Finnlines' Efficiency Measures Help Secure Solid First Half of 2015

by Ship & Bunker News Team
Monday August 3, 2015

Finnlines Oy (Finnlines) has announced that the first half of 2015 showed a "continuing strong countercyclical performance" for the company, crediting ship efficiency measures as one reason for the company's first six month result of €16.4 million ($17.93 million).

The company posted a first quarter result of €15.8 million ($17.27 million), compared to €14.7 million ($16.07 million) during the same period in 2014, saying that the figures are a strong indication that Finnlines has proactively taken the "right measures" to consolidate their market position.

Finnlines says that it is focusing on strengthening its long-term strategic position through the acquisition of three vessels, as well as further investment in environmental technology.

"We expect our profitability to improve over the previous year due to successful implementation of our Investment Programme which enables us to use cheaper IFO fuel compared to more expensive MGO and due to successful implementation of our Turnaround Programme which improves our operational efficiency," said Emanuele Grimaldi, CEO and President of Finnlines.

"We will complete our €100 million Environmental Technology Investment Programme by installing scrubbers to remaining vessels and also by investing to re-blade and silicon-paint hulls of several of our vessels for better fuel economy."

Commenting on the scrubber installation, Finnlines said "the new system has substantially improved the vessels' relative propulsion efficiency and, as a result, reduced their fuel consumption."

Overall for the first six months of 2015, Finnlines reported a 6.7 percent decrease in revenue, with €252 million ($275.51 million), compared to €270.1 million ($295.3 million) during the same period in 2014.

Grimaldi, commenting on the decrease, said "regardless of 6.7 percent turnover decrease - due to macroeconomic conjuncture, bunker surcharge reduction, vessel maintenance, retrofits and tonnage adjustment - we have been able to adjust our operations to be more cost efficient and therefore more competitive in current recessionary business environment prevailing in Finland."

"Finnlines was one of the strongest companies in 2014 among the listed companies in the shipping sector when measured by total return to shareholders and by financial performance and we are striving to improve our operational and financial performance," added Grimaldi.

On Wednesday, it was reported that Finnlines was one of five ferry operators to win part of €48 million in EU grants for scrubber projects.