Finnlines enjoys revenue increase

2022-08-12T16:58:26+00:00 August 12th, 2022|Finance|

Finnish ferry and logistics company, Finnlines has reported revenue of €356.9 mill for the first half of this year, compared with €270.8 mill in 1H21, an increase of 32%.

EBITDA was €97.7 mill, compared with €71 mill in 1H21, a rise of 38%.

For the second quarter, Finnlines reported revenue of €199.9 mill, compared to €146.8 mill in 2Q21, an increase of 36%. EBITDA amounted to €62.1 mill, compared to €40.8 mill, a  rise of 52%.

Tom Pippingskjold, President and CEO, said: “The Finnlines Group recorded revenue totalling €356.9 mill (270.8 mill) during January/June 2022, an increase of 32%, compared with the same reporting period in 2021.

“Shipping and Sea Transport Services generated revenue amounting to €343.8 mill (€258.1 mill), of which passenger-related revenue was to €25.6 mill (€14.2 mill). The revenue of Port Operations was €24.8 mill (€24.1 mill). Cargo volumes were above the 2021 level.

“During the reporting period, Finnlines transported 393,000 (391,000 in 2021) cargo units, shipped 73,000 (90,000) cars, and carried 742,000 (682,000) tonnes of freight not possible to measure in units, 286,000 (228,000) private and commercial passengers travelled with us.

“Due to EU sanctions, Finnlines stopped calling at Russian ports in early March, which naturally has resulted in loss of revenue. However, the increased cargo volumes on other lines have compensated for this loss and the passenger business has also recovered and reached pre-pandemic figures.

“Finnlines is proud to introduce new tonnage with a lower carbon footprint and upgraded services. The three ‘Finneco’ series hybrid ro-ro vessels were all delivered during the late spring and early summer of 2022 at the shipyard in China. The vessels have entered Finnlines’ North Sea and Bay of Biscay services and Finnlines can now fulfil customers’ request for more capacity in several routes since the former North Sea/Biscay vessels have been transferred to strengthen the Baltic services.

“Finnlines expanded its route network in mid-July when a new service was launched between Rosslare, Ireland, and Zeebrugge, Belgium. The route is operated by a ro-ro vessel, which offers two weekly departures from both ports. The route provides a crucial link for Irish industry, but the Finnish, German, Estonian and Spanish industries also have an easier access to Ireland via our transhipment in Zeebrugge.

“The ro-ro vessel ‘Finnmerchant’ in the Poland/Finland route was chartered out in early July but she was replaced by ‘Finnmill’ to support the increased volumes.

The ‘Superstar’ newbuilding programme proceeded when the keel laying of the first ro-pax vessel, ‘Finnsirius’, was celebrated on 1st April in China. The keel laying of the sister vessel, ‘Finncanopus’, is scheduled to take place in August.

“Green values have been considered throughout the vessel from energy generation to lighting management. Although the Superstars are larger than any ropax vessel in the current fleet, they are expected to consume considerably less fuel than the existing ‘Star’ class vessels, thus providing lower CO2 emissions.

“Despite uncertain economic and geopolitical times, Finnlines has maintained its position as a reliable and important carrier of goods. Our utmost thrive to continuously improve both our operational and economic efficiency ensures that we can continue to grow and invest in our fleet and also in well-being and training of our employees,” he said.

Finnlines’ main operating area is around the Baltic Sea. Based on the OECD Eurostat, the Gross Domestic Product in the EU area increased by 5.6% during 1Q22, compared with the same period in 2021.

Compared with 4Q21, the reported GDP in Germany increased by 0.2% in 1Q22, while in Sweden the decrease was 0.8%. In Finland, GDP increased in the first quarter by 0.2%, compared with the previous quarter. However, the Russian conflict with Ukraine may deteriorate future economical development in the EU area depending on the duration and extent of the confrontation, the company said.

Based on the January/May statistics by Statistics Finland, the Finnish seaborne imports carried in container, lorry and trailer units (measured in tonnes) increased by 9% and exports decreased by 6%.

During the same period private and commercial passenger traffic between Finland and Sweden increased by 345%, while between Finland and Germany, the traffic increased by 90%.

During 2Q22, Finnlines operated on average 20 (21 in 2Q21) vessels on its own routes.

Finnlines employed an average of 1,673 (1,531 in 1H21) persons during the reporting period, consisting of 953 (841) persons at sea and 720 (690) persons on shore.

The number of persons employed at the end of the period was 1,777 (1,623) in total, of which 1,029 (902) were at sea and 748 (721) on shore.

The personnel expenses (including social costs) for the reporting period were €48.3 mill (€44.8 mill in 1H21).