Viking Line sees light at the end of the tunnel

2021-08-30T16:22:51+00:00 August 30th, 2021|Finance|

Viking Line has recorded a consolidated sales decrease of 26.7% to €71.5 mill for the first half of this year, compared with €97.5 mill for the same period the year before.

Operating income totalled €4.5 mill, compared with a negative €27.4 mill for 1H20.

Passenger-related revenue decreased 34.1% to €50.1 mill in 1H21, compared with €76 mill for 1H20, while cargo revenue was €20.4 mill, compared with €20.7 mill for the previous period.

Sales contribution was €55.2 mill, compared with €73.5 mill, while operating costs decreased 29.3% to €74.1 mill from €104.9 mill.

Results for the second quarter were dominated by Viking Line’s public service obligations and cargo transports, but an increase in demand in the passenger sector was also discernible at the end of this period.

Second quarter sales increased 107.7% to €46.9 mill from €22.6 mill recorded in 2Q20. Operating income totalled €12.2 mill, compared to a negative €5.9 mill.

During the first two quarters of the year, the Group received aid for its public service obligations from Traficom for the Group’s vessels on the Turku–Mariehamn/Långnäs–Stockholm, Mariehamn-Kapellskär and Helsinki–Tallinn routes.

Viking also received aid from the Development and Management Centre of Finland’s Centres for Economic Development, Transport and the Environment (ELY centres) and from Finland’s Local Employment and Economic Development Offices. The aid is recognised as State aid under other operating revenue.

The outlook for this financial year is better than the outcome for 2020. Improved demand starting late 2Q21, together with one-off items, such as the sale of ‘Mariella’ and the anticipated redemption of Viking Line’s terminal buildings, including fixtures and fittings with the City of Turku, will boost income.

There is still uncertainty about how authority requirements, State aid, the impact of vaccination programmes and related restrictions on passenger traffic, as well as market demand, will affect Viking Line’s operations, results and financial position for the full-year 2021, but on the whole the Board of Directors believes operating income will be positive.