World News
Viking Line Sees 23.3% Increase in Bunker Expense During 2017 H1
The Viking Line Group (Viking Line), in its financial results for the 2017 H1 period, says the company saw a 23.3 percent year on year increase in bunker expenses, totalling €23.2 million ($27.24 million), up from €18.8 million ($22.07 million) during 2016 H1.
While bunker consumption figures were not provided, the company said it was expecting prices to be higher in 2017 compared to last year.
Viking Line reports that, for the H1 period, consolidated sales increased by 0.5 percent year-on-year to €239.2 million ($280.87 million), while operating income during the period saw the company log a loss of €15 million ($17.61 million).
"Competition in Viking Line’s service area remains tough and implies continued pressure on prices and volumes. Bunker prices are expected to be higher than in 2016, which should have an adverse effect on consolidated income," said Viking Line.
Still, Viking Line expects its 2017 operating income to be higher overall than that of 2016.
In November, Viking Line announced that it had signed a letter of intent (LOI) with China's Xiamen Shipbuilding Industry Co. Ltd for the order of a liquefied natural gas (LNG) for RoPax ferry, which slated for delivery in the spring of 2020.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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