What do you think about Tallink’s listing? After all, we’ve all used the service 
Inderes could do a practical analysis as the pre-Christmas party season approaches! Tallink listautuu Helsinkiin, haluaa uusia omistajia: "Sijoittaminen Tallinkiin on ollut tähän asti vähän hankalaa" | Kauppalehti
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In my opinion, it’s a quite positive appearance; to my eye, it seems fairly defensive in profile and slightly higher quality than Viking Line. However, the challenges are limited growth/earnings opportunities and future fleet renewals. These are my initial impressions without any sort of research.
I made a good 10-month investment in this company last year and we came out with a profit. The long-term outlook is quite weak and it fluctuates reasonably with oil. So you bear the risk of oil prices. In the long term, the Tallinn tunnel is a threat, and in the medium term, the city of Helsinki getting fed up with the traffic jams in Jätkäsaari and moving trucks to Vuosaari would likely significantly weaken profitability.
These are my thoughts from about a year ago.
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You’ll have to wait a pretty long time if you’re waiting for that risk to materialize. Of course, if the EU decides to significantly fund the project, it might even be possible, but otherwise I don’t really believe in that project.
Tallink, as a company, doesn’t interest me much. Transporting people is a relatively low-margin business anyway, and growth opportunities for market leaders are quite limited. However, this isn’t very cyclical. In a recession, oil prices fall, and travel shifts more towards ships when people don’t dare to travel further.
{“content”:“When Viking Line last sold a vessel built in the early 80s, they made a profit of about 25 million euros (it had been depreciated to zero by then). Does anyone here know about the shipping business: what is a reasonable technical lifespan? If a ship costs 200 million new, is it more of a rule than an exception that you can still get over 10% of the purchase price 30 years later?”,“target_locale”:“en”}
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The technical lifespan seems to be sufficient long after these cruise ships operating in Nordic traffic stop cruising here. The problem is mainly that renovating and refurbishing the interiors to meet the needs of Nordic customers is no longer profitable. In some cheaper countries, consumers are not quite as quality-conscious, and slightly more dilapidated ships can be used there. These ships are interesting in that their value never goes to zero; even when sold to a scrapyard, they usually fetch several millions.
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