April 23, 2020
A Solid DFDS Publishes Preliminary Q1 Figures
- Preliminary Q1 revenue decreased 1% to DKK 3.8bn (mainly due to drop in passenger revenue) and preliminary EBITDA before special items decreased 10% to DKK 610m.
- Around half of the decrease in EBITDA was related to lower passenger activity caused by Covid-19. The other half of the decrease was due to a negative Covid-19 impact on freight, increased earnings in the comparison period Q1 2019 from UK stockpiling ahead of Brexit and a lower result for special cargo logistics mainly due to one-off costs.
- Current key priorities are to take care of employees’ and partners’ health and well-being, to preserve jobs and to continue to provide vital ferry and logistics services for our customers as well as contributing to keeping Europe’s transport infrastructure open for business.
- DFDS has a solid financial position.
- Suspension since mid-March of two routes, Copenhagen-Oslo and Amsterdam-Newcastle, with a large overweight of passengers vs freight.
- Freight capacity reduced since end-March/beginning-April in remaining network of 20 ferry routes that predominantly carry freight. Capacity is reduced through lay-up of currently 12 of 50 ferries as well as other measures to reduce the number of sailings. All 20 routes continue to operate.
- Channel and Baltic Sea passenger activity reduced to only essential travel. Reduced number of drivers per cabin in Baltic Sea.
- Participation in government wage and fixed cost compensation programs to preserve affiliation with employees and mitigate financial impacts.
- Around 2,200 employees so far sent on paid leave within such programs in areas with reduced activity.
- Cost saving and postponement initiatives, including hiring freeze.
- Reduction of investments targeting a reduction of around 20% of the investments of DKK 2.3bn planned for 2020.
Key risks
- Reliability and continuity of operations are contingent on employee health and continued exemption of our operations from lock-down initiatives.
- Passenger earnings in the high season — June-August — are at risk.
- Lower activity in certain sectors may reduce freight volumes. The automotive sector is a key risk in this regard.
DFDS expects to publish its final Q1 statements on May 7.
