Tallink Grupp, the listed Estonian cruise ferry group with a fleet of 18 ships, said its 2014 result was unsatisfactory, but a number of measures taken to put things right should deliver a better result this year.

Group net profit in the final quarter of 2014 rose to €8.4 million from €7.5 million in the same period a year earlier, while revenues remained virtually unchanged at €224 million. For the full year, the profit plunged to €27.3 million from €43.3 million in 2013, while revenues contracted by €20 million to €921.4 million.

"The 2014 financial year result did not meet the management’s expectations, however the fourth quarter result was strong and provides a good base for the forthcoming year. Due to increased competition, continuously weak Nordic economic environment and one-off effects the annual results for the 2014 financial year were weaker than expected," the company said in a statement.

During the financial year several steps have been taken including charters, upgrades and re-routings with the goal to optimise operations. "A positive effect to the profitability can be seen from the fourth quarter result. The management expects an improvement in the results for the 2015 financial year," Tallink said..

The group was successful in lowering fuel cost in the fourth quarter by approximately €9 million compared to the same period last year. This was a combined effect of reducing consumption through optimising current operations, by way of re-routings and charters and the drop in fuel global prices in the end of the 2014 financial year. It had a smooth transition switching to the low sulphur fuel in the end of the fourth quarter.

"The unstable macro-economic situation in Europe has had a negative impact to the Group’s operations. The decline in the passenger volume from the Russian market has been visible throughout the year," Tallink pointed out.