SHORT NEWS

By 2020 Newsletter week 37

DFDS Started Direct Adriatic Route

DFDS started a direct link between Trieste and Patras (instead of a stopover in the Greek port on the route between Italy and Turkey).

In June, Grimaldi started a biweekly service Venice (Marghera)-Igoumenitsa-Patras.

PHOTOS OF THE WEEK

By 2020 Newsletter week 37

GLEN SANNOX Remedial Work at Drydock Complete

GLEN SANNOX, the first of two dual fuel vessels being built at Ferguson Marine (Port Glasgow) Ltd, has returned to the water following the completion of a key phase of dry dock work in Greenock.

Throughout the three-week stint a package of remedial work was carried out which included the replacement of the bulbous bow, paint repair, removal of marine growth from the vessel hull and external welding.

The overall project to turn Ferguson around and deliver the ferries was in line with the plan when lockdown occurred and the cost of the project to deliver the ferries remains unchanged at £110.3m. Due to the yard being forced to close for three months and on restricted working for at least a further three months, GLEN SANNOX is now due for delivery between April 2022 and June 2022.

Ferries of Brittany

By 2020 Newsletter week 37

Two weeks ago, I embarked on a Ponant ship in Saint-Malo, for a story about cruising in Bretagne (Brittany).

Of course, there were some (close) encounters with ferries too.

Brittany Ferries’ CAP FINISTERE, on her way back home, coming from Spain.

BREIZ NEVEZ I is one of the small car ferries used by Compagnie Océane to link mainland France with the Morbihan Islands. She is seen here leaving Groix Island.

BANGOR passes our ship LE JACQUES CARTIER, inbound for Le Palais, Belle-Ile

VIDEO

By 2020 Newsletter week 37

New Port of Calais Is Getting Ready for 2021

This video of September 7 shows the massive works for the new port in Calais.

A few days ago the first of three linkspans arrived from The Netherlands in Calais.

Port Boulogne Calais (SPD, Societe d’Exploitation des Ports du Detroit) CEO Jean-Marc Puissesseau says that the EUR 800 million works will increase the efficiency of the Channel port.

Double-deck, double-lane linkspans will speed up loading and unloading. Less time in port means more crossings.

The three older berths will remain active. Calais will then have six ferry berths.

About the effects of Covid-19, he said that, “This year the virus made us ill. In 2021 we will go through a healing process. But in 2022, we will be very healthy.”

The new port will be ready in June 2021.

FERRY SHIPPING

By 2020 Newsletter week 36

A Terrible Summer Season Forces Brittany Ferries to Take Further Action

Brittany Ferries announced the closure of some easterly routes. Caen-Portsmouth however remains open.

Westerly routes will see the arrival of a new vessel in December.

Negative

  • Decision by the UK government to impose quarantine restrictions resulted in 65,000 pax cancellations and less bookings for autumn
  • BF was hoping for a summer season with 350,000 pax (instead of the normal 700,000+)
  • BF will only reach 200,000 passengers maximum
  • Passengers = 75% of BF’s income

Positive

  • BF has re-affirmed that its foundations are strong
  • Reservations for the 2021 season are strong (100,000 pax booked for 2021)
  • Newbuilding GALICIA enters service in December, on UK-Spain

Result

  • Five-year recovery plan
  • Closure of Cherbourg-Portsmouth, Le Havre-Portmouth, Saint-Malo-Portsmouth.
  • Cherbourg-Poole will also remain closed for the remainder of the year (closed since March)
  • CONNEMARA laid up as from 7 September
  • BRETAGNE laid up as from 7 September, no further service until 22nd March
  • BARFLEUR not in service for rest of 2020
  • ETRETAT laid up until further notice
  • KERRY no Roscoff-Rosslare service as from 7 September
  • CAP FINISTERE 3-month technical lay-over as from December
  • ARMORIQUE laid up Q1, 2021

Stena Group H1: Strong Tanker Operations versus Ferries and Offshore

By 2020 Newsletter week 36

The Covid-19 outbreak is affecting Stena’s Business Areas in different ways and there has been a negative financial impact on the Stena AB Group as from mid-March.

EBITDA trends (+/-)

  • -Ferry operations
  • – Offshore drilling
  • +Tanker operations
  • +Property

Key H1 figures Stena AB

  • Total revenues SEK 16,632 million (SEK 16,973 million)
  • Direct operating expenses SEK 12,027 million (SEK 11,287 million)
  • EBITDA SEK 2,894 million (SEK 4,265 million)

Segment: Ferry Operations

  • EBITDA, excluding redundancy costs, SEK 514 million (SEK 1,369 million)
  • Redundancy costs for closing routes amounting to SEK 302 million.
  • Car volumes decreased 53%, passenger volumes decreased 52% and freight volumes decreased 11%.

Segment: RoRo Operations

  • EBITDA from chartering out Roll-on/Roll-off vessels SEK 114 million (SEK 151 million)
  • The decrease is mainly due to lower charter income due to the sale of the vessel KAIARAHI in Q4, 2019.

Change in vessel measurement policy

Stena has decided to change the measurement policy for vessels in the Ferries section and in the Offshore Drilling section as of January 1, 2020.

The remeasurement has:

  • increased the value of ferries with SEK 4.3 billion
  • decreased the value of drilling units in the segment with SEK 3.1 billion

Effect on H1: Depreciation, Amortisation and Impairment Depreciation and amortisation charges increased by SEK 142 million to SEK 3,668 million (SEK 3,526 million)

Outlook

“Given the uncertain situation, it is not currently possible to predict the full potential impact on the Stena AB Group.“