Finnlines CEO Tom Pippingsköld comments on the interim report:
”The first quarter of the year was challenging, but Finnlines managed to navigate through obstacles such as high interest rates, inflation, geopolitical unrest and a slowdown in economic growth in Europe. Several political strikes in February and a four-week strike in March-April led to a significant drop in Finnlines’ results. The result was also weighed down by the start-up costs for two new cargo and passenger vessels. However, it was with great pleasure that we were able to present the second Superstar vessel, Finncanopus, to cargo customers, media, passengers and other stakeholders in mid-February.
Finnlines Group's revenue in January-March 2024 amounted to EUR 162.2 (163.1 in 2023) million. Earnings before interest, taxes, depreciation and amortization, EBITDA, amounted to EUR 30.1 (45.5) million.
During the reporting period, Finnlines transported 184,000 container units, 27,000 passenger cars and 285,000 tonnes of bulk cargo. A total of 153,000 passengers travelled with us and leisure travel increased significantly on the route between the Finnish mainland, Åland and Sweden after the two Superstar ships were put into service. Expectations for the summer season are therefore high.
Shipping has been included in the Emissions Trading Scheme (ETS) from the beginning of 2024. The aim of the scheme is to combat climate change and shipping companies are therefore charged for greenhouse gas emissions. Finnlines seeks to reduce the cost impact for its customers in the same way as before when similar regulations have come into force, and the ETS fee is reviewed quarterly.
After the reporting period, Finnlines opened a new route between Malmö and Świnoujście on April 10. The new RoPax service secures an important freight route on the southern Baltic Sea and an important connection for many Polish commuters working in Sweden. Each sea connection strengthens ties between countries and also increases security of supply.
The outlook for the global economy is mixed, but is gradually improving and is expected to brighten in the second half of 2024. Inflation has fallen and it appears that central banks will start cutting interest rates, which should stimulate private consumption, industrial activity and trade.
Finnlines operates in highly competitive markets but has renewed its fleet with modern climate-friendly ships. In recent years, our route network has been expanded in the Baltic Sea, the North Sea and the Bay of Biscay and we can offer global freight transport via the Grimaldi network. We strive for operational excellence and sustainable shipping, which will help us and our customers grow. Resilience, the ability to adapt, is our strength and allows us to quickly recover and restore our profitability.”
According to the press release.
