Finstaship financial statements 2008

Finstaship met the targets set for its services and operations. The mildest ice breaking period in history, covering 2007–2008, considerably decreased the result of icebreaking. The instable economic situation had a direct effect on the offshore market. In comparison with previous years, the utilization rate of multipurpose icebreakers offshore was lower in 2008.

Turnover and profit

Domestic activities continued as earlier during the fifth financial period of Finstaship. The share of the turnover represented by offshore operations overseas decreased in comparison to last year. New customers were gained during the year, but due to a notably smaller demand on the offshore market during the last quarter of the year and due to drastic the drop in oil prices, the utilization rate of the multipurpose icebreakers in offshore operations remained at 65 %.

Finstaship’s turnover totaled 60.7 million euro (72.3 million euro in 2007), operating loss 2.9 (operating profit 5.9 million euro in 2007). The loss of the financial period was 5.8 million euro (profit of the financial period 4.0 in 2007).

Domestic activities

Due to the extremely mild winter, the number of operating days for icebreaking duties was only 285 (474) in 2008. The turnover from icebreaking activities was 20.3 million euro (22.0). Icebreaking was neither necessary in the North Sea nor in the Gulf of Finland during the whole winter. Due to this, two of the traditional icebreakers stayed in port during the whole winter.

Of the 4.8 million euro turnover from the fairway services, scarcely half consisted of the fees for oil spill response services. The number of operating days of fairway services was 465 (457).

The ferry services continued as last year. The turnover stood at the same level as earlier i.e. 7.0 million euro (6.8).

Overseas operations - offshore

The share of Offshore operations of the total turnover was less than 50 %. Also the freight level declined over the previous year. Due to drastic changes on the market, significant charter agreements under negotiation were not met. The multipurpose vessels were in stages taken out of operation.

The offshore turnover totaled 28.6 million euro (39.6) and the number of operating days 650 (1033). Offshore operations showed a loss of 1.1 million euro and the result was burdened by a credit loss of unsure credits of 5.0 million euro concerning a long-time customer.

Investments

Gross investments totaled 14.3 million euro (5.1), financed by income financing. Most significant engagements concerned two new cranes on the multipurpose vessel and acquisitions in connection to docking in 2009. The new cranes will be completed and taken into use in 2010.

Personnel

At the end of 2008 Finstaship had a staff of 454 (485) employees of which 409 (422) were sea personnel and 45 (43) onshore employees.

More information

Veijo Hiukka, President, Tel: 046 876 7170, veijo.hiukka@finstaship.fi.

Finstaship

Finstahip offers a versatile range of icebreaking and fairway services for general shipping needs, specialized offshore and marine construction services, as well as ship management and ferry services.

Both Finnish and international customers can depend on Finstaship's expertise when carrying out demanding offshore operations that require special skills and vessels. The company's services help to ensure the smooth operation of Finnish shipping, and its ferry services help passengers reach their destinations.

Finstaship press release