Tallink heads into the red

[Angelos]

Estonian ferry owner Tallink has plunged to a loss for the first half of its financial year.

It said net losses were EEK 108.8m ($11.05m) to 29 February, compared to a profit of EEK 2.6m in the same six months of the previous year.

Revenues rose to EEK 5.66bn, against EEK 5.44bn over the corresponding period, but higher bunker bills hit hard, with fuel costs up EEK 297m or 47%, almost all of this coming on the Finland to Germany route.

The first half and second quarter in particular are low season for the group, but it said most operational numbers were better than the year before, which was “very pleasing” in the current high fuel-price environment.

And it reached a new record for passenger numbers in February.

It added: “As a result of the increased fuel cost and lower cargo volumes resulting from the higher competition in the cargo transportation, the Finland-Germany segment result has declined.”

Bosses are looking at ways to improve the utilisation of its Superfast ferries on the service.

Looking ahead, it said the future was promising based on the February performance and the high season ahead.

But it cautioned: “However, as the fuel prices have been increasing rapidly and more than expected, the fuel cost continues to have high pressure on the earnings margins.

“By today's estimations the negative impact to the previously set earnings targets should not be more than 10%.”

By Gary Dixon in London www.tradewinds.no