OREANDA-NEWS. In the second quarter (1 April – 30 June) of the 2015 financial year AS Tallink Grupp and its subsidiaries’ (the Group) carried nearly 2.4 million passengers which is on the same level compared to the second quarter last year.  The Group’s unaudited revenue for the second quarter of 2015 increased by EUR 7.4 million or 3.0% year on year to the total of EUR 253.9 million, EBITDA increased by EUR 14.1 million or 34.3% to the total of EUR 55.2 million, compared to the same period last year.Net profit increased by EUR 22.4 million or 367.7% to the total of EUR 28.5 million, compared to the same period last year.

The Group’s revenue for the first six months of 2015 was EUR 444.0 million and increased by EUR 9.3 million or 2.1% year on year comparison. EBITDA increased by EUR 29.1 million to the total of EUR 74.6 million and net profit increased by EUR 32.5 million to the total of EUR 15.2 million, compared to the same period last year.

The Group made various changes to the operations during the past year, these changes have continued to positively affect the operating result in the second quarter with increased revenue and profitability.

In the second quarter the Estonia-Finland route revenue increased by 6.2%, driven by 4.8% growth in passenger number and 19.9% increase in cargo units, the cargo growth is supported mainly by added capacity. The Estonia-Sweden route, where capacity is lower than last year, experienced a 5.1% decrease in passengers and a 12.3% decrease in cargo volumes. The Latvia-Sweden route, operating with one vessel compared to two vessels last year, showed a decline with passenger numbers decreasing by 42.3%, cargo units transported decreased by 59.2%.

Throughout the second quarter price pressure from competition remained visible on all routes. The group was able to keep the total number of passengers on same level despite the total lower capacity from Latvia-Sweden route. The passenger number was supported by growth in Estonia-Finland and Finland-Sweden routes.

The upgrades of the public areas and improvements to restaurant and shop concept throughout the fleet in past year, combined with the operational changes, have resulted in a 2.0% increase in on-board revenue per passenger.

Due to the increased number of chartered vessels compared to the same period last year the revenue from charters increased by EUR 4.8 million or 57.8% to the total of EUR 13.2 million. Main contribution to the charter revenue growth comes from the Silja Europa charter agreement from August 2014 onwards.

In February 2015 AS Tallink Grupp and Meyer Turku Oy signed a contract for the construction of the new LNG powered fast ferry for Tallinn-Helsinki route shuttle operations. The ship will cost around EUR 230 million, 20% of the total cost will be paid during the construction period and the rest 80% upon the delivery of the vessel in the beginning of 2017. AS Tallink Grupp's subsidiary Tallink Line Ltd. and Nordea Bank Finland Plc have signed the loan agreement in June 2015 in amount of EUR 184 million with maturity of twelve years from drawdown to finance the construction of the new fast ferry in Meyer Turku shipyard. Finnish Export Credit Agency “Finnvera” guarantees 95% of this post-delivery buyer credit and the loan bears OECD Commercial Interest Reference Rate (CIRR) based fixed interest rate.

Two of the vessels that were chartered out, Silja Festival and Regina Baltica were sold in the second quarter of the 2015 financial year. The sale of the two vessels generated a positive cash flow of EUR 25 million which was used for the EUR 11.5 million down payment of the new LNG vessel and repayment of loans. Altogether the Group successfully continued the deleveraging strategy and the net debt decreased by EUR 62 million to a total of EUR 614 million in the second quarter resulting in a solid net debt to EBITDA ratio of 3.4.

In the first half year of 2015 the positive effect from chartering activities has been clearly visible as in the comparable period last year fewer ships were in charter. Looking forward to the second half of the 2015 financial year the chartering revenues will decrease compared to the previous year as Silja Europa charter becomes comparable with the last year and two ships previously in charter were sold in the second quarter of 2015.

In June 2015 AS Tallink Grupp agreed with the main fuel supplier to fix the price of approximately 30% of the fuel purchasing volume until the end of 2015.

In the second quarter of the 2015 financial year the Group’s gross profit amounted to EUR 62.4 million and EBITDA to EUR 55.2 million being respectively EUR 11.4 million and EUR 14.1 million more compared to the same period last year. The increase in the Group’s results is mainly attributed to the growth in passenger numbers, increased charter revenues and decreased costs related to operations. The increase in the pre-tax profit was affected by higher financial income mainly due to the increase in the fair value of derivative instruments (interest rate swaps) which resulted in EUR 7.3 million lower net finance cost.

The unaudited net profit for the second quarter of the 2015 financial year was EUR 28.5 million or EUR 0.04 per share compared to the net profit of EUR 6.1 million or EUR 0.01 per share in the same period last year.

In June 2015 the shareholders annual general meeting decided to pay a dividend of 0.02 euros per share. The total dividend amount of EUR 13.4 million was paid out in the beginning of July 2015 (third quarter).

Cash flow from operations increased by EUR 8.2 million when compared to the same period last year. The total liquidity, cash and unused credit facilities at the end of the second quarter was EUR 96.2 million providing a strong position for sustainable operations. At the end of the second quarter 2015 the Group had EUR 81.0 million in cash and equivalents and the total of unused credit lines were at EUR 15.2 million.

Q2 KEY FIGURES   2015
Apr-Jun		 2014
Apr-Jun		 Change
Revenue EUR million 253.9 246.5 3.0%
Gross profit EUR million 62.4 51.0 22.4%
Gross margin   24.6% 20.7%  
EBITDA EUR million 55.2 41.1 34.3%
EBITDA margin   21.7% 16.7%  
Net profit for the period EUR million 28.5 6.1 367.7%
Net profit margin   11.2% 2.5%  
         
Depreciation and amortization EUR million 19.9 20.0 -0.4%
Investments EUR million 14.9 6.2 139.0%
         
Weighted average number of ordinary shares outstanding 669 882 040 669 882 040  
Earnings per share EUR 0.04 0.01 367.7%
         
Number of passengers   2 356 039 2 363 510 -0.3%
Number of cargo units   78 659 79 055 -0.5%
Average number of employees   6 903 7 124 -3.1%
         
    30.06.2015 31.03.2015  
Total assets EUR million 1 665.5 1 674.5 -0.5%
Interest-bearing liabilities EUR million 695.5 742.9 -6.4%
Net debt EUR million 614.5 676.6 -9.2%
Total equity EUR million 780.2 764.9 2.0%
         
Equity ratio   46.8% 45.7%  
Net debt to EBITDA   3.4 4.1  
         
Number of ordinary shares outstanding1   669 882 040 669 882 040 0%
Shareholders’ equity per share EUR 1.16 1.14 2.0%

EBITDA:  Earnings before net financial items, taxes, depreciation and amortization;
Earnings per share: net profit / weighted average number of shares outstanding;
Equity ratio: total equity / total assets;
Shareholder’s equity per share: shareholder’s equity / number of shares outstanding;
Gross margin: gross profit / net sales;
EBITDA margin: EBITDA / net sales;
Net profit margin: net profit / net sales;
Net debt: Interest bearing liabilities less cash and cash equivalents;
Net debt to EBITDA: Net debt / 12-months trailing EBITDA.
1 Share numbers exclude own shares.

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 

(unaudited, in thousands of euros) 01.04.2015- 01.04.2014- 01.01.2015- 01.01.2014-
  30.06.2015 30.06.2014 30.06.2015 30.06.2014
         
Revenue 253,862 246,463 444,015 434,669
Cost of sales -191,489 -195,503 -355,538 -371,922
Gross profit 62,373 50,960 88,477 62,747
           
Marketing expenses -16,481 -16,001 -31,716 -31,799
Administrative expenses -11,603 -13,888 -23,318 -25,277
Other income 1,362 312 1,485 525
Other expenses -390 -292 -581 -340
Result from operating activities 35,261 21,091 34,347 5,856
         
Finance income 1,621 551 7,297 3,867
Finance costs -4,000 -10,192 -20,608 -21,637
           
Profit/-loss before income tax 32,882 11,450 21,036 -11,914
           
Income tax -4,350 -5,349 -5,850 -5,359
           
Net profit/-loss for the period 28,532 6,101 15,186 -17,273
         
Other comprehensive income/-expense        
Items that may be reclassified to profit or loss        
Exchange differences on translating foreign operations 28 -51 -54 8
Other comprehensive income/-expense for the period 28 -51 -54 8
Total comprehensive income/-expense for the period 28,560 6,050 15,132 -17,265
         
Earnings per share (in EUR per share)        
  - basic 0.043 0.009 0.023 0.026
  - diluted 0.043 0.009 0.023 0.026

 

  

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 

(unaudited, in thousands of euros) 

ASSETS 30.06.2015 31.12.2014
       
Current assets    
Cash and cash equivalents 81,048 65,311
Trade and other receivables 44,028 38,210
Prepayments 10,670 5,448
Inventories 30,424 31,315
Total current assets 166,170 140,284
       
Non-current assets    
Investments in equity-accounted investees 286 286
Other financial assets 332 252
Deferred income tax assets 21,349 21,338
Investment property 300 300
Property, plant and equipment 1,423,409 1,467,964
Intangible assets 53,608 55,174
Total non-current assets 1,499,284 1,545,314
       
TOTAL ASSETS 1,665,454 1,685,598
       
       
LIABILITIES AND EQUITY    
     
Current liabilities    
Interest bearing loans and borrowings 145,730 149,850
Trade and other payables 95,415 91,236
Dividends 13,398 0
Income tax liability 6,344 1,300
Deferred income 39,891 29,408
Derivatives 34,694 41,982
Total current liabilities 335,472 313,776
       
Non-current liabilities    
Interest bearing loans and borrowings 549,806 593,532
Total non-current liabilities 549,806 593,532
TOTAL LIABILITIES 885,278 907,308
       
EQUITY    
Equity attributable to equity holders of the parent    
Share capital 404,290 404,290
Share premium 639 639
Reserves 71,590 70,129
Retained earnings 303,657 303,232
Total equity attributable to equity holders of the parent 780,176 778,290
TOTAL EQUITY 780,176 778,290
       
TOTAL LIABILITIES AND EQUITY 1,665,454 1,685,598

 

 

CONSOLIDATED CASH FLOW STATEMENT 

(unaudited, in thousands of euros) 01.01.2015- 01.01.2014-
    30.06.2015 30.06.2014
Cash flows from operating activities    
Net profit/-loss for the period 15,186 -17,273
Adjustments 59,282 64,136
Changes in receivables and prepayments related to operating activities -10,917 -12,844
Changes in inventories 891 1,268
Changes in liabilities related to operating activities 14,097 15,615
Income tax paid -246 -4
  78,293 50,898
Cash flow used in investing activities    
Purchase of property, plant and equipment and intangible assets -18,499 -20,351
Proceeds from disposals of property, plant and equipment 25,001 114
Interest received 41 9
  6,543 -20,228
Cash flow used in financing activities    
Repayment of loans -49,381 -39,920
Change in overdraft -2,644 26,589
Payment of finance lease liabilities -40 -97
Interest paid -14,744 -17,040
Payments for settlement of derivatives -2,290 -2,000
  -69,099 -32,468
       
TOTAL NET CASH FLOW 15,737 -1,798
       
Cash and cash equivalents:    
- at the beginning of period 65,311 72,012
- increase (+) / decrease (-) 15,737 -1,798
- at the end of period 81,048 70,214