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Viking Line warns of continued price and volume pressures

Viking Line, the listed Finnish cruise ferry company, has reported a small rise in second quarter net profit on higher volumes, but warns that competition remains tough.

Group net profit rose to €2.9 million from €1,6 million in the second quarter of 2016 as revenues rose to €137.1 mllion from €131.1 million. The number of passengers carried rose to 3.08 million from 2.90 million, while that of freight units recorded a fall to 64,912 from 67,035.

In the first six months of the year, the group madea net loss of €12.3 million, deeper than the €8.9 million loss year on, while revenues edged up to €239.2 million from €238.0 million

“Competition in Viking Line’s service area remains tough and implies continued pressure on prices and volumes. Bunker prices are expected to be higher than in 2016, which should have an adverse effect on consolidated income,” the company said in a statement.

“A revision in Finland’s restitution law for 2017 is expected to have a positive effect on earnings. Operating income is expected to be higher overall in 2017 than in 2016,” Viking Line said. The 2016 operating profit was €13.7 million.