World News
Low Bunker Prices Improve Viking Line Results Once Again
Viking Line Abp has announced that once again, low bunker prices have had a positive effect on earnings in the first quarter of 2015.
The company had previously announced that weak bunker prices had led to a €5.1 million ($5.8 million) reduction in bunker costs in 2014.
Viking Line reported consolidated sales of €105 million ($119.5 million), up from €103.4 million ($117.7 million) last year, while operating losses improved to a loss of €9.8 million ($11.2 million) compared to €17.1 million ($19.5 million) the year before.
"Competition in Viking Line's service area remains tough and implies continued pressure on prices," said the company, especially as Finland's economy has been on a downturn and there have been fewer-than-expected Russian passengers.
Nevertheless, Viking Line said it had increased market share on four out of five passenger routes.
"The overall assessment of the Board of Directors is that in 2015, operating income will improve compared to operating income in 2014, but future bunker price developments represent a uncertainty factor," it said.
The company carries passenger and cargo carrier services on the northern Baltic Sea, and also operates a liquefied natural gas (LNG) ferry which was touted in 2013 as possibly the "most environmentally friendly large cruise vessel ever built."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 655.50 | 2.00 | 808.50 | 4.50 |
| Rotterdam | 619.00 | 0.00 | 789.00 | 8.00 |
| Houston | 628.50 | 7.50 | 812.50 | 1.50 |
| Fujairah | 653.50 | 4.50 | 900.00 | 2.50 |
| Global 20 Ports Average | 672.00 | 0.50 | 885.00 | 7.00 |
| Global 4 Ports Average | 639.00 | 2.50 | 827.50 | 2.00 |
| Global Average Bunker Price | 727.50 | 1.50 | 933.50 | 5.00 |
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