Finnish economy downturn could hit Finnlines

2022-05-14T11:06:14+00:00 May 14th, 2022|Finance|

Finnlines has reported successful first quarter results.

Emanuele Grimaldi, President and CEO (pictured), explained; “The Finnlines Group recorded revenue totalling €157 mill (€124.1 mill in 1Q21) in the first quarter of 2022, an increase of 27%, compared to the same reporting period in the previous year.

“Shipping and Sea Transport Services generated revenue amounting to €150.6 mill (€117.8 mill in 1Q21), of which passenger related revenue was €7.5 mill (€5.1 mill in 1Q21).

“The revenue of Port Operations was €12.1 mill (€11.7 mill in 1Q21). Cargo volumes are clearly above the 2021 level, and the number of passengers also increased, compared to 2021. Revenue of Port Operations also increased, due to the growth of cargo.

“During the reporting period January/March, 2022, Finnlines transported 199,000 cargo units (187,000 in 1Q21, shipped 36,000 cars (44,000 in 1Q21) and carried 375,000 tonnes of freight not possible to measure in units (305,000 in 1Q21), 117,000 (101,000 in 1Q21) private and commercial passengers travelled with us.

“Europe is facing a Russia/Ukraine war at the moment. This affects the whole EU economy and could likely slowdown the Finnish economy as well. We have stopped our vessels operating to and from Russia along with the EU sanctions. The Russian traffic does not represent a meaningful share of our turnover, but it has complemented well our other lines. The volumes on each of our other lines we operate have increased in 1Q22 and positive cargo development is expected to continue.

“Finnlines sold ‘Finnclipper’ ropax vessel to Grimaldi Group in March, 2022, but will soon purchase ‘Vizzavona’ (ex ‘Finneagle’) ropax vessel from the Parent to replace ‘Finnclipper’. The chartered ro-ro vessel, ‘Eurocargo Savona’, returned to Grimaldi Group in mid-March, 2022.

“The Grimaldi Group’s and Finnlines’ ability to switch ro-ro and ropax vessels between the Mediterranean and Baltic Sea increases our capacity to provide services to our customers when needed and flexibility in our network when planning capacity.

“The first Eco-series vessel,’ Finneco I’, was delivered on 28th April, 2022 at the Jinling Shipyard in Nanjing. The ‘Finneco II’ and ‘III’ will follow in May, 2022, and the two beautiful Superstar ropaxes in 2023.

“Shipowners around the world are undertaking steps to fulfil IMO’s and EU’s target to reduce CO2 emissions by 50% by 2050. The Grimaldi Group and Finnlines have made major investments in environmental technology, renewal of the fleet, lengthening of vessels and, moreover, in ‘green’ newbuilding programmes worth billions of euros. Finnlines’ €0.5 bill ‘green’ newbuilding programme will reduce the Baltic carbon footprint considerably and it will enable us to reach the IMO’s and EU’s target well in advance.

“Through this ambitious investment we can bring to our customers, not only economies of scale and increased frequency, but a green and well-scheduled infrastructure in the Baltic Sea, the North Sea, and reaching all the way to the Bay of Biscay,” he concluded.

Finnlines also announced that Tom Pippingsköld is the new President and CEO, Thomas Doepel takes on the role of Vice President and Deputy CEO, while current President and CEO, Emanuele Grimaldi, will continue at the company as Chairman of the Board of Directors.