Finnlines faced multiple issues last year – Pippingsköld

2024-03-15T18:01:24+00:00 March 15th, 2024|Finance|

Finnish ferry and logistics company, Finnlines reported revenue of €680.7 mill for 2023, compared to €736.1 mill in 2022, a decrease 8%.

EBITDA was €166.3 mill (€221.2 mill in 2022), a drop of 25%.

The result for the year of €60.3 mill was a fall of 55%, compared to 2022’s €133.3 mill.

Interest bearing debt increased by €115.5 mill to €511.2 mill.

For the fourth quarter of 2023, revenue was €167.5 mill, compared to  €177.7 mill in 4Q22, a decrease 6%.

EBITDA was €34.6 mill (€52 mill in 4Q22),a drop of 33%, while the 4Q23 result was €3.3 mill (€28.2 mill in 4Q22), a decrease of 88%.

Tom Pippingsköld, President and CEO, said: “The Finnlines Group’s revenue in January/December 2023 amounted to €680.7 mill (€736.1 mill in 2022), a decrease of 8%, compared to the corresponding period in 2022.

“The result for the reporting period was €60.3 mill (€133.3 mill). Earnings before interest, taxes, depreciation and amortisation, EBITDA, amounted to €166.3 mill (€221.2 mill).

“Finnlines transports a third of the 1 mill trucks carrying goods between Finland, Sweden, and Continental Europe every year. In 2023, Finnlines transported 710,000 cargo units, shipped 157,000 cars, and carried 1,344,000 tonnes of non-unitised freight. In total, 695,000 passengers travelled with us.

“The high interest rate environment has negatively affected private consumption, construction sector and industrial demand. Finnlines had to face multiple of issues during 2023, which weakened our result.

“Apart from higher interest rates were a strike in February, start-up costs of a new vessel, dockings of several vessel to name but a few. The same seems to have continued at the beginning of this year, but we are seeing now improved industrial activity and private consumption has bottomed out.

“ECB should now understand to quickly bring the interest rates down in order to prevent a stagnant or recessionary development in the EU area; instead, their task is now to fuel growth in EU.

“Finnlines focuses on adjusting its fleet, improving its cost-efficiency and finding new growth. We are finally, closer than ever, to open a new ropax line between Sweden and Poland, from Malmö to Swinoujscie. We already have the Zeebrügge/Rosslare line, which has established itself well in the market even though we are a new operator on the Belgium/Ireland connection.

“We also opened a new service from Vigo, Spain to Zeebrügge, Belgium at the beginning of this year.

“Finnlines €500 mill Green Investment Programme was completed when the second Superstar vessel, ‘Finncanopus’, was delivered in December at the Weihai shipyard in China. The sister vessel, ‘Finnsirius’, entered service on the Naantali/Långnäs/Kapellskär line on 15th September, 2023.

“These vessels will increase the cargo and passenger capacity by 24% and 50%, respectively on the Finland/Sweden route and they will offer a higher service level than the previous two Star-class 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 travellers on Finland/Åland/Sweden route.

“Sustainable shipping has been a key issue in the industry for several years, and therefore Finnlines’ next newbuilding orders, whether ropax or ro-ro, will have improved environmental and technical efficiency and include the use of alternative fuels. We have continuously invested in new vessels and brought more capacity to the Baltic Sea and to Biscay and North Sea traffic.

“The new vessels support our customers in their transition towards sustainability and environmental responsibility. Therefore, Finnlines continues its green transition and thus makes its best efforts to enable our customers to grow in the most sustainable way,” he concluded.