Finnlines reports 1Q revenue of 134.9M, a 11.6% growth
Revenue of Finnlines in the January - March period of 2018 totaled EUR 134.9 (120.9 in 2017) million, representing an increase of 11.6%, EBITDA for the three month period reached EUR 34.3 (28.0) million (+22.5%). Result for the reporting period was EUR 16.5 (11.1) million, (+48.6%) and interest-bearing debt increased by EUR 5.4 million and was EUR 492.3 (486.9) million at the end of the quarter, the Company's financial review shows.
Emanuele Grimaldi, President and CEO comments the results: "The year has started extremely well with increased revenue, EBITDA and net result. The January–March 2018 result for the period increased by 48.6 per cent to EUR 16.5 million. Earnings before interest, taxes, depreciation and amortisation, EBITDA, came to EUR 34.3 million and revenue increased by 11.6 per cent to EUR 134.9 million.
We have systematically invested in our fleet and focused on our customers. In our ongoing EUR 70 million Energy Efficiency and Emission Reduction Investment Programme, under which Breeze series ro-ro vessels will be lengthened, we will provide increased cargo capacity and flexibility. The programme is proceeding according to plan and the first three vessels have already been lengthened and returned to service. The fourth vessel will return to Finnlines’ operation in May 2018.
Finnlines has decided to exercise the option for the lengthening of the two additional vessels. These two vessels will be converted between September and December 2018. This investment is also in line with our contribution towards sustainable development: by increasing our energy efficiency further we will contribute to reducing emissions per transported tonne.
To serve our customers better and more efficiently we have also brought our refurbished Star class vessels on the routes Germany–Sweden and Finland–Sweden. MS Europalink has rejoined the Finnlines fleet and will undergo an extensive refurbishment in April. MS Finnswan will be deployed on the Naantali–Långnäs–Kapellskär route and she will be one of the first ships of this length (218.8m) and with this level of cargo capacity (4,200 lane metres) to serve our customers between Finland and Sweden. MS Finnswan will be sailing under Finnish flag and is refurbished to meet the upgraded standard of Finnlines’ modern fleet.
"Finnlines welcomes IMO’s decision to adopt an initial strategy on the reduction of GHG emissions from ships. This agreement will be an important driver, a regulatory framework, for the development of our processes. A mix of measures will be needed in a level of technological, operational and green energy".
"We aim toward increased energy efficiency and reduced emissions. Thanks to a good operational performance and improved cash flow generation, we have invested over EUR 1 billion in the past 12 years in modern fleet, environmental technology, lengthenings, fuel efficiency and maritime safety. With our newbuilding orders we will remain forerunners in our sector, through continued investments in green technology, digitalisation and automatisation, and other technologically advanced solutions".
"Key elements of our strategy are to grow together with customers, focus on increasing efficiency of capital employed in our fleet and to continue investing in sustainable development. It can be concluded that our strategy is working – and it is indeed working well. We continue to focus on our customers and our efficiency, and will be completing our Energy Efficiency and Emission Reduction Investment Programme during 2018. The Finnish sea freight industry volume growth is expected to continue at a positive pace and therefore, we are confident that the year 2018 will be another successful year for Finnlines.”
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.