Spanish Ferry Operator Goes Further, Emits Less

The CEO of Spanish ferry operator Balearia Adolfo Utor warned April 3 that refitting vessels with LNG would again see a drop in earnings this year. However, he said, Balearia’s economic growth must be “sustainable and, therefore, compatible with environmental preservation, social inclusion and equal opportunities.”

He said Balearia’s sailing in 2018 was more "eco-efficient” as the miles sailed by the fleet increased by 13% yet its CO2 emissions only rose by 6.5%. And with four eco fast ferries added to the Eivissa-Formentera route in 2018, the ratio of CO2 emissions per mile dropped by 36% in comparison to the fleet operating previously.

Liquefied natural gas was Balearia’s contribution to the fight against climate change last year, and this will grow, he said.

By the end of 2020, Balearia, whose routes have also expanded and cover the Canaries and the Spanish enclaves in Morocco, will have nine gas-propelled smart ships, three of which will be newly-built and six of which are already in its fleet, but will have new engines (partly funded by the EU). These include the Hypatia de Alejandría, which was finished in 2018; and the Napoles, the engine change for which began that same year.

“We’re pioneers in the Mediterranean and in the Canary Islands on the use of this less contaminating energy but also internationally with the construction of the first fast ferry in the world to sail with LNG engines,” said Utor.

It saw a 5% rise in revenue last year compared with 2017 but pre-tax earnings (Ebitda) were 14% lower (€70.3mn; $79mn) and the net profit was 37% less (€27.4mn).  Utor said this trend would remain steady this financial year while new traffic routes are consolidated and the planned ship engine refittings are completed.