Sharp Deterioration In Viking Line’s Results Due To The Impact Of COVID-19
Sales
- H1 -57% EUR 97.5 million (227.0)
- Q2 -82% EUR 22.6 million (131.1)
- H1 Operating income EUR -27.4 million (-8.8)
- H1 Net financial items EUR -2.1 million (-2.2)
- H1 Income before taxes EUR -29.5 million (-11.0).
- H1 Income after taxes EUR -23.7 million (-8.7).
The ongoing COVID-19 pandemic has caused a serious deterioration in the Group’s operating conditions. Viking Line reacted quickly to the crisis and adjusted operations to the changed market. Salary and other employment benefit expenses decreased during the second quarter. A large percentage of the staff in Finland was furloughed. In Sweden and Estonia, government-funded furloughs were also made use of.
During the period March 19-June 18, the group received aid from Finland’s National Emergency Supply Agency for cargo traffic to ensure the security of supply for four of the Group’s vessels serving the Turku – Långnäs – Stockholm, Mariehamn – Kapellskär and Helsinki – Tallinn routes.
The Group’s three other vessels were not in service at times during the period March – June. Although cargo traffic generated revenue to cover variable costs and a small percentage of fixed costs for each vessel during the second quarter, it did not generate positive operating income for the vessels in service that received aid
Revised Outlook
Change in prospects: The impact of COVID-19 pandemic has continued to cause a deterioration in the Group’s consolidated results and financial position during the peak season as well. Results for Q3, when the most of the Group’s income for the year is generated, will be significantly worse than in previous years due to the COVID-19 pandemic. The earnings outlook for the financial year 2020 has therefore been revised. Income for the full financial year will be negative.
