The Finnlines Group has improved its result for 2016 by 20 %. Revenue decreased by 7 % but low oil prices contributed positively to the profit.
Shipping and Sea Transport Services generated revenue amounting to 453.6 (492.9) mill. € and Port Operations EUR 38.4 (35.9) mill. €.[ds_preview] The Shipping and Sea Transport Services segment’s revenue decreased mainly due to the lower bunker surcharge as compensation passed to the clients. In Port Operations the revenue grew due to increased external and internal cargo handling activities. The internal revenue between the segments was 18.2 (17.6) mill. €.
Revenue totaled 473.7 (511.2) mill. € in 2016, a decrease of 7.3 % compared to the same period in the previous year. Result before interest, taxes, depreciation and amortisation (EBITDA) was 139.1 (126.9) mill. €, an increase of 9.6 %. Result before interest and taxes (EBIT) was 81.5 (70.3) mill. €.
In 2016, most of the vessels were operated using less expensive fuel oil, which had a positive impact on the result even though bunker prices started to increase globally during the fourth quarter. The result includes a gain on sale of 4.4 mill. € for vessel »Finnsailor«.
As a result of the improved financial position, net financial expenses decreased and were -14.6 (-17.1) mill. €. Financial income was 0.4 (0.9) mill. € and financial expenses -15.0 (-18.1) mill. €. Result before taxes (EBT) improved by 13.8 mill. € and was 67.0 (53.2) mill. €. The result for the reporting period was EUR 68.1 (56.8) mill. €.
Negative impact of sanctions in Russian trade
Emanuele Grimaldi, President and CEO, commented: »The Finnlines Group delivered a record financial performance. For the fourth year in a row, we recorded an improvement in operating profit to date even though Europe’s economic growth has not yet picked up. In addition, the prevailing sanctions and counter sanctions in Russian trade continued to impact negatively on commercial activities across the Baltic Sea region.«
In spite of slow growth in Europe, the Company has succeeded in improving its result year after year, Grimaldi added. »In 2016, the result for the period was 68.1 mill. €, representing a 20 % increase over the 2015 financial year, which was then the best ever result in Finnlines’ history. This superb result development and yearly result improvement has been achieved partly due to the successful implementation of our 1 bn € Capex Programme in 2006–2016 targeted towards fleet renewal, and partly due to our ability to react quickly to changes in the market in order to optimise the use of vessels and routes and prudently control our costs«, the CEO said.
