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Finland's Viking Line reports that bunker expenses increased by more than a fifth during the first half (H1) of 2017.

Bunker costs between January and June amounted to EUR 23.2 million - an increase of EUR 4.4 million, or 23.3 percent, on last year's figure of EUR 18.8 million.

Net income for the second quarter (Q2) increased by EUR 1.3 million, or 62.5 percent, to EUR 2.9 million.

In H1, a loss of EUR 12.3 million was recorded compared with a loss of EUR 8.9 million during the corresponding period last year.

Q2 revenue increased from EUR 131.1 million to EUR 137.1 million year-on-year (YoY), whilst H1 revenue rose from EUR 238.0 million to EUR 239.2 million.

In its outlook for the year, Viking Line said it expected operating income to be higher in 2017 compared to last year, whilst adding: "bunker prices are expected to be higher than in 2016, which should have an adverse effect on consolidated income."

Last year, Viking Line's bunker expenses decreased by EUR 9.2 million, or 18.9 percent, to EUR 39.5 million, down from EUR 48.7 million the previous year.

On the issue of risk, Viking said on Thursday: "Special risks in the immediate future are primarily related to bunker (vessel fuel) prices. Fluctuations in bunker prices have a direct impact on the Group's earnings. In order to partly offset the risk of higher bunker prices, the Group has entered into fixed-price agreements related to a portion of its bunker consumption during 2017."

Saving fuel

Earlier this year, Bunker Index reported that Viking Line had signed an agreement with Norsepower to install its Rotor Sail Solution technology on board its LNG-fuelled cruise ferry, the Viking Grace.

Norsepower's technology has already been used in a commercial environment, with two small units of Norsepower's rotor sails installed on board Bore's ro-ro carrier M/S Estraden. The solution is said to have delivered fuel consumption reductions of 6.1 percent for the vessel.