Improved net profit for Containerships despite 45% jump in bunker costs

Higher fuel prices drove up operating costs, which 'eroded profitability'.

Illustration of dual-fuel containership for Containerships Ltd Oy. Image credit: Containerships plc

Updated on 19 Nov 2018 11:53 GMT

Finland-based Containerships Plc managed to record a year-on-year (YoY) improvement in net profit during the third quarter (Q3) despite rising bunker prices.

Net profit in Q3 rose to EUR 0.9m, up from break-even in the prior-year period, whilst year-to-date net earnings for the first nine months increased YoY from EUR 0.1m to EUR 2.8m.

EBITDA remained steady in Q3 at EUR 3.7m, and climbed EUR 0.9m to EUR 11.7m in nine-month figures.

The positive results were driven by a 22.4 percent jump in sales to EUR 68.3m in Q3 and a 17 percent rise to $194.5m between January and September.

Containerships explained that stronger bunker prices had resulted in higher operating expenses, declaring: "The rise in the price of oil on the global market and 45% higher fuel costs compared to previous year increased operating costs significantly, which in turn eroded profitability."

Last month, Containerships christened its third and fourth LNG-powered vessels, Containerships Finn and Containerships Balt. The first two are due to be delivered to Containerships in 2018, and the last two during the first quarter of next year.

Furthermore, Containerships signed a preliminary agreement for its fifth and sixth LNG-powered vessels during the summer of 2018.

In an update on developments, Containerships said on Thursday: "Work on building the LNG vessels is ongoing and delivery will take place as planned in 2018 and during first quarter of 2019."