Containerships plc
Stock exchange release - Interim Report Q2/2016
Market and Company events
The business environment remains challenging. The Russia situation is unchanged, and Brexit is creating more uncertainty in the market.
Result
This is the Company's second quarterly report according to IFRS. The operational result in Q2 does not have any major one off items. The quarterly report is not audited; only the annual report is going to be audited.
Despite the unstable market situation, the Company has been able to increase its sales volumes. Containerships Group's net sales in the second quarter of 2016 amounted to EUR 49.8 million (EUR 48.7 million). Cumulative sales after Q2 are at the same level as last year, the volume growth has been over 10%, but the price level remains lower than last year due to trade balance and the competitive situation. However, price development has started to stabilize.
EBITDA in Q2 was slightly better than during Q1, and the cumulative EBITDA has increased to EUR 6.7 million (EUR 5.2 million last year) - a growth of about 30%. Cumulative EBITDA after Q2 is slightly better than budgeted. The performance improvement (better utilization and less empty positioning) is still decreasing the total costs. The material costs during Q2 were higher than in Q1, which is mainly due to increased bunkering costs.
Financial income and expenses have levelled off as the currency fluctuations were lower than before. Net loss was 576 000€ in Q2 compared to a loss of EUR 1.1 million during Q1. Cumulative net profit is at the same level as last year, and slightly better than budgeted. The own capital in the IFRS report does not include the two convertible capital loans totaling about EUR 10 million. The adjusted own capital with these would be EUR 24 million. The cash flow effect of the financial expenses is about EUR 1.2 million in each quarter.
Future outlook
The Company is maintaining its financial targets for 2016 unchanged: sales growth is between 5-10% and EBITDA at least EUR 13 million, a growth of about 50%. The Company continues to focus on segments and regions with profitable growth opportunities supported by the improved efficiency of the operations. The Company does not expect any major developments in the market situation, thus these are not included in the results estimates. The Mediterranean situation is expected to remain challenging.
The agreements for the building of the first four LNG vessels have been signed, but are still subject to final approval of the stakeholders in this project. According to the plan, the vessels will be delivered during 2018, the first vessel in early 2018. The Company has received a co-funding recommendation to the LNG vessel project from the European Union. The outcome of the funding will be confirmed during autumn this year. The recommendation is a remarkable recognition of the Company's environmental strategy and investments needed.
The Company is going to publish the next quarterly report after Q3 on November 15, 2016 and revises the reporting schedule of Q4/2016 and 2016 to be done on March 15, 2017.
These interim financial statements have been prepared in accordance with the IFRS accounting and measurement principles, but do not include the disclosure information required by the IAS 34 Interim Financial Reporting standard. The Company did not report the full IFRS quarterly reports during 2015.
Further information:
CEO, Kari-Pekka Laaksonen, Tel. +358 207 441 441, kari-pekka.laaksonen(at)containerships.com
CFO, Jari Lepistö, Tel. +358 207 441 441, jari.lepisto(at)containerships.com
| INCOME STATEMENT, GROUP | |||||
| EUR 1 000 | Q2/2016 | Q1/2016 | 1-6/2016 | 1-6/2015 | Diff |
| Net sales | 49 788 | 49 136 | 98 924 | 98 198 | 726 |
| Other operating income | 675 | 888 | 1 564 | 1 091 | 473 |
| Material and services expenses | -39 309 | -38 352 | -77 661 | -78 822 | 1 161 |
| Employee benefit expenses | -5 455 | -5 361 | -10 817 | -10 636 | -181 |
| Other operating expenses | -2 281 | -3 042 | -5 323 | -4 608 | -715 |
| EBITDA | 3 418 | 3 269 | 6 687 | 5 224 | 1 463 |
| Depreciation, amortisation and impairment losses | -2 064 | -1 948 | -4 012 | -4 418 | 406 |
| EBIT | 1 354 | 1 321 | 2 675 | 806 | 1 869 |
| Financial income | 133 | 931 | 1 064 | 2 565 | -1 501 |
| Financial expenses | -2 009 | -3 404 | -5 413 | -5 485 | 72 |
| Profit/loss before extraordinary items, appropriation and taxes | -522 | -1 153 | -1 674 | -2 114 | 440 |
| Income taxes | -53 | 40 | -13 | 479 | -492 |
| Profit/loss for the reporting period | -575 | -1 112 | -1 687 | -1 635 | -52 |
| CONSOLIDATED STATEMENT OF BALANCE SHEET | ||||
| EUR 1 000 | 30.6.2016 | 30.6.2015 | 31.12.2015 | |
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 6 676 | 6 919 | 7 065 | |
| Other intangible assets | 1 480 | 752 | 1 379 | |
| Property, plant and equipment | 42 500 | 42 904 | 41 987 | |
| Other non-current financial assets | 2 | 395 | 2 | |
| Deferred tax assets | 5 792 | 5 771 | 5 726 | |
| Other receivables | 5 059 | 4 936 | 4 936 | |
| Total non-current assets | 61 509 | 61 676 | 61 094 | |
| Current assets | ||||
| Inventories | 877 | 1 518 | 766 | |
| Trade and other receivables | 46 375 | 56 709 | 47 189 | |
| Other current financial assets | 110 | 0 | 232 | |
| Current tax assets | 0 | 0 | 53 | |
| Cash and cash equivalents | 6 571 | 1 715 | 9 255 | |
| Total current assets | 53 932 | 59 943 | 57 495 | |
| Total assets | 115 442 | 121 619 | 118 589 | |
| EQUITY | ||||
| Share capital | 80 | 19 | 19 | |
| Share premium | 337 | 337 | 337 | |
| Invested unrestricted free equity fund | 4 342 | 4 403 | 4 403 | |
| Retained earnings | 9 307 | 20 368 | 11 713 | |
| Total equity | 14 067 | 25 127 | 16 472 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Bond issue | 48 915 | 45 000 | 48 668 | |
| Convertible notes | 9 881 | 6 450 | 9 533 | |
| Bank loans | 0 | 0 | 0 | |
| Finance lease liabilities | 5 279 | 5 033 | 5 570 | |
| Other liabilities | 1 273 | 0 | 4 | |
| Total Interest-bearing loans and borrowings | 65 349 | 56 484 | 63 775 | |
| Trade and other payables | 1 263 | 1 578 | 1 266 | |
| Other non-current financial liabilities | 1 718 | 0 | 967 | |
| Deferred tax liabilities | 1 789 | 2 749 | 1 817 | |
| Total other non-current liabilities | 4 769 | 4 327 | 4 050 | |
| Current liabilities | ||||
| Interest-bearing loans and borrowings | 2 778 | 2 967 | 2 658 | |
| Trade and other payables | 28 431 | 32 714 | 31 058 | |
| Other current financial liabilities | 0 | 0 | 423 | |
| Current tax liabilities | 49 | 0 | 154 | |
| Total current liabilities | 31 258 | 35 681 | 34 292 | |
| Total liabilities | 101 376 | 96 492 | 102 117 | |
| Total equity and liabilities | 115 442 | 121 619 | 118 589 | |
| CASH FLOW STATEMENT | 1-6/2016 | 1- 6/2015 | |
| EUR 1,000 | EUR | EUR | |
| Cash flow of operating activities | |||
| Profit (loss) before taxes | -1 674 | -2 114 | |
| Adjustments | |||
| Other operating income | -1 564 | -1 091 | |
| Depreciation, amortisation and impairment losses | 4 012 | 4 418 | |
| Finance income and expenses | 4 349 | 2 920 | |
| Other adjustments | |||
| Cash flow before changes in working capital | 5 123 | 4 133 | |
| Change in working capital | |||
| Current receivables, non-interest bearing, increase (-), decrease (+) | -1 147 | -7 236 | |
| Inventories, increase (-), decrease (+) | -111 | -385 | |
| Trade and other payables, increase (+), decrease (-) | -1 614 | 5 175 | |
| Changes in working capital | -2 872 | -2 446 | |
| Financial items and taxes | |||
| Interest received | 151 | 11 | |
| Interest and financial costs paid | -2 103 | -1 150 | |
| Paid finance lease interests | -471 | -647 | |
| Taxes paid | -219 | -20 | |
| Other financing items | |||
| Financial items and taxes | -2 642 | -1 806 | |
| Net cash generated from operating activities | -391 | -120 | |
| Cash flow from investing activities | |||
| Proceeds from sale of property, plant and equipment | 600 | 878 | |
| Acquisition of property, plant and equipment | -3 368 | -11 208 | |
| Other investments | |||
| Net cash flow from investing activities | -2 767 | -10 330 | |
| Cash flow from financing activities | |||
| Proceed from loans and borrowings | 45 000 | ||
| Proceed from issue of convertible notes | 6 450 | ||
| Repayment of borrowings | 306 | -18 092 | |
| Change in financial receivables, increase (-) / decrease (+) | -548 | -8 378 | |
| Other receivable (escrow accounts) | -19 900 | ||
| Change in financial borrowings, increase (+) / decrease (-) | 717 | 5 625 | |
| Dividend received | |||
| Dividends paid | |||
| Net cash flow from financing activities | 475 | 10 705 | |
| Exchange rate difference from the bank accounts | |||
| Net change in cash and cash equivalents during the period | -2 684 | 255 | |
| Cash and cash equivalents at the beginning of the period | 9 255 | 1 460 | |
| Cash and cash equivalents at the end of the period | 6 571 | 1 715 | |