Helsinki, Finland, 2014-11-06 14:54 CET (GLOBE NEWSWIRE) --
FINNLINES PLC
INTERIM REPORT JANUARY-SEPTEMBER 2014 (unaudited) Stock Exchange Release 6 November 2014 at 15:55
JANUARY-SEPTEMBER 2014: Result improved over EUR 37 million
· Revenue EUR 413.8 (433.3 prev. year) million, decrease 4.5 per cent
· Result before interest, taxes, depreciation and amortisation (EBITDA) EUR 91.5 (63.4) million, increase 44.3 per cent
· Result for the reporting period EUR 33.2 (-3.9) million
· Earnings per share were 0.64 (-0.08) EUR/share
· Interest-bearing debt decreased EUR 96.7 million and was EUR 627.1 (723.8) million at the end of the period
· Fuel consumption reduced by 4.9 per cent
JULY-SEPTEMBER 2014: Best quarterly result ever in eight years, earnings per share up by almost 200 per cent
· Revenue EUR 143.7 (149.7 prev. year) million, decrease 4.0 per cent
· Result before interest, taxes, depreciation and amortisation (EBITDA) EUR 36.9 (28.6) million, increase 29.4 per cent
· Result for the reporting period EUR 18.1 (6.1) million
· Earnings per share were 0.35 (0.12) EUR/share
KEY FIGURES
| MEUR | 1-9 2014 | 1-9 2013 | 7-9 2014 | 7-9 2013 | 1-12 2013 |
| Revenue | 413.8 | 433.3 | 143.7 | 149.7 | 563.6 |
|
Result before interest, taxes, depreciation and amortisation (EBITDA) |
91.5 | 63.4 |
36.9 |
28.6 | 83.7 |
| Result before interest and taxes (EBIT) | 48.1 | 12.8 | 22.9 | 11.7 | 18.1 |
| % of revenue | 11.6 | 2.9 | 15.9 | 7.8 | 3.2 |
| Result for the reporting period | 33.2 | -3.9 | 18.1 | 6.1 | 6.0 |
| EPS, EUR | 0.64 | -0.08 | 0.35 | 0.12 | 0.12 |
| Shareholders’ equity/share, EUR | 9.63 | 8.78 | 9.63 | 8.78 | 8.98 |
| Equity ratio, % | 38.6 | 33.4 | 38.6 | 33.4 | 35.7 |
| Interest bearing debt, MEUR | 627.1 | 723.8 | 627.1 | 723.8 | 673.0 |
| Gearing, % | 130.0 | 163.5 | 130.0 | 163.5 | 149.1 |
EMANUELE GRIMALDI, PRESIDENT AND CEO, IN CONJUNCTION WITH THE REVIEW:
Finnlines Group’s profitability growth is impressive and the fleet is ready for 2015
”The third quarter result for the reporting period, EUR 18.1 million, is the fourth consecutive quarter with impressive over EUR 10 million improvement when compared to previous year. The January-September result for the reporting period amounting to EUR 33.2 million, again, is a record result in eight years. Despite of a somewhat uncertain economic environment we have been able to improve further our profitability. Lower bunker surcharge reduced the turnover slightly. However, higher cargo volumes have increased the capacity utilisation of our vessels, which have reduced our costs and have improved our efficiency. Through operational optimisations, fuel consumption was reduced in the first nine months of the year by 4.9 per cent with benefit for both the environment and company results. The Company is targeting not only for improving its operations and profitability but also for improving its capital structure; we continue to analyse every vessel and every line in order to investigate whether there is opportunity for profitable operations in the current market situation and need to react if overcapacity exists. Finnlines Group’s good cash-flow generation has enabled us to further reduce our interest bearing debt considerably and, therefore, the equity ratio has improved to 38.6 per cent. The turnaround programme striving towards cost efficiency has been well implemented and the results show our people can deliver. We are progressing well with our capex programme and after implementation we will have the strongest fleet in the Baltic Sea with scrubbers installed and efficient fuel economy with new propulsion systems. We continue our good work to improve further our operational efficiency and cost efficiency and it has already become crystal clear that the Group’s result before taxes will continue to improve over the previous year. In fact, when measured at the EBITDA level Finnlines Group is likely to make its best or second best EBITDA since the beginning of this century.”
FINNLINES PLC, INTERIM REPORT JANUARY-SEPTEMBER 2014 (unaudited)
FINNLINES’ BUSINESS
Finnlines is the largest shipping company in the Baltic Sea providing both ro-ro and ro-pax services (source: Baltic Transportation Journal). Finnlines’ passenger-freight vessels offer services from Finland to Germany and via the Åland Islands to Sweden, from Sweden to Germany and from Germany to Russia. Finnlines’ ro-ro vessels operate in the Baltic Sea and the North Sea. The Company has subsidiaries in Germany, Belgium, Great Britain, Sweden, Denmark and Poland which all are also sales offices. In addition to sea transportation, the Company provides port services in Helsinki and Turku.
GROUP STRUCTURE
Finnlines Plc is a Finnish listed company. At the end of the reporting period, the Group consisted of the parent company and 25 subsidiaries.
Finnlines is part of the Italian Grimaldi Group, which is a global logistics group specialising in maritime transport of cars, rolling cargo, containers and passengers. The Grimaldi Group comprises seven shipping companies, including Finnlines, Atlantic Container Line (ACL), Malta Motorways of the Sea (MMS) and Minoan Lines. With a fleet of about 100 vessels, the Group provides maritime transport services for rolling cargo and containers between North Europe, the Mediterranean, the Baltic Sea, West Africa, North and South America. It also offers passenger services within the Mediterranean and Baltic Sea. With 77.76 per cent (on 30 September 2014) of the shares, the Grimaldi Group is the biggest shareholder in Finnlines Plc.
GENERAL MARKET DEVELOPMENT
Based on the statistics by the Finnish Transport Agency for January-August, the Finnish seaborne imports carried in container, lorry and trailer units remained at the same level as in 2013 whereas exports increased by 3 per cent (measured in tons) compared to the same period in 2013. According to the statistics published by Shippax for January-August, trailer and lorry volumes transported by sea between Southern Sweden and Germany increased by 1 per cent compared to 2013. During the same period private and commercial passenger traffic between Finland and Sweden decreased by 3 per cent. Between Finland and Germany the corresponding traffic decreased by 8 per cent (Finnish Transport Agency).
FINNLINES’ TRAFFIC
During the third quarter Finnlines operated on average 24 (25) vessels in its own traffic.
In August Finnlines re-opened its weekly service from the Finnish ports of Kotka and Helsinki to Tilbury, Great Britain. The vessel returns to Helsinki via Amsterdam and Antwerp and further to St. Petersburg.
On the Helsinki-Rostock service MS Finnkraft substituted MS Finnhansa, which left northern Europe at the end of September 2014.
The cargo volumes transported during January-September totalled approximately 486 (478 in 2013) thousand cargo units, 61 (43) thousand cars (not including passengers’ cars) and 1,803 (1,649) thousand tons of freight not possible to measure in units. In addition, some 450 (443) thousand private and commercial passengers were transported.
FINANCIAL RESULTS
January-September 2014
The Finnlines Group recorded revenue totalling EUR 413.8 (433.3) million, a decrease of 4.5 per cent compared to the same period in 2013. Shipping and Sea Transport Services generated revenue amounting to EUR 401.9 (413.8) million and Port Operations EUR 28.6 (38.5) million. The internal revenue between the segments was EUR 16.7 (19.0) million.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR 91.5 (63.4) million, an increase of 44.3 per cent.
Result before interest and taxes (EBIT) was EUR 48.1 (12.8) million. The increased efficiency of the operations in terms of bunker consumption, higher capacity utilisation of vessels and reduction of costs in many areas has continued to impact the financial performance of the Group.
Net financial expenses decreased and were EUR -16.8 (-18.9) million. Financial income was EUR 0.3 (0.3) million and financial expenses EUR -17.2 (-19.2) million. The above mentioned increased operational efficiency, decreased net financial expenses, and moreover, cutting of the vessel overcapacity by selling three vessels in the end of 2013, which enabled better optimization of the existing tonnage, altogether contributed to a EUR 37.1 million increase in the result for the reporting period. The result for January-September was EUR 33.2 (-3.9) million and earnings per share (EPS) were EUR 0.64 (-0.08).
July-September 2014
The Finnlines Group recorded revenue totalling EUR 143.7 (149.7) million, a decrease of 4.0 per cent compared to the same period in 2013. Shipping and Sea Transport Services generated revenue amounting to EUR 140.0 (144.2) million and Port Operations EUR 8.5 (11.4) million. The internal revenue between the segments was EUR 4.8 (5.9) million. Compared to the first two quarters the amount of passengers has increased due to the summer high season.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR 36.9 (28.6) million, an increase of 29.4 per cent.
Result before interest and taxes (EBIT) was EUR 22.9 (11.7) million.
Net financial expenses were EUR -5.4 (-6.2) million. Financial income was EUR 0.1 (0.1) million and financial expenses totalled EUR -5.5 (-6.3) million. The result for July-September was EUR 18.1 (6.1) million, which is the best quarter ever in eight years. Earnings per share (EPS) rose to EUR 0.35 (0.12).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing debt decreased by EUR 96.7 million and amounted to EUR 627.1 (723.8) million excluding leasing liabilities EUR 19.9 (21.5) million. The equity ratio calculated from the balance sheet improved to 38.6 (33.4) per cent and gearing dropped to 130.0 (163.5) per cent. Vessel lease commitments decreased by EUR 13.9 million to EUR 14.2 million compared to the end of September 2013.
At the end of the period, cash and deposits together with unused committed working capital credits amounted to EUR 82.0 (68.8) million.
Net cash generated from operating activities improved markedly and was EUR 55.5 (30.2) million.
CAPITAL EXPENDITURE
Finnlines Group’s gross capital expenditure in the reporting period totalled EUR 20.5 (9.4) million including tangible and intangible assets. Total depreciation amounted to EUR 43.4 (50.7) million. The capital expenditures consist of normal replacement costs of fixed assets, prepayments of scrubber and re-blading projects and dry-docking cost of ships.
Due to the new stringent sulphur oxide emission regulations to be enforced 1 January 2015, Finnlines has ordered exhaust gas cleaning systems for six of its latest series of ro-ro vessels built 2011-2012, for four of its Star-class ro-pax vessels built 2006-2007 and for four of its ro-ro vessels built 2000-2002. These investments are part of the 2014 capex programmes. The scrubber systems will be installed during the end of 2014 and the beginning of 2015. By selecting these scrubber systems, the vessels will be able to operate in compliance with the new environmental regulations while continuing to operate on heavy fuel oil. At the same time, Finnlines has ordered an improvement retrofit to the propulsion system to be installed on four Star-class ro-pax vessels. At the end of June, Finnlines ordered the same type of improvement retrofit to the propulsion systems of MS Finnmill and MS Finnpulp. These re-blading projects will be done during the turn of the year. This new propeller and rudder system improves substantially the vessels’ relative propulsion efficiency and as a result, the vessels achieve a reduction in fuel consumption.
PERSONNEL
The Group employed an average of 1,729 (1,878) persons during the period, consisting of 778 (927) persons on shore and 951 (951) persons at sea. The average number of shore personnel decreased mostly due to employee reductions in Port Operations. The number of persons employed at the end of the period was1,628 (1,834) in total, of which 709 (927) on shore and 919 (907) at sea. The personnel expenses (including social costs) for the reporting period were EUR -67.2 (-78.4) million.
THE FINNLINES SHARE
The Company’s registered share capital on 30 September 2014 was EUR 103,006,282 divided into 51,503,141 shares. A total of 4.0 (0.8) million shares were traded on the NASDAQ OMX Helsinki during January-September. The market capitalisation of the Company’s stock at the end of September was EUR 772.5 (321.9) million. Earnings per share (EPS) were EUR 0.64 (-0.08). Shareholders’ equity per share was EUR 9.63 (8.78). At the end of the reporting period, the Grimaldi Group’s holding and share of votes in Finnlines was 77.76 per cent.
RISKS AND RISK MANAGEMENT
Finnlines is exposed to business risks that arise from capacity of the fleet existing in the market, counterparties, prospects for export and import of goods, and changes in the operating environment. The risk of overcapacity is reduced when the aging fleet is scrapped, on the one hand, and when more stringent sulphur directive requirements come into force, on the other. Finnlines operates mainly in the Emissions Control Areas where the emission regulations are stricter than globally. The sulphur content limit for heavy fuel oil will decrease to 0.1 per cent in 2015 in accordance with the MARPOL Convention. This brings a risk of increased costs in sea transportation. But considering that Finnlines has one of the youngest and largest fleet in Northern Europe, and the Company is doing targeted investment on engine systems and energy efficiency, Finnlines is in the strong position to greatly mitigate this risk. The effect of fluctuations in the foreign trade is reduced by the fact that the Company operates in several geographical areas. This means that slow growth in one country is compensated by faster recovery in another. Finnlines continuously monitors the solidity and payment schedules of its customers and suppliers. Currently, there are no indications of risks related to counterparties and Finnlines continues to monitor the financial position of its counterparties. Finnlines holds adequate credit lines to maintain liquidity in the current business environment.
LEGAL PROCEEDINGS
The 2013 Financial statements, published in 27 February 2014, contain a description of ongoing legal proceedings.
CORPORATE GOVERNANCE
Finnlines applies the Finnish Corporate Governance Code for listed companies. The Corporate Governance Statement can be reviewed on the corporate website: www.finnlines.com.
EVENTS AFTER THE REPORTING PERIOD
In October, Finnlines has sold MS Finnhansa to the Grimaldi Group at a market price of EUR 30 million and Finnlines Plc’s subsidiary has signed the sales agreement of MS Euroferry Brindisi (MS Finnarrow) with an external party at a market price of EUR 32.5 million. These actions, when concluded, will lead in Finnlines Group to a cumulative additional cash-flow of EUR 62.5 million, gains on sales of approximately EUR 3.5 million and an equity ratio improvement to around 40 per cent in the fourth quarter.
OUTLOOK AND OPERATING ENVIRONMENT
The Finnlines Group’s result before taxes is expected to continue to be better for the remaining part of 2014 compared to the corresponding period in the previous year due to several reasons: certain vessels have been sold to cut overcapacity, the number of personnel has been reduced, changes in fleet/routes have increased operational efficiency, fuel consumption has been reduced, overall productivity has been increased, and the interest bearing debt has been reduced.
The Group Financial Statement bulletin for the period of 1 January-31 December 2014 will be published on Tuesday, 24 February 2015.
Finnlines Plc
The Board of Directors
Emanuele Grimaldi
President and CEO
ENCLOSURES
- Reporting and accounting policies
- Consolidated statement of comprehensive income, IFRS
- Consolidated statement of financial position, IFRS
- Consolidated statement of changes in equity, IFRS
- Consolidated cash flow statement, IFRS (condensed)
- Revenue and result by business segments
- Property, plant and equipment
- Contingencies and commitments
- Revenue and result by quarter
- Shares, market capitalisation and trading information
- Calculation of ratios
- Related party transactions
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main media
This interim report is unaudited.
REPORTING AND ACCOUNTING POLICIES
This interim report included herein is prepared in accordance with IAS 34 (Interim Financial Reporting) standard. The Company has adopted new or revised IFRS standards and IFRIC interpretations from the beginning of the reporting period corresponding to those described in the 2013 Financial Statements with effect of 1 January 2014. These new or revised standards have not had an effect on the reported figures.
Finnlines Plc entered into the tonnage taxation regime in January 2013. In tonnage taxation, shipping operations transferred from taxation of business income to tonnage-based taxation.
In other respects, the same accounting policies have been applied as in the previous annual financial statements.
All figures in the accounts have been rounded and, consequently, the sum of individual figures may deviate from the presented sum figure.
The preparation of the interim financial statements in accordance with IFRS requires management to make estimates and assumptions and use its discretion in applying the accounting principles that affect the valuation of the reported assets and liabilities and other information such as contingent liabilities and the recognition of income and expenses in the income statement. Although the estimates are based on the management’s best knowledge of current events and actions, actual results may differ from the estimates. The uncertainties related to the key assumptions were the same as those applied to the consolidated financial statements at the year-end 31 December 2013.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
| EUR 1,000 | 7-9 2014 | 7-9 2013 | 1-9 2014 | 1-9 2013 | 1-12 2013 |
| Revenue | 143,673 | 149,661 | 413,813 | 433,303 | 563,587 |
| Other income from operations | 888 | 1,853 | 3,057 | 2,636 | 5,329 |
| Materials and services | -50,535 | -59,465 | -149,296 | -178,021 | -229,690 |
| Personnel expenses | -19,933 | -23,887 | -67,150 | -78,427 | -102,584 |
|
Depreciation, amortisation and impairment losses |
-14,079 | -16,823 | -43,384 | -50,668 | -65,583 |
| Other operating expenses | -37,159 | -39,609 | -108,927 | -116,062 | -152,983 |
| Total operating expenses | -121,706 | -139,784 | -368,757 | -423,178 | -550,840 |
| Result before interest and taxes (EBIT) | 22,855 | 11,729 | 48,113 | 12,761 | 18,075 |
| Financial income | 146 | 107 | 342 | 348 | 526 |
| Financial expenses | -5,498 | -6,262 | -17,181 | -19,210 | -25,335 |
| Result before taxes (EBT) | 17,502 | 5,575 | 31,273 | -6,101 | -6,734 |
| Income taxes | 645 | 554 | 1,910 | 2,232 | 12,744 |
| Result for the reporting period | 18,147 | 6,128 | 33,183 | -3,869 | 6,011 |
| Other comprehensive income: | |||||
|
Other comprehensive income to be reclassified to profit and loss in subsequent periods: |
|||||
|
Exchange differences on translating foreign operations |
15 | 14 | 34 | -10 | -9 |
| Changes in cash flow hedging reserve | |||||
| Fair value changes | |||||
| Transfer to fixed assets | |||||
| Tax effect, net | -4 | -5 | -6 | 2 | 2 |
|
Other comprehensive income to be reclassified to profit and loss in subsequent periods, total |
11 | 8 | 28 | -7 | -7 |
|
Other comprehensive income not being reclassified to profit and loss in subsequent periods: |
|||||
| Remeasurement of defined benefit plans | -399 | ||||
| Tax effect, net * | 0 | 212 | 1 | ||
|
Other comprehensive income not being reclassified to profit and loss in subsequent periods, total |
0 | 212 | -398 | ||
|
Total comprehensive income for the reporting period |
18,158 | 6,136 | 33,422 | -3,877 | 5,606 |
|
Result for the reporting period attributable to: |
|||||
| Parent company shareholders | 18,132 | 6,076 | 33,193 | -3,879 | 5,997 |
| Non-controlling interests | 15 | 52 | -10 | 10 | 14 |
| 18,147 | 6,128 | 33,183 | -3,869 | 6,011 | |
|
Total comprehensive income for the reporting period attributable to: |
|||||
| Parent company shareholders | 18,143 | 6,084 | 33,433 | -3,887 | 5,592 |
| Non-controlling interests | 15 | 52 | -10 | 10 | 14 |
| 18,158 | 6,136 | 33,422 | -3,877 | 5,606 | |
|
Result for the reporting period attributable to parent company shareholders calculated as earnings per share (EUR/share): |
|||||
| Undiluted / diluted earnings per share | 0.35 | 0.12 | 0.64 | -0.08 | 0.12 |
| Average number of shares: | |||||
| Undiluted / diluted | 51,503,141 | 51,503,141 | 51,503,141 | 49,202,477 | 49,782,370 |
The majority of amounts included in Comprehensive income relates to tonnage tax scheme. There is no tax on this income.
* Tax asset has been posted from remeasurement because Finnlines Deutschland GmbH transferred from tonnage-based taxation to business taxation at the end of January 2014. The company entered into business taxation as from 1 February 2014.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
| EUR 1,000 | 30 Sep 2014 | 30 Sep 2013 | 31 Dec 2013 |
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 986,021 | 1,098,516 | 1,084,389 |
| Goodwill | 105,644 | 105,644 | 105,644 |
| Intangible assets | 5,717 | 5,941 | 5,836 |
| Other financial assets | 4,580 | 4,581 | 4,580 |
| Receivables | 1,018 | 483 | 43 |
| Deferred tax assets | 1,599 | 1,428 | 1,370 |
| 1,104,579 | 1,216,592 | 1,201,861 | |
| Current assets | |||
| Inventories | 8,496 | 11,360 | 8,832 |
| Accounts receivable and other receivables | 97,011 | 90,475 | 85,251 |
| Income tax receivables | 185 | 1 | 1 |
| Cash and cash equivalents | 2,454 | 4,099 | 2,508 |
| 108,145 | 105,934 | 96,592 | |
| Non current assets held for sale | 74,086 | 36,620 | |
| Total assets | 1,286,810 | 1,359,146 | 1,298,453 |
| EQUITY | |||
| Equity attributable to parent company shareholders | |||
| Share capital | 103,006 | 103,006 | 103,006 |
| Share premium account | 24,525 | 24,525 | 24,525 |
| Fair value reserve | |||
| Translation differences | 136 | 109 | 109 |
| Fund for invested unrestricted equity | 40,016 | 40,016 | 40,016 |
| Retained earnings | 328,046 | 284,773 | 294,641 |
| 495,730 | 452,429 | 462,297 | |
| Non-controlling interests | 308 | 848 | 360 |
| Total equity | 496,038 | 453,277 | 462,658 |
| LIABILITIES | |||
| Long-term liabilities | |||
| Deferred tax liabilities | 55,596 | 68,497 | 57,560 |
| Interest-free liabilities | 2,550 | 4,349 | 3,242 |
| Pension liabilities | 3,961 | 3,711 | 3,982 |
| Provisions | 1,889 | 5,052 | 1,980 |
| Interest-bearing liabilities | 485,988 | 549,404 | 557,759 |
| 549,983 | 631,014 | 624,523 | |
| Current liabilities | |||
| Accounts payable and other liabilities | 79,589 | 78,864 | 72,815 |
| Income tax liabilities | 16 | 25 | 27 |
| Provisions | 103 | 60 | 3,715 |
| Current interest-bearing liabilities | 152,560 | 195,907 | 134,715 |
| 232,268 | 274,856 | 211,273 | |
| Total liabilities | 782,251 | 905,869 | 835,796 |
| Liabilities directly attributable to non-current assets held for sale | 8,521 | ||
| Total equity and liabilities | 1,286,810 | 1,359,146 | 1,298,453 |
CONSOLIDATED statement of changes in equity 2013, IFRS
| EUR 1,000 | Equity attributable to parent company shareholders | ||||||||
|
Share capital |
Share issue pre -mium |
Trans- lation diffe- rences |
Fair value reserves |
Unres- tricted equity reserve |
Retained earnings |
Total |
Non- control- ling interests |
Total equity |
|
|
Reported equity 1 January 2013 |
93,642 |
24,525 |
116 |
21,015 |
289,990 |
429,289 |
838 |
430,127 |
|
|
Effect of IAS 19 Employee benefits standard |
-1,338 |
-1,338 |
-1,338 |
||||||
|
Restated equity 1 January 2013 |
93,642 |
24,525 |
116 |
21,015 |
288,652 |
427,951 |
838 |
428,788 |
|
|
Comprehen- sive income for the reporting period: |
|||||||||
|
Result for the reporting period |
-3,879 |
-3,879 |
10 |
-3,869 |
|||||
|
Exchange differences on translating foreign operations |
-10 |
-10 |
-10 |
||||||
| Tax effect, net | 2 | 2 | 2 | ||||||
|
Total comprehensive income for the reporting period |
-7 |
-3,879 |
-3,887 |
10 |
-3,877 |
||||
| Share issue | 9,364 | 19,001 | 28,365 | 28,365 | |||||
|
Equity 30 September 2013 |
103,006 |
24,525 |
109 |
40,016 |
284,773 |
452,429 |
848 |
453,277 |
|
CONSOLIDATED statement of changes in equity 2014, IFRS
| EUR 1,000 | Equity attributable to parent company shareholders | ||||||||
|
Share capital |
Share issue premium |
Trans- lation diffe- rences |
Fair value reserves |
Unres- tricted equity reserve |
Retai- ned earnings |
Total |
Non- contr- olling interests |
Total equity |
|
|
Reported equity 1 January 2014 |
103,006 |
24,525 |
109 |
40,016 |
294,641 |
462,297 |
360 |
462,658 |
|
|
Effect of IAS 19 Employee benefits standard |
|||||||||
|
Restated equity 1 January 2014 |
103,006 |
24,525 |
109 |
40,016 |
294,641 |
462,297 |
360 |
462,658 |
|
|
Comprehen- sive income for the reporting period: |
|||||||||
|
Result for the reporting period |
33,193 |
33,193 |
-10 |
33,183 |
|||||
|
Exchange differences on translating foreign operations |
34 |
34 |
34 |
||||||
| Tax effect, net | -6 | 212 | 206 | 206 | |||||
|
Total comprehensive income for the reporting period |
28 |
33,405 |
33,433 |
-10 |
33,422 |
||||
| Dividend | -42 | -42 | |||||||
|
Equity 30 September 2014 |
103,006 |
24,525 |
136 |
40,016 |
328,046 |
495,730 |
308 |
496,038 |
|
CONSOLIDATED CASH FLOW STATEMENT, IFRS
| EUR 1,000 | 1-9 2014 | 1-9 2013 | 1-12 2013 |
| Cash flows from operating activities | |||
| Result for the reporting period | 33,183 | -3,869 | 6,011 |
| Adjustments: | |||
| Non-cash transactions | 41,788 | 48,970 | 61,609 |
| Unrealised foreign exchange gains (-) / losses (+) | -45 | 33 | 19 |
| Financial income and expenses | 16,884 | 18,829 | 24,790 |
| Taxes | -1,910 | -2,232 | -12,744 |
| Changes in working capital | |||
| Change in accounts receivable and other receivables | -16,676 | -16,273 | -6,402 |
| Change in inventories | 336 | -1,601 | 927 |
| Change in accounts payable and other liabilities | 4,934 | 8,467 | -170 |
| Change in provisions | -113 | -129 | 379 |
| Interest paid | -15,983 | -19,172 | -22,366 |
| Interest received | 113 | 121 | 192 |
| Taxes paid * | -3,885 | -406 | -423 |
| Other financing items | -3,080 | -2,491 | -3,645 |
| Net cash generated from operating activities | 55,547 | 30,248 | 48,175 |
| Cash flow from investing activities | |||
| Investments in tangible and intangible assets | -16,689 | -10,265 | -10,960 |
| Proceeds from sale of tangible assets | 7,801 | 86,503 | 120,647 |
| Dividends received | 13 | 12 | |
| Loans granted | -900 | ||
| Net cash used in investing activities | -9,775 | 76,238 | 109,699 |
| Cash flows from financing activities | |||
| Proceeds from issue of share capital | 28,365 | 28,365 | |
| Loan withdrawals | 135,475 | 173,773 | 263,772 |
| Net increase in current interest-bearing liabilities | 17,556 | 43 | -14,198 |
| Repayment of loans | -199,166 | -321,077 | -449,914 |
| Acquisition of non-controlling interest | -102 | ||
| Decrease in long-term receivables | 350 | 229 | 429 |
| Dividends paid | -42 | ||
| Net cash used in financing activities | -45,827 | -118,667 | -171,647 |
| Change in cash and cash equivalents | -55 | -12,181 | -13,772 |
| Cash and cash equivalents 1 January | 2,508 | 16,282 | 16,282 |
| Effect of foreign exchange rate changes | 0 | -3 | -2 |
| Cash and cash equivalents at the end of period | 2,454 | 4,099 | 2,508 |
* Taxes paid includes Finnlines Deutschland GmbH’s payment of tax provision EUR 3.6 million.
REVENUE AND RESULT BY BUSINESS SEGMENTS
| 7-9 2014 | 7-9 2013 | 1-9 2014 | 1-9 2013 | 1-12 2013 | ||||||
| MEUR | % | MEUR | % | MEUR | % | MEUR | % | MEUR | % | |
| Revenue | ||||||||||
| Shipping and sea transport services | 140.0 | 97.4 | 144.2 | 96.3 | 401.9 | 97.1 | 413.8 | 95.5 | 538.6 | 95.6 |
| Port operations | 8.5 | 5.9 | 11.4 | 7.6 | 28.6 | 6.9 | 38.5 | 8.9 | 50.1 | 8.9 |
| Intra-group revenue | -4.8 | -3.3 | -5.9 | -4.0 | -16.8 | -4.0 | -19.0 | -4.4 | -25.1 | -4.5 |
| External sales | 143.7 | 100.0 | 149.7 | 100.0 | 413.8 | 100.0 | 433.3 | 100.0 | 563.6 | 100.0 |
| Result before interest and taxes | ||||||||||
| Shipping and sea transport services | 22.1 | 13.5 | 49.8 | 19.7 | 27.9 | |||||
| Port operations | 0.7 | -1.8 | -1.7 | -7.0 | -9.8 | |||||
| Result before interest and taxes (EBIT) total | 22.8 | 11.7 | 48.1 | 12.8 | 18.1 | |||||
| Financial items | -5.3 | -6.2 | -16.8 | -18.9 | -24.8 | |||||
| Result before taxes (EBT) | 17.5 | 5.6 | 31.3 | -6.1 | -6.7 | |||||
| Income taxes | 0.6 | 0.6 | 1.9 | 2.2 | 12.7 | |||||
| Result for the reporting period | 18.1 | 6.1 | 33.2 | -3.9 | 6.0 | |||||
PROPERTY, PLANT AND EQUIPMENT 2014
| EUR 1,000 | Land | Buildings | Vessels | Machinery and equipment |
** Advance payments & acquisitions under construction |
Total |
| Acquisition cost 1 January 2014 | 72 | 75,271 | 1,372,769 | 73,122 | 398 | 1,521,632 |
| Exchange rate differences | 36 | 36 | ||||
| Increases | 4,068 | 116 | 15,664 | 19,849 | ||
| Disposals | -2,062 | -261 | -6,698 | -9,021 | ||
|
Reclassifications to non-current assets held for sale * |
-4,369 | -94,603 | -22,395 | -121,367 | ||
|
Acquisition cost 30 September 2014 |
72 | 68,840 | 1,281,974 | 44,181 | 16,062 | 1,411,128 |
|
Accumulated depreciation, amortisation and write-offs 1 January 2014 |
-16,316 | -373,866 | -47,060 | -437,243 | ||
| Exchange rate differences | -33 | -33 | ||||
|
Reclassification to non-current assets held for sale * |
1,132 |
35,638 |
10,510 | 47,280 | ||
|
Cumulative depreciation on reclassifications and disposals |
1,012 |
261 |
6,223 | 7,496 | ||
|
Depreciation for the reporting period |
-1,815 | -39,060 | -1,733 | -42,609 | ||
|
Accumulated depreciation, amortisation and write-offs 30 September 2014 |
-15,986 | -377,028 | -32,093 | -425,108 | ||
| Book value 30 September 2014 | 72 | 52,853 | 904,946 | 12,088 | 16,062 | 986,021 |
* Finnlines Group is negotiating to sell two vessels with the book value of EUR 58.9 million and the Port Operations are negotiating to sell port assets with the book value of around EUR 15.1 million. No impairment losses have been recognized on the carrying amount of the assets.
** Includes mainly advance payments for the scrubber system.
PROPERTY, PLANT AND EQUIPMENT 2013
| EUR 1,000 | Land | Buildings | Vessels |
Machinery and equipment |
Advance payments & acquisitions under construction |
Total |
|
Acquisition cost 1 January 2013 |
72 | 76,466 | 1,597,437 | 79,690 | 991 | 1,754,655 |
|
Exchange rate differences |
-13 | -13 | ||||
| Increases | 102 | 8,463 | 479 | 23 | 9,067 | |
|
Reclassifi cations to non-current assets held for sale * |
-126,855 | -237 | -127,092 | |||
| Disposals | -803 | -106,412 | -6,344 | -113,559 | ||
|
Reclassifi cations |
406 | 5 | -410 | 0 | ||
|
Acquisition cost 30 September 2013 |
72 | 75,765 | 1,373,037 | 73,817 | 367 | 1,523,058 |
|
Accumulated depreciation, amortisation and write-offs 1 January 2013 |
-15,047 | -429,028 | -50,285 | -494,360 | ||
|
Exchange rate differences |
12 | 12 | ||||
|
Reclassifications to non-current assets held for sale * |
90,472 | 90,472 | ||||
|
Cumulative depreciation on reclassifi cations and disposals |
801 | 21,612 | 6,579 | 28,991 | ||
|
Depreciation for the reporting period |
-1,919 | -44,575 | -3,163 | -49,657 | ||
|
Accumulated depreciation, amortisation and write-offs 30 September 2013 |
-16,166 | -361,518 | -46,858 | -424,542 | ||
|
Book value 30 September 2013 |
72 | 59,599 | 1,011,519 | 26,959 | 367 | 1,098,516 |
CONTINGENCIES AND COMMITMENTS
| EUR 1,000 | 30 Sep 2014 | 30 Sep 2013 | 31 Dec 2013 |
| Minimum leases payable in relation to fixed-term leases: | |||
| Vessel leases (Group as lessee): | |||
| Within 12 months | 11,492 | 13,934 | 14,007 |
| 1-5 years | 2,683 | 14,175 | 10,644 |
| 14,175 | 28,109 | 24,651 | |
| Vessel leases (Group as lessor): | |||
| Within 12 months | 2,446 | 1,580 | 2,356 |
| 1-5 years | 5,847 | 4,749 | 7,457 |
| 8,293 | 6,329 | 9,812 | |
| Other leases (Group as lessee): | |||
| Within 12 months | 6,307 | 5,658 | 6,107 |
| 1-5 years | 17,619 | 17,177 | 17,948 |
| After five years | 10,117 | 13,127 | 12,358 |
| 34,043 | 35,962 | 36,413 | |
| Other leases (Group as lessor): | |||
| Within 12 months | 245 | 364 | 350 |
| 245 | 364 | 350 | |
| Collateral given | |||
| Loans from financial institutions | 520,024 | 601,095 | 561,245 |
| Vessel mortgages provided as guarantees for the above loans | 1,035,000 | 1,136,000 | 1,121,000 |
| Other collateral given on own behalf | |||
| Pledged deposits | 0 | 11 | |
| Corporate mortgages | 606 | 606 | 606 |
| 606 | 617 | 606 | |
| Other obligations * | 43,782 | 2,777 | 2,375 |
| VAT adjustment liability related to real estate investments | 5,674 | 6,953 | 6,756 |
* 2014 includes scrubber system and re-blading obligations EUR 42.1 million.
REVENUE AND RESULT BY QUARTER
| MEUR | Q1/14 | Q1/13 | Q2/14 | Q2/13 | Q3/14 | Q3/13 |
| Shipping and sea transport services | 122.8 | 126.0 | 139.1 | 143.6 | 140.0 | 144.2 |
| Port operations | 10.0 | 14.3 | 10.2 | 12.8 | 8.5 | 11.4 |
| Intra-group revenue | -6.0 | -6.4 | -5.9 | -6.7 | -4.8 | -5.9 |
| External sales | 126.8 | 133.9 | 143.3 | 149.7 | 143.7 | 149,7 |
| Result before interest and taxes | ||||||
| Shipping and sea transport services | 7.3 | -3.6 | 20.4 | 9.8 | 22.1 | 13,5 |
| Port operations | -1.8 | -2.2 | -0.6 | -3.0 | 0.7 | -1,8 |
| Result before interest and taxes (EBIT) total | 5.4 | -5.8 | 19.8 | 6.9 | 22.8 | 11,7 |
| Financial items | -5.8 | -6.2 | -5.7 | -6.5 | -5.3 | -6,2 |
| Result before taxes (EBT) | -0.4 | -12.1 | 14.1 | 0.4 | 17.5 | 5,6 |
| Income taxes | 0.7 | 1.2 | 0.6 | 0.5 | 0.6 | 0,6 |
| Result for the reporting period | 0.3 | -10.9 | 14.7 | 0.9 | 18.1 | 6,1 |
| EPS (undiluted / diluted)* | 0.01 | -0.23 | 0.29 | 0.02 | 0.35 | 0,12 |
* Key indicators per share have been adjusted with the share issue adjustment factor.
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
| 30 Sep 2014 | 30 Sep 2013 | |
| Number of shares | 51,503,141 | 51,503,141 |
| Market capitalisation, EUR million | 772.5 | 321.9 |
| 1-9 2014 | 1-9 2013 | |
| Number of shares traded, million | 4.0 | 0.8 |
| 1-9 2014 | ||||
| High | Low | Average | Close | |
| Share price | 15.01 | 7.14 | 8.95 | 15.00 |
CALCULATION OF RATIOS
Earnings per share (EPS), EUR :
Result attributable to parent company shareholders
-------------------------------------------------------------------------
Weighted average number of outstanding shares
Shareholders’ equity per share, EUR :
Shareholders’ equity attributable to parent company shareholders
-------------------------------------------------------------------------------------------
Undiluted number of shares at the end of period
Gearing, %:
Interest-bearing liabilities - cash and bank equivalents
--------------------------------------------------------------------------- X 100
Total equity
Equity ratio, %:
Total equity
--------------------------------------------- X 100
Assets total - received advances
Income tax expense is recognised based on the best estimate of the weighted-average annual income tax rate expected for the full financial year. In January 2013, the shipping operations of Finnlines Plc transferred to tonnage-based taxation.
At the end of January 2014, Finnlines Deutschland GmbH transferred from tonnage-based taxation to business taxation. The company entered into business taxation as from 1 February 2014.
RELATED PARTY TRANSACTIONS
There were no material related party transactions during the reporting period.
