Helsinki, Finland, 2015-02-24 14:30 CET (GLOBE NEWSWIRE) --
FINNLINES PLC
FINANCIAL STATEMENT BULLETIN JANUARY-DECEMBER 2014 (unaudited) Stock Exchange Release 24 February 2015 at 15:30
JANUARY-DECEMBER 2014: Result before taxes (EBT) improved over EUR 43 million
- Revenue EUR 532.9 (563.6 prev. year) million, decrease 5.4 per cent
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR 115.4 (83.7) million, increase 37.9 per cent
- Result for the reporting period EUR 41.7 (6.0) million
- Earnings per share were 0.81 (0.12) EUR/share
- Interest-bearing debt decreased EUR 118.9 million and was EUR 552.5 (671.3) million at the end of the period
- Fuel consumption reduced by 7 per cent
OCTOBER-DECEMBER 2014: Strong result performance continued during the last quarter
- Revenue EUR 119.1 (130.3 prev. year) million, decrease 8.6 per cent
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR 23.9 (20.2) million, increase 18.2 per cent
- Result for the reporting period EUR 8.5 (9.9) million
- Earnings per share were 0.17 (0.19) EUR/share
KEY FIGURES
| MEUR | 1-12 2014 | 1-12 2013 | 10-12 2014 | 10-12 2013 |
| Revenue | 532.9 | 563.6 | 119.1 | 130.3 |
|
Result before interest, taxes, depreciation and amortisation (EBITDA) |
115.4 | 83.7 |
23.9 |
20.2 |
|
Result before interest and taxes (EBIT) |
58.6 | 18.1 | 10.5 | 5.3 |
| % of revenue | 11.0 | 3.2 | 8.8 | 4.1 |
|
Result for the reporting period |
41.7 | 6.0 | 8.5 | 9.9 |
| EPS, EUR | 0.81 | 0.12 | 0.17 | 0.19 |
|
Shareholders’ equity/share, EUR |
9.78 | 8.98 | 9.78 | 8.98 |
| Equity ratio, % | 41.7 | 35.7 | 41.7 | 35.7 |
|
Interest bearing debt, MEUR |
552.5 | 671.3 | 552.5 | 671.3 |
| Gearing, % | 113.0 | 149.1 | 113.0 | 149.1 |
EMANUELE GRIMALDI, PRESIDENT AND CEO, IN CONJUNCTION WITH THE REVIEW:
Finnlines Group’s result for the period, EUR 41.7 million, has added value to our shareholders through 113.3 per cent share price increase
"Finnlines Group made a remarkable turnaround which generated strong shareholder value during the financial year 2014. Result before taxes (EBT) increased by more than EUR 43 million compared to previous year. During 2014, the Company focused on improving its operations and profitability. We still continue to analyse every vessel, every line and every function in order to investigate whether there is opportunity for further improvement and react quickly if overcapacity exists or other measures are required. We have also focused on improving our capital structure. The turnaround programme striving towards cost efficiency has been well implemented and Finnlines Group’s improved quarterly results have enabled us to further reduce our interest bearing debt. The interest bearing debt was reduced by EUR 119 million, even though we, at the same time, have been implementing our EUR 65 million capex programme. The Group's equity ratio rose to 41.7 per cent and our liquidity position is strong, cash and unused committed credit facilities amounted to over EUR 123 million at the end of the financial year. At the beginning of 2015, we are installing scrubbers and new propeller and rudder systems into a great number of vessels which, in turn, might cause some occasional disruption to our service. We have further strengthened our fleet with three ro-ro vessels which will on longer-term provide our clients high-class service with the most environment-friendly vessels and enable competitive sea transport services to our customers also in the future."
FINNLINES PLC, FINANCIAL STATEMENT BULLETIN JANUARY-DECEMBER 2014 (unaudited)
FINNLINES’ BUSINESS
Finnlines is the largest shipping company in the Baltic Sea based on both ro-ro and ro-pax volumes (source: Baltic Transportation Journal). The Company's 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 24 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 79.96 per cent (on 31 December 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-December, the Finnish seaborne imports carried in container, lorry and trailer units remained on the same level whereas exports increased by 3 per cent (measured in tons) compared to the same period from 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 10 per cent (Finnish Transport Agency).
FINNLINES’ TRAFFIC
During the fourth quarter, Finnlines operated on average 23 (24 in 2013) vessels in its own traffic.
In October, Finnlines extended its North Sea services by adding a weekly call at Paldiski in Estonia. The port of Paldiski offers very good rail connections to Central Asia and Siberia.
The cargo volumes transported during January-December totalled approximately 638 (632 in 2013) thousand cargo units, 99 (66) thousand cars (not including passengers’ cars) and 2,388 (2,248) thousand tons of freight not possible to measure in units. In addition, some 561 (556) thousand private and commercial passengers were transported.
FINANCIAL RESULTS
January-December 2014
The Finnlines Group recorded revenue totalling EUR 532.9 (563.6) million in 2014, a decrease of 5.4 per cent compared to the same period in the previous year. Shipping and Sea Transport Services generated revenue amounting to EUR 517.4 (538.6) million and Port Operations EUR 36.9 (50.1) million. In Shipping and Sea Transport Services the revenue decreased due to the lower bunker surcharge and lower charter income due to divestment of vessels. In Port Operations the revenue decreased due to the re-structuring measures taken. The internal revenue between the segments was EUR 21.3 (25.1) million.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR 115.4 (83.7) million, an increase of 37.9 per cent.
Result before interest and taxes (EBIT) was EUR 58.6 (18.1) million. The increased efficiency of the operations i.e. lower bunker consumption, higher capacity utilisation of vessels and reduction of costs in many areas continued to impact the financial performance of the Group.
Net financial expenses decreased and were EUR -21.9 (-24.8) million. Financial income was EUR 0.5 (0.5) million and financial expenses EUR -22.4 (-25.3) million. Result before taxes (EBT) improved by EUR 43.4 million and was EUR 36.6 (-6.7) million. The above mentioned increased operational efficiency, decreased net financial expenses, and above all, cutting of the vessel overcapacity through the sale of three vessels at the end of 2013 and another two vessels during the last quarter 2014, which enabled better optimisation of the existing tonnage, altogether contributed to a EUR 37.1 million increase in the result for the reporting period. The result for the reporting period was EUR 41.7 (6.0) million and earnings per share (EPS) were EUR 0.81 (0.12).
October-December 2014
The Finnlines Group recorded revenue totalling EUR 119.1 (130.3) million in the fourth quarter, a decrease of 8.6 per cent compared to the same period in the previous year. Shipping and Sea Transport Services generated revenue amounting to EUR 115.4 (124.8) million and Port Operations EUR 8.2 (11.6) million. The internal revenue between the segments was EUR 4.6 (6.1) million. The result is affected by the seasonality of the cargo volumes, which are typically on a lower level at the turn of the year. The number of passengers is also modest during the autumn/winter period compared to the summer season. During the fourth quarter, the Company disposed of two ro-pax vessels and therefore the other operating income includes gains on sales of EUR 3.2 (1.8) million.
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR 23.9 (20.2) million, an increase of 18.2 per cent.
Result before interest and taxes (EBIT) was EUR 10.5 (5.3) million.
Net financial expenses were EUR -5.1(-5.9) million. Financial income was EUR 0.1 (0.2) million and financial expenses totalled EUR
-5.2 (-6.1) million. The result for the reporting period was EUR 8.5 (9.9) million. Earnings per share (EPS) decreased to EUR 0.17 (0.19).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing debt decreased significantly by EUR 118.9 million and amounted to EUR 552.5 (671.3) million excluding leasing liabilities EUR 19.6 (21.1) million. The equity ratio calculated from the balance sheet improved to 41.7 (35.7) per cent and gearing dropped to 113.0 (149.1) per cent. Vessel lease commitments decreased by EUR 13.2 million to EUR 11.4 million compared to the end of December 2013.
The Group's liquidity position was strengthened and at the end of the period, cash and cash equivalents together with unused committed credit facilities grew by EUR 57.2 million amounting to EUR 123.1 (65.9) million.
Net cash generated from operating activities improved considerably and was EUR 82.1 (48.2) million before capex and divestments.
During the fourth quarter, Finnlines sold two vessels, MS Finnhansa to the Grimaldi Group and MS Finnarrow to an external party, at a total price of EUR 62.5 million.
CAPITAL EXPENDITURE
Finnlines Group’s gross capital expenditure in the reporting period totalled EUR 36.6 (10.1) million including tangible and intangible assets. Total depreciation decreased to EUR 56.8 (65.6) 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.
The new stricter environmental regulations for the fuel sulphur limit came into force as from 1 January 2015. For this reason, Finnlines ordered exhaust gas cleaning systems ("scrubbers") for six of its latest series of ro-ro vessels built in 2011-2012, for four of its Star-class ro-pax vessels built in 2006-2007 and for four of its ro-ro vessels built in 2000-2002. These investments are part of the 2014 EUR 65 million capex programme. The actual installations of scrubbers started in late 2014 and are scheduled to be finished in spring 2015. These cleaning systems enable the vessels to operate in compliance with the new environmental regulations. Finnlines has also ordered an improvement retrofit to the propulsion system on four Star-class ro-pax vessels and on two ro-ro vessels. This propulsion upgrading project started also at the turn of the year. The new system will substantially improve the vessels’ relative propulsion efficiency and, as a result, reduce their fuel consumption.
PERSONNEL
The Group employed an average of 1,701 (1,861) persons during the period, consisting of 759 (918) persons on shore and 942 (943) persons at sea. The number of persons employed at the end of the period were 1,635 (1,806) in total, of which 716 (898) on shore and 919 (908) at sea.
The average number of shore personnel decreased mostly due to employee reductions in Port Operations. Containersteve Oy Ab’s adaptation negotiations were initiated in the Port of Kotka in January 2014, which resulted in the termination of all 36 employments in Kotka.
The Group’s personnel expenses for the reporting period were EUR 88.4 (102.6) million social costs included.
THE FINNLINES SHARE
The Company’s registered share capital on 31 December 2014 was EUR 103,006,282 divided into 51,503,141 shares. A total of 5.1 (2.2) million shares were traded on the NASDAQ OMX Helsinki during the reporting period. The market capitalisation of the Company’s stock at 31 December 2014 more than doubled compared to previous year and was EUR 824.1 (386.3) million. Earnings per share (EPS) were EUR 0.81 (0.12). Shareholders’ equity per share was EUR 9.78 (8.98). At the end of the reporting period, the Grimaldi Group’s holding and share of votes in Finnlines was 79.96 per cent.
RISKS AND RISK MANAGEMENT
Finnlines is exposed to business risks that arise from the 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 vessels are 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 was reduced to 0.10 per cent in 2015 in accordance with the MARPOL Convention. This increases costs of sea transportation. However, with one of the youngest and largest fleets in Northern Europe and with investments targeted in engine systems and energy efficiency, Finnlines is in a 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 imminent risks related to counterparties but the Company 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 2014 Financial statements, published on 24 February 2015, 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
Finnlines has signed a purchase agreement of two ro-ro vessels in January 2015. The vessels will be put into Finnlines liner traffic at the end of 2015. Furthermore in January 2015, Finnlines bought MS Finnmerchant (ex MS Dorset, ex MS Longstone), which is deployed on the route between Rostock and Hanko as from 19 January 2015. The acquired ro-ro vessels will complement Finnlines’ liner services offered to customers and strengthen the competitiveness of Finnlines fleet.
In October, Finnlines Plc announced that it has participated in the privatisation of the Polish shipping company, Polferries. In January 2015, Ministry of Treasury of Poland announced that Finnlines Plc was accepted among the three bidders to the final stage of the privatisation negotiations.
OUTLOOK AND OPERATING ENVIRONMENT
The ongoing capex programme affects smoothness of operations during the first three months of the financial year 2015, because fourteen scrubbers and six propulsion systems are being installed. However, Finnlines Group’s result before taxes is expected to be better in 2015 compared to the same period in the previous year due to several reasons: the company has been able to reduce the overcapacity, new Rostock-Hanko route with recently acquired MS Finnmerchant is in full operation, fuel consumption is further reduced due to energy-saving measures and technological improvements in our vessels, and, efficient fleet planning and streamlining of every function bring cost savings.
DIVIDEND DISTRIBUTION PROPOSAL
The parent company Finnlines Plc’s result for the reporting period was EUR 4.2 million. The Board of Directors proposes to the Annual General Meeting that no dividend is paid for the reporting period ended on 31 December 2014 due to the ongoing extensive capital expenditure requirement for installing the scrubbers into Finnlines vessels in 2015.
ANNUAL GENERAL MEETING 2015
Finnlines Plc’s Annual General Meeting will be held from 13:00 on Tuesday, 14 April 2015 at the Havis Business Center, Unioninkatu 22, 00130 Helsinki.
The first interim report of 2015 for the period of 1 January-31 March 2015, will be published on Wednesday, 13 May 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 Group has adopted from the beginning of 2014 the following new standards, interpretations and amendments: IFRS 10, IFRS 11, IFRS 12, IAS 27 (revised), IAS 28 (revised), IAS 32 (amendment), IAS 36 (amendment), IAS 39 (amendment) and IFRIC 21 Levies). They did not have any material impact on the Group's consolidated financial statement.
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 | 10-12 2014 | 10-12 2013 | 1-12 2014 | 1-12 2013 |
| Revenue | 119,077 | 130,284 | 532,889 | 563,587 |
| Other income from operations | 3,719 | 2,693 | 6,776 | 5,329 |
| Materials and services | -42,150 | -51,670 | -191,445 | -229,690 |
| Personnel expenses | -21,268 | -24,158 | -88,418 | -102,584 |
|
Depreciation, amortisation and impairment losses |
-13,459 | -14,915 | -56,843 | -65,583 |
| Other operating expenses | -35,469 | -36,921 | -144,396 | -152,983 |
| Total operating expenses | -112,345 | -127,662 | -481,102 | -550,840 |
|
Result before interest and taxes (EBIT) |
10,451 | 5,314 | 58,563 | 18,075 |
| Financial income | 141 | 178 | 483 | 526 |
| Financial expenses | -5,231 | -6,126 | -22,412 | -25,335 |
| Result before taxes (EBT) | 5,361 | -633 | 36,634 | -6,734 |
| Income taxes | 3,169 | 10,513 | 5,079 | 12,744 |
| Result for the reporting period | 8,530 | 9,880 | 41,713 | 6,011 |
| Other comprehensive income: | ||||
|
Other comprehensive income to be reclassified to profit and loss in subsequent periods: |
||||
|
Exchange differences on translating foreign operations |
35 | 1 | 69 | -9 |
| Tax effect, net | 6 | -1 | 2 | |
|
Other comprehensive income to be reclassified to profit and loss in subsequent periods, total |
41 | 0 | 69 | -7 |
| Other comprehensive income not being reclassified to profit and loss in subsequent periods: | ||||
|
Remeasurement of defined benefit plans |
-844 | -399 | -844 | -399 |
| Tax effect, net * | 141 | 1 | 353 | 1 |
|
Other comprehensive income not being reclassified to profit and loss in subsequent periods, total |
-702 | -398 | -491 | -398 |
|
Total comprehensive income for the reporting period |
7,869 | 9,482 | 41,291 | 5,606 |
|
Result for the reporting period attributable to: |
||||
| Parent company shareholders | 8,532 | 9,876 | 41,726 | 5,997 |
| Non-controlling interests | -2 | 4 | -13 | 14 |
| 8,530 | 9,880 | 41,713 | 6,011 | |
|
Total comprehensive income for the reporting period attributable to: |
||||
| Parent company shareholders | 7,871 | 9,479 | 41,304 | 5,592 |
| Non-controlling interests | -2 | 3 | -13 | 14 |
| 7,869 | 9,482 | 41,291 | 5,606 | |
|
Result for the reporting period attributable to parent company shareholders calculated as earnings per share (EUR/share): |
||||
|
Undiluted / diluted earnings per share |
0.17 | 0.19 | 0.81 | 0.12 |
| Average number of shares: | ||||
| Undiluted / diluted | 51,503,141 | 51,503,141 | 51,503,141 | 49,782,370 |
The majority of amounts included in Comprehensive income relates to tonnage tax scheme.
* 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 | 31 Dec 2014 | 31 Dec 2013 |
| ASSETS | ||
| Non-current assets | ||
| Property, plant and equipment | 983,183 | 1,084,389 |
| Goodwill | 105,644 | 105,644 |
| Intangible assets | 5,500 | 5,836 |
| Other financial assets | 4,576 | 4,580 |
| Receivables | 838 | 43 |
| Deferred tax assets | 5,353 | 1,370 |
| 1,105,092 | 1,201,861 | |
| Current assets | ||
| Inventories | 5,926 | 8,832 |
| Accounts receivable and other receivables | 76,480 | 85,251 |
| Income tax receivables | 1 | 1 |
| Cash and cash equivalents | 2,680 | 2,508 |
| 85,086 | 96,592 | |
| Non current assets held for sale | 20,297 | |
| Total assets | 1,210,475 | 1,298,453 |
| EQUITY | ||
| Equity attributable to parent company shareholders | ||
| Share capital | 103,006 | 103,006 |
| Share premium account | 24,525 | 24,525 |
| Translation differences | 178 | 109 |
| Fund for invested unrestricted equity | 40,016 | 40,016 |
| Retained earnings | 335,876 | 294,641 |
| 503,601 | 462,297 | |
| Non-controlling interests | 306 | 360 |
| Total equity | 503,907 | 462,658 |
| LIABILITIES | ||
| Long-term liabilities | ||
| Deferred tax liabilities | 56,102 | 57,560 |
| Interest-free liabilities | 163 | 3,242 |
| Pension liabilities | 4,705 | 3,982 |
| Provisions | 1,844 | 1,980 |
| Interest-bearing liabilities | 420,722 | 557,759 |
| 483,536 | 624,523 | |
| Current liabilities | ||
| Accounts payable and other liabilities | 71,565 | 72,815 |
| Income tax liabilities | 72 | 27 |
| Provisions | 81 | 3,715 |
| Current interest-bearing liabilities | 142,967 | 134,715 |
| 214,685 | 211,273 | |
| Total liabilities | 698,220 | 835,796 |
|
Liabilities directly attributable to non- current assets held for sale |
8,348 | |
| Total equity and liabilities | 1,210,475 | 1,298,453 |
CONSOLIDATED statement of changes in equity 2013, IFRS
| EUR 1,000 | Equity attributable to parent company shareholders | |||||||
|
Share capi- tal |
Share issue pre- mium |
Trans- lation diffe- rences |
Unres- tric- ted equity re- serve |
Re- tained ear- nings |
Total |
Non-control- ling in- ter- ests |
Total equity |
|
|
Repor- ted equity 1 Janu- ary 2013 |
93,642 |
24,525 |
116 |
21,015 |
289,990 |
429,289 |
838 |
430,127 |
|
Effect of IAS 19 Em- ployee bene- fit stan- dard |
-1,338 |
-1,338 |
-1,338 |
|||||
|
Re- stated equity 1 Janu- ary 2013 |
93,642 |
24,525 |
116 |
21,015 |
288,652 |
427,951 |
838 |
428,788 |
|
Com- prehensive income for the repor- ting period: |
||||||||
|
Result for the repor- ting period |
5,997 |
5,997 |
14 |
6,011 |
||||
|
Ex- change dif- fer- ences on trans- lating for- eign opera- tions |
-9 |
-9 |
-9 |
|||||
|
Remea- sure- ment of de- fined bene- fit plans |
-399 |
-399 |
-399 |
|||||
|
Tax ef- fect, net |
2 | 1 | 3 | 3 | ||||
|
Total com- pre- hen- sive income for the repor- ting period |
-7 |
5,599 |
5,592 |
14 |
5,606 |
|||
|
Share issue |
9,364 | 19,001 | 28,365 | 28,365 | ||||
|
Changes in non-con- troll- ling inter- ests with- out change in con- troll- ling inter- est |
390 |
390 |
-491 |
-102 |
||||
|
Equity 31 De- cember 2013 |
103,006 |
24,525 |
109 |
40,016 |
294,641 |
462,297 |
360 |
462,658 |
CONSOLIDATED statement of changes in equity 2014, IFRS
| EUR 1,000 | Equity attributable to parent company shareholders | |||||||
|
Share capital |
Share issue pre- mium |
Trans- lation differences |
Unre- stricted equity re- serve |
Re- tained ear- nings |
Total |
Non-con- trol- ling in- ter- ests |
Total equity |
|
|
Re- ported equity 1 Janu- ary 2014 |
103,006 |
24,525 |
109 |
40,016 |
294,641 |
462,297 |
360 |
462,658 |
|
Effect of IAS 19 Em- ployee bene- fits stan- dard |
||||||||
|
Resta- ted equity 1 Janu- ary 2014 |
103,006 |
24,525 |
109 |
40,016 |
294,641 |
462,297 |
360 |
462,658 |
|
Com- pre- hen- sive income for the repor- ting period: |
||||||||
|
Result for the repor- ting period |
41,726 |
41,726 |
-13 |
41,713 |
||||
|
Ex- change dif- fer- ences on trans- lating for- eign opera- tions |
69 |
69 |
69 |
|||||
|
Re- mea- sure- ment of de- fined bene- fit plans |
-844 |
-844 |
-844 |
|||||
| Tax effect, net | 353 | 353 | 353 | |||||
|
Total com- pre- hen- sive income for the re- por- ting period |
69 |
41,235 |
41,304 |
-13 |
41,291 |
|||
|
Divi- dend |
-42 | -42 | ||||||
|
Equity 31 De- cember 2014 |
103,006 |
24,525 |
178 |
40,016 |
335,876 |
503,601 |
306 |
503,907 |
CONSOLIDATED CASH FLOW STATEMENT, IFRS
| EUR 1,000 | 1-12 2014 | 1-12 2013 |
| Cash flows from operating activities | ||
| Result for the reporting period | 41,713 | 6,011 |
| Adjustments: | ||
| Non-cash transactions | 51,987 | 61,609 |
| Unrealised foreign exchange gains (-) / losses (+) | -28 | 19 |
| Financial income and expenses | 21,957 | 24,790 |
| Taxes | -5,079 | -12,744 |
| Changes in working capital | ||
| Change in accounts receivable and other receivables | 4,855 | -6,402 |
| Change in inventories | 2,906 | 927 |
| Change in accounts payable and other liabilities | -9,435 | -170 |
| Change in provisions | -207 | 379 |
| Interest paid | -18,742 | -22,366 |
| Interest received | 141 | 192 |
| Taxes paid * | -3,990 | -423 |
| Other financing items | -3,970 | -3,645 |
| Net cash generated from operating activities | 82,108 | 48,175 |
| Cash flow from investing activities | ||
| Investments in tangible and intangible assets | -29,575 | -10,960 |
| Proceeds from sale of tangible assets | 69,590 | 120,647 |
| Proceeds from sale of investments | 1 | |
| Dividends received | 13 | 12 |
| Net cash used in investing activities | 40,029 | 109,699 |
| Cash flows from financing activities | ||
| Proceeds from issue of share capital | 0 | 28,365 |
| Loan withdrawals | 169,604 | 263,772 |
| Net increase in current interest-bearing liabilities | 7,953 | -14,198 |
| Repayment of loans | -298,974 | -449,914 |
| Acquisition of non-controlling interest | 0 | -102 |
| Loans granted | -900 | |
| Decrease in long-term receivables | 395 | 429 |
| Dividends paid | -42 | |
| Net cash used in financing activities | -121,964 | -171,647 |
| Change in cash and cash equivalents | 173 | -13,772 |
| Cash and cash equivalents 1 January | 2,508 | 16,282 |
| Effect of foreign exchange rate changes | -1 | -2 |
| Cash and cash equivalents at the end of period | 2,680 | 2,508 |
* Taxes paid includes Finnlines Deutschland GmbH’s payment of tax provision EUR 3.6 million.
REVENUE AND RESULT BY BUSINESS SEGMENTS
| 10-12 2014 | 10-12 2013 | 1-12 2014 | 1-12 2013 | |||||
| MEUR | % | MEUR | % | MEUR | % | MEUR | % | |
| Revenue | ||||||||
|
Shipping and sea transport services |
115.4 | 96.9 | 124.8 | 95.8 | 517.4 | 97.1 | 538.6 | 95.6 |
| Port operations | 8.2 | 6.9 | 11.6 | 8.9 | 36.9 | 6.9 | 50.1 | 8.9 |
| Intra-group revenue | -4.6 | -3.8 | -6.1 | -4.7 | -21.3 | -4.0 | -25.1 | -4.5 |
| External sales | 119.1 | 100.0 | 130.3 | 100.0 | 532.9 | 100.0 | 563.6 | 100.0 |
|
Result before interest and taxes |
||||||||
|
Shipping and sea transport services |
11.9 | 8.2 | 61.6 | 27.9 | ||||
| Port operations | -1.4 | -2.8 | -3.1 | -9.8 | ||||
|
Result before interest and taxes (EBIT) total |
10.5 | 5.3 | 58.6 | 18.1 | ||||
| Financial items | -5.1 | -5.9 | -21.9 | -24.8 | ||||
|
Result before taxes (EBT) |
5.4 | -0.6 | 36.6 | -6.7 | ||||
| Income taxes | 3.2 | 10.5 | 5.1 | 12.7 | ||||
|
Result for the reporting period |
8.5 | 9.9 | 41.7 | 6.0 | ||||
PROPERTY, PLANT AND EQUIPMENT 2014
| EUR 1,000 | Land |
Buil- dings |
Vessels |
Ma- chin- ery and equip- ment |
** Ad- vance pay- ments & acqui- si- tions under con- struc- tion |
Total |
|
Acquisition cost 1 January 2014 |
72 | 75,271 | 1,372,769 | 73,122 | 398 | 1,521,632 |
|
Exchange rate differences |
34 | 34 | ||||
| Increases | 9,728 | 243 | 25,897 | 35,867 | ||
| Disposals | -2,497 | -94,515 | -7,125 | -367 | -104,505 | |
|
Reclassifications to non-current assets held for sale * |
-4,369 | -21,675 | -22,395 | -48,439 | ||
|
Acquisition cost 31 December 2014 |
72 | 68,404 | 1,266,306 | 43,879 | 25,928 | 1,404,590 |
|
Accumulated depreciation, amortisation and write-offs 1 January 2014 |
-16,316 | -373,866 | -47,060 | -437,243 | ||
|
Exchange rate differences |
-31 | -31 | ||||
|
Cumulative depreciation on reclassifications and disposals |
1,346 | 35,547 | 6,650 | 43,543 | ||
|
Depreciation for the reporting period |
-2,370 | -51,430 | -2,017 | -55,818 | ||
|
Accumulated depreciation, amortisation and write-offs 31 December 2014 |
-17,341 | -389,749 | -42,459 | -449,549 | ||
|
Reclassification to non-current assets held for sale * |
1,132 | 16,499 | 10,510 | 28,142 | ||
|
Book value 31 December 2014 |
72 | 52,196 | 893,057 | 11,930 | 25,928 | 983,183 |
* Finnlines Group is negotiating to sell one vessel with the book value of EUR 5.2 million. The Port Operations are negotiating to sell port assets (buildings and machinery) with the book value of around EUR 15.1 million. No impairment losses have been recognised on the carrying amount of the assets.
** Includes mainly advance payments for the scrubber system.
PROPERTY, PLANT AND EQUIPMENT 2013
| EUR 1,000 | Land |
Buil- dings |
Vessels |
Ma- chinery and equip- ment |
Advance pay- ments & acqui- sitions under con- struc- tion |
Total |
|
Acquisition cost 1 January 2013 |
72 | 76,466 | 1,597,437 | 79,690 | 991 | 1,754,655 |
|
Exchange rate differences |
-11 | -11 | ||||
| Increases | 102 | 8,861 | 542 | 31 | 9,536 | |
|
Reclassifications to non-current assets held for sale |
||||||
| Disposals | -1,298 | -233,934 | -7,104 | -214 | -242,549 | |
| Reclassifications | 406 | 5 | -410 | |||
|
Acquisition cost 31 December 2013 |
72 | 75,271 | 1,372,769 | 73,122 | 398 | 1,521,632 |
|
Accumulated depreciation, amortisation and write-offs 1 January 2013 |
-15,047 | -429,028 | -50,285 | -494,360 | ||
|
Exchange rate differences |
10 | 10 | ||||
|
Cumulative depreciation on reclassifications and disposals |
1,295 | 112,727 | 7,325 | 121,348 | ||
|
Depreciation for the reporting period |
-2,564 | -57,566 | -4,111 | -64,240 | ||
|
Accumulated depreciation, amortisation and write-offs 31 December 2013 |
-16,316 | -373,866 | -47,060 | -437,243 | ||
|
Reclassifications to non-current assets held for sale |
||||||
|
Book value 31 December 2013 |
72 | 58,955 | 998,903 | 26,061 | 398 | 1,084,389 |
CONTINGENCIES AND COMMITMENTS
| EUR 1,000 | 31 Dec 2014 | 31 Dec 2013 |
| Minimum leases payable in relation to fixed-term leases: | ||
| Vessel leases (Group as lessee): | ||
| Within 12 months | 11,409 | 14,007 |
| 1-5 years | 10,644 | |
| 11,409 | 24,651 | |
| Vessel leases (Group as lessor): | ||
| Within 12 months | 0 | 2,356 |
| 1-5 years | 0 | 7,457 |
| 0 | 9,812 | |
| Other leases (Group as lessee): | ||
| Within 12 months | 6,366 | 6,107 |
| 1-5 years | 17,128 | 17,948 |
| After five years | 9,274 | 12,358 |
| 32,768 | 36,413 | |
| Other leases (Group as lessor): | ||
| Within 12 months | 250 | 350 |
| 250 | 350 | |
| Collateral given | ||
| Loans from financial institutions | 477,054 | 561,245 |
|
Vessel mortgages provided as guarantees for the above loans |
1,035,000 | 1,121,000 |
| Other collateral given on own behalf | ||
| Corporate mortgages | 0 | 606 |
| 0 | 606 | |
| Other obligations * | 35,453 | 2,375 |
|
Guarantees given by the parent company on behalf of the subsidiaries |
0 | 6,000 |
|
VAT adjustment liability related to real estate investments |
5,322 | 6,756 |
* 2014 includes scrubber system and re-blading obligations EUR 33.8 million.
REVENUE AND RESULT BY QUARTER
| MEUR |
Q1/ 14 |
Q1/ 13 |
Q2/ 14 |
Q2/ 13 |
Q3/ 14 |
Q3/ 13 |
Q4/ 14 |
Q4/ 13 |
|
Shipping and sea transport services |
122.8 | 126.0 | 139.1 | 143.6 | 140.0 | 144.2 | 115.4 | 124.8 |
| Port operations | 10.0 | 14.3 | 10.2 | 12.8 | 8.5 | 11.4 | 8.2 | 11.6 |
| Intra-group revenue | -6.0 | -6.4 | -5.9 | -6.7 | -4.8 | -5.9 | -4.6 | -6.1 |
| External sales | 126.8 | 133.9 | 143.3 | 149.7 | 143.7 | 149,7 | 119.1 | 130.3 |
|
Result before interest and taxes |
||||||||
|
Shipping and sea transport services |
7.3 | -3.6 | 20.4 | 9.8 | 22.1 | 13,5 | 11.9 | 8.2 |
| Port operations | -1.8 | -2.2 | -0.6 | -3.0 | 0.7 | -1,8 | -1.4 | -2.8 |
|
Result before interest and taxes (EBIT) total |
5.4 | -5.8 | 19.8 | 6.9 | 22.8 | 11,7 | 10.5 | 5.3 |
| Financial items | -5.8 | -6.2 | -5.7 | -6.5 | -5.3 | -6,2 | -5.1 | -5.9 |
|
Result before taxes (EBT) |
-0.4 | -12.1 | 14.1 | 0.4 | 17.5 | 5,6 | 5.4 | -0.6 |
| Income taxes | 0.7 | 1.2 | 0.6 | 0.5 | 0.6 | 0,6 | 3.2 | 10.5 |
|
Result for the reporting period |
0.3 | -10.9 | 14.7 | 0.9 | 18.1 | 6,1 | 8.5 | 9.9 |
|
EPS (undiluted / diluted) * |
0.01 | -0.23 | 0.29 | 0.02 | 0.35 | 0,12 | 0.17 | 0.19 |
* Key indicators per share have been adjusted with the share issue adjustment factor.
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
| 31 Dec 2014 | 31 Dec 2013 | |
| Number of shares | 51,503,141 | 51,503,141 |
|
Market capitalisation, EUR million |
824.1 | 386.3 |
| 1-12 2014 | 1-12 2013 | |
|
Number of shares traded, million |
5.1 | 2.2 |
| 1-12 2014 | ||||
| High | Low | Average | Close | |
| Share price | 17.00 | 7.14 | 10.45 | 16.00 |
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
In October 2014, Finnlines Plc sold the ro-pax vessel MS Finnhansa to the Grimaldi Group at the market price of EUR 30 million. The sale brought Finnlines a sales profit of approximately EUR 1.1 million.
Furthermore in October 2014, the chartering out of MS Euroferry Brindisi (ex MS Finnarrow) to the Grimaldi Group ended as Finnlines Plc's subsidiary signed the sales agreement with an external party at a market price of EUR 32.5 million.
Otherwise there were no material related party transactions during the reporting period.
