Passenger-related revenue increased 70.1% to EUR 80.4 million (EUR 47.2 million), while cargo sales were EUR 12.7 million (EUR 10.9 million) and other operating revenue was EUR 0.8 million (EUR 0.6 million). The sales contribution was EUR 71.3 million (EUR 45.3 million).   

Operating expenses increased 16.7% to EUR 74.2 million (EUR 63.6 million). Salary and other employment benefit expenses increased 17.9% or EUR 3.7 million, and fuel costs increased 4.2% or EUR 0.7 million. Other operating expenses increased 16.1% or EUR 6.9 million. The increase in operating expenses is due to heavier traffic and higher passenger volumes.

The total number of passengers on the Group’s vessels during the report period was 888,725 (521,537). The Group had a total market share in its service area of approximately 35.4% (32.0%).

Market demand for travel at the beginning of the year was high compared to the same period last year, which was affected by pandemic restrictions still in force.

The Group’s total cargo volume was 33,736 cargo units (29,033). The Group’s share of the cargo market was approximately 17.5% (14.5%).

The market share for passenger cars was approximately 26.8% (25.1%).

COMMENTS FROM PRESIDENT AND CEO JAN HANSES

The first quarter of the year was good and gives cause for optimism about the full-year forecast, which remains unchanged at this stage. The deceleration in demand that could have been triggered by inflation and rising interest rates did so far not occur.

Passenger volumes and cargo volumes rose to planned levels, while planned price levels were also reached. Prices for bunker (vessel fuel) gradually fell during the quarter but are still very high relative to the time before the COVID pandemic and Russia’s invasion of Ukraine.

During the quarter, we sold and delivered ROSELLA to its Greek buyers. The capital gain from the sale boosted quarterly income. We also reflagged VIKING XPRS under the Finnish flag. As a result, it was possible to reassign shipboard staff on ROSELLA to the company’s other vessels, while co-operation negotiations were carried out to adapt the land-based organization to the situation after the sale of the company’s vessels. Despite these measures, staff performance was excellent and contributed to quarterly income.

Because of the sale of ROSELLA, our service on the short route between Mariehamn and Kapellskär was discontinued. As we assess alternatives for service on this short route, they must be adjusted in the long term to the stricter environmental standards that lie ahead. Starting in 2024, our operations will fall under the EU Emissions Trading System, which means we face a cost burden that we can only partly adapt our operations to in the medium term through continued work with energy efficiency.

To summarize, I can say that the first quarter of 2023 was one of the strongest first quarters in the past 10 years, even excluding the income effect of the sale of ROSELLA.

I would like to give a warm thanks to our customers and partners for the faith they have shown and our good collaboration. I would also like to extend a big thank you to our staff, who worked resiliently and patiently during the first quarter.

Board member changes

Board members Ben Lundqvist, Nils-Erik Eklund and Lars G Nordström announced prior to the general meeting that they would not stand for re-election.

The general meeting approved the Board’s proposal (in its capacity as nomination committee) for the election of the Board and its regular members: Jakob Johansson, chairman; Christina Dahlblom; Ulrica Danielsson; Stefan Lundqvist; Andreas Remmer; Gert Sviberg and Peter Wiklöf. Tomas Lindholm, Casper Lundqvist and Fredrik Vojbacke were elected deputy members.

Full report https://news.cision.com/viking-line-abp/r/viking-line-a-stable-first-quarter,c3758699

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