Containerships Points to Q4 Bunker Price Hike for Pressure on 2016 Operating Expenses

by Ship & Bunker News Team
Thursday March 16, 2017

Containership Plc (Containerships), in its 2016 financial results, says higher bunker prices in Q4 put direct pressure on the company's operating expenses.

"In 2016, freight rate levels continued to decrease partly due to low oil prices, but the sharp increase in bunker prices during the last quarter impacted directly on the Group's operating expenses," explains the company.

Containerships reports a net profit loss for the 2016 year of €1.4 million ($1.49 million), compared to a loss of €6.7 million ($7.13 million) in 2015.

Meanwhile, net sales during 2016 €197.9 million ($210.47 million), down from €199.6 million ($212.28 million) in 2015.

In 2017, the company says it expects profitability to improve on the previous year and net sales to grow by 5-10 percent.

As Ship & Bunker has reported, Containerships has six LNG-fuelled newbuilds on order - a fleet which the Finnish cargo company has said would make it the first shortsea container operator in Europe to run ships on LNG.

"In 2018, the Group will bring into use four LNG-powered vessels. The aim is to be the first company to offer a full transport chain based on LNG-powered solutions in its market area," said the company in its 2016 financial report.

"The use of LNG reduces the sulfur emission by 99 percent and fulfills the tightening regulations being set for NOX, particle and CO2 emissions."

In August, Containerships announced it had received a co-funding recommendation from the European Union (EU) for the company's LNG-powered container vessels.

Ship & Bunker News Team
To contact the editor responsible for this story email us at editor@shipandbunker.com