The Finnlines Group, now owned by Italian-based Grimaldi, made a 2007 operating profit euros68.8m (US$101m), up from euros58.2m in 2006. Return on equity (ROE) was 8.0%, down from 14.1% and return on investment (ROI) was 6.9 down from9.9%.
The company notes: “For Finnlines, 2007 was marked with newbuildings and converted vessels entering service and the resulting traffic rearrangements.”
It adds: “In early 2007, a third vessel joined the company's ro-pax traffic between Germany and Finland, after which it has been possible to sell passenger services on this route to the full. The route between Naantali and Kapellskär received a fourth, converted vessel in March. During the year, the traffic rearrangements hampered in particular the company's Malmö - Travemünde route, owing to two newbuildings and two converted vessels entering service. The investment programme and vessels' withdrawals from traffic for conversion burdened the whole year's operating profit.”
Looking ahead the company says: “Finnlines has increased its transportation capacity and frequency considerably on its main routes and implemented a faster timetable between Finland and Germany. With its current fleet and traffic concept Finnlines has excellent potential to increase its market share on its main routes.
“The new Vuosaari harbour will most probably be operational as planned at the end of 2008. There will be some none-recurring expenses arising from the start-up phase of the new harbour. Those expenses are related mainly to transportation and re-location of the machinery, equipment and personnel and to closure of current premises.
“Company expenses are affected due to the new labour agreements in the sector, and by the increase in the bunker oil price. Due to the investments in the new vessels, vessel conversions and Vuosaari harbour, there will be continued increase in the depreciation and interest expense in 2008.
“The economic development in Europe creates uncertainty for the business environment.”