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Passenger and freight transportation firm Finnlines reports that lower bunker costs helped it achieve an increase in net income of around EUR 20 million between January and September compared to last year.

Net income during the nine-month period was EUR 60.9 million, up EUR 19.8 million, or 48.18 percent, on the EUR 41.4 million figure recorded during the corresponding period in 2015.

Explaining how the installation of exhaust gas cleaning systems, or scrubbers, aboard its ships enabled the company to reduce costs via the use of cheaper heavy fuel oil (HFO), Emanuelle Grimaldi, president and CEO of Finnlines, said: "The lower bunker consumption and also lower operative costs have contributed positively to the result as the share of inexpensive heavy fuel oil in Finnlines traffic is greater than in 2015 due to the scrubber installations."

However, Grimaldi also warned that "rising oil prices means that a careful control of bunker consumption and purchase prices will be even more important in order to secure a continued efficiency gains in costs".

Revenue between January and September fell by 7.5 percent to EUR 361.1 million, down from EUR 390.3 million the previous year. This was said to be mainly due to the reduction of its cargo-related bunker surcharge.

The lower bunker surcharge was also the reason given for the 5.7 percent decline in revenue between July and September. EUR 130.4 million was the revenue recorded during the three-month period compared to EUR 138.2 million in 2015.

Commenting on the overall result, Grimaldi said: "Regardless of the sluggish growth in Europe, the company exceeded last year's record-breaking result by an outstanding 48.1 per cent. This extraordinary result achievement combined with lower capital expenditures lead to an improved cash flow over previous year, which enabled to reduce the Group's debt markedly. The interest-bearing debt decreased by EUR 80.0 million and amounted to EUR 481.4 (561.4) million. The gearing improved to 77.5 per cent (106.0) and the group's equity ratio stands now at a solid 50.2 per cent level. The group's liquidity is outstanding, cash and deposits together with unused committed credit facilities amounted to EUR 172.2 (92.4) million."

On the company's outlook for the future, Grimaldi remarked: "Finnlines is both operationally and financially in a very advantageous position compared to its peers. Therefore, we see the future outlook very positively and we have a great potential ahead of us to further improve the performance of the Finnlines Group."