EMEA News
Bunker Savings Help ECA Operator to Best Quarterly Result Ever
Finnlines Plc (Finnlines) says that its 2015 third quarter result of €24.7 million ($26.4 million) "is the best result ever," and cited improved efficiencies in terms of bunker consumption and fleet utilisation among the drivers for the performance.
The company adds that its €41.1 million ($43.7 million) result during the first nine months of 2015 "is a very strong achievement taken into account the slowdown of Finnish economy, the Russian sanctions, and upgrade dockings on 17 vessels."
Finnlines notes it mainly operates within Emissions Control Areas (ECA) where fuel costs are higher due to the 0.10 percent sulfur cap on marine fuel, and as such it is exposed to increased risks in terms of operational costs.
However, "with one of the youngest and largest fleets in Northern Europe and with investments targeted on engine systems and energy efficiency, Finnlines is in a strong position to greatly mitigate this risk," it says.
Following the crash in oil and bunker prices last year, ECA operators are already experiencing much lower fuel costs in 2015 than was previously expected, but Finnlines notes that thanks to the installation of scrubbers on its vessels, the majority of its fleet are able to use cheaper IFO fuel instead of MGO, allowing it to further decrease its bunker costs.
The company says it has also implemented a number of other bunker savings measures including silicon-paint hull projects "for better fuel economy and for the environment."
Improved Performance
Looking ahead, Finnlines says its Group's result before taxes is expected to be better in 2015 than in the previous year - a significant achievement given the market as recently as January was said to be bracing for fire sales, bankruptcies of smaller operators, and discontinued services on the back of increased operating costs from the new ECA rules.
Despite the dramatic side in prices, which in many ports are less than half of what they were just 12 months ago, the company says it plans to continue with its efficiency efforts.
"Finnlines continues its EUR 100 million Environmental Technology Investment Programme, which is expected to be concluded in spring 2016, and which has enabled the Company to reduce fuel consumption and fuel costs," it said.
At the end of August, Ship & Bunker reported that Wärtsilä would supply three more hybrid exhaust gas cleaning systems to Finnlines under a contract set for the third quarter of 2015, and with the equipment scheduled for delivery in early 2016.
