2015-05-13 08:00:01 CEST
2015-05-13 08:00:05 CEST
REGULATED INFORMATION
Viking Line - Interim report (Q1 and Q3)
VIKING LINE'S INTERIM REPORT FOR THE PERIOD JANUARY - MARCH 2015
Mariehamn, 2015-05-13 08:00 CEST (GLOBE NEWSWIRE) --
Viking Line Abp INTERIM REPORT 13.5.2015, 9.00 AM
VIKING LINE'S INTERIM REPORT FOR THE PERIOD JANUARY - MARCH 2015
Consolidated sales of the Viking Line Group during the first quarter, January 1
- March 31, 2015, increased by 1.5 per cent to 105.0 million euros compared to
the same quarter of 2014 (EUR 103.4 M). Operating income amounted to EUR -9.8 M
(-17.1). Net financial items totalled EUR -0.5 M (-2.1). Consolidated income
before taxes amounted to EUR -10.4 M (-19.1). Income after taxes totalled EUR
-8.2 M (-15.6).
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. The economic downturn
in Finland and a smaller percentage of Russia passengers are additional
uncertainty factors, but recent bunker price developments are currently having
a favourable effect on earnings. The overall assessment of the Board of
Directors is that in 2015, operating income will improve compared to operating
income in 2014, but future bunker price developments represent a uncertainty
factor.
SALES AND EARNINGS
Consolidated sales of the Viking Line Group during the first quarter, January 1
- March 31, 2015, increased by 1.5 per cent to 105.0 million euros compared to
the same quarter of 2014 (EUR 103.4 M). Operating income amounted to EUR -9.8 M
(-17.1). Net financial items totalled EUR -0.5 M (-2.1). Consolidated income
before taxes amounted to EUR -10.4 M (-19.1). Income after taxes totalled EUR
-8.2 M (-15.6).
Passenger-related revenue decreased by 1.3 per cent to EUR 91.5 M (92.7), while
cargo revenue increased by 26.7 per cent to EUR 12.6 M (9.9). Net sales revenue
decreased by 0.9 per cent to EUR 74.3 M (75.0).
Consolidated operating income improved mainly due to lower operating expenses
and fewer vessel dry-dockings than in the same quarter of 2014. Operating
expenses decreased by 7.1 per cent to EUR 77.7 M (83.6). The items that
decreased the most were bunker (vessel fuel) expenses and salary and other
employment benefit expenses. The decrease in bunker expenses is explained by
lower average bunker prices combined with the Group's continued efforts to
optimize the bunker consumption of its vessels. Salary and other employment
benefit expenses decreased by EUR 2.8 M or 9.0 per cent.
The Board of Directors sees that the Group's action programme aimed at
improving operational efficiency has 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 2014.
The number of passengers on Viking Line's vessels during the report period
increased by 43,586 to 1,277,630 (1,234,044). During the report period, Viking
Line increased its market share on the Turku (Finland)-Mariehamn/Långnäs (Åland
Islands, Finland)-Stockholm (Sweden) route by 3.0 percentage points to 56.8 per
cent. On the Helsinki (Finland)-Mariehamn-Stockholm route, market share
decreased by 3.5 percentage points to 45.0 per cent. In cruise services between
Stockholm and Mariehamn, market share increased by 6.9 percentage points to
56.5 per cent. On the Helsinki-Tallinn (Estonia) route, market share increased
by 2.1 percentage points to 24.4 per cent. On the short route over the Sea of
Åland, market share increased by 0.4 percentage points to 40.0 per cent. The
Group thus had a total market share in its service area of approximately 35.3
per cent (33.0).
Viking Line's cargo volume was 34,506 cargo units (31,200). Viking Line
achieved a cargo market share of approximately 23.6 per cent (21.6).
INVESTMENTS AND FINANCING
The Group's investments amounted to EUR 2.6 M (5.1).
On March 31, 2015 the Group's non-current interest-bearing liabilities amounted
to EUR 190.0 M (213.7). The equity/assets ratio was 40.4 per cent, compared to
34.3 per cent a year earlier.
At the end of March 2015, the Group's cash and cash equivalents amounted to EUR
68.2 M (60.4). Net cash flow from operating activities amounted to EUR -14.3 M
(-23.1).
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
The average number of Group employees was 2,577 (2,728), of whom 1,915 (1,950)
worked for the parent company. Land-based personnel totalled 624 (648) and
shipboard personnel totalled 1,953 (2,080).
In addition to the Group's own employees, the Viking XPRS was staffed by an
average of 227 (184) people employed by a staffing company.
ANNUAL GENERAL MEETING
The Annual General Meeting of Viking Line Abp on April 22, 2015 adopted the
parent company and consolidated financial statements and approved the proposal
of the Board of Directors that a dividend of EUR 0.70 per share be paid for the
financial year 2014. 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) was re-elected and Ylva
Eriksson, Authorized Public Accountant (CGR) was newly elected as auditors. The
firm of 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. Fluctuations in bunker (vessel fuel) prices have a direct impact on the
Group's earnings. The European Union's sulphur directive, which entered into
force on January 1, 2015, is resulting in higher expenses for the Group. The
directive affects all of the Group's vessels except the Viking Grace, which
operates on liquefied natural gas (LNG). In order to partly offset the risk of
higher bunker prices, the Group has entered into a fixed-price agreement
related to a portion of its estimated bunker consumption during the period
April 1 until December 31, 2015.
ONGOING LEGAL ACTIONS
On February 27, 2015, the Helsinki District Court announced its judgment in a
case between Viking Line and the Finnish State regarding fairway charges levied
during the years 2001-2004. According to the judgment, the Finnish State will
be required to pay approximately EUR 12.4 M in accordance with Viking Line's
claim as well as legal expenses plus interest. If the judgment becomes final,
it will affect Viking Line's financial statements positively with a
corresponding amount. The Finnish State has filed a notice of appeal against
the judgment
OUTLOOK FOR THE FULL FINANCIAL YEAR 2015
During the summer of 2015 the Gabriella and the Mariella will again provide
expanded summer service to Tallinn according to a concept similar to the
preceding year. These vessels will thus - in addition to serving their regular
Helsinki-Stockholm routes - also temporarily serve the Helsinki-Tallinn route.
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. The economic downturn
in Finland and a smaller percentage of Russia passengers are additional
uncertainty factors, but recent bunker price developments are currently having
a favourable effect on earnings. The overall assessment of the Board of
Directors is that in 2015, operating income will improve compared to operating
income in 2014, but future bunker price developments represent a uncertainty
factor.
CONSOLIDATED INCOME STATEMENT
2015 2014 2014
EUR M 1.1-31.3 1.1-31.3 1.1-31.12
SALES 105.0 103.4 527.4
Other operating revenue 0.1 0.1 0.7
Expenses
Goods and services 30.6 28.4 148.1
Salary and other employment benefit expenses 28.8 31.6 120.8
Depreciation and impairment losses 6.6 8.5 31.8
Other operating expenses 48.9 52.1 213.6
--------------------------------
114.9 120.6 514.3
OPERATING INCOME -9.8 -17.1 13.7
Financial income 1.0 0.1 29.0
Financial expenses -1.6 -2.2 -10.4
INCOME BEFORE TAXES -10.4 -19.1 32.3
Income taxes 2.1 3.5 -1.8
INCOME FOR THE PERIOD -8.2 -15.6 30.6
Income attributable to:
Parent company shareholders -8.2 -15.6 30.6
Earnings per share before and after dilution, -0.76 -1.45 2.83
EUR
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
2015 2014 2014
EUR M 1.1-31.3 1.1-31.3 1.1-31.12
INCOME FOR THE PERIOD -8.2 -15.6 30.6
Other comprehensive income
Items that may be transferred to the income
statement
Translation differences 0.2 -0.1 -0.9
Investments available for sale 1.2 - 0.0
--------------------------------
1.4 -0.1 -0.9
COMPREHENSIVE INCOME FOR THE PERIOD -6.8 -15.8 29.7
Comprehensive income attributable to:
Parent company shareholders -6.8 -15.8 29.7
CONSOLIDATED BALANCE SHEET
EUR M Mar 31, Mar 31, Dec 31,
2015 2014 2014
ASSETS
Non-current assets
Intangible assets 0.6 0.8 0.6
Land 1.1 1.1 1.1
Buildings and structures 10.7 11.5 10.8
Renovation costs for rented properties 0.5 0.7 0.6
Vessels 337.1 361.8 340.1
Machinery and equipment 6.4 7.8 6.7
Investments available for sale 27.3 0.0 26.1
Receivables 0.3 0.5 0.3
Total non-current assets 384.1 384.1 386.3
Current assets
Inventories 16.7 15.6 16.1
Income tax assets 2.8 4.3 0.3
Trade and other receivables 39.3 41.3 29.3
Cash and cash equivalents 68.2 60.4 101.1
Total current assets 127.0 121.7 146.8
TOTAL ASSETS 511.1 505.9 533.1
EQUITY AND LIABILITIES
Equity
Share capital 1.8 1.8 1.8
Reserves 1.3 0.0 0.0
Translation differences -0.7 -0.1 -0.8
Retained earnings 204.2 171.5 212.3
--------------------------------
Equity attributable to parent company 206.5 173.3 213.3
shareholders
Total equity 206.5 173.3 213.3
Non-current liabilities
Deferred tax liabilities 31.4 29.7 31.4
Non-current interest-bearing liabilities 190.0 213.7 197.5
Total non-current liabilities 221.4 243.3 228.9
Current liabilities
Current interest-bearing liabilities 15.0 15.1 23.5
Income tax liabilities 0.0 - 0.0
Trade and other payables 68.2 74.2 67.4
Total current liabilities 83.3 89.3 91.0
Total liabilities 304.6 332.6 319.8
TOTAL EQUITY AND LIABILITIES 511.1 505.9 533.1
CONSOLIDATED CASH FLOW STATEMENT
2015 2014 2014
EUR M 1.1-31.3 1.1-31.3 1.1-31.12
OPERATING ACTIVITIES
Income for the period -8.2 -15.6 30.6
Adjustments
Depreciation and impairment losses 6.6 8.5 31.8
Capital gains from non-current assets - 0.0 -0.2
Other items not included in cash flow -0.4 0.4 2.1
Interest expenses and other financial expenses 1.5 1.7 6.8
Financial income, Alandia Försäkring Ab - - -27.9
Interest income and other financial income 0.0 0.0 -0.2
Dividend income - - 0.0
Income taxes -2.1 -3.5 1.8
Change in working capital
Change in trade and other receivables -10.0 -10.4 1.7
Change in inventories -0.6 -0.7 -1.1
Change in trade and other payables 2.2 0.3 -7.7
Interest paid -2.5 -2.9 -6.1
Financial expenses paid -0.3 -0.2 -0.8
Interest received 0.0 0.0 0.1
Financial income received 0.0 0.0 0.1
Taxes paid -0.4 -0.6 -0.2
NET CASH FLOW FROM
OPERATING ACTIVITIES -14.3 -23.1 30.7
INVESTING ACTIVITIES
Investments in vessels -2.4 -4.7 -6.2
Investments in other intangible and tangible -0.2 -0.4 -1.1
assets
Divestments of other intangible and tangible - 0.0 0.3
assets
Divestments of investments available for sale - - 1.6
Payments received for non-current receivables - - 0.2
Dividends received - - 0.0
NET CASH FLOW FROM INVESTING ACTIVITIES -2.6 -5.1 -5.1
FINANCING ACTIVITIES
Amortization of non-current liabilities -16.0 -7.5 -15.2
Dividends paid - - -5.4
NET CASH FLOW FROM FINANCING ACTIVITIES -16.0 -7.5 -20.6
CHANGE IN CASH AND CASH EQUIVALENTS -32.9 -35.7 5.0
Cash and cash equivalents at beginning of 101.1 96.1 96.1
period
CASH AND CASH EQUIVALENTS AT END OF PERIOD 68.2 60.4 101.1
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 -8.2 -8.2
Translation differences 0.0 0.0 0.1 0.2
Remeasurement of investments 1.2 1.2
available for sale
Comprehensive income for the period - 1.2 0.0 -8.1 -6.8
--------------------------------------------------------------------------------
Equity, Mar 31, 2015 1.8 1.3 -0.7 204.2 206.5
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
Comprehensive income for the period - 0.0 0.2 -15.9 -15.8
--------------------------------------------------------------------------------
Equity, Mar 31, 2014 1.8 0.0 -0.1 171.5 173.3
QUARTERLY CONSOLIDATED INCOME STATEMENT
2015 2014 2014 2014
EUR M Q1 Q4 Q3 Q2
SALES 105.0 126.3 160.1 137.5
Other operating revenue 0.1 0.2 0.1 0.3
Expenses
Goods and services 30.6 36.2 44.3 39.1
Salary and other employment benefit expenses 28.8 28.9 30.1 30.3
Depreciation and impairment losses 6.6 7.2 8.0 8.0
Other operating expenses 48.9 50.0 55.8 55.8
---------------------------
114.9 122.3 138.1 133.3
OPERATING INCOME -9.8 4.2 22.0 4.5
Financial income 1.0 28.1 0.7 0.1
Financial expenses -1.6 -3.2 -2.0 -3.1
INCOME BEFORE TAXES -10.4 29.1 20.7 1.6
Income taxes 2.1 -1.1 -4.0 -0.2
INCOME FOR THE PERIOD -8.2 28.1 16.7 1.4
Income attributable to:
Parent company shareholders -8.2 28.1 16.7 1.4
Earnings per share before and after dilution, EUR -0.76 2.60 1.55 0.13
QUARTERLY CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
2015 2014 2014 2014
EUR M Q1 Q4 Q3 Q2
INCOME FOR THE PERIOD -8.2 28.1 16.7 1.4
Other comprehensive income
Items that may be transferred to the income
statement
Translation differences 0.2 -0.4 0.0 -0.4
Investments available for sale 1.2 0.0 - -
---------------------------
1.4 -0.4 0.0 -0.4
COMPREHENSIVE INCOME FOR THE PERIOD -6.8 27.7 16.7 1.0
Comprehensive income attributable to:
Parent company shareholders -6.8 27.7 16.7 1.0
SEGMENT INFORMATION, VIKING LINE GROUP
Jan 1, 2015- Jan 1, 2014- Jan 1, 2014-
OPERATING SEGMENTS, EUR M Mar 31, 2015 Mar 31, 2014 Dec 31, 2014
Sales
Vessels 103.9 102.5 521.7
Unallocated 1.1 1.0 5.8
Total, operating segments 105.0 103.5 527.6
Eliminations 0.0 0.0 -0.2
Total sales of the Group 105.0 103.4 527.4
Operating income
Vessels 1.9 -5.1 58.3
Unallocated -11.7 -11.9 -44.6
Total operating income of the Group -9.8 -17.1 13.7
PLEDGED ASSETS AND CONTINGENT LIABILITIES
EUR M Mar 31, Mar 31, Dec 31,
2015 2014 2014
Contingent liabilities 205.0 229.3 221.1
Assets pledged for own debt 313.6 315.7 315.7
FINANCIAL RATIOS AND STATISTICS
Jan 1, Jan 1, Jan 1, 2015- 2014- 2014-
Mar 31, Mar 31, Dec 31,
2015 2014 2014
Equity per share, EUR 19.12 16.04 19.75
Equity/assets ratio 40.4 % 34.3 % 40.0 %
Investments, EUR M 2.6 5.1 7.2
- as % of sales 2.5 % 4.9 % 1.4 %
Passengers 1,277,630 1,234,044 6,610,146
Cargo units 34,506 31,200 129,255
Average number of employees, full-time 2,577 2,728 2,797
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 2015) will be published on August 20,
2015.
Mariehamn, Åland, May 12, 2015
VIKING LINE ABP
The Board of Directors
Jan Hanses
President and CEO
CEO Jan Hanses, jan.hanses@vikingline.com, +358-18-27000
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