0.6) million
- Guidance for 2017 remains unchanged: In 2017 net sales are expected to grow
10% and profitability (EBITDA) to improve on the previous year.

Market conditions and significant events

CONTAINERSHIPS is a full-service logistics company providing safe and fast
container transportation in the Baltic Sea, North Sea and the Mediterranean.
Containerships offers both standard and customised containers and variable
logistics solutions from door to door. During the reporting period, Baltic Sea
and North Sea traffic accounted for around 88% of net sales and the
Mediterranean for around 12% of net sales.

There were no significant changes in the operational environment during the
reporting period. The Russian market has remained challenging due to economic
sanctions and country's overall economic situation. United Kingdom's Brexit
decision has not impacted the group's business. No significant changes are
estimated to occur in the operating environment in the near future.

The group continues to progress on its chosen investment track based on its
environmentally friendly LNG strategy. Building of the LNG vessels has started
numbering four in total, which will be delivered to the group during 2018. The
group has increased the number of LNG-fuelled trucks in Great Britain and is
exploring the possibilities to increase the number of LNG-fuelled trucks also in
the Netherlands and Finland.

In the Mediterranean region, the group's own agency activities in Algeria have
contributed a positive operative result. Business in Tunisia and Libya is being
developed in partnership with local agents.



 Key figures,   7-9/2017 7-9/2016 Change 1-9/2017 1-9/2016 Change   1-12/2016
 IFRS
+--------------+--------+--------+------+--------+--------+------+-------------+
|Net Sales, €m |  55,8  |  48,4  |15,2 %| 166,2  | 147,3  |12,8 %|    197,9    |
+--------------+--------+--------+------+--------+--------+------+-------------+
|EBITDA, €m    |  3,7   |  3,4   |10,2 %|  10,8  |  10,1  |7,5 % |    13,9     |
+--------------+--------+--------+------+--------+--------+------+-------------+
|as % of Net   | 6,7 %  | 7,0 %  |      | 6,5 %  | 6,8 %  |      |    7,0 %    |
|Sales         |        |        |      |        |        |      |             |
+--------------+--------+--------+------+--------+--------+------+-------------+
|EBIT, €m      |  2,0   |  1,4   |43,9 %|  5,1   |  4,0   |27,2 %|     5,9     |
+--------------+--------+--------+------+--------+--------+------+-------------+
|as % of Net   | 3,5 %  | 2,8 %  |      | 3,1 %  | 2,7 %  |      |    3,0 %    |
|Sales         |        |        |      |        |        |      |             |
+--------------+--------+--------+------+--------+--------+------+-------------+
|Net Profit, €m|  0,0   |  -0,6  |      |  0,1   |  -2,2  |      |    -1,4     |
+--------------+--------+--------+------+--------+--------+------+-------------+
|as % of Net   | 0,0 %  | -1,2 % |      | 0,1 %  | -1,5 % |      |   -0,7 %    |
|Sales         |        |        |      |        |        |      |             |
+--------------+--------+--------+------+--------+--------+------+-------------+
|Equity ratio  |        |        |      | 17,1 % | 11,9 % |      |   16,8 %    |
+--------------+--------+--------+------+--------+--------+------+-------------+
|Equity ratio, |        |        |      | 22,0 % | 20,8 % |      |   21,3 %    |
|adjusted      |        |        |      |        |        |      |             |
+--------------+--------+--------+------+--------+--------+------+-------------+
|Personnel, on |  570   |  529   |      |        |        |      |     532     |
|average       |        |        |      |        |        |      |             |
+--------------+--------+--------+------+--------+--------+------+-------------+
|Containerships discloses EBITDA and adjusted equity ratio as alternative key  |
|figures because management considers them to better describe the group's EBIT |
|and financial position and to improve comparability. The consolidated         |
|statement of comprehensive income shows the reconciliation of EBITDA on EBIT. |
|Equity ratio adjusted (Equity/total assets x 100) includes a capital loan of  |
|€5 million. However, these alternative key figures do not replace key figures |
|in accordance with IFRS.                                                      |
+------------------------------------------------------------------------------+




The group's net sales for the third quarter were EUR 55.8 (48.4) million, up
15.2% year on year. Falling freight prices in the Baltic Sea and North Sea
levelled out and showed a slight rise towards the end of the quarter. Market
conditions and competition in the Mediterranean were challenging during the
quarter and both business volumes and the price level were in retreat. The group
developed its operations to better respond to customer needs in the
Mediterranean. This resulted in sales growth towards the end of the quarter.
Thanks to the measures introduced, the group sees that the positive trend in
sales will continue and profitability will improve in the Mediterranean for the
rest of the year.

Operating profitability improved slightly in the third quarter: EBITDA showed an
improvement of EUR 0.3 million and operating profit an improvement of EUR 0.6
million compared to the previous year. EBITDA for the third quarter was EUR 3.7
million, equating to 6.7% of net sales (EUR 3.4 million, 7.0%). Operating profit
was EUR 2.0 million, equating to 3.5% of net sales (EUR 1.4 million, 2.8%).
Profitability improved on the back of better utilisation rates, driven mostly by
operational efficiency measures and the positioning of empty containers. On the
other hand, the rise in the price of oil on the global market and 45 % higher
fuel costs compared to previous year increased operating costs significantly,
which in turn eroded profitability.

Net profit for the third quarter was EUR 0.0 (-EUR 0.6) million, up EUR 0.6
million. Part of the interest costs on the bond have been capitalised in the
cost of building the ships in accordance with general practice since the
prepayments for the vessels were made in October 2016. The equity stated in the
IFRS report does not include a capital loan of around EUR 5 million. Adjusted
equity is around EUR 26 million, whereas in the IFRS calculation it is around
EUR 20 million.

The group's operational cash flow was challenging than a year earlier and was
EUR 1.1 million negative.

Most significant risks looking ahead

The most significant risks in Containerships' business relate to fluctuations in
the price of oil and to political uncertainty in the Russian and Turkish
markets. Risks and risk management are detailed on the group's website and in
the financial statements. The group does not consider there to have been any
material changes in risks during the reporting period.

Outlook

Guidance for 2017 remains unchanged. In 2017, net sales are expected to grow
10%. EBITDA for the third quarter was, as planned, slightly better than a year
earlier and EBITDA for the full year is expected to improve on the previous
year.

Work will continue on improving operating efficiency. Efforts will be made to
develop sales work by focusing on those segments and regions where growth can be
captured and by further improving efficiency especially in those regions. The
group does not expect any major changes in market conditions. The challenging
situation in the Mediterranean is expected to continue.

Work on building the LNG vessels is underway and delivery will take place as
planned in 2018. In addition, the group will continue to focus on developing
LNG-fuelled truck traffic.

Containerships plc will publish its 2017 annual report on 12(th) of March 2018.

Containerships plc's bond totalling EUR 50.5 million issued on 2 April and 28
October 2015 has been listed on Nasdaq Helsinki since 1 April 2016.



Further information:

CEO, Kari-Pekka Laaksonen, phone +358 50 550 2555, kari-
pekka.laaksonen(at)containerships.fi


Containerships plc has reported its results in accordance with IFRS accounting
principles since the start of 2016. Interim reports are prepared in accordance
with IFRS accounting principles, but exclude the notes to the financial
statements as required under IAS 34 Interim Financial Reporting. When preparing
the interim report, the company has complied with the same accounting principles
as in the IFRS financial statements for 2016. The information presented in this
interim report is unaudited.



Appendix 1: Containerships plc Statement of comprehensive income, Balance sheet,
Statement changes of equity and Cash flow statement.


[]

Bifogade filer:

Appendix 1 Stock release Q3_2017 Containerships plc.pdf