Viking Line to Use Fixed-Price Agreements to Offset Risk of Higher Bunker Prices

by Ship & Bunker News Team
Thursday February 16, 2017

Viking Line Abp (Viking Line) today, in its financial results for the 2016 year, said it has entered into fixed-price agreements related to a portion of its bunker consumption during 2016 and 2017 in order to help offset the risk of higher bunker prices.

Viking Line says lower average bunker prices combined with the group's ongoing efforts to optimise its vessels' fuel consumption saw consolidated bunker expenses decreased by 18.9 percent during 2016, falling to €39.5 million ($42.15 million) from €48.7 million ($51.96 million) the previous year.

The group reports that consolidated sales during the 2016 year totalled €519.6 million ($554.42 million), compared to €530.5 million the previous year.

Meanwhile, operating revenue in 2016 amounted to €2 million ($2.13 million), compared to €0.5 million ($0.53 million) the previous year. 

"Bunker prices are expected to be higher than in 2016, which should have an adverse effect on consolidated income," explained Viking Line.

"However, there will be fewer planned dry-docking and servicing days, which is expected to have positive effect on earnings. The Board of Directors' assessment is that operating income will be higher overall in 2017 than in 2016," the company concluded.

Last month, Ship & Bunker reported that Viking Line had signed an agreement with Norsepower Oy Ltd. (Norsepower) for the installation of Norsepower's Rotor Sail Solution onboard the liquefied natural gas (LNG)-fuelled M/S Viking Grace.

Ship & Bunker News Team
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