JANUARY-DECEMBER 2023
(compared to January-
- Sales amounted to
EUR 491.4 M (EUR 494.7 M). -
Other operating revenue was
EUR 9.1 M (EUR 24.1 M). -
Operating income totalled
EUR 55.0 M (EUR 38.3 M). -
Net financial items were
EUR -9.6 M (EUR -10.3 M). -
Income before taxes totalled
EUR 45.4 M (EUR 28.0 M). -
Income after taxes totalled
EUR 36.3 M (EUR 22.7 M). -
The Board of Directors proposes a dividend of
1 euro per share, which corresponds to 48% of earnings.
Outlook for the financial year 2024
There continues to be significant uncertainty due to the geopolitical situation and the impact this has on energy prices, inflation, interest rates and currencies as well as the effects these uncertainty factors may have on people's propensity to travel, demand, consumption patterns and costs. In early 2023, Rosella was sold. Provided energy prices remain at current levels and there is a sustained propensity to travel, the Board expects income before taxes in 2024 to be on a par with the figure for 2023 if the
FOURTH QUARTER 2023
(compared to fourth quarter 2022)
- Sales amounted to
EUR 112.2 M (EUR 124.5 M). -
Other operating revenue was
EUR 0.3 M (EUR 15.2 M). -
Operating income totalled
EUR 2.7 M (EUR 19.4 M). -
Net financial items were
EUR -0.6 M (EUR -2.9 M). -
Income before taxes amounted to
EUR 2.0 M (EUR 16.5 M including theEUR 15.0 M capital gain from Amorella)). -
Income after taxes totalled
EUR 1.7 M (EUR 13.2 M).
COMMENTS FROM PRESIDENT AND CEO
The financial year 2023 was a very good year, the best since the company was listed in 1995. Income before taxes totalled
The fourth quarter of the year turned out as expected, which means that we could meet our full-year forecast with far better earnings than in 2022. Passenger and cargo volumes remained stable despite a smaller number of vessels, while planned sales prices were achieved. In late October and November, passenger demand weakened temporarily before recovering in December. This was a market trend that affected all operators in our service area. Bunker (vessel fuel) prices have gradually fallen, but are still very high relative to pre-pandemic levels and
On
The number of passengers who travelled with the company in 2023 totalled 4.9 million, which is a very good result given our reduced capacity, with fewer vessels than the year before. During the summer, there were even periods where there was a lack of capacity. Nearly 1.8 million passengers sailed during the period June-August, and many departures during the summer holiday season sold out well in advance. Viking Grace and Viking Glory had the biggest passenger increase during the year, on the
Starting in 2024, our traffic will fall under the EU's Emissions Trading System (ETS). This entails a cost burden that we can only partly offset in the medium term with continued energy efficiency work. Fossil-free fuel in a quantity and at a price that are economically viable does not exist. The implementation of a limited-term island exemption from the Emissions Trading System for traffic between
To summarize, I can note that the past financial year has been very strong even excluding the income effect of
I would like to extend my warm thanks to our customers and partners for their faith in us and our good collaboration. A big thank you also goes to our engaged personnel, who contributed to our earnings with their fine work.
SUMMARY OF KEY FIGURES
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EUR M |
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Sales |
| 112.2 | 124.5 | 491.4 | 494.7 |
Other operating revenue |
| 0.3 | 15.2 | 9.1 | 24.1 |
Operating income |
| 2.7 | 19.4 | 55.0 | 38.3 |
Income before taxes |
| 2.0 | 16.5 | 45.4 | 28.0 |
Income for the period |
| 1.7 | 13.2 | 36.3 | 22.7 |
SERVICE AND MARKET
During the year, the
Viking Grace was dry-docked for the period
Rosella operated between Mariehamn and Kapellskär until
During the summer period, both Gabriella and Viking Cinderella made a number of destination cruises, including to Visby,
During the period
In 2022, Viking Glory launched service on the Turku-Mariehamn/Långnäs-Stockholm route on
During the comparative period,
The total number of passengers on the Group's vessels during the report period was 4,897,494 (4,945,564). The Group had a total market share in its service area of approximately 35.1% (37.2%).
Market demand for travel was good from the start of 2023, and the international markets in particular grew compared to 2022. During the autumn, some volatility was noted in market demand, which we believe was mainly an effect of weaker household finances.
The Group's total cargo volume was 125,269 cargo units (117,777). The Group's share of the cargo market was approximately 16.9% (14.7%). Total demand for cargo in our service area decreased compared to the same period in 2022 due to uncertain economic conditions in the region. Nonetheless, the number of cargo units transported by
The market share for passenger cars was approximately 28.8% (32.8%). The decrease is largely due to the closing of the short-haul Kapellskär-Mariehamn route.
SALES AND EARNINGS FOR JANUARY - DECEMBER 2023
Consolidated sales decreased 0.7% to
Passenger-related revenue decreased 0.4% to
Operating expenses decreased 9.6% to
In January and
SALES AND EARNINGS FOR FOURTH QUARTER 2023
Consolidated sales decreased 9.9% to
Passenger-related revenue decreased 10.5% to
Operating expenses decreased 9.3% to
INVESTMENTS AND FINANCING
The Group's investments for the period
Most other investments are attributable to the dry-docking of Viking Grace and cabin upgrades on both Gabriella and Cinderella.
Viking Cinderella, which currently provides cruise service from Stockholm to Mariehamn, will be reassigned to the Helsinki-Mariehamn-Stockholm route in the spring of 2024.
The Group's long-term interest-bearing liabilities on
The debt/equity ratio was 51.4%, compared to 47.2% in 2022.
The Group's cash and cash equivalents at the end of December totalled
Net cash flow from operating activities was
Most of the Group's loan agreements include loan covenants according to market terms. The financial covenants in the loan agreements consist of minimum requirements for liquidity and solvency and a maximum net financial debt-to-EBITDA ratio.
The dividend restriction in one of the Group's loan agreements continues to apply in the event the Group's debt-to-EBITDA ratio exceeds 5.0. The Group's debt-to-EBITDA ratio is below 5.0, so the dividend restriction does not apply.
RISKS AND RISK MANAGEMENT
Strategic risks
Changes in the geopolitical situation, the heightened security policy situation and the impact this has on energy prices, inflation and people's propensity to travel as well as changes in maritime policy, regulations and other laws, in climate change, in the competition situation and the market trend can have a negative and significant impact on demand for the Group's products and services and on its earnings, cash flow and financial position.
Demand for the company's services and products is also affected by megatrends. For example, increased awareness of climate change and environmental protection can affect the public's view of ferry service. For most of our customers. our operations also constitute a leisure good rather than a utility good, which is substitutable, so consumers can choose other alternatives.
Seasonal fluctuations during the year affect
Political decisions can change
Finnish maritime transport is governed by environmental regulations in the
As of
Starting
Operational risks
The Group's business operations are dependent on functioning logistics and IT systems for both external communication and the day-to-day management of operations. Cyber intrusion, malfunctions and disruptions can cause interruptions in operations and have potential consequences. Cyberattacks are a growing and ever-changing global problem. Disruptions in service or IT communication can have a negative impact on the Group's earnings.
Hiring, retaining and developing a skilled labour force are critical to success. The loss of key employees and inability to attract new employees can harm the Group's operations.
Damage risks
Maritime safety and security is guided by our safety and security policy, which has top priority in
Various organizations, companies and specialists are hired as needed to provide support and assistance in the crisis work. Communication, information and crisis support are key aspects of the crisis management organization's work. In order to be effective and maintain stamina despite the physical and mental pressure, the organization undergoes training on a continuous basis. The work of the crisis management organization is aimed at saving lives, avoiding injuries and damage to the environment and property, and ensuring that rescue measures are so effective that operations can return to a normal situation as soon as possible without damaging the company's brand.
The Group's vessels are recognized in the balance sheet at a carrying amount of
Financial risks
The Group is also exposed to various financial risks, among them fluctuations in currency exchange rates and interest rates.
Sales revenue is generated in euros and Swedish kronor. Most of the operating inflow and outflow of cash and cash equivalents consist of euros. Purchase prices of goods for sale and bunker (vessel fuel) are affected by other currencies, especially the US dollar.
Fluctuations in bunker prices have a direct effect on consolidated earnings. To mitigate the risk of increased bunker prices somewhat, on
The company's ability to meet the requirements set in existing financial agreements depends on its ability to generate a positive cash flow and earnings from its operations, which depend in part on factors that are beyond the company's control.
The company's interest-bearing liabilities amounted to
DISCLOSURE UNDER THE EU'S TAXONOMY REGULATION
The EU Taxonomy Regulation (EU) 2020/852) took effect on
In 2023, the
The Taxonomy Regulation and reporting practices will continue to be developed going forward.
Key performance indicators used in the taxonomy
In compiling
Turnover, CapEx and OpEx from products or services associated with taxonomy-eligible economic activities
|
| Taxonomy-eligible/ non-eligible |
|
| economic acivities |
Turnover |
|
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6.10. Taxonomy-eligible activities, % | 10.7 % | |
6.11. Taxonomy-eligible activities, % | 10.8 % | |
Taxonomy-non-eligible activities, % | 78.5 % | |
Total turnover, EUR M |
| 491.4 |
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|
CapEx |
|
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6.10. Taxonomy-eligible activities, % | 9.0 % | |
6.11. Taxonomy-eligible activities, % | 68.7 % | |
Taxonomy-non-eligible activities, % | 22.3 % | |
Total CapEx, EUR M * |
| 31.8 |
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|
|
OpEx |
|
|
6.10. Taxonomy-eligible activities, % | 17.5 % | |
6.11. Taxonomy-eligible activities, % | 17.5 % | |
Taxonomy-non-eligible activities, % | 65.0 % | |
Total OpEx, EUR M |
| 171.5 |
* Excluding capital expenditure for certain intangible assets. |
|
ORGANIZATION AND PERSONNEL
The average number of full-time employees in the Group was 2,227 (2,203), of whom 1,682 (1,679) worked for the parent company. Land-based personnel totalled 467 (458) and shipboard personnel totalled 1,760 (1,745). During the comparative period, some shipboard and land-based personnel were furloughed.
In addition to the Group's own employees, Viking XPRS was crewed by an average of 33 (185) people employed by a staffing company. Since its reflagging under a Finnish flag on
At year-end 2023, the Group had a total of 2,401 (2,428) employees,1,878 (1,927) of whom resided in
Men made up 58.3% (56.4%) of employees, and women made up 41.7% (43.6%). Women made up 25.2% (23.1%) of employees in a foreman position. The average age of employees was. 44.8 (45.7) years old.
CONSOLIDATED INCOME STATEMENT BY QUARTER
| 2023 | 2023 | 2023 | 2023 | 2022 |
EUR M | Q4 | Q3 | Q2 | Q1 | Q4 |
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SALES | 112.2 | 152.9 | 132.4 | 93.9 | 124.5 |
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Other operating revenue | 0.3 | 0.0 | 0.1 | 8.8 | 15.2 |
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Expenses |
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Goods and services | 26.7 | 33.1 | 31.3 | 22.6 | 29.4 |
Salary and other employment benefit expenses | 27.5 | 27.9 | 28.6 | 24.5 | 25.4 |
Depreciation, amortization and impairment losses | 7.1 | 6.9 | 6.8 | 6.7 | 7.2 |
Other operating expenses | 48.5 | 49.8 | 47.8 | 49.8 | 58.4 |
| 109.8 | 117.7 | 114.5 | 103.6 | 120.3 |
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OPERATING INCOME | 2.7 | 35.3 | 18.0 | -0.9 | 19.4 |
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Financial income | 1.3 | 0.6 | 0.6 | 0.3 | 0.3 |
Financial expenses | -3.3 | -2.3 | -3.4 | -2.8 | -4.0 |
Share of after-tax income from joint ventures | 1.4 | 0.6 | -1.6 | -1.0 | 0.8 |
and companies with a participating interest |
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accounted for using the equity method |
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INCOME BEFORE TAXES | 2.0 | 34.2 | 13.6 | -4.4 | 16.5 |
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Income taxes | -0.3 | -6.6 | -2.9 | 0.7 | -3.3 |
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INCOME FOR THE PERIOD | 1.7 | 27.6 | 10.6 | -3.7 | 13.2 |
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Income attributable to: |
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Parent company shareholders | 1.7 | 27.6 | 10.6 | -3.7 | 13.2 |
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Earnings per share before and after dilution, EUR | 0.10 | 1.60 | 0.61 | -0.21 | 0.76 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME BY QUARTER
| 2023 | 2023 | 2023 | 2023 | 2022 |
EUR M | Q4 | Q3 | Q2 | Q1 | Q4 |
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INCOME FOR THE PERIOD | 1.7 | 27.6 | 10.6 | -3.7 | 13.2 |
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Items that may be reclassified to the income statement |
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Translation differences | 1.0 | 0.7 | -1.3 | -0.3 | -0.5 |
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Items that will not be reclassified to the income statement |
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Changes in the fair value of financial assets at fair value |
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through other comprehensive income | 0.3 | 1.2 | - | - | - |
Adjusted balance for companies with a | - | - | - | - | 2.2 |
participating interest undertaking in the transition to |
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IFRS 17 |
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Other comprehensive income | 1.3 | 1.9 | -1.3 | -0.3 | 1.7 |
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COMPREHENSIVE INCOME FOR THE PERIOD | 3.0 | 29.5 | 9.3 | -4.0 | 14.9 |
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Comprehensive income attributable to: |
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Parent company shareholders | 3.0 | 29.5 | 9.3 | -4.0 | 14.9 |
FINANCIAL RATIOS AND STATISTICS
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Equity per share, EUR | 18.71 | 16.92 |
Equity/assets ratio | 51.4 % | 47.2 % |
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Investments, EUR M | 36.9 | 25.5 |
- as % of sales | 7.5 % | 5.2 % |
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Passengers | 4,897,494 | 4,945,564 |
Cargo units | 125,269 | 117,777 |
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Average number of employees, full-time equivalent | 2,227 | 2,203 |
Equity per share = Equity attributable to parent company shareholders / Number of shares.
Equity/assets ratio, % = (Equity including minority interest) / (Total assets - advances received).
When rounding off items to the nearest
SUSTAINABILITY REPORT
The Sustainability Report 2023 is published separately. Information about
CORPORATE GOVERNANCE STATEMENT
EVENTS AFTER THE BALANCE SHEET DATE
The Board of Directors knows of no events after the balance sheet date that could affect the Year-End Report
THE BOARD'S PROPOSAL ON DISTRIBUTION OF EARNINGS
According to the balance sheet of
The Board of Directors proposes to the Annual General Meeting that:
A dividend of
The remainder should be retained in unrestricted equity
There have been no material changes in the company's economic position since the end of the report period. In the Board of Directors' view, the dividend is justified given the requirements that the nature, scope, financing and risks of operations place on
ANNUAL GENERAL MEETING
The Annual General Meeting of
An electronic version of the official financial statements for 2023 and
FINANCIAL INFORMATION FOR 2024
During the financial year 2024, Viking Line Abp Abp's financial reports will be published for the periods
Mariehamn
The Board of Directors
President and CEO
Consolidated income statement | |||||
EUR M | Note | ||||
SALES | 4 | 112.2 | 124.5 | 491.4 | 494.7 |
Other operating revenue | 5 | 0.3 | 15.2 | 9.1 | 24.1 |
Expenses | |||||
Goods and services | 26.7 | 29.4 | 113.7 | 117.4 | |
Salary and other employment benefit expenses | 6 | 27.5 | 25.4 | 108.5 | 104.7 |
Depreciation, amortization and impairment losses | 7 | 7.1 | 7.2 | 27.5 | 26.5 |
Other operating expenses | 8 | 48.5 | 58.4 | 195.9 | 231.8 |
109.8 | 120.3 | 445.5 | 480.5 | ||
OPERATING INCOME | 2.7 | 19.4 | 55.0 | 38.3 | |
Financial income | 1.3 | 0.3 | 2.8 | 0.3 | |
Financial expenses | 9 | -3.3 | -4.0 | -11.8 | -12.3 |
Share of after-tax income from joint ventures and | 1.4 | 0.8 | -0.6 | 1.7 | |
companies with a participating interest accounted for | |||||
using the equity method | |||||
INCOME BEFORE TAXES | 2.0 | 16.5 | 45.4 | 28.0 | |
Income taxes | -0.3 | -3.3 | -9.2 | -5.3 | |
INCOME FOR THE PERIOD | 1.7 | 13.2 | 36.3 | 22.7 | |
Income attributable to: | |||||
Parent company shareholders | 1.7 | 13.2 | 36.3 | 22.7 | |
Earnings per share before and after dilution, EUR | 0.10 | 0.76 | 2.10 | 1.31 | |
Consolidated statement of | |||||
comprehensive income | |||||
EUR M | |||||
INCOME FOR THE PERIOD | 1.7 | 13.2 | 36.3 | 22.7 | |
Items that may be reclassified to the income statement | |||||
Translation differences | 1.0 | -0.5 | 0.0 | -1.9 | |
Items that will not be reclassified to the income statement | |||||
Changes in the fair value of financial assets at fair value | |||||
through other comprehensive income | 0.3 | - | 1.5 | - | |
Adjusted balance for companies with a participating | - | 2.2 | - | 2.2 | |
interest undertaking in the transition to IFRS 17 | |||||
Other comprehensive income | 1.3 | 1.7 | 1.5 | 0.3 | |
COMPREHENSIVE INCOME FOR THE PERIOD | 3.0 | 14.9 | 37.8 | 23.0 | |
Comprehensive income attributable to: | |||||
Parent company shareholders | 3.0 | 14.9 | 37.8 | 23.0 | |
Consolidated balance sheet | |||||
EUR M | Note | ||||
Restated | Restated | ||||
ASSETS | |||||
Non-current assets | |||||
Intangible assets | 5.4 | 2.8 | 3.1 | ||
Land | 0.5 | 0.5 | 0.5 | ||
Buildings and structures | 1.6 | 1.6 | 1.7 | ||
Renovation costs for rented properties | 0.9 | 1.1 | 1.5 | ||
Vessels | 435.3 | 429.6 | 445.2 | ||
Machinery and equipment | 2.6 | 2.3 | 2.6 | ||
Right-of-use assets | 4.7 | 4.4 | 5.7 | ||
Financial assets at fair value through | |||||
other comprehensive income | 0.0 | 10.6 | 0.0 | ||
Investments accounted for using the equity method | 12 | 49.8 | 36.4 | 36.1 | |
Receivables | 0.6 | - | 4.7 | ||
Total non-current assets | 501.5 | 489.2 | 501.1 | ||
Current assets | |||||
Inventories | 12.7 | 14.0 | 10.0 | ||
Income tax assets | 0.1 | 0.1 | 0.1 | ||
Trade and other receivables | 13 | 40.1 | 36.7 | 26.6 | |
Cash and cash equivalents | 85.3 | 89.0 | 114.6 | ||
Total current assets | 138.3 | 139.8 | 151.3 | ||
Non-current assets held for sale | 14 | - | 2.4 | - | |
TOTAL ASSETS | 639.8 | 631.4 | 652.3 | ||
EQUITY AND LIABILITIES | |||||
Equity | |||||
Share capital | 1.8 | 1.8 | 1.8 | ||
Reserves | 49.7 | 49.7 | 49.7 | ||
Translation differences | -3.2 | -3.4 | -2.2 | ||
Retained earnings | 275.0 | 244.3 | 222.4 | ||
Equity attributable to parent company shareholders | 323.2 | 292.4 | 271.6 | ||
Total equity | 323.2 | 292.4 | 271.6 | ||
Non-current liabilities | |||||
Deferred tax liabilities | 10 | 45.2 | 36.1 | 30.9 | |
Interest-bearing liabilities | 150.6 | 186.3 | 235.1 | ||
Lease liabilities | 4.0 | 4.5 | 6.2 | ||
Other payables | 2.3 | - | - | ||
Total non-current liabilities | 202.1 | 226.8 | 272.2 | ||
Current liabilities | |||||
Interest-bearing liabilities | 36.7 | 36.7 | 38.3 | ||
Lease liabilities | 2.7 | 2.4 | 2.6 | ||
Income tax liabilities | 0.0 | 0.0 | 0.0 | ||
Trade and other payables | 75.1 | 73.0 | 67.5 | ||
Total current liabilities | 114.5 | 112.2 | 108.5 | ||
Total liabilities | 316.6 | 339.0 | 380.7 | ||
TOTAL EQUITY AND LIABILITIES | 639.8 | 631.4 | 652.3 | ||
Consolidated cash flow statement | |||||
EUR M | |||||
OPERATING ACTIVITIES | |||||
Income for the period | 36.3 | 22.7 | |||
Adjustments | |||||
Depreciation, amortization and impairment losses | 27.5 | 26.5 | |||
Capital gains/losses from non-current assets | -8.9 | -13.1 | |||
Income from investments in associate companies | 0.6 | -1.7 | |||
Other items not included in cash flow | -0.7 | -2.8 | |||
Interest expenses and other financial expenses | 11.2 | 10.8 | |||
Interest income and other financial income | -2.7 | -0.3 | |||
Dividend income | 0.0 | 0.0 | |||
Income taxes | 9.2 | 5.3 | |||
Change in working capital | |||||
Change in trade and other receivables | -3.4 | -11.0 | |||
Change in inventories | 1.3 | -4.0 | |||
Change in trade and other payables | 4.3 | 5.8 | |||
Interest paid | -10.0 | -7.0 | |||
Financial expenses paid | -0.3 | -3.1 | |||
Interest received | 2.7 | 0.3 | |||
Financial income received | 0.0 | 0.0 | |||
Taxes paid | 0.0 | 0.0 | |||
NET CASH FLOW FROM OPERATING ACTIVITIES | 67.1 | 28.4 | |||
INVESTING ACTIVITIES | |||||
Investments in vessels | -28.8 | -14.1 | |||
Investments in other intangible assets, property, plant and equipment | -4.5 | -0.8 | |||
Investments in financial assets recognized at fair value | |||||
through other comprehensive income | 0.0 | -10.6 | |||
Investments accounted for using the equity method | -3.6 | - | |||
Divestments of vessels | 11.1 | 18.0 | |||
Divestments of other non-current assets | 0.2 | 0.4 | |||
Change in non-current receivables | -0.6 | 5.9 | |||
Dividends received from associate companies | 1.7 | 1.4 | |||
Dividends received from others | 0.0 | 0.0 | |||
NET CASH FLOW FROM INVESTING ACTIVITIES | -24.5 | 0.2 | |||
FINANCING ACTIVITIES | |||||
Increase in loans | - | 40.0 | |||
Principal payments | -36.8 | -91.4 | |||
Depreciation of lease liabilities | -2.6 | -2.7 | |||
Dividends paid | -6.9 | - | |||
NET CASH FLOW FROM FINANCING ACTIVITIES | -46.3 | -54.1 | |||
CHANGE IN CASH AND CASH EQUIVALENTS | -3.7 | -25.5 | |||
Cash and cash equivalents at the beginning of the period | 89.0 | 114.6 | |||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 85.3 | 89.0 |
Statement of changes in consolidated equity | |||||
Equity attributable to parent company shareholders | |||||
Share | Translation | Retained | Total | ||
EUR M | capital | Reserves | differences | earnings | equity |
EQUITY, | 1.8 | 49.7 | -3.4 | 244.3 | 292.4 |
Income for the period | 36.3 | 36.3 | |||
Translation differences | 0.0 | 0.2 | -0.1 | 0.0 | |
Remeasurement of financial assets recognized at | |||||
fair value through other comprehensive income | 0.0 | 1.5 | 1.5 | ||
Comprehensive income for the period | - | 0.0 | 0.2 | 37.6 | 37.8 |
Dividend to shareholders | -6.9 | -6.9 | |||
Transactions with owners of the parent company | - | - | - | -6.9 | -6.9 |
EQUITY, | 1.8 | 49.7 | -3.2 | 275.0 | 323.2 |
Equity attributable to parent company shareholders | |||||
Share | Translation | Retained | Total | ||
EUR M | capital | Reserves | differences | earnings | equity |
EQUITY, | 1.8 | 49.7 | -2.2 | 220.1 | 269.4 |
Income for the period | 22.7 | 22.7 | |||
Translation differences | 0.0 | -1.1 | -0.8 | -1.9 | |
Remeasurement of financial assets recognized at | |||||
fair value through other comprehensive income | - | ||||
Adjusted balance for companies with a participating | 2.2 | 2.2 | |||
interest undertaking in the transition to IFRS 17 | |||||
Comprehensive income for the period | - | 0.0 | -1.1 | 24.1 | 23.0 |
EQUITY, | 1.8 | 49.7 | -3.4 | 244.3 | 292.4 |
NOTES TO THE YEAR-END REPORT FOR THE PERIOD JANUARY-DECEMBER 2023 - Accounting principles
This Year-End Report has been prepared in accordance with IFRS accounting principles and consists of a summary of the financial statements for the period in accordance with IAS 34.
The Year-End Report has been prepared based on the same accounting principles, estimates and judgements as in the previous Year-End Report unless otherwise stated.
Depending on its nature, public aid received is recognized as other operating revenue, compensation to employees or a decrease in advance payments.
Changes in IAS and IFRS accounting principles and accounting standards as well as IFRIC interpretations that entered into force during the financial year have had a significant impact on the comparative figures in Group's year-end financial statements since accounting for Alandia Försäkring Ab, a company that has an associate participating interest undertaking, changed to the IFRS 17 standard. Consolidated equity on
For cash and cash equivalents with a short maturity, the carrying amount is considered equal to fair value. The carrying amount of trade receivables and other receivables as well as of trade payables and other liabilities is considered equal to fair value based on the short-term nature of the items. The carrying amount of interest-bearing liabilities is equal to fair value.
Joint ventures and companies with a participating interest undertaking are companies over which the investor company can exert a significant influence. Investments in both joint ventures and companies with a participating interest undertaking shall be accounted for using the equity method. During the year, the Group established a new joint venture,
See Note 12.
The Year-End Report was not subject to an audit.
When rounding off items to the nearest
- Estimates and judgements
In preparing the consolidated financial statements in compliance with IFRS accounting principles, the company's management must make judgements and estimates about the future that affect the reported amounts for assets and liabilities, revenue and expenses as well as other information. The judgements and estimates contained in the financial statements are based on the management's best assessment at the time the company's year-end financial statements were published.
The geopolitical situation, with very volatile energy prices, affected both the income statement and balance sheet. It is difficult to determine how long energy prices will fluctuate in this manner and what effects this will have on
The most important area that entails judgements is valuation of the Group's vessels. Market valuations are carried out on a regular basis by external assessors. The vessels' residual values and estimated periods of use are examined yearly and adjusted if they deviate significantly from earlier values.
As of
In valuing the Group's leases, judgements are made as to how the Group will capitalize on any opportunity to extend the lease period or terminate the lease. Judgements are also made as to what discount rate is to be used in calculating the present value of the Group's lease liability. The size of the Group's lease liabilities and right-of-use assets, as well as payments on its lease liabilities and depreciation of right-of-use assets, is affected by those judgements.
Based on the management's judgements, there is no need in the financial statements on
- Risks and liquidity
The Group's cash and cash equivalents at the end of December totalled
In
During the comparative period, a new credit facility of
Most of the Group's loan agreements include loan covenants according to market terms. The financial covenants in the loan agreement consist of a minimum liquidity requirement and a maximum total net debt-to-EBITDA ratio for the Group. During the period, these loan covenants met the requirements set.
In 2022, the company had an agreement with its financiers on a waiver of the covenant term concerning the maximum total net financial debt-to-EBITDA ratio. During the period, the loan covenant was within the parameters set.
The company's ability to meet the requirements set in existing financial agreements depends on its ability to generate a positive cash flow and earnings from its operations, which depend in part on factors that are beyond the company's control. There is a risk, if the geopolitical situation deteriorates and energy prices rise substantially in a way similar to that in 2022, that the company will not be able to generate enough cash flow or obtain further financing in order to meet its obligations in accordance with its financial agreements.
As of
To partly offset the risk of higher bunker (vessel fuel) prices, on
Future cash flows related to financial liabilities on
EUR M |
|
|
|
| |
| Future cash flows related to | Lease | Trade | Interest- | Total |
| financial liabilities (incl. financial expenses) | liabilities | payables | bearing |
|
|
|
|
| liabilities |
|
| 1.5 | 26.1 | 23.5 | 51.1 | |
| 1.5 |
| 23.0 | 24.4 | |
| 2.6 |
| 37.2 | 39.8 | |
| 0.7 |
| 36.4 | 37.1 | |
| 0.5 |
| 25.1 | 25.6 | |
| 0.3 |
| 22.3 | 22.6 | |
| 0.2 |
| 62.4 | 62.6 | |
| Total | 7.2 | 26.1 | 229.9 | 263.1 |
- Segment information
Consolidated revenue decreased 0.7% and passenger-related revenue decreased 0.4%.
|
| ||
EUR M |
| ||
|
|
|
|
Sales |
|
|
|
Vessels |
| 483.3 | 486.7 |
Unallocated |
| 8.2 | 8.1 |
Total, operating segments |
| 491.5 | 494.8 |
Eliminations |
| -0.1 | -0.1 |
Total sales of the Group |
| 491.4 | 494.7 |
|
|
|
|
Operating income |
|
|
|
Vessels |
| 116.1 | 93.1 |
Unallocated |
| -61.1 | -54.8 |
Total operating income of the Group |
| 55.0 | 38.3 |
|
|
|
|
SALES |
|
|
|
Passenger-related revenue |
| 442.5 | 444.4 |
Cargo revenue |
| 45.7 | 47.4 |
Miscellaneous sales revenue |
| 3.2 | 2.9 |
Total |
| 491.4 | 494.7 |
- Other operating revenue
During the period, Rosella was sold, which had a positive income effect of
During the comparative period, the Group received aid for public service obligations from Traficom, the
During the comparative period, Amorella was sold and delivered, which had a positive income effect of
|
| ||
EUR M | |||
|
|
|
|
| State aid | 0.0 | 7.8 |
| Rents received on properties | 0.1 | 0.1 |
| Capital gains | 8.7 | 15.2 |
| Insurance claim payments, accidents | 0.2 | 0.8 |
| Miscellaneous other operating revenue | 0.2 | 0.1 |
| Total | 9.1 | 24.1 |
- Compensation to employees
During the period, Viking XPRS was reflagged from an Estonian to a Finnish flag. With the reflagging, the vessel is staffed by the company's own personnel. When the vessel sailed under an Estonian flag, these services were purchased from a staffing company.
During the comparative period, some land-based and shipboard personnel were still furloughed.
|
| ||
EUR M | |||
|
|
|
|
| Salaries | 114.2 | 110.5 |
| Expenses of defined-contribution pensions | 13.4 | 12.8 |
| Other payroll overhead | 12.5 | 11.3 |
|
| 140.1 | 134.6 |
| Government restitution | -31.6 | -30.1 |
| Aid for furloughs | - | 0.2 |
| Total | 108.5 | 104.7 |
- Depreciation and amortization
|
| ||
EUR M | |||
|
|
|
|
| Depreciation and amortization |
|
|
| Intangible assets | 0.4 | 0.4 |
| Building and structures | 0.1 | 0.1 |
| Renovation costs for rented properties | 0.3 | 0.4 |
| Vessels | 23.1 | 21.9 |
| Machinery and equipment | 0.7 | 0.7 |
| Right-of-use assets | 2.9 | 3.0 |
| Total | 27.5 | 26.5 |
- Other operating expenses
|
| ||
EUR M | |||
|
|
|
|
| Sales and marketing expenses | 19.5 | 18.4 |
| Washing and cleaning expenses | 22.9 | 21.2 |
| Repairs and maintenance | 13.5 | 10.9 |
| Public port expenses and vessel charges | 35.7 | 37.0 |
| Fuel expenses | 61.1 | 96.6 |
| Miscellaneous expenses | 43.2 | 47.7 |
| Total | 195.9 | 231.8 |
- Financial expenses
|
| ||
EUR M | |||
|
|
|
|
| Interest expenses on financial liabilities recognized at |
|
|
| amortized cost | 10.2 | 4.8 |
| Interest expenses on lease liabilities | 0.3 | 0.3 |
| Exchange losses | 0.6 | 1.5 |
| Guarantee commissions and other financial expenses | 0.7 | 5.6 |
| Total financial expenses | 11.8 | 12.3 |
- Income taxes
On
EUR M |
|
|
|
| |
|
| Differences between recognized value of fixed assets and their value for tax purposes | Losses recognized in taxation | Other temporary differences | Total |
| 37.0 | -1.1 | 0.1 | 36.1 | |
| Translation differences | 0.0 | - | - | 0.0 |
| Recognized in income statement | 8.0 | 1.1 | 0.0 | 9.1 |
| Recognized directly in equity | - | - | 0.0 | 0.0 |
| 45.1 | 0.0 | 0.2 | 45.2 |
- Impairment testing
Recognized values for intangible and tangible assets are tested regularly in order to identify any external or internal indications of an impairment loss. If such indications are observed for any asset item, the recoverable amount of the asset is recognized. One of the most important areas that entail judgements is valuation of the Group's vessels.
The management has also made the assessment that there is no need for impairment for the Group's other non-current assets.
- Investments accounted for using the equity method
During the financial year,
On
13. Trade and other receivables
Trade receivables are recognized at amortized cost in accordance with IFRS 9. The carrying amount of trade receivables and other receivables is considered equal to fair value based on the short-term nature of the items.
- Fixed assets held for sale
Fixed assets held for sale on
- Pledged assets and contingent liabilities
|
|
|
|
EUR M |
| ||
|
|
|
|
Contingent liabilities1 |
| 187.6 | 223.4 |
Assets pledged for own debt 2 |
| 413.4 | 413.4 |
Other liabilities not shown in the balance sheet 3 |
| 2.8 | 3.2 |
1 Concerning loans and credit lines for which vessel, property and chattel mortgages were provided as collateral and other contingent liabilities not included in the balance sheet covered by site leasehold and chattel mortgages.
2 Concerning vessel mortgages, chattel mortgages and site leasehold mortgages.
3 In addition to a capital injection,
- Events after the balance sheet date
The Board of Directors knows of no events after the balance sheet date that could affect the Year-End Report.
President and CEO
jan.hanses@vikingline.com
+358-(0)18-270 00
https://news.cision.com/viking-line-abp/r/viking-line-abp--financial-statement-release-2023,c3926559
https://mb.cision.com/Main/13658/3926559/2609860.pdf
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