This is a legacy page. Please click here to view the latest version.
Wed 22 Nov 2017, 11:51 GMT

Tallink achieves Q3 growth despite rise in bunker costs


Ferry operator expecting improved operating results in 2017 thanks to LNG-fuelled ferry.



Cruise vessel operator Tallink reports that it managed to achieve growth in its third-quarter (Q3) results despite a year-on-year (YoY) rise in bunker costs.

In its key figures for Q3, released on Tuesday, Tallink posted a net profit of EUR 47.8 million, compared to last year's net profit of EUR 42.8 million - a rise of 11.7 percent.

Revenue for the period increased by 3.3 percent to EUR 282.7 million. Gross profit rose 6.7 percent YoY to EUR 81.9 million, whilst EBITDA was up 12.3 percent YoY to EUR 75.4 million.

Tallink explained that Q3 growth was driven by a higher number of passengers and transported cargo units, attributable to the higher capacity, and more optimal operating costs resulting from three vessels on the Tallinn-Helsinki route. However, the result was also impacted by a YoY rise in fuel costs, Tallink noted.

The ferry operator also said it expects to see a YoY increase in its operating results for 2017 thanks to the introduction of its new LNG-fuelled vessel.

"The Group's management expects the operating results for 2017 to be better than that for the previous financial year thanks to the addition of a new fast LNG ferry, Megastar, in January and the rerouting of ships carried out in December 2016," Tallink said in its Q3 report.

At the start of the year, the Megastar started operating the Tallink Shuttle service on the Tallinn-Helsinki route next to fast ferry Star, replacing the Superstar, which was returned to its owners.

Christened on July 1, 2016, the Megastar is 212 metres long with modern dual-fuel engines capable of running on both LNG and distillate fuel.

Despite posting a 6 percent YoY drop in revenue to EUR 96.9 million in Q3, the Estonia-Finland segment result was up 2.5 percent YoY at EUR 28.8 million.


Renewable Energy Directive (RED III) policy brief cover. Bureau Veritas releases report on EU Renewable Energy Directive’s impact on shipping  

Classification society examines RED III compliance challenges as member states transpose the directive into national law.

New York City skyline. IBIA to hold 2026 annual convention in New York  

The event marks the first time in recent years that the association’s gathering has been held in the Americas.

Port of Barcelona delegates. Port of Barcelona advances shore power rollout for cruise terminals  

Installation of OPS systems begins at MSC and Royal Caribbean terminals as port reorganises infrastructure.

NACKS bulk carriers with rotor sails. Anemoi and NACKS secure ClassNK approval for Ultramax rotor sail designs  

Two configurations for wind-assisted propulsion systems on bulk carriers receive approval in principle.

DP World London vessel. Elbdeich Reederei takes delivery of first methanol-capable feeder vessel  

German shipowner receives 1,250-teu dual-fuel newbuild from Chinese yard, with three more to follow.

AuctionConnect and Asyad Shipping logos. Asyad Shipping adopts AuctionConnect digital bunker platform under three-year deal  

Middle East shipping company to implement auction-based procurement system across fleet operations.

Fuel for thought: LNG for Cruise report cover. LNG remains the most deployable decarbonisation option for cruise shipping, Lloyd’s Register report finds  

Classification society’s latest research examines the fuel’s role in the sector’s energy transition and pathway to net zero.

Dr. Ibrahim Muritala, ABS. ABS engineer to discuss performance-based hydrogen framework at SPE symposium  

Dr Ibrahim Muritala to join panel examining shift from colour-based hydrogen labelling to carbon intensity metrics.

Cosco Shipping Peony vessel. Cosco Shipping completes methanol dual-fuel retrofits on four ultra-large container vessels  

Chinese shipping line retrofits 20,000-teu and 13,800-teu vessels with methanol propulsion systems.

Launching ceremony of Maran Myrto vessel. Chinese yard launches LNG dual-fuel Suezmax  

Crude carrier with LNG propulsion launched in Jiangsu province.


↑  Back to Top