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Cruise vessel operator Tallink reports that it managed to achieve an increase in net profit in 2017 despite a year-on-year (YoY) rise in bunker costs.

According to unaudited figures for last year, Tallink posted a rise in net profit after tax of EUR 5.2 million, or 11.8 percent, to EUR 49.3 million.

EBITDA improved by EUR 11.6 million, or 7.8 percent, to EUR 161.1 million, and calendar-year gross profit was up EUR 2.0 million, or 1.0 percent, to EUR 194.6 million.

Revenue grew year-on-year (YoY) by EUR 29.2 million, or 3.1 percent, to $967.0 million.

Tallink's overall bunker costs increased by EUR 11.6 million during the year. This was said to be due to the rise in global fuel prices and higher total consumption.

Fourth quarter

In Talink's key figures for the fourth quarter (Q4), net profit rose by 10.3 percent to EUR 3.9 million. EBITDA increased 5.8 percent to EUR 31.6 million and revenue grew 3.0 percent to EUR 232.9 million.

However, gross profit declined over the three-month period by 6.2 percent to EUR 38.5 million.

Milestone

In Wednesday's unaudited report, Tallink noted that "the biggest milestone for the Group in the 2017 financial year was the launch of the new LNG powered [sic] Shuttle vessel Megastar".

At the start of the year, the Megastar started operating the Tallink Shuttle service on the Tallinn-Helsinki route next to fast ferry Star, replacing the Superstar, which was returned to its owners.

Christened on July 1, 2016, the Megastar is 212 metres long with modern dual-fuel engines capable of running on both LNG and distillate fuel.

Since the Megastar's maiden voyage on January 29, 2017, Tallink claims the vessel carried more than two million passengers in its first year, which is said to be the highest ever number of passengers carried on any vessel operating in the Baltic Sea over a 12-month period.

The ferry operator previously stated in November that it expected to see a YoY increase in its operating results for 2017 thanks to the introduction of its new LNG-fuelled vessel.