Due to his retirement in 2026, Viking Line’s CEO Jan Hanses (pictured) has agreed to step down in 2025.
He will then work as a senior advisor until his retirement in April, 2026.
As a result, Viking’s Board will start a recruitment process to appoint a successor.
Hanses will serve as CEO until his successor takes office and has committed to ensuring a smooth transition to the new incumbent in his role as senior advisor.
“Thanks to his extensive experience and knowledge, Jan has successfully led the company as CEO since 2014. He and his management team deserve great thanks for how he has navigated the significant market challenges of recent years, including the pandemic and the outbreak of war.
“Jan started at the company in 1988 and can thus be defined as a true stalwart. We on the Board appreciate that Jan is willing to take on an advisory role after stepping down as CEO,” said Jakob Johansson, Chairman of the Board.
“It has been a privilege to lead the company and its dedicated employees since 2014. Despite challenging conditions, we have managed to renew both the company and the fleet, and achieve profitability improvements, while consistently working on environmental issues. Viking Line is strong, and now is a good time to start preparing to pass the baton,” Hanses added.
Viking Line also reported that between January and September this year, sales amounted to €370.6 mill (€379.2 mill in 2023).
Operating income totalled €25.2 mill (€52.4 mill, which included €8.6 mill gain on the sale of the ‘Rosella’).
Income after taxes was €12.4 mill (€34.8 mill, including the ‘Rosella’ sale).
Investments mainly in ‘Viking Cinderella’ and ‘Birka Gotland’ totalled €18.3 mill (€30.3 mill in 2023).
There was significant uncertainty given the recession under way in Finland, which has a negative impact on customers’ consumption patterns. Other factors contributing to this uncertainty were the current geopolitical situation and its potential impact mostly on energy prices.
As a result, the management expected that income before taxes for 2024 will weaken to a level below that of 2023, excluding the gain on the sale of ‘Rosella’.
For the third quarter of this year, sales amounted to €151.5 mill (€152.9 mill in 3Q23).
Operating income totalled €29.4 mill (€35.3 mill), while income after taxes was €24.9 mill (€27.6 mill).
Hanses said: “As usual, the third quarter has been crucial for the company’s earnings. However, the consumer caution that characterised the two previous quarters has continued. The Finnish economy is slowly recovering, with continued low inflation, but so far this has not been reflected in consumer behaviour.
“The weak Swedish krona has continued to erode purchasing power in the Swedish market. Third quarter results were somewhat worse than for the same period in 2023, with September in particular showing a weakening.
”The launch of service for Gotland Alandia Cruises has entailed additional one-off costs, and occupancy rates on the vessel ‘Birka Gotland’ during the period up to June did not correspond to our expectations. Occupancy rates improved during the summer and are expected to remain at a good level during the autumn.
”Results for the first nine months of the year, eliminating one-off items, were thus weaker than for the same period last year, but in line with the revised forecast communicated to the market in conjunction with the company’s six-month financial report in August.
“We succeeded in continuing to offset the costs of emission allowances that are to be surrendered starting next year by reaching our targets for ticket prices charged. The geopolitical situation, with war in nearby regions, has not had any noticeable impact on people’s propensity to travel in our main markets but combined with the turmoil in the Middle East contributes to continued uncertainty about energy prices.
”The outlook for this autumn is dominated by a continued high degree of uncertainty, and measures are being taken to deal with the uncertain trend for consumer demand.
”Maritime transport is impacted at present by upcoming changes in environmental standards. Starting this year, our operations are subject to the EU Emissions Trading System, which means that we are now obliged to shoulder the cost of emission allowances, which in the medium term we can only partly offset through our continued energy efficiency work.
“The lack of alternative fuels at realistic prices is the greatest challenge for the industry. Viking Line works actively for reduced emissions in various projects. Passengers and cargo customers on the Turku/Mariehamn/Stockholm route can now reduce their climate impact by purchasing renewable biofuel in proportion to the amount used for their travel and thus reduce fossil carbon dioxide emissions from their journey by up to 90%.
“Viking Line is also involved in two major projects where work is being carried out to create green transport corridors for the Helsinki/Tallinn and Turku/Stockholm routes.
”The first six months of 2024 entailed changes in our operations, with expanded service between Finland and Sweden and the introduction of cruise service from Stockholm in partnership with Gotlandsbolaget. This has entailed changes for our staff in the form of switches to other vessels and a reflagging of ‘Viking Cinderella’ to a Finnish flag,“ he said.
