EMEA News
Estonia Operator Benefits from Falling Bunker Prices
Estonian ferry and shipping firm AS Tallink Group (Tallink) reports a 23 percent drop in profits, to €47.1 million ($64.8 million) in 2013, while its revenues held essentially steady at €942.0 million ($1.3 billion).
The company's results benefitted from falling bunker prices, with its overall fuel costs dropping about 10 percent, or €14 million ($19.3 million), compared with 2012.
"During the 2013 financial year the Group's operations were affected by an overall weak macroeconomic environment in the region," the company said.
"The Nordic countries which are the Group's main markets continue to experience noticeable slowdown in their economies and there is an impact to the Group's passengers' spending behaviour."
In addition, higher taxes reduced Tallink's profits.
While 2013 did not meet management's expectations for results, the company said it expects an improvement in 2014, in part due to product development and cost reduction efforts it is making.
Tallink CEO Enn Pant warned in October that new rules on sulfur emissions starting next year will raise costs for the ferry industry.
