ASPO Plc STOCK EXCHANGE BULLETIN April 26, 2007 at 9.00 a.m.
ASPO INTERIM REPORT JANUARY 1 - MARCH 31, 2007:
Net sales grew to EUR 63.1 million, the operating profit was EUR 3.0
million
- Aspo Group's net sales in January-March were EUR 63.1 million (EUR
49.0 million)
- The operating profit totaled EUR 3.0 million (EUR 1.8 million)
- The profit before taxes was EUR 2.4 million (EUR 1.5 million)
- The earnings per share totaled EUR 0.07 (EUR 0.04)
- Prospects for fiscal 2007 continue to be positive
KEY FIGURES
1-3/07 1-3/06 1-12/06
Net Sales, MEUR 63.1 49.0 225.9
Operating Profit, MEUR 3.0 1.8 12.8
Share of Net Sales, % 4.8 3.7 5.7
Profit before Tax, MEUR 2.4 1.5 11.1
Share of Net Sales, % 3.7 3.1 4.9
Earnings Per Share, EUR 0.07 0.04 0.32
EPS adjusted for dilution, EUR 0.07 0.04 0.31
Equity Per Share, EUR 1.94 2.28 2.26
Equity Ratio, % 35.4 44.1 45.2
Gearing, % 54.7 33.5 35.7
Personnel at the End of Period 683 675 694
Gustav Nyberg, CEO of Aspo:"The first quarter of 2007 showed positive development for Aspo. All
business divisions enjoyed favorable market conditions, and there
were no significant problems with the availability of the raw
materials we transport or sell. Net sales increased considerably and
the measures launched in late 2006 to improve the efficiency of
operations continued, which helped boost profitability.
Net sales were up in all Divisions and profitability picked up from
the first quarter of last year.
A business acquisition the Chemicals Division had been planning for a
long time came through at the beginning of the year. This gave Aspo a
much stronger position in the Nordic markets and contributed to the
Division's increased net sales and profitability. Fleet modernization
continued in the Shipping Division with the sale of Ms Arkadia early
in the year. The resulting sales profit of approximately EUR 10
million will be recorded for the second quarter.
The outlook for 2007 in general remains positive."
OPERATIONAL PERFORMANCE
2007 started with a strong and steady market situation. The price of
crude oil remained at an all-time high while the prices of chemicals
continued to rise slightly. Strong business conditions persisted on
the Shipping Division's markets globally. The winter was short, which
caused fewer problems in the Baltic Sea transport than is usual. The
increase in fuel prices raised freight prices.
Powerful growth continued in operations in the Eastern markets,
contributing to the two-digit growth in the Group's overall net
sales. The figures for the Danish Wilfert Chemical Nordic A/S
acquired by the Chemicals Division were consolidated as of the
beginning of the year, which further boosted the growth in net sales.
TThe Group's operational profitability in the first quarter improved.
The operating profit percentage improved and approached the year's
target level.
Aspo Chemicals
The Aspo Chemicals Division consists of Aspokem Ltd and its
subsidiaries. They distribute, store and market chemicals and plastic
raw materials in Finland, Denmark, Sweden, Estonia, Latvia,
Lithuania, Russia and Ukraine. The Division engages in processing
activities in Finland and Latvia. Aspokem is also engaged in
East-West chemical trading.
1-3/07 1-3/06 1-12/06
Net Sales, MEUR 29.9 20.1 89.1
Operating Profit, MEUR 1.0 0.7 2.7
Personnel 121 90 104
The global price trend in petrochemicals continued on a slight upward
track. There were no major problems with the availability of raw
materials, and sales volumes continued to grow. Sales saw strong
growth in the Baltic countries and particularly in Russia and
Ukraine. As a result of the business acquisition, Scandinavian net
sales picked up dramatically, which brought the share of domestic
sales down to less than half of the Chemicals Division's overall net
sales.
In terms of product groups, plastics and automotive chemicals
accounted for the biggest growth compared with the first quarter a
year ago. International units accounted for an increasingly large
part of the Division's result.
Early in the year the Chemicals Division agreed to buy the entire
capital stock of the Danish Wilfert Chemical Nordic A/S. Founded in
1984, the company employs 10 people and is primarily engaged in the
distribution of plastic raw materials in Denmark, Sweden, Norway and
Finland. Last year the company recorded net sales of approximately
EUR 21 million and an operating profit of some EUR 0.6 million. In
accordance with the agreement, business operations were immediately
transferred to the buyer and the figures have been consolidated as of
the beginning of the year.
The sale price amounted to about EUR 4.0 million, and 20% of the
price was paid in Aspo Plc shares. Goodwill represents roughly EUR 2
million.
Aspo Shipping
The Aspo Shipping Division consists of ESL Shipping and its
subsidiaries and affiliate. ESL Shipping is the leading dry bulk sea
transport company operating in the Baltic Sea area. As of the end of
the period the fleet operated by the company comprised 19 units.
1-3/07 1-3/06 1-12/06
Net Sales, MEUR 21.8 18.2 82.7
Operating Profit, MEUR 3.6 2.5 12.6
Personnel 247 251 257
Contrary to the general forecast, the global bulk freight markets did
not decline in the first quarter; instead, demand was strong and in
some cases freight rates even continued to rise. The market situation
in the Baltic Sea area remained strong and freight rates continued to
rise, partly due to higher fuel prices.
The Shipping Division was able to enhance the efficiency of its fleet
operations. There were fewer of the cargo availability problems that
hampered operations last year, and in some places problems did not
exist at all.
Net sales saw two-digit growth, partly due to the increase in freight
rates but primarily as a result of the increased cargo volumes.
Compared with the first quarter a year ago, there was less waiting
time and the mild weather made transport operations easier. As the
operational efficiency improved, profitability also picked up
significantly. Arrangements were made regarding the sale of Ms
Arkadia but the vessel continued to operate at full capacity for the
entire review period. The energy, steel and other sectors of industry
continued to represent the same proportions of overall transport
volumes.
Ms Arkadia, constructed in 1983 and the second oldest vessel in the
fleet, was sold in early 2007 in line with a decision made earlier.
The vessel has been written off in full, which means the sale results
in an approximately EUR 10 million pre-tax sales profit. The sales
profit will be recorded for the second quarter. As specified in the
agreement, the vessel will be handed over to the buyer by the end of
April.
Aspo Systems
The Aspo Systems Division comprises Autotank Ltd and its
subsidiaries. Autotank is the leading Nordic supplier of service
station maintenance services and automated dispensing systems.
Autotank has subsidiaries in Sweden, Norway, Estonia, Latvia,
Lithuania and Poland, as well as a joint venture in Russia.
1-3/07 1-3/06 1-12/06
Net Sales, MEUR 11.4 10.7 54.1
Operating Profit, MEUR -0.8 -1.1 -1.0
Personnel 310 324 323
Brisk market conditions persisted in the service station business in
the Baltic Sea region. Several mergers and acquisitions in the sector
had a positive impact on the level of investments. Thanks to the mild
winter, the number of installation projects was higher than on
average. Since this was the second consecutive mild winter, net sales
only picked up slightly from the previous year, but the order book
remained full. Deliveries of the equipment required for the chip card
introduction proceeded as planned and the change also brought in new
orders.
Operations in this sector are highly cyclic and profitability in the
first quarter was weak, so the Division made a loss, as expected.
Investments in ongoing client projects, as well as the introduction
of the Systems Division's IT investment created costs. However,
profitability improved on the previous year, and this could largely
be attributed to the results of the efficiency improvement program
carried out last year.
NET SALES
Aspo Group's net sales for January-March 2007 amounted to EUR 63.1
million compared with EUR 49.0 million in the corresponding period
last year. All Divisions were able to increase their net sales over
the previous year.
Net Sales by Division, MEUR
1-3/07 1-3/06 Change 1-12/06
Chemicals 29.9 20.1 9.8 89.1
Shipping 21.8 18.2 3.6 82.7
Systems 11.4 10.7 0.7 54.1
TOTAL 63.1 49.0 14.1 225.9
EARNINGS
Aspo Group recorded an operating profit of EUR 3.0 million or 4.8% of
net sales (EUR 1.8 million, or 3.7% of net sales). Planned
depreciation totaled EUR 2.4 million (EUR 2.0 million). The Group's
net financial costs amounted to EUR 0.7 million (EUR 0.2 million).
The profit before taxes was EUR 2.4 million (EUR 1.5 million) and the
net profit for the period totaled EUR 1.8 million (EUR 1.1 million).
Aspo has switched from a defined benefit plan to a contribution plan
in its supplementary pension arrangements. The positive effect of
this change on the first quarter's financial results was about EUR
0.3 million.
Operating Profit by Division, MEUR
1-3/07 1-3/06 Change 1-12/06
Chemicals 1.0 0.7 0.3 2.7
Shipping 3.6 2.5 1.1 12.6
Systems -0.8 -1.1 0.3 -1.0
Group Administration -0.8 -0.3 -0.5 -1.5
TOTAL 3.0 1.8 1.2 12.8
Earnings Per Share
The Group's earnings per share stood at EUR 0.07 (EUR 0.04). Equity
per share was EUR 1.94 (EUR 2.28).
INVESTMENTS
The Group invested EUR 7.5 million during the period (EUR 11.8
million) primarily in Chemicals Division's acquisition and advance
payments on Shipping Division's vessel purchases.
Investments by Division, MEUR
1-3/07 1-3/06 Change 1-12/06
Chemicals 4.8 1.0 3.8 1.3
Shipping 2.4 10.6 -8.2 7.3
Systems 0.3 0.1 0.2 1.4
Group Administration 0.1 -0.1 0.2
TOTAL 7.5 11.8 -4.3 10.2
FINANCING
The Group's financial situation was healthy. Liquid assets totaled
EUR 9.1 million (EUR 16.3 million) at the end of the period. There
was a total of EUR 36.5 million (EUR 36.0 million) in
interest-bearing liabilities on the consolidated balance sheet at the
end of the period. Interest-free liabilities totaled EUR 47.9 million
(EUR 28.1 million). The Group's gearing was 54.7% (33.5%) and the
equity ratio adjusted for deferred tax liabilities was 35.4% (44.1%).
PERSONNEL
Aspo Group's personnel averaged 687 (674) from January 1 to March 31,
2007, compared with 693 for the entire financial year 2006.
Average Personnel by Division
1-3/07 1-3/06 1-12/06
Chemicals 121 90 104
Shipping 247 251 257
Systems 310 324 323
Group Administration 9 9 9
TOTAL 687 674 693
SHARES AND SHAREHOLDERS
From January to March 2007 a total of 1,449,556 Aspo Plc shares worth
EUR 10.7 million were traded on the Helsinki Stock Exchange, or 5.6%
of the stock changed hands. During the period, the stock reached a
high of EUR 7.80 and a low of EUR 6.79. The average price was EUR
7.36 and the closing price EUR 7.05. The market capitalization
excluding treasury shares was EUR 181.8 million.
At the end of the period, Aspo Plc's registered share capital was EUR
17,451,695.37 and the number of shares was 26,047,803. The company
held 257,410 of its own shares, representing 0.99 percent of Aspo
Plc's share capital. During the period, the company disposed of
100,840 Aspo Plc shares in partial payment for the Chemicals
Division's acquisition.
At the end of the period, the number of Aspo Plc shareholders was
5,049. A total of 638,059 shares, or 2.5% of the total share capital
were nominee registered or held by non-domestic shareholders.
DECISIONS AT THE ANNUAL SHAREHOLDERS' MEETING
Dividend
At the Annual Shareholders' Meeting on March 29, 2007, the
shareholders approved a dividend of EUR 0.41 per share as proposed by
the Board. The dividend payment date was set at April 12, 2007.
Board of Directors and Auditors
Mr. Matti Arteva, Mr. Kari Haavisto, Mr. Esa Karppinen, Mr. Roberto
Lencioni and Mr. Kari Stadigh were re-elected as Board members for
one year. Mr. Stadigh will carry on as Chairman and Mr. Arteva as
Vice-Chairman of the Board.
The authorized public accounting firm PricewaterhouseCoopers Oy was
re-elected as the auditor of the company. Mr. Jouko Malinen, APA,
will continues as the auditor in charge.
Board Authorizations
At the Annual Shareholders' Meeting the shareholders authorized the
Board to decide on a share issue and on the acquisition of
company-held shares. The authorizations will be valid until the
Annual Shareholders' Meeting in 2008 but not more than 18 months from
the approval at the Shareholders' Meeting. As of April 26, 2007, the
Board has not applied these authorizations.
PROSPECTS FOR 2007
All of Aspo's Divisions are maintaining a positive outlook for this
year. We expect to see continued growth in net sales from the Group's
ongoing operations,
and the acquisition made by the Chemicals Division early this year is
expected to further boost the growth. Furthermore, the Group's units
in the Eastern markets appear to show sustained growth. The Group's
operating profit is expected to improve on the previous year.
Chemicals
The global chemicals markets have seen considerable price
fluctuations in the past few years, and these are expected to
continue. Manufacturers are severely cutting the production capacity
for low-profit products. As demand exceeds supply, prices tend to
rise quickly. The uncertainties regarding the sustainable price level
of crude oil are likely to persist.
The Chemicals Division appears to be continuing on a growth track in
the near-Eastern markets. The business acquisition strengthened the
Division's position in the Scandinavian markets, and it is expected
to have a positive impact on the Division's performance this year and
in the longer term.
According to our current estimates, the Division has every
opportunity to improve on last year's operating profit.
The biggest risks for the Chemical Division have to do with the
potential negative effects of the European Union's chemical
regulation (REACH). In the worst-case scenario, the legislation will
restrict the manufacture and use of chemicals in the European Union.
Other risks include political and financial instability in Russia and
Ukraine.
Shipping
The international freight market is expected to remain stronger than
on average, at least for the first half of the year. Brisk demand for
freight transport is expected in the Baltic Sea as well.
The Shipping Division's transport capacity will diminish slightly
after the handover of the Ms Arkadia, but this is not expected to
significantly affect the Division's net sales. Ms Credo, the new
vessel commissioned last year, has now been successfully integrated
into the fleet and, as a result, improved efficiency is expected in
the shipping company this year.
The Shipping Division also has good chances of improving its
profitability this year, provided it does not face the availability
problems that occurred last year. No major changes are expected in
the full-year net sales.
Foreign exchange risks associated with the shipping business have
mostly been hedged by forward contracts; our customer contracts
include special bunker clauses to protect ourselves against the
risks associated with the fluctuation in fuel prices.
Systems
We expect to see sustained and brisk market conditions in the fuel
distribution business in 2007. In addition to technology investments,
other developments supporting this view include the growing
distribution of new fuel mixtures as well as the consolidation of the
sector.
Deliveries of the equipment required for the chip card introduction
picked up pace in the first quarter. The Systems Division's order
book shows improvement on the previous year. We also expect to see
moderate growth in net sales as the year moves on. We expect to see
profitability improvements towards year-end, and to see the
operations generate profit.
Helsinki, April 26, 2007
ASPO Plc
Board of Directors
ASPO GROUP INCOME STATEMENT
1-3/07 1-3/06 1-12/06
MEUR % MEUR % MEUR %
NET SALES 63.1 100.0 49.0 100.0 225.9 100.0
Other operating income 0.6 1.2 0.9 0.4
Depreciation and write-downs -2.4 -3.8 -2.0 -4.1 -9.3 -4.1
OPERATING PROFIT 3.0 4.8 1.8 3.7 12.8 5.7
Financial income and expenses -0.7 -1.1 -0.2 -0.4 -1.8 -0.8
PROFIT BEFORE TAXES 2.4 3.7 1.5 3.1 11.1 4.9
PROFIT FOR THE PERIOD 1.8 2.8 1.1 2.2 8.2 3.6
Profit attributable
to shareholders 1.8 1.1 8.2
Minority interest
ASPO GROUP BALANCE SHEET 3/07 3/06 Change 12/06
MEUR MEUR % MEUR
ASSETS
Non-Current Assets
Intangible assets 1.3 1.4 -7.1 1.2
Goodwill 10.5 7.2 45.8 8.2
Tangible assets 54.7 62.9 -13.0 54.4
Available-for-sale assets 0.2 0.2
Long-term receivables 2.2 3.2 -31.3 2.3
Shares in associated companies 1.4 1.3 7.7 1.4
Total Non-Current Assets 70.3 76.0 -7.5 67.7
Current Assets
Inventories 21.5 14.8 45.3 17.7
Sales and other receivables 42.7 26.2 63.0 34.9
Cash and bank deposits 9.1 16.3 -44.2 9.1
Total Current Assets 73.3 57.3 27.9 61.7
TOTAL ASSETS 143.6 133.3 7.7 129.4
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' Equity
Share capital 17.5 17.2 1.7 17.5
Other shareholders' equity 32.7 41.6 -21.4 40.7
Shareholders' equity attributable
to equity holders of the parent 50.1 58.7 -14.7 58.1
Minority interest 0.1 0.1 0.1
Long-term liabilities 28.2 34.7 -18.7 28.7
Short-term liabilities 65.2 39.8 63.8 42.5
TOTAL SHAREHOLDERS' EQUITY
AND LIABILITIES 143.6 133.3 7.7 129.4
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
A = Share Capital
B = Premium Fund
C = Fair Value Fund
D = Other Funds
E = Repurchased Shares
F = Translation Difference
G = Retained Earnings
H = Total
I = Minority Interest
J = Total Shareholders' Equity
MEUR A B C D E F G H I J
Balance at
31.12.2006 17.5 2.5 0.0 0.2 -1.8 0.1 39.7 58.1 0.1 58.2
Translation
differences 0.0
Increase in
hedging reserve 0.0
Share of
deferred taxes 0.0
Net profit for
the period 1.8
Dividend payment -10.5
Share disposal 0.2 0.4
Balance at
31.3.2007 17.5 2.5 0.0 0.4 -1.4 0.1 31.0 50.1 0.1 50.2
Balance at
31.12.2005 17.2 0.5 0.3 0.2 -1.9 0.0 40.9 57.4 0.1 57.4
IAS 8 adjustment*) 0.8
Balance at
1.1.2006 17.2 0.5 0.3 0.2 -1.9 41.7 58.2 0.1 58.3
Fair value
fund -0.4
Share of
deferred taxes 0.1
Net profit for
the period 1.1
Change in
minority interest -0.1 0.1
Balance at
31.3.2006 17.2 0.5 0.2 -1.9 0.0 42.7 58.7 0.1 58.8
*) Comparative data has been adjusted with an IAS 8 compliant change
in accounting principles
Accounting principles
This interim report has been prepared in accordance with IFRS
compliant recognition and measurement principles. The report has not
been prepared in compliance with all requirements set forth in the
IAS 34 Interim Reports standard. All figures are unaudited.
The accounting principles that were applied in the preparation of the
financial statements of December 31, 2006 have been applied in the
preparation of this interim report. As of January 1, 2007, the Group
has adopted the following new standards: IFRS 7, Financial
Instruments: Disclosures and IAS 1 (amendment), Presentation of
Financial Statements. The Group estimates that the adoption of these
standards will have no material influence on the interim report.
ASPO GROUP CASH FLOW STATEMENT 1-3/07 1-3/06 1-12/06
MEUR MEUR MEUR
Net Operational Cash Flow 0.6 4.0 12.3
INVESTMENTS
Investments in tangible and
intangible assets -2.8 -11.7 -10.2
Gains on the sale of tangible
and intangible assets 0.6 1.0
Purchases of subsidiary shares -4.5
Purchases of affiliate shares -0.1
Total Cash Flow From Investments -7.3 -11.2 -9.2
FINANCING
Share disposal 0.1
Change in short-term borrowings 4.8 10.3 7.2
Change in long-term receivables 0.0 -0.1 -0.1
Change in long-term borrowings 0.8 -3.5
Dividends paid -10.2
Total Financing 4.8 11.0 -6.5
Increase / Decrease in Liquid Funds -1.9 3.8 -3.4
Liquid funds in beginning of year 9.1 12.5 12.5
Liquid funds and used
overdraft limit at period end 7.2
Used overdraft limit at period end 1.9
Liquid funds at period end 9.1 16.3 9.1
KEY FIGURES AND RATIOS
1-3/07 1-3/06 1-12/06
Earnings/share, EUR 0.07 0.04 0.32
Diluted earnings/share, EUR 0.07 0.04 0.31
Equity/share, EUR 1.94 2.28 2.26
Equity Ratio, % 35.4 44.1 45.2
Gearing, % 54.7 33.5 35.7
ASPO Plc
Gustav Nyberg Dick Blomqvist
CEO CFO
PRESS CONFERENCE
We have arranged a press conference for the analysts and media to be
held today starting at 10:30 a.m. at the following address:
Restaurant Palace Gourmet, Eteläranta 10, 00130 Helsinki.
For further information, contact:
Gustav Nyberg, tel. +358 9 7595 256 or +358 40 503 6420
gustav.nyberg@aspo.fi
Distribution:
Helsinki Stock Exchange
The Main Media
www.aspo.fi
Aspo Group focuses on logistical services for industry. Aspo serves
businesses in the energy and industrial process sectors requiring
strong specialist and logistical know-how. Aspo's net sales in 2006
totaled EUR 225.9 million. About 39% of this came from Aspo
Chemicals, 37% from Aspo Shipping and 24% from Aspo Systems.