Finnish ferry operator, Viking Line has reported a decrease in annual sales for last year.
The 2024 sales totalled €480.2 mill, compared to €491.4 mill for the previous year.
Operating income was €26.7 mill (€55 mill in 2023), which included a €8.6 mill gain on the sale of the ropax ‘Rosella’.
Income after taxes was €15.9 mill (€36.3 mill in 2023) and included the €8.6 mill gain on the sale of the ropax.
Investments, mainly made on refurbishments to ‘Viking Cinderella’ and ‘Birka Gotland’, totalled €24.6 mill.
Viking Line’s Board proposed to the AGM a dividend of at most €1 per share in two installments. Half will be paid in May and the second 50% is earmarked for this September.
The Board also said that it believed the income before taxes for this year will be on a par with 2024.
There is significant uncertainty as a result of the economic downturn in Viking’s area of operations in recent years, which has had a negative impact on customers’ consumption patterns.
The current geopolitical situation and its potential impact mostly on energy prices also contributed to the uncertainty, which makes it difficult to predict the market trend with respect to passengers, the company said.
As for the fourth quarter of last year, sales amounted to €109.5 mill, compared to €112.2 mill in 4Q23, while the income after taxes totalled €3.5 mill (€1.5 mill in 4Q23).
President and CEO, Jan Hanses (pictured), said: “Earnings for the financial year 2024 were in line with the forecast communicated to the market after the third quarter last year but weaker than for 2023, a record year.
“Income before taxes was €19.8 mill. Although earnings did not reach last year’s figure, the earnings level is far better than it was before the COVID pandemic.
“Operations have continued to be dominated by consumer cautiousness in our service area. The weak Swedish krona has continued to weigh down purchasing power for the Swedish market.
“The geopolitical situation, with war in our region, has not significantly affected people’s propensity to travel in our main markets but has contributed to continual uncertainty about energy prices.
“During the fourth quarter of 2024, active measures were taken to further adjust costs to the sluggish market conditions seen during the autumn. This contributed to results for the quarter falling in line with our forecast.
“Passenger volumes for 2024 were relatively stable. We are pleased to note that cargo volumes for the year reached record levels. Our capacity on the Helsinki/Mariehamn/Stockholm route more than doubled when ‘Viking Cinderella’ was launched in service, and as a result our market share on that route rose to a healthy 43%. On the Turku-Mariehamn/Långnäs-Stockholm route, we have established a strong market position with a share of more than 70%.
“Before ‘Viking Cinderella’ returned to service on the Helsink/Mariehamn/Stockholm route, the vessel was reflagged and placed in the Finnish Register of Ships. Consequently, all five of our wholly-owned vessels sail under a Finnish flag. Prioritising domestic goods and services is one of our core values, and the fact that our entire fleet now sails under a Finnish flag is concrete proof of this. In a time of increased turmoil in the world, preparedness and security have become increasingly important issues in society.
“The launch in service of Gotland Alandia Cruises during the spring of 2024 entailed additional one-off costs, while capacity utilisation on the vessel, ‘Birka Gotland’ during the period until June did not meet our expectations. Utilisation improved during the summer.
“In 2024, our traffic was covered by the EU Emissions Trading System. This imposed a cost that we have striven to partly offset through continued work to improve energy efficiency.
“Unfortunately, fossil-free fuels in the quantity and at a price that are economically viable do not exist today. Implementation of a time-limited island exemption from the Emissions Trading System for traffic between Finland and Åland was thus well justified since the transition to fossil-free fuels is not governed by the cost of emission allowances but by access to alternative fossil-free fuels.
“We do not intend to lower our ambitions to reduce emissions from our traffic but will instead continue our work to make the transition to fossil-free fuels and increase fuel efficiency.
“During the year, we celebrated the 50th anniversary of our maritime transport on the Helsinki/Stockholm route, a route that has served 45 mill passengers since it was launched.
“During the autumn, Viking Line reached another impressive milestone. Since the company launched service, a quarter of a billion people have sailed on our vessels, a fine achievement that has required more than 60 years of operations.
“Viking Line continues its commitment to sustainability issues. In early 2024, green sea conferences were launched on our Turku vessels, which led to a reduction in greenhouse gas emissions from conference trips of about 90%. During the spring of 2025, this sustainable meeting solution will be offered on all routes and vessels.
“The projects for green sea corridors between Turku and Stockholm and between Helsinki and Tallinn have also continued to move forward. For more than a year, Viking Line’s passengers on the Turku/Stockholm route have been able to purchase biogas to offset the amount of fuel used for their trip, which reduces emissions from passengers’ own travel by up to 90%.
“The year was also characterised by high levels for customer service and the customer experience. This good performance is to a large extent a result of the work of our engaged staff, and I would thus like to extend a big thank you to all of our employees for their excellent work, which has contributed to our earnings. I would also like to give my warm thanks to our customers and partners for the faith they have shown in us and for their good co-operation,” he concluded.
