Helsinki, Finland, 2011-07-28 13:56 CEST (GLOBE NEWSWIRE) -- Finnlines Plc Stock Exchange Release 28 July 2011 at 14:55
INTERIM REPORT JANUARY – JUNE 2011 (unaudited)
SUMMARY
April – June 2011
- Revenue EUR 160.2 million (EUR 152.8 million prev. year), increase 5%
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR 26.1 million (EUR 29.2 million), decrease 10%. 2010 figure includes non-recurring refund income of EUR 2.6 million
- Earnings per share were 0.03 (0.15) EUR/share
January – June 2011
- Revenue EUR 299.2 million (EUR 274.4 million prev. year), increase 9%
- Result before interest, taxes, depreciation and amortisation (EBITDA) EUR 41.2 million (EUR 45.3 million), decrease 9%. 2010 figure includes non-recurring refund income of EUR 5.7 million
- Earnings per share were -0.07 (0.08) EUR/share
JANUARY – JUNE 2011 IN BRIEF
| MEUR | 4-6 2011 | 4-6 2010 | 1-6 2011 | 1-6 2010 | 1-12 2010 |
| Revenue | 160.2 | 152.8 | 299.2 | 274.4 | 561.1 |
| EBITDA | 26.1 | 29.2 | 41.2 | 45.3 | 85.9 |
| Result before interest and taxes (EBIT) | 9.9 | 14.4 | 9.7 | 15.9 | 25.6 |
| % of revenue | 6.2 | 9.4 | 3.3 | 5.8 | 4.6 |
| Result before taxes (EBT) | 2.7 | 9.2 | -3.4 | 5.4 | 3.7 |
| EPS, EUR | 0.03 | 0.15 | -0.07 | 0.08 | 0.05 |
| Equity ratio, % | 28.5 | 29.5 | 28.5 | 29.5 | 29.1 |
| Gearing, % | 207.1 | 192.0 | 207.1 | 192.0 | 198.8 |
| Shareholders’ equity/share, EUR | 9.08 | 9.20 | 9.08 | 9.20 | 9.14 |
Calculation of key ratios is presented under ’Calculation of ratios’.
GENERAL MARKET DEVELOPMENT
During the first half of the year 2011, the recovery of market volumes continued. Based on the statistics by the Finnish Maritime Administration (FMA), the Finnish seaborne imports carried in container, lorry and trailer units increased by 11% and exports by 15% during January-May 2011 compared to the previous year (measured in tons). The Finnish export and import volumes 2010 and 2011 are not comparable as such as the first quarter 2010 was affected by the stevedoring strike in March. According to the statistics published by Shippax, trailer and lorry volumes transported by sea between Southern Sweden and Germany increased in January-May by 5% compared to 2010. During the same period private and commercial passenger traffic between Finland and Sweden decreased by 3%. Between Finland and Germany the corresponding decrease was 15%. In the second quarter 2010 the volcanic ash cloud caused airspace limitations, which then abnormally increased the amounts of private passengers. The amount of commercial passengers was increased in the first quarter 2010 by the stevedoring strike (FMA).
FINNLINES TRAFFIC
During the first quarter of the year traffic was influenced by a number of external disturbances. Unexpected stevedoring strikes and very hard ice conditions in the Baltic Sea caused several temporary schedule changes, reroutings and stoppages. The increase in oil prices also affected the result of the first quarter negatively. In the second quarter the oil prices remained on a high level.
In April and May two of the six ro-ro newbuildings (MS Finnbreeze and MS Finnsea) entered the traffic. The first two vessels have been flagged to Finland. During the second quarter of the year, Finnlines operated on average 26 vessels in its own traffic, compared to 23 vessels in the same period in 2010.
In April 2011 a new passenger booking system was launched.
The cargo volumes transported during January-June totalled approximately 362,000 (313,000 in 2010) units, 38,000 (25,000) cars (not including passengers’ cars) and 1,097,000 (960,000) tons of freight not possible to measure in units. In addition, some 294,000 (305,000) private and commercial (cargo related) passengers were transported.
FINANCIAL RESULTS
April – June 2011
The Finnlines Group recorded revenue totalling EUR 160.2 million (152.8), an increase of 5% compared to the same period in 2010. Shipping and Sea Transport Services generated revenue amounting to EUR 148.9 million (138.9) and Port Operations EUR 18.0 million (21.5). The internal revenue between the segments was EUR 6.6 million (7.5).
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR 26.1 million (29.2), a decrease of 10%. Vessel lease expenses decreased by EUR 1.9 million compared to the same period of the previous year.
Result before interest and taxes (EBIT) was EUR 9.9 million (14.4). EBIT for April – June 2010 was improved by EUR 2.6 million by the refund of overcharged harbour dues. Financial income was EUR 0.2 million (1.6) and financial expenses totalled EUR -7.3 million (-6.8). Result before taxes (EBT) was EUR 2.7 million (9.2) and earnings per share (EPS) were EUR 0.03 (0.15).
January – June 2011
The Finnlines Group recorded revenue totalling EUR 299.2 million (274.4), an increase of 9% compared to the same period in 2010. Shipping and Sea Transport Services generated revenue amounting to EUR 275.3 million (249.8) and Port Operations EUR 36.6 million (36.3). The internal revenue between the segments was EUR 12.7 million (11.7).
Result before interest, taxes, depreciation and amortisation (EBITDA) was EUR 41.2 million (45.3), a decrease of 9%. Vessel lease expenses have decreased by EUR 4.2 million.
Result before interest and taxes (EBIT) was EUR 9.7 million (15.9). EBIT for the first half of 2010 included a EUR 5.7 million refund of overcharged fairway dues and harbour dues. Financial income was EUR 0.3 million (3.0) and financial expenses totalled EUR -13.5 million (-13.4). Result before taxes (EBT) was EUR -3.4 million (5.4) and earnings per share (EPS) were EUR -0.07 (0.08).
STATEMENT OF FINANCIAL POSITION, FINANCING AND CASH-FLOW
Interest-bearing net debt increased by EUR 53.4 million compared to the same period in 2010 and amounted to EUR 882.3 million (828.9). The equity ratio calculated from the balance sheet was 28.5% (29.5) and gearing was 207.1% (192.0). Vessel lease commitments decreased by EUR 32.0 million from the end of June 2010 due to the redelivery of chartered tonnage.
At the end of the period, cash and deposits together with unused committed working capital credits and the undrawn part of committed credits for newbuildings amounted to EUR 118.8 million. The company has a commercial paper programme amounting to EUR 100 million of which the company has issued EUR 22.7 million at the end of June.
CAPITAL EXPENDITURE
Gross capital expenditure in the review period totalled EUR 48.2 million (27.2) and consists mainly of payments for newbuildings, EUR 42.9 million. Total depreciation amounted to EUR 31.4 million (29.4). Two of the six newbuildings (MS Finnbreeze and MS Finnsea) were delivered from the shipyard in China during March 2011. The vessels were taken into use in Finnlines’ service during April and May. The next two vessels (no. 3 and 4) will be delivered during the fourth quarter of 2011 and the last of the newbuildings (no. 5 and 6) during the second half of 2012. In June Finnlines sold its terminal building in Pansio, Turku. The transaction had no major effect to the financial result of the review period.
PERSONNEL
The Group employed an average of 2,066 (2,048) persons during the period, consisting of 1,099 (1,116) persons on shore and 967 (932) persons at sea.
The increase in the average number of sea personnel is mainly due to the newbuildings taken into use.
After the measures taken during the first quarter 2011 Finnsteve Companies (Finnsteve Oy Ab, Containersteve Oy Ab and FS-Terminals Oy Ab) will have 150 employees less in the future.
DECISIONS TAKEN BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Finnlines Plc held on 19 April 2011 approved the Financial Statements and discharged the members of the Board of Directors and the President and CEO from liability for the financial year 2010.
The Annual General Meeting approved the Board of Directors proposal not to pay any dividend.
The Annual General Meeting decided that the Board of Directors shall have six members. The current Board Members were re-elected to the Board: Mr Emanuele Grimaldi, Mr Gianluca Grimaldi, Mr Diego Pacella, Mr Antti Pankakoski, Mr Olav Rakkenes and Mr Jon-Aksel Torgersen. The Board of Directors elected Mr Emanuele Grimaldi as Chairman and Mr Diego Pacella as Vice-Chairman.
The firm of authorised public accountants Deloitte & Touche Oy was appointed as the Company’s auditors for 2011.
The Annual General Meeting authorised the Board of Directors to resolve on the issuance of new shares in one or several tranches so that the total number of shares issued based on the authorization is 20 000 000 at maximum. The authorization is valid until the next Annual General Meeting. The authorization replaces the Annual General Meeting’s authorization to decide on a share issue of 14 April 2010.
RISKS
The risk of overcapacity in terms of ro-ro tonnage plays, whilst the market is recovering constantly since 2009 and the scrapping of ro-ro and ro-pax tonnage exceeds the newbuilding capacity, a less important role compared to the general shipping overcapacity of the world tonnage.
Finnlines constantly monitors the stability and the payment habits of its customers and currently there are no significant risks related to this.
Finnlines holds adequate credit lines to maintain liquidity in the current business environment.
The 2010 Financial statements contains a thorough description of Finnlines’ risks and risk management, and there are no essential changes to that report.
ESSENTIAL CHANGES IN LEGAL PROCEEDINGS
The 2010 Financial statements contains a thorough description of legal proceedings and the following is a description of the changes compared to what was reported in the financial statements:
Taxation of internal vessel sales carried out in 2007 by Finnlines Swedish subsidiary Rederi AB Nordö-Link (“Nordö-Link”) included uncertainties. Regardless of the appeals by Nordö-Link the decision of the tax authorities that a SEK of 97.2 million (EUR 9.5 million) tax debt including interests should be paid became definite. Nordö-Link paid in March 2011 SEK 101.4 million (EUR 11.3 million), of which interest amounted to SEK 4.2 million (EUR 0.5 million). As a deferred tax liability of EUR 10.4 million had been recorded on a Group level due to the temporary timing difference already in 2007, the net effect on the Group’s income taxes in the second quarter was only EUR -0.4 million. The result impact including the interest charge was in total EUR 0.9 million negative.
In the three legal actions raised by the Finnish Transport Workers' Union (“Union”) against the Finnlines’ port operations subsidiary for compensation of weekend work the case raised in the District Court of Kotka resulted in a judgement by default in favour of the port operations subsidiary. The Union has now applied for an action of recovery of the case with a substantially reduced claim. The port operations subsidiary has asked the District Court of Kotka to reject the application. In the case raised at the District Court of Turku the parties reached a settlement. The Union paid the main part of port operation subsidiary’s legal fees. The case raised in the District Court of Helsinki is under process. The Company considers the basis of the actions under process groundless. The total amount of all claims could now be estimated to be well below EUR 0.5 million.
Sub-chartering of MS Birka Transporter and MS Birka Exporter to Benfleet Shipping Limited, Cyprus (succeeding through a merger Scandinavian Shipping Invest A/S (“SSI”) caused the Company a loss of time charter hires and expenses in total EUR 0.3 million, as SSI terminated the charters in summer 2009. Since the parties could not reach an agreement, the Company started arbitration proceedings against SSI for payment of the outstanding time charter hires and expenses. The Company received SSI’s counter claim in the amount of EUR 1.2 million. The charters are subject to Finnish law and the place of arbitration is Helsinki. The sole arbitrator has now rendered his decision under both charters in favour of the Company and dismissed the counter claim of SSI. The sole Arbitrator ordered SSI to pay to the Company compensation for unlawful termination of the charters, for unpaid charter hires and legal fees in accordance with the demands of the Company. The Company is now proceeding for the enforcements of both decisions of the sole arbitrator. The procedure is under way.
Sponda Kiinteistöt Oy (“Sponda”) has summoned the Company to the City Court of Helsinki. The dispute concerns the termination of the lease contracts signed between the parties on 2005. The Company has validly given notice of termination on some of the spaces covered by the lease agreements. The Company considers Sponda claim groundless.
In December 2010 an oil leakage from tank no 1 occurred on board MS Finnkraft in the port of Ust-Luga while bunkering heavy fuel oil. The total amount leaked to the sea was about 0.23 m3. The Company immediately started its own investigations. The Finnish authorities have now initiated investigations which are still pending. The Company is working in co-operation with the authorities in order to clarify the matter. The vessel or the Company has not received any notice or information on any environmental damage. Possible damages will be covered by the Company’s P&I Insurance.
CHANGES IN GROUP STRUCTURE
The Group established two new subsidiaries in Luxembourg for the ownership of the newbuildings.
EVENTS AFTER THE REPORTING PERIOD
There are no essential events after the reporting period to report.
OUTLOOK FOR THE REMAINING PART OF 2011
The tough competition in the ports where the company operates has negatively influenced the price levels of port services. The Finnlines port operation companies have been compelled to adjust the number of personnel to the market requirements, from which considerable savings are expected. However, a substantial part of these savings will only be realised in 2012 due to notice periods.
During 2011, the Company will take the delivery of major part of its newbuildings and will have a modern optimized fleet to meet future demands. During the last two years the Company has been reshaped and optimized both with respect to efficiency and cost. Based on expected market development, the Board of Directors expects an improved result in 2011 compared to previous year, despite the challenging first half of the year 2011.
The third interim report of 2011, 1 January – 30 September, will be published on Tuesday, 8 November 2011.
Finnlines Plc
The Board of Directors
Uwe Bakosch
President/CEO
ENCLOSURES
- Consolidated statement of comprehensive income, IFRS
- Consolidated statement of financial position, IFRS
- Consolidated statement of changes in equity, IFRS
- Consolidated statement of cash flows, IFRS (condensed)
- Revenue and result by business segment
- Property, plant and equipment
- Contingencies and commitments
- Revenue and result by quarter
- Shares, market capitalisation and trading information
- Calculation of ratios
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main media
This interim report is unaudited.
FINNLINES’ BUSINESS
Finnlines is one of the largest North-European liner shipping companies, providing sea transport services mainly in the Baltic and the North Sea. In addition to freight, the Company’s ro-pax vessels carry passengers between five countries and eight ports. The Company also provides port services in Helsinki, Turku and Kotka. The company has subsidiaries or sales offices in Germany, Belgium, the UK, Sweden, Denmark, Luxembourg and Poland and a representative office in Russia. Finnlines is a Finnish listed company and part of the Italian Grimaldi Group.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
| EUR 1,000 | 1 Apr – 30 Jun 2011 | 1 Apr – 30 Jun 2010 | 1 Jan – 30 Jun 2011 | 1 Jan – 30 Jun 2010 | 1 Jan - 31 Dec 2010 |
| Revenue | 160,180 | 152,847 | 299,227 | 274,354 | 561,108 |
| Other income from operations | 667 | 540 | 1,103 | 2,995 | 4,287 |
| Materials and services | -63,494 | -52,453 | -119,980 | -95,863 | -202,964 |
| Personnel expenses | -27,982 | -28,978 | -56,415 | -54,040 | -110,635 |
| Depreciation, amortisation and write-offs | -16,274 | -14,767 | -31,442 | -29,420 | -60,322 |
| Other operating expenses | -43,234 | -42,770 | -82,748 | -82,165 | -165,850 |
| Total operating expenses | -150,984 | -138,968 | -290,585 | -261,489 | -539,770 |
| Result before interest and taxes (EBIT) | 9,862 | 14,419 | 9,746 | 15,860 | 25,625 |
| Financial income | 159 | 1,570 | 336 | 2,960 | 3,793 |
| Financial expenses | -7,307 | -6,780 | -13,487 | -13,435 | -25,734 |
| Result before taxes | 2,715 | 9,209 | -3,405 | 5,384 | 3,683 |
| Income taxes | -1,472 | -2,409 | 42 | -1,843 | -1,450 |
| Result for the reporting period | 1,243 | 6,800 | -3,363 | 3,541 | 2,234 |
| Other comprehensive income: | |||||
| Exchange differences on translating foreign operations | -1 | -14 | 0 | -51 | -7 |
| Changes in cash flow hedging reserve | |||||
| Fair value changes | -155 | 2,098 | -1,338 | 3,473 | 1,418 |
| Transfer to fixed assets | 2,004 | 2,004 | |||
| Tax effect, net | -481 | -546 | -173 | -903 | -369 |
| Total comprehensive income for the reporting period | 2,610 | 8,338 | -2,870 | 6,060 | 3,276 |
| Result for the reporting period attributable to: | |||||
| Parent company shareholders | 1,226 | 6,806 | -3,330 | 3,617 | 2,243 |
| Non-controlling interests | 17 | -7 | -33 | -75 | -9 |
| 1,244 | 6,800 | -3,363 | 3,541 | 2,234 | |
| Total comprehensive income for the reporting period attributable to: | |||||
| Parent company shareholders | 2,593 | 8,345 | -2,837 | 6,136 | 3,285 |
| Non-controlling interests | 17 | -7 | -33 | -75 | -9 |
| 2,610 | 8,338 | -2,870 | 6,060 | 3,276 | |
| Result for the reporting period attributable to parent company shareholders calculated as earnings per share (EUR/share): | |||||
| Undiluted earnings per share | 0.03 | 0.15 | -0.07 | 0.08 | 0.05 |
| Diluted earnings per share | 0.03 | 0.15 | -0.07 | 0.08 | 0.05 |
|
Average number of shares: |
|||||
| Undiluted | 46,821,037 | 46,821,037 | 46,821,037 | 46,821,037 | 46,821,037 |
| Diluted | 46,821,037 | 46,821,037 | 46,821,037 | 46,821,037 | 46,821,037 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
| EUR 1,000 | 30 Jun 2011 | 30 Jun 2010 | 31 Dec 2010 |
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 1,279,545 | 1,239,031 | 1,263,626 |
| Goodwill | 105,644 | 105,644 | 105,644 |
| Intangible assets | 8,936 | 10,148 | 9,736 |
| Investment properties | 1,575 | 0 | |
| Share of associated companies | 0 | 0 | |
| Other financial assets | 4,562 | 4,777 | 4,562 |
| Receivables | 1,213 | 696 | 1,820 |
| Deferred tax assets | 4,049 | 2,152 | 4,225 |
| 1,403,949 | 1,364,022 | 1,389,613 | |
| Current assets | |||
| Inventories | 9,737 | 6,197 | 6,567 |
| Accounts receivable and other receivables | 84,873 | 89,778 | 69,900 |
| Income tax receivables | 82 | 27 | 82 |
| Bank and cash | 3,480 | 6,729 | 6,452 |
| 98,171 | 102,730 | 83,001 | |
| Total assets | 1,502,120 | 1,466,752 | 1,472,614 |
| EQUITY | |||
| Equity attributable to parent company shareholders | |||
| Share capital | 93,642 | 93,642 | 93,642 |
| Share premium account | 24,525 | 24,525 | 24,525 |
| Fair value reserve | -3,281 | -2,253 | -3,773 |
| Translation differences | 117 | 73 | 117 |
| Unrestricted equity reserve | 21,015 | 21,015 | 21,015 |
| Retained earnings | 289,204 | 293,908 | 292,534 |
| 425,223 | 430,911 | 428,060 | |
| Non-controlling interests | 833 | 800 | 867 |
| Total equity | 426,056 | 431,711 | 428,927 |
| LIABILITIES | |||
| Long-term liabilities | |||
| Deferred tax liabilities | 78,303 | 88,655 | 89,459 |
| Interest-free liabilities | 8 | 16 | 12 |
| Pension liabilities | 2,285 | 2,342 | 2,310 |
| Provisions | 4,562 | 4,312 | 4,562 |
| Interest-bearing liabilities | 697,916 | 699,501 | 701,606 |
| 783,075 | 794,827 | 797,951 | |
| Current liabilities | |||
| Accounts payable and other liabilities | 104,990 | 103,229 | 88,130 |
| Income tax liabilities | 105 | 614 | 104 |
| Provisions | 30 | 210 | 30 |
| Current interest-bearing liabilities | 187,864 | 136,162 | 157,473 |
| 292,989 | 240,214 | 245,736 | |
| Total liabilities | 1,076,064 | 1,035,041 | 1,043,687 |
| Total equity and liabilities | 1,502,120 | 1,466,752 | 1,472,614 |
STATEMENT OF CHANGES IN EQUITY 2010, IFRS
| EUR 1,000 | Equity attributable to parent company shareholders | ||||
| Share capital | Share issue premium | Translation differences | Fair value reserves | Unrestricted equity reserve | |
| Equity 1 January 2010 | 93,642 | 24,525 | 124 | -4,822 | 21,015 |
| Comprehensive income for the reporting period: | |||||
| Exchange differences on translating foreign operations | -51 | ||||
| Changes in cash flow hedging reserve | |||||
| Fair value changes | 3,473 | ||||
| Tax effect, net | -903 | ||||
| Total comprehensive income for the reporting period | -51 | 2,570 | |||
| Equity 30 June 2010 | 93,642 | 24,525 | 73 | -2,253 | 21,015 |
| EUR 1,000 | Equity attributable to parent company shareholders |
Non-controlling interests |
Total equity |
||
| Retained earnings | Total | ||||
| Equity 1 January 2010 | 290,291 | 424,775 | 876 | 425,651 | |
| Comprehensive income for the reporting period: | |||||
| Result for the reporting period | 3,617 | 3,617 | -75 | 3,541 | |
| Exchange differences on translating foreign operations | -51 | -51 | |||
| Changes in cash flow hedging reserve | |||||
| Fair value changes | 3,473 | 3,473 | |||
| Tax effect, net | -903 | -903 | |||
| Total comprehensive income for the reporting period | 3,617 | 6,136 | -75 | 6,060 | |
| Equity 30 June 2010 | 293,908 | 430,911 | 800 | 431,711 | |
STATEMENT OF CHANGES IN EQUITY 2011, IFRS
| EUR 1,000 | Equity attributable to parent company shareholders | ||||
| Share capital | Share issue premium | Translation differences | Fair value reserves | Unrestricted equity reserve | |
| Equity 1 January 2011 | 93,642 | 24,525 | 117 | -3,773 | 21,015 |
| Comprehensive income for the reporting period: | |||||
| Exchange differences on translating foreign operations | 0 | ||||
| Changes in cash flow hedging reserve | |||||
| Fair value changes | -1,338 | ||||
| Transfer to fixed assets | 2,004 | ||||
| Tax effect, net | -173 | ||||
| Total comprehensive income for the reporting period | 493 | ||||
| Equity 30 June 2011 | 93,642 | 24,525 | 117 | -3,281 | 21,015 |
| EUR 1,000 | Equity attributable to parent company shareholders |
Non-controlling interests |
Total equity |
||
| Retained earnings | Total | ||||
| Equity 1 January 2011 | 292,534 | 428,060 | 867 | 428,927 | |
| Comprehensive income for the reporting period: | |||||
| Result for the reporting period | -3,330 | -3,330 | -33 | -3,363 | |
| Exchange differences on translating foreign operations | 0 | 0 | |||
| Changes in cash flow hedging reserve | |||||
| Fair value changes | -1,338 | -1,338 | |||
| Transfer to fixed assets | 2,004 | 2,004 | |||
| Tax effect, net | -173 | -173 | |||
| Total comprehensive income for the reporting period | -3,330 | -2,837 | -33 | -2,870 | |
| Equity 30 June 2011 | 289,204 | 425,223 | 833 | 426,056 | |
CONSOLIDATED CASH FLOW STATEMENT, IFRS (CONDENSED)
| EUR 1,000 | 1 Jan-30 Jun 2011 | 1 Jan-30 Jun 2010 | 1 Jan-31 Dec 2010 |
| Cash flows from operating activities | |||
| Result for reporting period | -3,363 | 3,541 | 2,234 |
| Non-cash transactions and other adjustments | 44,066 | 41,206 | 82,484 |
| Changes in working capital | -5,828 | 4,729 | 10,187 |
| Net financial items and income taxes | -20,432 | -9,491 | -27,118 |
| Net cash generated from operating activities | 14,443 | 39,985 | 67,787 |
| Cash flow from investing activities | |||
| Net investments in tangible and intangible assets | -46,567 | -27,216 | -81,839 |
| Disposal of subsidiaries | 1,650 | ||
| Proceeds from sale of investments | 1,675 | 159 | |
| Other investing activities | 2,128 | 426 | 2,621 |
| Net cash used in investing activities | -44,439 | -25,114 | -77,409 |
| Cash flows from financing activities | |||
| Loan withdrawals | 33,400 | 8,040 | 44,120 |
| Net increase in current interest-bearing liabilities | 17,238 | 7,338 | 33,744 |
| Repayment of loans | -24,232 | -30,256 | -69,379 |
| Increase / decrease in long-term receivables | 619 | 631 | 1,482 |
| Net cash from (used in) financing activities | 27,025 | -14,247 | 9,967 |
| Change in cash and cash equivalents | -2,971 | 623 | 344 |
| Cash and cash equivalents 1 January | 6,452 | 6,103 | 6,103 |
| Effect of foreign exchange rate changes | -1 | 2 | 5 |
| Cash and cash equivalents at the end of period | 3,480 | 6,729 | 6,452 |
REVENUE AND RESULT BY BUSINESS SEGMENTS
| 1 Apr-30 Jun 2011 | 1 Apr-30 Jun 2010 | 1 Jan-30 Jun 2011 | 1 Jan-30 Jun 2010 | 1 Jan-31 Dec 2010 | ||||||
| MEUR | % | MEUR | % | MEUR | % | MEUR | % | MEUR | % | |
| Revenue | ||||||||||
| Shipping and sea transport services | 148.9 | 92.9 | 138.9 | 90.8 | 275.3 | 92.0 | 249.8 | 91.0 | 513.7 | 91.5 |
| Port operations | 18.0 | 11.2 | 21.5 | 14.1 | 36.6 | 12.2 | 36.3 | 13.2 | 72.3 | 12.9 |
| Intra-group revenue | -6.6 | -4.2 | -7.5 | -4.9 | -12.7 | -4.3 | -11.7 | -4.3 | -24.9 | -4.4 |
| External sales | 160.2 | 100.0 | 152.8 | 100.0 | 299.2 | 100.0 | 274.4 | 100.0 | 561.1 | 100.0 |
| Result before interest and taxes (EBIT) | ||||||||||
| Shipping and sea transport services | 11.8 | 16.5 | 14.7 | 22.4 | 39.3 | |||||
| Port operations | -1.9 | -2.1 | -4.9 | -6.6 | -13.7 | |||||
| Result before interest and taxes (EBIT) total | 9.9 | 14.4 | 9.7 | 15.9 | 25.6 | |||||
| Financial items | -7.1 | -5.2 | -13.2 | -10.5 | -21.9 | |||||
| Result before taxes | 2.7 | 9.2 | -3.4 | 5.4 | 3.7 | |||||
| Income taxes | -1.5 | -2.4 | 0.0 | -1.8 | -1.4 | |||||
| Result for the reporting period | 1.2 | 6.8 | -3.4 | 3.5 | 2.2 | |||||
PROPERTY, PLANT AND EQUIPMENT 2010
| EUR 1,000 | Land | Buildings | Vessels | Machinery and equipment | Advance payments & acquisitions under constr. | Total |
| Acquisition cost 1 January 2010 | 35 | 78,943 | 1,254,854 | 103,524 | 133,545 | 1,570,900 |
| Exchange rate differences | 49 | 49 | ||||
| Increases | 3,983 | 48 | 23,133 | 27,164 | ||
| Disposals | -1,394 | -284 | -847 | -2,525 | ||
| Acquisition cost 30 June 2010 | 35 | 77,549 | 1,258,553 | 102,774 | 156,678 | 1,595,589 |
| Accumulated depreciation, amortisation and write-offs 1 January 2010 | -7,676 | -271,610 | -51,557 | -330,843 | ||
| Exchange rate differences | -45 | -45 | ||||
| Cumulative depreciation on reclassifications and disposals | 1,394 | 284 | 825 | 2,503 | ||
| Depreciation for the reporting period | -1,430 | -23,577 | -3,166 | -28,173 | ||
| Accumulated depreciation, amortisation and write-offs 30 June 2010 | -7,712 | -294,903 | -53,942 | -356,558 | ||
| Book value 30 June 2010 | 35 | 69,837 | 963,650 | 48,832 | 156,678 | 1,239,031 |
PROPERTY, PLANT AND EQUIPMENT 2011
| EUR 1,000 | Land | Buildings | Vessels | Machinery and equipment | Advance payments & acquisitions under constr. | Total |
| Acquisition cost 1 January | 72 | 78,923 | 1,302,037 | 100,460 | 167,050 | 1,648,543 |
| Exchange rate differences | -26 | -26 | ||||
| Increases | 1 | 4,487 | 119 | 43,247 | 47,854 | |
| Disposals | -2,175 | -76 | -566 | -2,817 | ||
| Reclassifications | 93,966 | -93,966 | 0 | |||
| Acquisition cost 30 June 2011 | 72 | 76,749 | 1,400,414 | 99,987 | 116,331 | 1,693,554 |
| Accumulated depreciation, amortisation and write-offs 1 January 2011 | -10,510 | -319,792 | -54,615 | -384,917 | ||
| Exchange rate differences | 23 | 23 | ||||
| Cumulative depreciation on reclassifications and disposals | 532 | 76 | 566 | 1,174 | ||
| Depreciation for the reporting period | -1,647 | -25,767 | -2,875 | -30,289 | ||
| Accumulated depreciation, amortisation and write-offs 30 June 2011 | -11,625 | -345,484 | -56,900 | -414,009 | ||
| Book value 30 June 2011 | 72 | 65,124 | 1,054,931 | 43,087 | 116,331 | 1,279,545 |
CONTINGENCIES AND COMMITMENTS
| EUR 1,000 | 30 Jun 2011 | 30 Jun 2010 | 31 Dec 2010 |
| Minimum lease payable in relation to fixed-term leases: | |||
| Vessel leases (Group as lessee): | |||
| Within 12 months | 21,335 | 31,989 | 28,410 |
| 1-5 years | 7,433 | 28,768 | 14,785 |
| 28,768 | 60,756 | 43,195 | |
| Vessel leases (Group as lessor): | |||
| Within 12 months | 0 | 4,130 | 1,147 |
| 0 | 4,130 | 1,147 | |
| Other leases (Group as lessee): | |||
| Within 12 months | 6,668 | 6,945 | 6,658 |
| 1-5 years | 18,626 | 20,941 | 18,596 |
| After five years | 14,633 | 17,530 | 15,904 |
| 39,926 | 45,416 | 41,158 | |
| Other leases (Group as lessor): | |||
| Within 12 months | 347 | 195 | 237 |
| 347 | 195 | 237 | |
| Collateral given | |||
| Loans from financial institutions | 736,860 | 723,267 | 727,419 |
| Vessel mortgages provided as guarantees for the above loans | 1,189,500 | 1,153,500 | 1,173,500 |
| Other collateral given on own behalf | |||
| Pledged deposits | 471 | 470 | 472 |
| Corporate mortgages | 606 | 606 | 606 |
| 1,077 | 1,076 | 1,078 | |
| Other obligations | 64,532 | 124,842 | 103,819 |
| Obligations of parent company on behalf of subsidiaries | |||
| Guarantees | 6,913 | 6,913 | 6,913 |
| 6,913 | 6,913 | 6,913 | |
| VAT adjustment liability related to real estate investments | 10,487 | 11,782 | 11,134 |
Open derivative instruments:
| Fair value | Contract amount | |||||
| 1000 EUR | 30 Jun 2011 | 30 Jun 2010 | 31 Dec 2010 | 30 Jun 2011 | 30 Jun 2010 | 31 Dec 2010 |
| Currency derivatives | -621 | 2,721 | 657 | 13,561 | 23,959 | 22,003 |
| Interest rate swaps | 0 | -343 | 0 | 0 | 120,000 | 0 |
REVENUE AND RESULT BY QUARTER
| MEUR | Q1/11 | Q1/10 | Q2/11 | Q2/10 |
| Shipping and sea transport services | 126.5 |
110.9 |
148.9 |
138.9 |
| Port operations | 18.7 | 14.8 | 18.0 | 21.5 |
| Intra-group revenue | -6.1 | -4.2 | -6.6 | -7.5 |
| External sales | 139.0 | 121.5 | 160.2 | 152.8 |
| Result before interest and taxes (EBIT) | ||||
| Shipping and sea transport services | 2.9 | 5.9 | 11.8 | 16.5 |
| Port operations | -3.0 | -4.5 | -1.9 | -2.1 |
| Result before interest and taxes (EBIT) total | -0.1 | 1.4 | 9.9 | 14.4 |
| Financial items | -6.0 | -5.3 | -7.1 | -5.2 |
| Result before taxes | -6.1 | -3.8 | 2.7 | 9.2 |
| Income taxes | 1.5 | 0.6 | -1.5 | -2.4 |
| Result for the reporting period | -4.6 | -3.3 | 1.2 | 6.8 |
| EPS (undiluted) | -0.10 | -0.07 | 0.03 | 0.15 |
| EPS (diluted) | -0.10 | -0.07 | 0.03 | 0.15 |
SHARES, MARKET CAPITALISATION AND TRADING INFORMATION
| 30 June 2011 | 30 June 2010 | |
| Number of shares | 46,821,037 | 46,821,037 |
|
Market capitalisation, EUR million |
372.7 | 379.7 |
| 1 Jan – 30 Jun 2011 | 1 Jan – 30 Jun 2010 | |
| Number of shares traded, million | 0.7 | 1.8 |
| 1 Jan – 30 Jun 2011 | ||||
| High | Low | Average | Close | |
| Share price | 8.15 | 7.37 | 7.94 | 7.96 |
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
Shareholders’ equity + non-controlling interests
Equity ratio, %:
Shareholders’ equity + non-controlling interests
-------------------------------------------------------------------- X 100
Assets total – received advances
Taxes corresponding to the result for the reporting period are presented as income taxes in the interim report.
RELATED PARTY TRANSACTIONS
There were no material related party transactions during the reporting period. The business transactions were carried out using market-based pricing.
REPORTING AND ACCOUNTING POLICIES
This interim report is prepared in accordance with IAS 34 (Interim Financial Reporting) using the same accounting policies and methods as in the annual financial statements for 2010. All figures in the accounts have been rounded and consequently the sum of individual figures can deviate from the presented sum figure.
The preparation of the financial statements in accordance with IFRS requires management to make estimates and assumptions 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.
