Financial review January–June 2021: Finnlines’ result up in the second quarter – reflects improved cargo volumes
EMANUELE GRIMALDI, PRESIDENT AND CEO, IN CONJUNCTION WITH THE REVIEW
“The Finnlines Group’s revenue for January–June 2021 was EUR 270.8 million, an increase of 14.6% compared to the corresponding period in previous year. The result for the reporting period was EUR 36.3 million – an increase of 14.4% compared to EUR 31.7 million in January–June 2020. Earnings before interest, taxes, depreciation and amortisation, EBITDA, amounted to EUR 71.0 (66.4 in 2020) million. Our financial performance has improved regardless of the fact that passenger services remained subdued due to Finland’s tight Covid-19 related travel restrictions.
Finnlines’ profitability has improved during the last quarter, mainly due to increased cargo volumes. During the first half of 2021, Finnlines transported 391 (357 in 2020) thousand cargo units, shipped 90 (60) thousand cars and carried 228 (227) thousand private and commercial passengers. Finnlines transports more than a third of the one million rubber-tyred units, which pass annually through Finland’s major shipping routes. Finland–Estonia, Finland–Sweden and Finland–German are the main sea bridges to foreign trade in Finland. Finnlines’ extensive route network provides the Finnish export industry with a regular and reliable way into the European market, while ensuring the transport of goods from abroad to Finland that are important for security of supply.
We have noted that safe travel over the borders has gradually normalised in Europe and that the Finnish restrictions are gradually reaching the EU level. The total recovery of passenger travel is yet to come, but the more Finland aligns its travel restrictions with the rest of Europe, the more rapidly the passenger business by sea between Finland and EU returns to market terms and less state subsidies are needed. We continue to provide our environmentally friendly services on market terms without public support.
More stringent regulations from EU and IMO force the shipping industry to find ways to cut emissions, and introduce new technology. Finnlines has adopted a green path in its strategy already several years ago when decisions were made on its EUR 0.5 billion Green Newbuilding Programme. The first new ultra green hybrid ro-ro vessel will be delivered this autumn and two others will follow in early 2022. In addition, two eco-efficient Superstar ro-pax vessels will be delivered in 2023 and the construction of the first Superstar ro-pax vessel started in June, while the construction of the second is scheduled to start in October. On the whole, the Programme comprises a total of five new vessels, which are all hybrid and state-of-the-art vessels from the environmental point of view.
Finnlines, as a Finnish company and with its Finnish flagged fleet, has established itself as a key provider of maritime transport among customers, not to mention its importance for Finland’s security of supply. Now, with an extensive recruitment campaign ongoing to man the superb green and eco-efficient vessels, Finnlines stands strong and well positioned to pave the way for the new green path of the shipping industry.”
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Finnlines is a leading shipping operator of ro-ro and passenger services in the Baltic Sea, the North Sea and the Bay of Biscay. The Company is a part of the Grimaldi Group, one of the world’s largest operators of ro-ro vessels and the largest operator of the Motorways of the Sea in Europe for both passengers and freight. This affiliation enables Finnlines to offer liner services to and from any destination in the Mediterranean, West Africa as well as the Atlantic coast of both North and South America.