Estonian shipping company Tallink Grupp closed the first quarter of this year with a net loss, driven by technical dockings of several of its vessels.
The company reported an unaudited net loss of EUR 25.3 million (USD 28.4 million) in Q1 2019, widened from a net loss of EUR 19.6 million in Q1 2019.
Total revenue for the first quarter of this year was EUR 178.9 million, which is a 2.9% decrease compared to the same period last year.
At the same time, the group’s cargo business continued to increase both in volume and revenue in the first quarter of 2019. The transported cargo volumes increased in total by 2.7%, the cargo revenues increased by 1.5% or EUR 0.4 million and amounted to EUR 29.6 million in the first quarter.
During the quarter, Tallink made significant investments into the upgrade of its existing fleet, with EUR 25.3 million invested mainly into the technical dockings of seven vessels. The ships in question are Baltic Queen, Galaxy, Regal Star, Star, Silja Symphony, Victoria I and Isabelle.
“The 2019 first quarter financial results reflect, to a large extent, the same picture as the passenger statistics we have already reported for the quarter,” Paavo Nõgene, CEO of AS Tallink Grupp, commented.
“There are expected decreases in revenue and profit, which can mainly be attributed to the planned dockings of seven of our group’s vessels in the quarter and also follow the typical cyclical nature of low and high seasons of our business,” he added.
As explained, these dockings, although impacting the company’s passenger statistics and financial results when they are carried out, are vital for ensuring that Tallink fleet remains in excellent technical condition.
“The challenging period of dockings is now behind us… We are ready and prepared for the next two quarters of our annual high season and our whole team here at Tallink Grupp will work extremely hard to improve the results of the next months and quarters of 2019,” Nõgene concluded.
Tallink Grupp provides passenger transport and cargo services in the northernmost area of the Baltic Sea region. The group currently has a fleet of fourteen vessels and provides its services under the brand names of Tallink and Silja Line on seven different routes.