EMEA News
Finnlines Financials Boosted Through Use of Fuel Oil + Scrubbers for ECA Compliance
Finnlines Plc (Finnlines) says its 1H 2016 bottom line was boosted by its use of "less expensive" HFO in conjunction with scrubbers for emission control area (ECA) compliance, rather than simply burning more expensive ECA compliant 0.10 percent sulfur fuels.
"Result before interest and taxes (EBIT) was EUR 36.7 (24.0) million. In 2016 most of the vessels were operated using less expensive fuel oil which had a positive impact on the result," the ferry operator said.
As Ship & Bunker has previously reported, Finnlines has been working to install scrubbers on its fleet in order to comply with ECA regulations and says its €100 million Environmental Technology Investment Programme has resulted in successfully completed scrubber installations on 18 out of 22 ro-ro and ro-pax vessels.
"Through various measures - vessel optimisation, scrubber retrofits, hull silicon paint, new propulsion systems, cost reduction programmes and tonnage adjustment - Finnlines is, now, more cost-efficient and therefore more competitive," said Emanuele Grimaldi, CEO and President of Finnlines
Finnlines reports that its overall revenue for the January to June 2016 period was €230.7 million ($256.78 million), an 8.5 percent year on year decrease, to which it largely attributes to the reduction in its cargo-related bunker surcharge.
Meanwhile, the company's result before interest, taxes, depreciation and amortisation (EBITDA) for the January to June period was €64.7 million ($72.01 million), an increase of 25.6 percent year on year.
Last week, Finnlines announced that its Finnlink bunker surcharge will be reduced to €2.04 per metre, down from the €2.21 per metre, effective August 1, 2016 and "in force until further notice."
In June, Finnlines announced that it had signed a €50 million ($55.56 million) loan agreement with the European Investment Bank (EIB), which will be used to enhance its operations for emission control area (ECA) compliance through Finnlines' €100 million ($111.12 million) Environmental Technology Investment Programme.
