Baltic Shipping Volumes Helps Dry Bulk Shipper to Profit

ESL said loading of large ocean liners at sea saw increased activity.

Baltic shipping company ESL Shipping has seen its profit jump in the third quarter on the backs of increased demand for its shipping services, the company said. 

ESL, which is part of Aspo Group, reported profit earnings of €4.8 million ($6.1 million) between between July and September 2014, up significantly from €1.8 million ($2.3 million) this time last year. 

Net sales also rose to €21.6 million ($27.6 million) in the third quarter compared to €17.5 million ($22.3 million) last year.

Loading of large ocean liners at sea in particular saw increased activity, which was also helped by "unusually favourable" weather conditions in the Baltic Sea, according to the company.

During the month of September, ESL used all of its capacity, in addition to time-chartering an additional vessel for the rest of the year after steel volumes and transportation volumes in the energy industry were higher than expected. 

"Aspo's profitability has been raised to a whole new level in 2014," said Aspo Group CEO Aki Ojanen.

"Our operating result has developed strongly, even though general uncertainty in the EU and Russia has continued."

Ojanen said that the rate of growth of the company's earnings per share (EPS) had outstripped its operating profit, aided by ESL's inclusion in the Finnish tonnage taxation which has given the company as a whole a lower total tax rate. 

Upcoming Emission Control Area (ECA) regulations beginning January 2015 have also prompted ESL to modify its ships for fuel consumption, with the shipper having spent €0.5 million ($0.6 million) over the summer to retrofit a pusher-barge for energy efficiency. 

"The shipping company's vessel investments will focus on the best available environmental technology, fuel efficiency and around-the-year capability to operate in ice areas," said Ojanen. 

By the end of 2014, the rest of the company's fleet will be converted for low-sulfur diesel fuel.

The company reported this time last year that reduced fuel consumption had helped to improve operating profit.