Finnlines CEO Tom Pippingsköld comments on the interim report:
”The Finnlines Group's total revenue during January – September 2023 amounted to EUR 513.2 million (558.4 in 2022), which is a decrease of 8 percent compared to the same period in 2022. The profit for the period was EUR 56.9 (105.2) million. Earnings before interest, tax, depreciation and amortization, EBITDA, amounted to EUR 131.7 (169.2) million.
The geopolitical situation remains uncertain and the transport services market both globally and in the euro area is sluggish, meaning that we in the EU are either experiencing negative growth or zero growth. Based on current forecasts, GDP growth in the EU in 2023 and 2024 is expected to be 0.6 and 1.1 percent, respectively. Central banks remain concerned about inflation, although it has decreased significantly. The rapid interest rate hikes by the European Central Bank (ECB) have had a negative impact on private consumption, the construction industry and business investment, and, as a result, have been a hindrance to economic activity in the EU countries. The change in Finland's export volumes over the past 12 months was -4.7 percent (12-month moving average September 2022–August 2023). The corresponding figure for import volumes was -9.6 percent. The ECB should react quickly to the worsening growth forecasts and lower interest rates.
While the unfavorable development of Finland's exports and imports has resulted in reduced freight volumes and negatively affected our results, we have seen a very good upward trend in passenger volumes. Despite the reduced freight volumes, Finnlines has been able to maintain its market share.
Finnlines received delivery of three hybrid ro-ro vessels already in 2022. In July this year, the first of the two Superstar class ships, Finnsirius, was delivered, which began operating the Naantali–Långnäs–Kapellskär route (Finland–Åland–Sweden) on 15 September 2023. Finnsirius’ arrival started a new era for the route as the ship is both larger and more sustainable than any of the previous ro-ro vessels. She also sets a completely new standard for ro-ro transport on the Baltic Sea, both in terms of cargo and passengers. The second ro-ro vessel in the Superstar class, Finncanopus, will be delivered at the end of the year. Our ro-ro vessels have huge battery banks and will use shore power, ensuring zero emissions in port. Automooring (automatic mooring system) in all three ports speeds up cargo handling and further increases our efficiency on the route.
Finnsirius replaced Europalink, a smaller Star-class ro-pax vessel, which was transferred to the Sweden–Germany route where she replaced a chartered vessel.
The EU’s existing emissions trading scheme will be extended to maritime transport from 2024 onwards. Finnlines has made extensive investments in sustainable and environmentally friendly technology, thereby positioning itself in terms of competitiveness. Finnlines” investment programme to reduce carbon emissions goes hand in hand with the company’s strategy to increase operational efficiency. The new vessels support our customers in their transition towards sustainability and environmental responsibility. Therefore, Finnlines continues its green transition and thus does its best to assist its customers in the most sustainable way possible. Not only have we invested in environmental technology for several years, but Finnlines’ EUR 500 million green newbuilding programme is almost complete. This programme clearly demonstrates our unwavering commitment to the environment, our customers and our other stakeholders.”
Attachment:
Financial Review January–September 2023, PDF
According to the press release.
