I listened to an interview with Tallink’s CEO at the Port of Helsinki. The CEO was excited about the fully booked ships. That’s good, but something worrying was mentioned in passing. Tallink’s fuel costs have risen by 40%, and they can only pass this on to ticket prices partially. To me, this “smelled like” a profit warning. I can’t say whether this could be a threat to their dividend-paying ability. If not, nice dividends going forward as well. What worried me in particular was that all fuel is purchased from the spot market.
8 Likes