Finland’s ESL Shipping is still struggling with lower trading levels in northern Europe and Scandinavia.
But the Aspo-owned operator of 43 ships is now seeing some improvements in its key markets.
The company’s operating profit came in at €4.4m ($4.73m) in the fourth quarter, from €10.2m the year before.
Revenue was also down at €49.3m, versus €63.3m in 2022.
Annual profit was cut to €8.3m from €37.4m.
ESL said the results “continued to recover in comparison to second and third-quarter earnings, despite extremely stormy weather conditions in most of continental Europe and Scandinavia and continued relatively low activity in certain customer industries, especially in the forest industry.”
Cargo volumes decreased to 3.3m tonnes from 3.8m tonnes in the final three months, driven by a lower volume of energy coal shipments and a lower capacity of coaster vessels.
The last quarter is normally the busiest season for energy transport.
But volumes remained low due to the “exceptional situation” in the previous year, involving additional shipments and stocking to secure supplies following the outbreak of war in Ukraine.
“Freight market conditions improved towards the end of the year,” ESL said.
Supramaxes ‘firm’
The two supramax vessels enjoyed firming spot market conditions in the fourth quarter.
Looking ahead, ESL said its main markets are expected to continue in a low-cycle level of industrial activity.
Despite that, “important steel industry demand from long-term partnership industries is expected to remain at a good volume level”, the company added.
A series of new hybrid-electric coastal bulkers being built in India will be added to the fleet during 2024.
This will “support the positive profit development of ESL Shipping,” the owner said.
