EMEA News
ECA Operator Sees Scrubber Benefit Despite BAFs Negating Direct Benefits to its Bottom Line
Finnlines Plc (Finnlines) Thursday said in its latest 2016 Q1 financials it had reaped the benefit of using scrubbers on-board its vessels, although the benefits were operational rather than directly to its bottom line.
"We have also been able to use the less expensive HFO instead of MDO on vessels equipped with scrubbers," said Finnlines.
"Although it does not contribute directly to our profitability since we pass this benefit to our clients through the bunker clause mechanism, it enabled us to offer low prices to our customers and through that we can have higher capacity utilisation of our vessels."
Those reduced bunker surcharges did hit revenues, however, which dipped to €105.2 million ($119.7 million), compared to €116.8 million ($132.9 million) in the period for the previous year, but the operator's overall result made a dramatic improvement to €8.3 million ($9.4 million) from the €0.6 million ($0.7 million) recorded last year.
By the end of March 2016, Finnlines says it had completed scrubber installations on 17 out of the 22 ro-ro and ro-pax vessels it fully owns and operates.
"These cleaning systems enable the vessels to operate cost-efficiently in compliance with the new stricter environmental regulations for the fuel sulfur limit that came into force as from 1 January 2015," Finnlines said of the scrubbers, adding is also enables the company to offer what it says is more environmentally friendly and sustainable services to its clients.
In addition to meeting Emissions Control Area (ECA) rules, looking ahead Finnlines says it also has an eye on reducing bunker consumption through increased vessel efficiency.
"Although we had a record breaking result in 2015, we continue to strive for improved efficiency and for even better results in 2016," concluded Finnlines, noting that the company is set to install scrubbers on its remaining five vessels during 2016.
"Apart from scrubbers, we are also investing in propulsion systems and reblading, and in 'silicon paint' hull projects for better fuel economy and, as stated above, for the environment."
In November, Finnlines called its 2015 Q3 result of €24.7 million ($26.4 million) "the best result ever," citing improved efficiencies in terms of bunker consumption and fleet utilisation among the drivers for the performance.
