Image credit: Wartsila

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Finland's Viking Line says bunker expenses during the first half (H1) of 2018 increased year-on-year (YoY) by 3.6 percent to EUR 24.1m.

In comparison with last year, bunker costs in H1 2017 amounted to EUR 23.2 million, which in turn was a YoY increase of EUR 4.4 million, or 23.3 percent, on the EUR 18.8 million figure recorded in H1 2016.

In Viking Line's key results for the first six months of 2018, consolidated income after tax was a slight improvement on last year's loss of EUR 12.3m at EUR -11.8m. This was despite a YoY drop in revenue of EUR 9.8m, or 4.2 percent, to 225.7m (due to lower passenger-related sales) - and thanks to lower operating expenses of EUR 239.5m compared to EUR 250.7m in H1 2017.

In its results for the second quarter (Q2), Viking Line's consolidated income after tax declined by EUR 1.8m, or 62.1 percent, to EUR 1.1m. Similar to the H1 figures, revenue and expenses both fell; however, in Q2 it was the decline in sales that was greater: whilst revenue fell EUR 8.9m, or 6.6 percent to EUR 125.5m, expenses were reduced by EUR 6.1m, or 4.6 percent, to EUR 125.6m.

Looking ahead, Viking Line said: "Competition in Viking Line's service area remains tough and implies continued pressure on prices and volumes. Volume and price developments during the remainder of the financial year will be crucial to the Group's earnings."

The ferry operator also explained that, in order to partly offset the risk of higher bunker prices, it had entered into fixed-price agreements relating to a portion of its bunker consumption during 2018.

Bunker-saving measures

Back in April, Viking Line's LNG-fuelled cruise ferry, the Viking Grace, became the world's first passenger to be equipped with a rotor sail for the use of wind power.

Developed by Norsepower Oy Ltd, the firm's Rotor Sail Solution technology is expected cut fuel consumption and reduce emissions by up to 900 tonnes annually.

Furthermore, ABB's Azipod propulsion system is to be installed aboard a new LNG-powered Viking Line ferry which CEO, Jan Hanses, has said will be "the most efficient cruise ferry operating in the Baltic, if not the world".

As previously reported, Viking Line's bunker expenses increased in 2017 by EUR 7.2 million, or 18.3 percent, to EUR 46 million in 2017, up from the previous year's figure of 39.5 million.