ANOTHER SIX MONTHS WITH THE PANDEMIC
January-
- Sales amounted to
EUR 71.5 M (EUR 97.5 M). -
Other operating revenue was
EUR 33.6 M (EUR 16.1 M). -
Operating income totalled
EUR 4.5 M (EUR -27.4 M). -
Net financial items were
EUR -2.4 M (EUR -2.1 M). -
Income before taxes amounted to
EUR 2.2 M (EUR -29.5 M). -
Income after taxes totalled
EUR 2.7 M (EUR -23.7 M). -
Changed earnings outlook. The outlook for the financial year 2021 is better than the outcome for 2020. Improved demand starting late in the second quarter of 2021 together with one-off items in the form of the sale of Mariella and the anticipated redemption of
Viking Line's terminal buildings including fixtures and fittings with theCity of Turku will boost income. There is still uncertainty about how authority requirements, State aid, the impact of vaccination programmes and related restrictions on passenger traffic as well as market demand will affectViking Line's operations, results and financial position for the full-year 2021, but on the whole the Board of Directors believes operating income will be positive.
On the previous reporting date, the outlook was as follows:
The outlook for the financial year 2021 is unchanged. Uncertainty about regulatory requirements, State aid, the impact of vaccination programmes and related restrictions for passenger traffic, and market demand will affect
Second quarter 2021 (compared to second quarter 2020)
- Sales amounted to
EUR 46.9 M (EUR 22.6 M). -
Operating income totalled
EUR 12.2 M (EUR -5.9 M).
The COVID-19 pandemic continues to dominate the company's operations and results, but at the end of the quarter we nevertheless saw increased demand for our services between Åland,
Sales and earnings
Consolidated sales decreased 26.7% to
Passenger-related revenue decreased 34.1% to
Results for the second quarter were dominated by
Sales increased 107.7% to
During the first two quarters of the year, the Group received aid for its public service obligations from Traficom for the Group's vessels on the Turku-Mariehamn/Långnäs-
Service and market
The total number of passengers on
Due to the ongoing pandemic, travel has been limited. In late June, digital Covid certificates adopted by the
Investments and financing
The Group's investments amounted to
Construction of the vessel Viking Glory is progressing in
On
At the end of June, the Group's cash and cash equivalents amounted to
In 2020, the Finnish Government approved State guarantees on
Most of the Group's loan agreements include loan covenants according to market terms. The covenant terms entail minimum requirements for liquidity and solvency and a maximum net financial debt-to-EBITDA ratio. The Group has been granted a time-limited exemption from the covenant terms that were breached during the first two quarters of 2021 for those loans already drawn.
For loans of
Liquidity can also be strengthened by a shareholder contribution.
Organization and personnel
The average number of full-time employees in the Group was 1,265 (1,802), of whom 830 (1,249) worked for the parent company. Land-based personnel totalled 344 (444) and shipboard personnel totalled 921 (1,358).
In addition to the Group's own employees, Viking XPRS was crewed by an average of 140 (158) people employed by a staffing company.
The number of employees in 2021 is far lower than in 2020, since a large percentage of staff were furloughed during the period. Along with the furloughs, redundancies in the land-based organization and on Viking Cinderella affected the number of employees.
Risk factors
The COVID-19 pandemic has had a significant impact on
Uncertainty about regulatory requirements and related restrictions to passenger traffic and about market demand will affect
The Group's loans are tied to loan covenants that include profitability, liquidity and solvency requirements. If the terms in these covenants are not met, financiers can demand early repayment or cancellation of the loans.
Quarterly consolidated income statement | |||||
2021 | 2021 | 2020 | 2020 | 2020 | |
EUR M | Q2 | Q1 | Q4 | Q3 | Q2 |
SALES | 46.9 | 24.6 | 34.6 | 56.6 | 22.6 |
Other operating revenue | 23.3 | 10.3 | 10.2 | 0.7 | 14.9 |
Expenses | |||||
Goods and services | 11.3 | 5.0 | 11.6 | 15.3 | 4.0 |
Salary and other employment benefit expenses | 15.2 | 13.5 | 16.3 | 15.5 | 13.8 |
Depreciation, amortization and impairment losses | 5.0 | 5.1 | 6.6 | 6.0 | 6.0 |
Other operating expenses | 26.4 | 19.0 | 24.4 | 28.3 | 19.6 |
58.0 | 42.5 | 58.9 | 65.1 | 43.4 | |
OPERATING INCOME | 12.2 | -7.7 | -14.1 | -7.8 | -5.9 |
Financial income | 0.0 | 0.0 | 0.4 | 0.0 | 0.0 |
Financial expenses | -1.1 | -1.3 | -0.8 | -1.0 | -0.2 |
INCOME BEFORE TAXES | 11.1 | -8.9 | -14.5 | -8.8 | -6.1 |
Income taxes | -1.2 | 1.8 | 2.9 | 1.7 | 1.2 |
INCOME FOR THE PERIOD | 9.8 | -7.2 | -11.6 | -7.1 | -4.9 |
Income attributable to: | |||||
Parent company shareholders | 9.8 | -7.2 | -11.6 | -7.1 | -4.9 |
Earnings per share before and after dilution, EUR | 0.91 | -0.66 | -1.07 | -0.66 | -0.46 |
Quarterly consolidated statement of | |||||
comprehensive income | |||||
2021 | 2021 | 2020 | 2020 | 2020 | |
EUR M | Q2 | Q1 | Q4 | Q3 | Q2 |
INCOME FOR THE PERIOD | 9.8 | -7.2 | -11.6 | -7.1 | -4.9 |
Items that may be reclassified to the income statement | |||||
Translation differences | 0.3 | -0.5 | 1.1 | -0.1 | 0.9 |
Items that will not be reclassified to the income statement | |||||
Changes in the fair value of financial assets recognized at | |||||
fair value through other comprehensive income | 1.6 | - | 0.6 | 0.0 | - |
Other comprehensive income | 1.9 | -0.5 | 1.7 | -0.1 | 0.9 |
COMPREHENSIVE INCOME FOR THE PERIOD | 11.8 | -7.6 | -9.9 | -7.2 | -4.0 |
Comprehensive income attributable to: | |||||
Parent company shareholders | 11.8 | -7.6 | -9.9 | -7.2 | -4.0 |
Financial ratios and statistics | |||
Equity per share, EUR | 18.37 | 19.57 | 17.98 |
Equity/assets ratio | 46.3 % | 49.3 % | 46.4 % |
Investments, EUR M | 8.3 | 9.3 | 15.0 |
- as % of sales | 11.6 % | 9.5 % | 7.9 % |
Passengers | 538,348 | 998,483 | 1,927,302 |
Cargo units | 65,214 | 62,409 | 125,693 |
Average number of employees, full-time equivalent | 1,265 | 1,802 | 1,640 |
Equity/assets ratio, % = (Equity including minority interest) / (Total assets - advances received) | |||
When rounding off items to the nearest | |||
The above figures from the financial statements have not been audited. |
Outlook for the full financial year 2021
Changed earnings outlook. The outlook for the financial year 2021 is better than the outcome for 2020. Improved demand since late in the second quarter of 2021 together with one-off items in the form of the anticipated sale of Mariella and the redemption of
In late June, digital Covid certificates adopted by the
The Group's Financial Report for January-
Mariehamn,
The Board of Directors
President and CEO
Consolidated income statement | ||||||
EUR M | Note | |||||
SALES | 4 | 46.9 | 22.6 | 71.5 | 97.5 | 188.8 |
Other operating revenue | 5 | 23.3 | 14.9 | 33.6 | 16.1 | 26.9 |
Expenses | ||||||
Goods and services | 11.3 | 4.0 | 16.3 | 24.0 | 50.8 | |
Salary and other employment benefit expenses | 6 | 15.2 | 13.8 | 28.7 | 41.0 | 72.9 |
Depreciation, amortization and impairment losses | 7 | 5.0 | 6.0 | 10.1 | 12.2 | 24.8 |
Other operating expenses | 8 | 26.4 | 19.6 | 45.4 | 63.8 | 116.5 |
58.0 | 43.4 | 100.5 | 141.1 | 265.0 | ||
OPERATING INCOME | 12.2 | -5.9 | 4.5 | -27.4 | -49.3 | |
Financial income | 0.0 | 0.0 | 0.0 | 0.0 | 0.4 | |
Financial expenses | 9 | -1.1 | -0.2 | -2.4 | -2.1 | -3.9 |
INCOME BEFORE TAXES | 11.1 | -6.1 | 2.2 | -29.5 | -52.9 | |
Income taxes | -1.2 | 1.2 | 0.5 | 5.9 | 10.5 | |
INCOME FOR THE PERIOD | 9.8 | -4.9 | 2.7 | -23.7 | -42.3 | |
Income attributable to: | ||||||
Parent company shareholders | 9.8 | -4.9 | 2.7 | -23.7 | -42.3 | |
Earnings per share before and after dilution, EUR | 0.91 | -0.46 | 0.25 | -2.19 | -3.92 | |
Consolidated statement of | ||||||
comprehensive income | ||||||
EUR M | ||||||
INCOME FOR THE PERIOD | 9.8 | -4.9 | 2.7 | -23.7 | -42.3 | |
Items that may be reclassified to the income statement | ||||||
Translation differences | 0.3 | 0.9 | -0.2 | -0.2 | 0.8 | |
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 | 1.6 | - | 1.6 | - | 0.6 | |
Other comprehensive income | 1.9 | 0.9 | 1.4 | -0.2 | 1.4 | |
COMPREHENSIVE INCOME FOR THE PERIOD | 11.8 | -4.0 | 4.1 | -23.8 | -40.9 | |
Comprehensive income attributable to: | ||||||
Parent company shareholders | 11.8 | -4.0 | 4.1 | -23.8 | -40.9 | |
Consolidated balance sheet | ||||||
EUR M | Note | |||||
ASSETS | ||||||
Non-current assets | ||||||
Intangible assets | 3.0 | 3.2 | 3.3 | |||
Land | 0.5 | 0.6 | 0.6 | |||
Buildings and structures | 1.7 | 7.0 | 6.8 | |||
Renovation costs for rented properties | 1.7 | 2.0 | 1.8 | |||
Vessels | 242.7 | 260.7 | 254.1 | |||
Machinery and equipment | 2.3 | 3.7 | 2.7 | |||
Right-of-use assets | 4.9 | 5.4 | 4.7 | |||
Advance payments, vessels under construction | 58.1 | 52.9 | 54.2 | |||
Financial assets at fair value through | ||||||
other comprehensive income | 0.0 | 28.0 | 28.6 | |||
Investments accounted for using th equity method | 12 | 32.2 | - | - | ||
Receivables | 5.4 | - | - | |||
Total non-current assets | 352.5 | 363.6 | 356.8 | |||
Current assets | ||||||
Inventories | 9.4 | 17.8 | 10.9 | |||
Income tax assets | 0.1 | 0.0 | 0.1 | |||
Trade and other receivables | 13 | 36.0 | 25.7 | 28.2 | ||
Cash and cash equivalents | 41.8 | 30.7 | 29.7 | |||
Total current assets | 87.3 | 74.2 | 68.8 | |||
Non-current assets held for sale | 14 | 5.0 | - | - | ||
TOTAL ASSETS | 444.7 | 437.8 | 425.6 | |||
EQUITY AND LIABILITIES | ||||||
Equity | ||||||
Share capital | 1.8 | 1.8 | 1.8 | |||
Reserves | 0.0 | 1.9 | 2.5 | |||
Translation differences | -1.9 | -2.6 | -1.8 | |||
Retained earnings | 198.5 | 210.2 | 191.8 | |||
Equity attributable to parent company shareholders | 198.4 | 211.3 | 194.2 | |||
Total equity | 198.4 | 211.3 | 194.2 | |||
Non-current liabilities | ||||||
Deferred tax liabilities | 10 | 26.5 | 31.7 | 27.1 | ||
Interest-bearing liabilities | 99.3 | 88.3 | 108.2 | |||
Lease liabilities | 3.4 | 3.6 | 3.0 | |||
Total non-current liabilities | 129.2 | 123.6 | 138.3 | |||
Current liabilities | ||||||
Interest-bearing liabilities | 45.6 | 33.2 | 38.6 | |||
Lease liabilities | 1.6 | 1.9 | 1.8 | |||
Income tax liabilities | 0.0 | 0.0 | 0.0 | |||
Trade and other payables | 69.9 | 67.7 | 52.7 | |||
Total current liabilities | 117.1 | 102.8 | 93.1 | |||
Total liabilities | 246.4 | 226.5 | 231.4 | |||
TOTAL EQUITY AND LIABILITIES | 444.7 | 437.8 | 425.6 | |||
Consolidated cash flow statement | ||||||
EUR M | ||||||
OPERATING ACTIVITIES | ||||||
Income for the period | 2.7 | -23.7 | -42.3 | |||
Adjustments | ||||||
Depreciation, amortization and impairment losses | 10.1 | 12.2 | 24.8 | |||
Capital gains/losses from non-current assets | -13.1 | 0.0 | 0.0 | |||
Other items not included in cash flow | 0.1 | 0.0 | -0.4 | |||
Interest expenses and other financial expenses | 2.3 | 1.8 | 3.9 | |||
Interest income and other financial income | 0.0 | 0.0 | 0.0 | |||
Dividend income | -4.9 | - | 0.0 | |||
Income taxes | -0.5 | -5.9 | -10.5 | |||
Change in working capital | ||||||
Change in trade and other receivables | -7.9 | 2.3 | -0.2 | |||
Change in inventories | 1.5 | -0.9 | 6.0 | |||
Change in trade and other payables | 17.1 | -2.5 | -17.5 | |||
Interest paid | -1.6 | -1.6 | -3.1 | |||
Financial expenses paid | -0.7 | -0.3 | -1.1 | |||
Financial income received | 0.0 | 0.0 | 0.0 | |||
Taxes paid | -0.1 | -1.7 | -1.8 | |||
NET CASH FLOW FROM OPERATING ACTIVITIES | 5.1 | -20.2 | -42.3 | |||
INVESTING ACTIVITIES | ||||||
Investments in vessels | -2.2 | -4.9 | -6.7 | |||
Investments in other intangible and tangible assets | -0.2 | -0.5 | -0.9 | |||
Advance payments, vessels under construction | -3.8 | -3.9 | -7.4 | |||
EU funding | - | 0.4 | 2.6 | |||
Investments accounted for using th equity method | -2.0 | - | - | |||
Divestments of vessels | 13.2 | - | - | |||
Divestments of other intangible and tangible assets | 0.0 | 0.0 | 0.0 | |||
Divestments of financial assets recognized at fair value | ||||||
through other comprehensive income | - | - | 0.0 | |||
Repayment of financial assets recognized at | ||||||
fair value through other comprehensive income | - | 0.1 | 0.1 | |||
Dividends received | 4.9 | - | 0.0 | |||
NET CASH FLOW FROM INVESTING ACTIVITIES | 9.8 | -8.8 | -12.3 | |||
FINANCING ACTIVITIES | ||||||
Increase in non-current liabilities | 11.5 | - | 31.5 | |||
Principal payments, non-current liabilities | -5.3 | -11.7 | -16.0 | |||
Change in current interest-bearing liabilities | -8.0 | 9.7 | 8.0 | |||
Depreciation of lease liabilities | -1.0 | -1.0 | -2.0 | |||
Dividends paid | - | - | - | |||
NET CASH FLOW FROM FINANCING ACTIVITIES | -2.9 | -3.0 | 21.5 | |||
CHANGE IN CASH AND CASH EQUIVALENTS | 12.1 | -32.0 | -33.1 | |||
Cash and cash equivalents at the beginning of the period | 29.7 | 62.8 | 62.8 | |||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 41.8 | 30.7 | 29.7 |
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 | 2.5 | -1.8 | 191.8 | 194.2 |
Income for the period | 2.7 | 2.7 | |||
Translation differences | 0.0 | -0.1 | 0.0 | -0.2 | |
Remeasurement of financial assets recognized at | |||||
fair value through other comprehensive income | -2.5 | 4.1 | 1.6 | ||
Comprehensive income for the period | - | -2.5 | -0.1 | 6.7 | 4.1 |
Dividend to shareholders | - | - | |||
Transactions with owners of the parent company | - | - | - | - | - |
EQUITY, | 1.8 | 0.0 | -1.9 | 198.5 | 198.4 |
Equity attributable to parent company shareholders | |||||
Share | Translation | Retained | Total | ||
EUR M | capital | Reserves | differences | earnings | equity |
EQUITY, | 1.8 | 1.9 | -2.5 | 233.9 | 235.1 |
Income for the period | -23.7 | -23.7 | |||
Translation differences | 0.0 | -0.1 | 0.0 | -0.2 | |
Comprehensive income for the period | - | 0.0 | -0.1 | -23.7 | -23.8 |
Dividend to shareholders | - | - | |||
Transactions with owners of the parent company | - | - | - | - | - |
EQUITY, | 1.8 | 1.9 | -2.6 | 210.2 | 211.3 |
Notes to the Half-Year Financial Report for the period January-June 2021 - Accounting principles
This Half-Year Financial Report has been prepared in accordance with IFRS and consists of a summary of the financial statements for the period in accordance with IAS 34.
The Half-Year Financial Report has been prepared in accordance with the same accounting principles, estimates and valuations as in the most recent annual accounts, unless otherwise indicated below.
Depending on its nature, public aid received is recognized as other operating revenue, compensation to employees or as a decrease in advance payments for vessels under construction.
An associate company is a company over which the investor can exert a significant influence. An investment in an associate company shall be accounted for using the equity method in the balance sheet as an investment accounted for using the equity method. The equity method is an accounting method that entails accounting for the investment in a company initially at cost and subsequently adjusting it by the investor company's proportional share of the change in the investee's net assets. The investor company's income subsequently includes the investor company's proportional share of the investee's income, and the investor company's other comprehensive income includes its share of the investee's other comprehensive income.
The Group's non-current receivables consist of a receivable related to Mariella's sale to Corsica Ferries SAS. The receivable is to be paid on a monthly basis over four years beginning
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.
A non-current asset shall be classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. To meet this requirement, the asset must be available for immediate sale in its present condition and subject only to terms that are usual and customary for sales of such assets, and its sale must be highly probable. Depreciation of an asset ceases from the time it is classified as an asset held for sale. The asset is to be measured at the lower of carrying amount and fair value less costs to sell. See Note 14.
Historically,
The Half-Year Financial Report has not been subject to an audit.
When rounding off items to the nearest
Estimates and judgements
In preparing the consolidated financial statements in compliance with IFRSs, 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 best assessment of management on the date the Half-Year Financial Report was published.
The COVID-19 pandemic has caused a severe deterioration in the Group's operating conditions and has affected both the income statement and balance sheet. An account of the biggest changes is given in the notes below. It is difficult at present to estimate how long the pandemic will last and what impact it will have on
The most important area that entails judgements is the valuation of the Group's vessels. The vessels' residual values and estimated periods of use are examined yearly and adjusted if they deviate significantly from earlier values. The depreciation period for the vessels' hull, machinery and other long-term components has been extended from 25 years to 30 years as of
The value of the Group's shareholding in Alandia Försäkring Abp has been determined based on the present value of future cash flows. The shareholding is recognized under financial assets at fair value through other comprehensive income until
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.
In 2020, the Group's management made a judgement on obsolete assets in the sales inventory due to slower turnover and reduced demand as a direct result of COVID-19. Based on the management's judgements in 2021, no significant impairment losses were recognized in the income statement during the first two quarters of the year.
Going concern, risks and liquidity
The COVID-19 pandemic is an uncertainty factor that, should related risks be realized in full, could lead to uncertainty about the company's ability to continue operations.
This Half-Year Financial Report has been prepared in accordance with the going concern principle since in the view of
In 2020, the Finnish Government approved the State's guarantees on
The Group's cash and cash equivalents at the end of June totalled
Liquidity can also be strengthened by a shareholder contribution.
In 2020,
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. The Group has been granted a time-limited exemption from the covenant terms that were breached during the first quarter of 2021 for those loans already drawn.
During the second quarter,
For
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 | |||||
0.9 | 18.0 | 42.7 | 61.7 | ||
0.9 | 7.1 | 8.0 | |||
1.3 | 23.3 | 24.7 | |||
1.0 | 22.6 | 23.6 | |||
0.8 | 50.5 | 51.3 | |||
0.4 | 2.3 | 2.7 | |||
8.8 | 8.8 | ||||
Total | 5.3 | 18.0 | 157.5 | 180.8 |
Financing of vessel construction
Advance payments are related to vessels under construction and totalled
A total of 78.4% of the contract price is financed by a consortium of commercial banks; 90.0% of the credit amount is guaranteed by
The covenant terms include (i) a minimum requirement for cash and cash holdings, whereby the company shall ensure that minimum liquidity is always greater than the higher of
4. Segment information
Consolidated revenue decreased by 26.7% and passenger-related revenue decreased by 34.1% due to travel restrictions imposed by authorities and to market demand in conjunction with the COVID-19 pandemic.
EUR M | ||||
Sales | ||||
Vessels | 69.8 | 95.7 | 185.1 | |
Unallocated | 1.7 | 1.9 | 3.8 | |
Total, operating segments | 71.5 | 97.6 | 188.9 | |
Eliminations | 0.0 | 0.0 | -0.1 | |
Total sales of the Group | 71.5 | 97.5 | 188.8 | |
Operating income | ||||
Vessels | 11.7 | -13.2 | -23.2 | |
Unallocated | -7.2 | -14.2 | -26.1 | |
Total operating income of the Group | 4.5 | -27.4 | -49.3 | |
SALES | ||||
Passenger-related revenue | 50.1 | 76.0 | 148.2 | |
Cargo revenue | 20.4 | 20.7 | 38.8 | |
Miscellaneous sales revenue | 1.0 | 0.9 | 1.8 | |
Total | 71.5 | 97.5 | 188.8 |
5. Other operating revenue
During the financial year, the Group received aid for public service obligations from Traficom for the Group's vessels on the Turku-Långnäs-
EUR M | ||||
State aid | 15.5 | 16.0 | ||
Rents received on properties | 0.0 | 0.1 | ||
Capital gains | 13.1 | 0.0 | ||
Dividend income | 4.9 | - | ||
Miscellaneous other operating revenue | 0.0 | 0.0 | ||
Total | 33.6 | 16.1 |
6. Compensation to employees
A large percentage of staff in
The Group receives government restitution from
EUR M | ||||
Salaries | 31.4 | 43.0 | ||
Expenses of defined-contribution pensions | 3.6 | 4.7 | ||
Other payroll overhead | 4.1 | 5.2 | ||
39.0 | 52.9 | |||
Government restitution | -6.6 | -9.2 | ||
Aid for furloughs | -3.7 | -2.7 | ||
Total | 28.7 | 41.0 |
7. Depreciation and amortization
The depreciation period for the vessels' hull, machinery and other long-term components was extended from 25 years to 30 years as of
EUR M | ||||
Depreciation and amortization | ||||
Intangible assets | 0.2 | 0.2 | ||
Building and structures | 0.2 | 0.2 | ||
Renovation costs for rented properties | 0.2 | 0.2 | ||
Vessels | 8.1 | 10.0 | ||
Machinery and equipment | 0.4 | 0.6 | ||
Right-of-use assets | 1.1 | 1.0 | ||
Total | 10.1 | 12.2 | ||
Total depreciation, amortization and impairment losses | 10.1 | 12.2 |
8. Other operating expenses
Other operating expenses decreased by 28.9% since the Group's operations and expenses were adjusted to the changed market situation as a result of the COVID-19 pandemic.
EUR M | ||||
Sales and marketing expenses | 2.2 | 6.3 | ||
Washing and cleaning expenses | 2.1 | 4.6 | ||
Repairs and maintenance | 3.8 | 5.2 | ||
Public port expenses and vessel charges | 9.1 | 12.4 | ||
Fuel expenses | 15.9 | 16.9 | ||
Miscellaneous expenses | 12.3 | 18.4 | ||
Total | 45.4 | 63.8 |
9. Financial expenses
EUR M | ||||
Interest expenses on financial liabilities recognized at | ||||
amortized cost | 1.5 | 1.4 | ||
Interest expenses on lease liabilities | 0.1 | 0.1 | ||
Exchange losses | 0.1 | 0.3 | ||
Guarantee commissions and other financial expenses | 0.7 | 0.3 | ||
Total financial expenses | 2.4 | 2.1 |
10. Income taxes
On
EUR M | ||||||
Differences between | ||||||
recognized value | ||||||
of fixed assets | Losses | Other | Total | |||
and their value | recognized | temporary | ||||
for tax purposes | in taxation | differences | ||||
36.9 | -10.2 | 0.5 | 27.1 | |||
Translation differences | 0.0 | - | - | 0.0 | ||
Recognized in income statement | - | -0.6 | 0.0 | -0.6 | ||
Recognized directly in equity | - | - | - | - | ||
36.9 | -10.8 | 0.5 | 26.5 |
11. Impairment testing
Recognized values for intangible and tangible assets are tested regularly in order to identify any external or internal indications of a need for impairment. 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 COVID-19 pandemic has had a serious impact on the Group's operating conditions and financial position. In the management's view, there is currently no need for impairment, since the fair value of vessels is substantially higher than the carrying amount.
The management has also made a judgement that there is no need for impairment for the Group's other non-current assets.
In 2020, the Group's management made a judgement on obsolete assets in the sales inventory due to slower turnover and reduced demand as a direct result of COVID-19. The management made the judgement that no material impairment losses were to be recognized in the income statement during the first two quarters of 2021 related to obsolete assets in the sales inventory.
12. Investments accounted for using the equity method
In addition to a capital injection,
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.
The COVID-19 pandemic has not led to any change in expected credit losses in trade receivables.
14. Non-current assets held for sale
Pledged assets and contingent liabilities | |||
EUR M | |||
Contingent liabilities | 159.9 | 153.9 | |
Assets pledged for own debt | 376.9 | 376.9 | |
Investment commitments regarding vessels under construction | |||
not included in the accounts | 159.3 | 158.7 | |
- contractual amount | 201.8 | 200.7 | |
Other liabilities not shown in the balance sheet * | 3.3 | - | |
under which the loan can be drawn has been extended. Negotiations are currentlyg under way on the | |||
application of the agreed covenant terms. In the event the vessel construction contract should be terminated, | |||
the compny has a bank guarantee of | |||
Other capitalized planning, monitoring and borrowing expenses of | |||
to income. | |||
* In addition to a capital injection, | |||
Alandia Försäkring Abp. The plan is to pay down the loan with future dividends received from Alandia Försäkring Abp. | |||
To the extent | |||
to make a cash capital contribution to |
16. Events after the balance sheet date
Otherwise the management knows of no other significant events after the balance sheet date that could affect the financial statements.
President and CEO
jan.hanses@vikingline.com
+358-(0)18-270 00
https://news.cision.com/viking-line-abp/r/viking-line-abp-half-year-financial-report-january-june-2021,c3403055
https://mb.cision.com/Main/13658/3403055/1459329.pdf
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