Ro-ro and ropax operator Finnlines recorded revenue of €736.1 mill for the full year 2022, an increase of 27% compared to the same period in the previous year.
Shipping and Sea Transport Services generated revenue of €712.1 mill, of which passenger related revenue was €68.7 mill. Revenue from Port Operations was €46.2 mill.
The transported cargo volumes growth settled down towards the end of last year, whereas the rapid rise of fuel prices increased cargo-related bunker surcharges, compared to 2021.
In January/December, 2022 the number of private passengers carried increased substantially from the previous year. Revenue from Port Operations decreased slightly from 2021.
EBITDA was €221.2 mill, an increase of 38%. Result before interest and taxes (EBIT) was €136 mill.
Finnlines said that its financial position remained strong, although net financial expenses increased.
The result before taxes (EBT) increased by €56.7 mill to €130.5 mill. The result for the year was €133.3 mill.
For the fourth quarter of last year, Finnlines recorded revenue of €177.7 mill.
Shipping and Sea Transport Services generated revenue amounting to €172.4 mill and Port Operations was €10.3 mill.
The growth of cargo volumes ceased during 4Q22, but the number of passengers increased substantially. The fuel prices and cargo-related bunker surcharge continued to decline at the end of last year.
EBITDA for 4Q22 was €52 mill, an increase of 33%. EBIT was €29.8 mill. Result before taxes (EBT) increased by €23 mill to €27.6 mill. The result for October/December, 2022 was €28.2 mill.
Interest-bearing debt increased by €45.3 mill to €395.7 mill last year, excluding leasing liabilities of €21.6 mill. Net interest-bearing debt at the end of the year was €376.8 mill.
The Group’s liquidity position is strong and at the end of the period, cash and cash equivalents together with unused committed credit facilities amounted to €323.9 mill. Net cash generated from operating activities also remained strong and was €200.1 mill.
President and CEO, Tom Pippingskold, said: “The Finnlines Group’s revenue in January–December 2022 amounted to €736.1 mill, an increase of 27% compared to the corresponding period in 2021. The result for the reporting period was €133.3 mill (€74.7 mill in 2021). EBITDA amounted to €221.2 mill (€160.3 mill in 2021).
“Global economy and Finnish economy has been hit by the war in Ukraine, accelerating inflation, higher interest rates and soaring energy costs. Considering the economic instability, freight volumes were fairly good during the year of 2022. Finnlines transported 750,000 cargo units, shipped 138,000 cars and carried 648,000 private and commercial passengers. Once our new three Eco-series hybrid ro-ro vessels had started to operate in the Baltic–North Sea–Bay of Biscay service, several other vessels were assigned to other routes. Some changes had already taken place when all operations in Russia were suspended in early March.
“Today, Finnlines can better meet customers’ request for capacity and offer sufficient frequency on all its lines. These three giant ro-ro vessels with state-of-the-art technology do not only offer economies of scale to customers, but the environmental footprint has also been reduced.
“In July, Finnlines also launched a new freight route between Rosslare, Ireland, and Zeebrügge, Belgium, providing an important link between Ireland and Continental and Northern Europe. This line was highly welcomed by the market and, therefore, a smaller ro-ro vessel was quickly replaced by a larger vessel with nearly 4,200 lane metres for cargo.
“The Superstar ro-pax newbuilding programme has proceeded well in China. Both vessels have been launched and they are expected to be delivered during the third and fourth quarter of 2023. Both will start to operate between Finland and Sweden on the Naantali–Långnäs– Kapellskär route.
“While other shipping companies have closed lines, Finnlines is confident that combined carriage of freight and passengers brings many benefits to our customers. The Superstar vessels will increase the cargo and passenger capacity by 30% and 50%, respectively, on the Finland– Sweden route and they will offer a higher service level than the current two vessels.
“Finnlines continues to focus on cargo, but on this line we will also address a wider passenger segment, such as foot passengers. With these modern and high-class cargo-passenger vessels we can offer an attractive option for passenger travel to inhabitants on the Åland Islands, who are dependent on regular sea connections, and travellers from Sweden and Finland.
“We continuously invest in new vessels and bring more capacity to the Baltic Sea, Biscay traffic and North Sea traffic. We also invest in environmental technology in order to comply with EU regulation and IMO guidelines and to reduce the carbon footprint and other air emissions more efficiently than technical solutions on the older vessels do.
“As the Finnlines fleet grows, 200 new jobs are open on vessels flying the Finnish flag. Finnlines is well prepared to service its customers with its sustainable fleet in 2023 and long beyond,” he concluded.