A one off financial gain helped Viking Line, the Finnish cruise ferry operator, to increase its net profit in the final quarter and full year 2014, the company said in a statement. A newbuilding order is on the cards to enter service within the next five year, said Jan Hanses, its managing director, in a media report.
Group net profit rose €27.7 million in the fourth quarter of 2014 from €6.7 million a year earlier, helped by a €28.1 million non-recurring financial gain. Revenues fell slightly, to €126.3 million from €129.7 million.
For the full year 2014, the group's net profit rose to €29.7 million from €27.1 million, again lifted by the financial gain. Revenues decreased to €527.4 million from €549.4 million, the company said in the statement.
"The number of passengers on Viking Line’s vessels last year increased by 76,496 to 6,610,146 (6,533,650). This was an all-time record. The Helsinki (Finland) – Tallinn (Estonia) route accounted for the largest increase, thanks to the expanded service offered last summer," Viking Line said.
Cargo volume continued to increase during 2014. The number of cargo units carried rose by 8.0% to 129,255, compared to 119,704 the previous year.
"The decrease in consolidated sales is primarily explained by the prevailing pressure on prices in today’s tough competitive situation, combined with falling volume early in 2014 and an economic downturn in Finland that affects the pattern of consumption. Overall, this has had a negative impact on net sales revenue per passenger," Viking line said.
During 2015 Gabriella and Mariella will again provide expanded summer service to Tallinn according to a concept similar to the preceding year. "These vessels will thus – in addition to serving their regular Helsinki–Stockholm routes – also temporarily serve the Helsinki–Tallinn route. Competition in Viking Line’s service area implies continued pressure on both prices and volume," the company said.
"The economic downturn in Finland is another uncertainty factor, but recent bunker price developments are currently having a favourable effect on earnings. The overall assessment of the Board of Directors is that in 2015, operating income will improve compared to operating income in 2014, but future bunker price developments represent a significant uncertainty factor," the company said. EBIT in 2014 amounted to €32.3 million," Viking Line commented.
Jan Hanses, the company's managing director, told the Turun Sanomat daily that the company is planning to place an order for a newbuilding that should enter service within five years or no, which would mean placing the order in 2016 or 2017. "It is, of course, possible that it could happen sooner than that," he was quoted by the paper as saying.
