Finnlines’ Financial review January–March 2024
Finnlines Plc, Press release, Helsinki, 7 May 2024
Tom Pippingsköld, President and CEO, in conjunction with the review
“The first quarter of the year was challenging but Finnlines managed to navigate through obstacles, such as high interest rates, inflation, geopolitical concerns, and a slowdown in economic growth in Europe. Several political strikes in February and a four-week long strike in March–April resulted that Finnlines earnings declined notably. The result was also burdened by the start-up costs of two new freight-passenger vessels. Yet we were delighted to introduce the second Superstar vessel Finncanopus to freight customers, media, passengers and other stakeholders in mid-February.
The Finnlines Group’s revenue in January–March 2024 amounted to EUR 162.2 (163.1 in 2023) million. Earnings before interest, taxes, depreciation and amortisation, EBITDA, amounted to EUR 30.1 (45.5) million.
During the reporting period Finnlines transported 184,000 cargo units, 27,000 cars, and 285,000 tons of non-unitised freight. In total, 153,000 passengers travelled with us and leisure travel surged remarkably on the route between mainland Finland, Åland Islands and Sweden after the introduction of the two Superstar vessels. Expectations for the summer season are thus high.
Shipping has been included in the Emissions Trading Scheme (ETS) from the beginning of 2024. The objective of the scheme is to tackle climate change and shipping companies are therefore charged for greenhouse gas emissions. Finnlines makes attempts to reduce the cost effects on its customers as in the past when similar regulations have entered into force and the ETS charge is reviewed quarterly.
After the reporting period Finnlines opened a new line between Malmö and Świnoujście on 10 April. The new ro-pax service secures an important freight route on the Southern Baltic and an important connection for many Polish commuters who work in Sweden. Each maritime connection strengthens ties between countries and also enhances the security of supply.
The prospects for the global economy vary, but are gradually improving and expected to brighten in the second half of 2024. Inflation has fallen and it seems that central banks will start cutting interest rates, which should boost private consumption, industrial activity and trade.
Finnlines operates on highly competitive markets but has renewed its fleet with modern climate-friendly vessels. During the past few years, our route network has expanded in the Baltic, in the North Sea and in the Bay of Biscay and we can offer global transportation of goods via the Grimaldi network. We are committed to operational excellence and sustainable shipping, which will help us and our customers grow. Resilience, an ability to adapt, is our strength and enables us to recover quickly and restore our profitability.”
Attachment:
More information
Tom Pippingsköld, President and CEO, Finnlines Plc
tom.pippingskold@finnlines.com, +358 40 519 5041
Photo requests and other enquiries
communications@finnlines.com
Finnlines Plc
Finnlines is a leading shipping operator of freight 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 several destinations in the Mediterranean, West Africa, Atlantic coast of both North and South America as well as Asia and Australia.