Finnlines Plc, a subsidiary of Italy’s Grimaldi Group, released its operating results for the first three quarters on November 5 and announced plans to build three new ro-pax vessels.
Tom Pippingsköld, President and CEO of Finnlines, has provided an overview of the company’s recent performance and future plans in the face of economic headwinds and environmental challenges.
Despite the difficult start to 2024, marked by high interest rates, inflation, and a slowdown in economic growth, Finnlines has demonstrated resilience with key figures showing an upturn in its Q3 report. From January to September 2024, the Group’s revenue reached EUR 547.2 million, up from EUR 513.2 million in 2023. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to EUR 140.8 million from EUR 131.7 million in the same period last year.
The company reported significant cargo volumes, with approximately 595,000 cargo units, 63,000 cars (excluding passengers’ cars), and 962,000 tons of freight transported. Additionally, around 764,000 private and commercial passengers traveled with Finnlines during this period. Passenger travel saw a notable increase during the summer season, particularly on routes between mainland Finland, Åland, and Sweden, with the Naantali–Långnäs–Kapellskär route experiencing a 122 percent growth compared to the previous year.
In response to growing demand, Finnlines has launched a new freight service between Finland and the United Kingdom, connecting to the Port of London Medway in Sheerness, Kent. The port’s infrastructure offers well-developed rail networks and direct motorway access, facilitating easier connections to Belgium, Spain, and Ireland.
Looking ahead, the global economic outlook is gradually improving, with the Euro area, including Finland, expected to see GDP growth of approximately 1.5 percent in 2025–2026. To support this growth, the European Central Bank is expected to continue cutting interest rates to boost industrial activity.
To meet new environmental regulations and reduce CO2 emissions, Finnlines has sold older, less efficient vessels and invested over half a billion euros in advanced ships equipped with large battery banks and other technologies. This move aligns with the Emissions Trading Scheme and the upcoming Fuel EU Maritime regulation.
As part of its green transition, Finnlines is currently in the process of tendering for the construction of three new ro-pax vessels using green fuels for its Helsinki–Travemünde route. The company aims to finalize these orders by late 2024 or early 2025.
“Despite the unpredictable economic outlook and geopolitical challenges, Finnlines continues to move forward. We are financially strong, and our fleet is both operationally and environmentally sound. The addition of new green-fueled vessels will further enhance our capabilities and benefit both Finnlines and our customers,” said Pippingsköld.