2016-05-18 08:00:02 CEST
2016-05-18 08:00:02 CEST
REGULATED INFORMATION
Viking Line - Interim report (Q1 and Q3)
Viking Line's Interim Report for the period January - March 2016.
Mariehamn, 2016-05-18 08:00 CEST (GLOBE NEWSWIRE) --
Viking Line Abp INTERIM REPORT 18.5.2016, 9.00 AM
VIKING LINE'S INTERIM REPORT FOR THE PERIOD JANUARY - MARCH 2016.
Consolidated sales of the Viking Line Group during the first quarter, January 1
– March 31, 2016, increased by 1.8 per cent to 106.9 million euros compared to
the same quarter of 2015 (EUR 105.0 M). Other operating revenue amounted to EUR
1.5 M (0.1). Operating income amounted to EUR -11.6 M (-9.8). Net financial
items totalled EUR -1.5 M (-0.5). Consolidated income before taxes amounted to
EUR -13.1 M (-10.4). Income after taxes totalled EUR -10.5 M (-8.2).
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 is an uncertainty factor, but recent bunker price developments are
currently having a favourable effect on earnings. The Board of Directors'
assessment is that operating income will be somewhat lower in 2016 than in 2015
as a consequence of a larger number of vessel dry-dockings.
SALES AND EARNINGS
Consolidated sales of the Viking Line Group during the first quarter, January 1
– March 31, 2016, increased by 1.8 per cent to 106.9 million euros compared to
the same quarter of 2015 (EUR 105.0 M). Other operating revenue amounted to EUR
1.5 M (0.1). Operating income amounted to EUR -11.6 M (-9.8). Net financial
items totalled EUR -1.5 M (-0.5). Consolidated income before taxes amounted to
EUR -13.1 M (-10.4). Income after taxes totalled EUR -10.5 M (-8.2).
Passenger-related revenue increased by 3.7 per cent to EUR 94.9 M (91.5), while
cargo revenue fell by 10.8 per cent to EUR 11.2 M (12.6). Net sales revenue
increased by 1.1 per cent to EUR 75.2 M (74.3).
Consolidated operating income declined mainly due to higher operating expenses
in connection with planned and completed vessel dry-dockings. Operating
expenses increased by 5.0 per cent to EUR 81.6 M (77.7).
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
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
increased by 37,070 to 1,314,700 (1,277,630). During the report period, Viking
Line decreased its market share on the Turku (Finland)–Mariehamn/Långnäs (Åland
Islands, Finland)–Stockholm (Sweden) route by 2.0 percentage points to 54.7 per
cent. On the Helsinki (Finland)–Mariehamn–Stockholm route, market share
decreased by 2.1 percentage points to 43.0 per cent. In cruise services between
Stockholm and Mariehamn, market share increased by 5.2 percentage points to
61.6 per cent. On the Helsinki–Tallinn (Estonia) route, market share decreased
by 1.3 percentage points to 23.1 per cent. On the short route over the Sea of
Åland between Mariehamn and Kapellskär (Sweden), market share decreased by 2.0
percentage points to 38.0 per cent. The Group thus had a total market share in
its service area of 34.0 per cent (35.3).
Viking Line’s cargo volume was 33,152 cargo units (34,506). Viking Line
achieved a cargo market share of 22.2 per cent (23.6).
INVESTMENTS AND FINANCING
The Group’s investments amounted to EUR 5.1 M (2.6).
In March 2016 Viking Line Abp sold Park Alandia Hotell, which resulted in an
increase in consolidated other operating revenue. The hotel has served as a
support unit for vessel operations and has not had a material effect on the
Group’s sales, operating income or assets.
On March 31, 2016 the Group’s non-current interest-bearing liabilities amounted
to EUR 166.5 M (190.0). The equity/assets ratio was 42.8 per cent, compared to
40.4 per cent a year earlier.
At the end of March 2016, the Group’s cash and cash equivalents amounted to EUR
74.9 M (68.2). Net cash flow from operating activities amounted to EUR -17.2 M
(-14.3).
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 2,573 (2,577), of whom 1,919 (1,915)
worked for the parent company. Land-based personnel totalled 635 (633) and
shipboard personnel totalled 1,938 (1,944).
In addition to the Group’s own employees, the Viking XPRS was staffed by an
average of 240 (227) people employed by a staffing company.
ANNUAL GENERAL MEETING
The Annual General Meeting of Viking Line Abp on April 20, 2016 adopted the
parent company and consolidated financial statements and approved the proposal
of the Board of Directors that a dividend of EUR 0.95 per share be paid for the
financial year 2015. 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.
Ylva Eriksson, Authorized Public Accountant (CGR) was re-elected and Petter
Lindeman, 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
(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 judgement 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 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 judgement becomes final,
it will affect Viking Line's financial statements positively with a
corresponding amount. The Finnish State appealed the case. Leave of appeal was
granted, and a main hearing was held in the Helsinki Court of Appeal in March
2016. A ruling is not expected until September 2016 at the earliest.
OUTLOOK FOR THE FULL FINANCIAL YEAR 2016
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 is an uncertainty factor, but recent bunker price developments are
currently having a favourable effect on earnings. The Board of Directors'
assessment is that operating income will be somewhat lower in 2016 than in 2015
as a consequence of a larger number of vessel dry-dockings.
CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
Jan 1, Jan 1, Jan 1,
2016– 2015– 2015–
EUR M Mar 31, Mar 31, Dec 31,
2016 2015 2015
--------------------------------------------------------------------------------
SALES 106.9 105.0 530.5
Other operating revenue 1.5 0.1 0.5
Expenses
Goods and services 31.7 30.6 153.2
Salary and other employment benefit expenses 30.5 28.8 118.1
Depreciation and impairment losses 6.7 6.6 27.7
Other operating expenses 51.1 48.9 205.5
-----------------------------------
120.0 114.9 504.6
OPERATING INCOME -11.6 -9.8 26.4
Financial income 0.5 1.0 5.0
Financial expenses -2.0 -1.6 -8.2
INCOME BEFORE TAXES -13.1 -10.4 23.2
Income taxes 2.6 2.1 -4.4
INCOME FOR THE PERIOD -10.5 -8.2 18.7
Income attributable to:
Parent company shareholders -10.5 -8.2 18.7
Earnings per share before and after -0.97 -0.76 1.73
dilution, EUR
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
--------------------------------------------------------------------------------
Jan 1, Jan 1, Jan 1,
2016– 2015– 2015–
EUR M Mar 31, Mar 31, Dec 31,
2016 2015 2015
--------------------------------------------------------------------------------
INCOME FOR THE PERIOD -10.5 -8.2 18.7
Other comprehensive income
Items that may be transferred to the income
statement
Translation differences -0.1 0.2 0.5
Investments available for sale - 1.2 0.7
-----------------------------------
-0.1 1.4 1.2
COMPREHENSIVE INCOME FOR THE PERIOD -10.6 -6.8 19.9
Comprehensive income attributable to:
Parent company shareholders -10.6 -6.8 19.9
CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
EUR M Mar 31, Mar 31, Dec 31,
2016 2015 2015
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets 0.8 0.6 0.8
Land 0.6 1.1 1.1
Buildings and structures 9.5 10.7 10.0
Renovation costs for rented properties 1.5 0.5 1.2
Vessels 322.5 337.1 324.5
Machinery and equipment 5.3 6.4 5.5
Investments available for sale 26.8 27.3 26.8
Receivables 0.2 0.3 0.2
Total non-current assets 367.1 384.1 370.0
Current assets
Inventories 17.0 16.7 17.2
Income tax assets 3.3 2.8 0.5
Trade and other receivables 40.3 39.3 29.4
Cash and cash equivalents 74.9 68.2 110.7
Total current assets 135.5 127.0 157.8
TOTAL ASSETS 502.6 511.1 527.8
EQUITY AND LIABILITIES
Equity
Share capital 1.8 1.8 1.8
Reserves 0.7 1.3 0.7
Translation differences -0.6 -0.7 -0.4
Retained earnings 213.2 204.2 223.6
-----------------------------------
Equity attributable to parent company 215.1 206.5 225.7
shareholders
Total equity 215.1 206.5 225.7
Non-current liabilities
Deferred tax liabilities 34.5 31.4 34.5
Non-current interest-bearing liabilities 166.5 190.0 174.0
Total non-current liabilities 201.0 221.4 208.4
Current liabilities
Current interest-bearing liabilities 15.0 15.0 23.5
Income tax liabilities 1.3 0.0 1.3
Trade and other payables 70.3 68.2 68.9
Total current liabilities 86.6 83.3 93.7
Total liabilities 287.5 304.6 302.1
TOTAL EQUITY AND LIABILITIES 502.6 511.1 527.8
CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
Jan 1, Jan 1, Jan 1,
2016– 2015– 2015–
EUR M Mar 31, Mar 31, Dec 31,
2016 2015 2015
--------------------------------------------------------------------------------
OPERATING ACTIVITIES
Income for the period -10.5 -8.2 18.7
Adjustments
Depreciation and impairment losses 6.7 6.6 27.7
Capital gains from non-current assets -1.4 - 0.0
Other items not included in cash flow 0.1 -0.4 -0.5
Interest expenses and other financial 1.3 1.5 5.9
expenses
Interest income and other financial income 0.0 0.0 -0.1
Dividend income - - -1.6
Income taxes -2.6 -2.1 4.4
Change in working capital
Change in trade and other receivables -10.9 -10.0 -0.1
Change in inventories 0.2 -0.6 -1.1
Change in trade and other payables 2.6 2.2 1.7
Interest paid -2.4 -2.5 -5.4
Financial expenses paid -0.2 -0.3 -0.7
Interest received 0.0 0.0 0.1
Financial income received 0.0 0.0 0.0
Taxes paid -0.2 -0.4 -0.3
NET CASH FLOW FROM
OPERATING ACTIVITIES -17.2 -14.3 48.7
INVESTING ACTIVITIES
Investments in vessels -4.3 -2.4 -7.6
Investments in other intangible and tangible -0.8 -0.2 -2.4
assets
Divestments of other intangible and tangible 2.5 - 0.1
assets
Payments received for non-current - - 0.2
receivables
Dividends received - - 1.6
NET CASH FLOW FROM INVESTING ACTIVITIES -2.6 -2.6 -8.1
FINANCING ACTIVITIES
Repayment of non-current liabilities -16.0 -16.0 -23.5
Dividends paid - - -7.6
NET CASH FLOW FROM FINANCING ACTIVITIES -16.0 -16.0 -31.1
CHANGE IN CASH AND CASH EQUIVALENTS -35.8 -32.9 9.5
Cash and cash equivalents at beginning of 110.7 101.1 101.1
period
CASH AND CASH EQUIVALENTS AT END OF PERIOD 74.9 68.2 110.7
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 -10.5 -10.5
Translation differences 0.0 -0.2 0.1 -0.1
--------------------------------------------------------------------------------
Comprehensive income for the period - 0.0 -0.2 -10.4 -10.6
--------------------------------------------------------------------------------
Equity, Mar 31, 2016 1.8 0.7 -0.6 213.2 215.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
QUARTERLY CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
2016 2015 2015 2015
EUR M Q1 Q4 Q3 Q2
--------------------------------------------------------------------------------
SALES 106.9 127.4 164.1 134.1
Other operating revenue 1.5 0.2 0.1 0.1
Expenses
Goods and services 31.7 37.0 46.0 39.5
Salary and other employment benefit expenses 30.5 29.6 29.6 30.2
Depreciation and impairment losses 6.7 7.3 6.7 7.0
Other operating expenses 51.1 49.7 51.7 55.2
---------------------------
120.0 123.7 134.0 131.9
OPERATING INCOME -11.6 3.9 30.1 2.3
Financial income 0.5 1.2 0.5 2.2
Financial expenses -2.0 -1.6 -3.2 -1.9
INCOME BEFORE TAXES -13.1 3.5 27.4 2.6
Income taxes 2.6 -1.0 -5.4 -0.1
INCOME FOR THE PERIOD -10.5 2.5 22.0 2.5
Income attributable to:
Parent company shareholders -10.5 2.5 22.0 2.5
Earnings per share before and after dilution, EUR -0.97 0.23 2.03 0.23
QUARTERLY CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
--------------------------------------------------------------------------------
2016 2015 2015 2015
EUR M Q1 Q4 Q3 Q2
--------------------------------------------------------------------------------
INCOME FOR THE PERIOD -10.5 2.5 22.0 2.5
Other comprehensive income
Items that may be transferred to the income
statement
Translation differences -0.1 0.5 -0.3 0.1
Investments available for sale - 0.8 0.6 -2.1
---------------------------
-0.1 1.4 0.3 -1.9
COMPREHENSIVE INCOME FOR THE PERIOD -10.6 3.9 22.3 0.6
Comprehensive income attributable to:
Parent company shareholders -10.6 3.9 22.3 0.6
SEGMENT INFORMATION, VIKING LINE GROUP
-----------------------------------------------------------------------------
Jan 1, 2016– Jan 1, 2015– Jan 1, 2015–
OPERATING SEGMENTS, EUR M Mar 31, 2016 Mar 31, 2015 Dec 31, 2015
-----------------------------------------------------------------------------
Sales
Vessels 106.1 103.9 525.1
Unallocated 0.9 1.1 5.6
-----------------------------------------------------------------------------
Total, operating segments 106.9 105.0 530.7
-----------------------------------------------------------------------------
Eliminations 0.0 0.0 -0.2
-----------------------------------------------------------------------------
Total sales of the Group 106.9 105.0 530.5
-----------------------------------------------------------------------------
Operating income
-----------------------------------------------------------------------------
Vessels -1.0 1.9 71.2
Unallocated -10.6 -11.7 -44.7
-----------------------------------------------------------------------------
Total operating income of the Group -11.6 -9.8 26.4
-----------------------------------------------------------------------------
PLEDGED ASSETS AND CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
EUR M Mar 31, Mar 31, Dec 31,
2016 2015 2015
--------------------------------------------------------------------------------
Contingent liabilities 181.5 205.0 197.5
Assets pledged for own debt 313.6 313.6 313.6
FINANCIAL RATIOS AND STATISTICS
--------------------------------------------------------------------------------
Jan 1, Jan 1, Jan 1,
2016– 2015– 2015–
Mar 31, Mar 31, Dec 31,
2016 2015 2015
--------------------------------------------------------------------------------
Equity per share, EUR 19.91 19.12 20.89
Equity/assets ratio 42.8 % 40.4 % 42.8 %
Investments, EUR M 5.1 2.6 10.0
– as % of sales 4.7 % 2.5 % 1.9 %
Passengers 1,314,700 1,277,630 6,568,684
Cargo units 33,152 34,506 133,163
Average number of employees, full-time 2,573 2,577 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 differences of EUR +/– 0.1
M may occur.
The next Interim Report (January – June 2016) will be published on August 18,
2016.
Mariehamn, Åland, May 17, 2016
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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