Wed 16 Aug 2017 12:55

Containerships targets improved profitability via bunker-saving initiatives


Earnings 'particularly affected' by higher marine fuel costs.



Finland's Containerhips plc says it is aiming to generate increased future profit via the implementation of bunker-saving initiatives.

Speaking in Monday's financial report for the second half of 2017, Kari-Pekka Laaksonen noted that the company's improved earnings before interest and tax (EBIT) had been "particularly affected" by the year-on-year (YoY) increase in marine fuel costs.

The company pointed out that the rise in the price of crude and bunker prices had added a "significant increase" of EUR 5.8 million to H1 operating costs.

In particular, Containerships highlighted the fact that higher bunker prices had contributed towards lower profitability in the Mediterranean market.

Despite the rise in fuel expenses, Containerships did manage to post a slight improvement in Q2 EBIT with a EUR 0.3 million, or 21.4 percent YoY rise to EUR 1.7 million. However, the Finnish firm also recorded a Q2 net loss of EUR 0.5 million, which was marginally better than last year's EUR 0.6 million Q2 net loss.

For H1, Containerships achieved a EUR 0.5 million, or 18.5 percent [stated as 19.7 percent in the report], YoY rise in EBIT to EUR 3.2 million. Net profit for the period was EUR 0.1 million compared to the EUR 1.7 million loss recorded in 2016.

"We aim to further improve business profitability through vessel optimisation, route planning and other savings programmes designed to reduce costs," Laaksonen noted.

Containerships also pointed out that it has begun the construction of four LNG-powered ships which are due to be delivered to the company in 2018. As previously reported, the keel-laying ceremony for the first LNG-fuelled ship and the steel-cutting ceremony for the second ship took place in April in Guangzhou, China.

"The company continues to progress on its chosen investment path based on its environmentally friendly LNG strategy," Containerships said.

In April, Bunker Index reported that Containerhips had been granted funding of EUR 16.9 million from the European Union to implement its strategy of using LNG throughout its logistics chain.

EUR 10.7 million is earmarked for shipping, while EUR 6.2 million will be used to build a European LNG terminal network in cooperation with other project partners.


European Union member state flags. Danish Shipping calls for EU to invest ETS revenues in green marine fuel production  

Industry body welcomes Commission's sustainable transport plan but urges concrete action on funding.

Illustration of green fuel production for ships and aircraft. Transport & Environment welcomes STIP but warns action needed by 2026 to secure e-fuels leadership  

EU transport plan takes steps to boost green fuel production for ships and planes.

Graphic announcing release of DNV Maritime Nuclear Propulsion White Paper. DNV claims nuclear propulsion could offer viable route to maritime decarbonisation  

Classification society publishes white paper examining technological, regulatory, and commercial challenges facing nuclear-powered merchant vessels.

Signatories of European Nuclear Maritime Cooperation Declaration. European nuclear declaration signed for maritime decarbonisation  

Over 30 companies sign cooperation agreement to advance small modular reactor technologies for shipping.

Victrol Omega vessel. Peninsula operates Omega barge for fuel supply in Belgian North Sea  

Victrol vessel said to be the only estuary barge of its size serving Belgian North Sea ports.

Sonan Energy Panama logo with white background. Sonan Energy Panama unveils new logo as part of sustainable energy transition  

Bunker firm introduces redesigned brand identity reflecting shift towards cleaner energy solutions.

Niclas Mårtensson, CEO of Stena Line. Stena Line to acquire Wasaline ferry operations in Baltic Sea expansion  

Swedish ferry operator signs deal to take over Umeå–Vaasa route with bio-LNG-powered vessel.

Arriva Shipping vessel Norbris. Berg Propulsion secures second Arriva retrofit after 10% fuel savings confirmed  

Norwegian shipowner orders second propulsion upgrade following verified efficiency gains on general cargo vessel Norjarl.

Dorthe Bendtsen and Anders Grønborg. Bunker Holding to absorb Baseblue into KPI OceanConnect by April 2026  

Integration follows earlier Hong Kong merger and aims to streamline operations and strengthen regional teams.

Chimbusco Pan Nation (CPN) new logo. CPN unveils new brand identity after 34 years in marine fuel supply  

Hong Kong bunker supplier launches rebrand centered on 'continuous evolution' and sustainable fuel solutions.





 Recommended