Finnlines sees an increase in revenue

2021-11-12T19:04:42+00:00 November 12th, 2021|Finance|

Baltic and North European ferry company, Finnlines has reported an increase of revenue for the first nine months of this year, following a strong third quarter.

Revenue increased by 17% to €425.9 mill, compared to €363.1 mill in 2020. EBITDA was up by 13% to €121.2 (€107.2 mill in the previous year).

The result for the reporting period was €69 mill (€54.2 mill in 2020) an increase of 27%.

However, interest bearing debt had increased by €8.4 mill to €371.2 mill at the end of the period.

For the third quarter of this year, revenue increased by 22% to  €155.1 mill  (€126.7 mill in 3Q20). EBITDA amounted to €50.2 mill (€40.8 mill), an increase of 23%, while the result was €32.7 mill (€22.5 mill for 3Q20), an increase of 45%.

President and CEO Emanuele Grimaldi said; “During the reporting period January–September 2021, Finnlines transported 583,000 cargo units (536,000 in 2020), shipped 124,000 cars (102 cars in 2020) and carried 1,041,000 tonnes of freight (811,000 tonnes in 2020), while 439,000 thousand private and commercial passengers travelled with us, compared to 390,000 in 2020.

“An upward trend continued during the third quarter when cargo volumes increased nearly on all routes. The automotive industry suffered from shortage of components and the summer stoppage was longer than anticipated. However, as the Finnlines fleet consists of vessels in different sizes, capacity could be moved from routes with temporarily declining demand to others where larger capacity was needed.

“When travel restrictions were gradually eased, recreational travel recovered although passenger numbers remained far below the normal level. While the global shortage of containers has challenged importers and exporters and led to worldwide supply-chain disruptions, roll-onroll-off vessels have proved to be efficient and competitive modes of transport. Finnlines has carried freight uninterruptedly throughout the Covid-19 pandemic, offering around 170 departures each week.

“Finnlines has made substantial investments in environmental technology and in its fleet renewal during the past years, but new challenges lie ahead. Both globally and within the European Union, numerous proposals are being discussed. The European Commission intends to reduce greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.

“Previously, IMO has set the minimum reduction target of 50%, compared to 2008. The EU Commission has also proposed to include maritime transport in the emissions trading system, which has covered energyintensive industries and flights within EU for nearly two decades. Furthermore, the planned FuelEU Maritime Initiative will set a maximum limit on the greenhouse gas content of energy used by ships.

“The EU Taxonomy Regulation directive aims to promote clean technologies and discourage the use of fossil fuels. The carbon levy, ie a tax, which the International Chamber of Shipping has put forward in September, 2021, is intended to expedite the creation of a market that makes zero-emission shipping viable.

“To reach the ambitious goal of becoming carbon neutral, it may be necessary to modify existing ships with new tanks and engines so that they can run on new types of fuel. However, at current rates of production, zero-carbon fuels are not commercially available at the scale needed for the global fleet.

“Today, Finnlines concentrates on new battery technology, hydrodynamic design in vessels, air lubrication systems and solar panels on its newbuilds. Several existing ships will be equipped to use onshore power where available. Moreover, gradual transition to carbon-free and renewable fuels is being investigated.

“The construction of three hybrid ro-ro vessels and two state-of-the-art ropax vessels is proceeding. Although we have an ambitious €0.5 bill newbuilding programme, in Finnlines, we have understood that it is of crucial importance to focus intensively on energy efficiency of the fleet because energy savings is the best way to reduce the emissions and reach immediate results,” he concluded.