The company, punished by the interest rate pandemic, now dares to predict that its operating result will turn positive this year.
Shipping company Viking Line’s operating result reached a profit in April – June and net sales doubled from a year ago. According to the company, demand for passenger traffic improved at the end of the second quarter.
The Åland company’s operating profit rose to EUR 12.2 million in the second quarter, compared to a loss of EUR 5.9 million a year ago.
Net sales increased to EUR 46.9 million, or 108 per cent from EUR 22.6 million a year ago.
According to the company, the result for the second quarter was marked by traffic obligations and freight traffic, but demand for passenger traffic also increased towards the end of the period.
Viking Line received support from the Finnish Transport and Communications Agency Traficom for the fulfillment of its general traffic obligation, as well as cost support granted by the State Treasury. The effect of the company’s Mariella vessel sold in May was EUR 13.1 million.
Read more: Viking Line sells the Mariella ship
Viking Linen the vessels operated on the same routes in the spring as last year, but the vessels normally operating between Helsinki and Stockholm and between Stockholm and Mariehamn stood partly in ports due to the corona pandemic.
The number of passengers on Viking Line’s vessels during the first half of the year was 538,348. The company estimates that its market share in the traffic area has increased to 32.1 percent from 27 percent.
Viking Line is changing its earnings outlook. The company now estimates that this year’s outlook is better than last year’s result and that its operating result this year will be positive.
According to the company, improved demand from the end of the second quarter will strengthen the result together with non-recurring items. In addition to the Mariella vessel sold for EUR 19.6 million in May, the company plans to sell its Turku terminal building for EUR 17.8 million in August.
In the past, the company has not dared to anticipate its results for the current year due to the uncertainty caused by the interest rate pandemic.