Category

2020 Newsletter week 36

Sep 03
0

FERRY SHIPPING

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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
Source: Brittany Ferries
Sep 03
0

Stena Group H1: Strong Tanker Operations versus Ferries and Offshore

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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.“

Stena AB Group Q2 and H1, 2020
Sep 03
0

Irish Continental Group H1: Freight is Stable – Strong Liquidity Position

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Traffic volumes in H1, 2020 (Ferries Division)

  • -63.9% Passengers 233.9k (648k)
  • -64.9% Cars 56.6k (161.2k)
  • -2.7% RoRo freight 149.4k (153.6k)

Financial figures H1, 2020 (ICG)

  • Revenue EUR 130.8 million (166.8)
  • EBITDA EUR 10 million (30)
  • EBIT EUR -9.5 million (11.6)

Gross cash balances EUR 132.5 million (31 December 2019: 110.9 million).

Net Debt at EUR 103.3 million is 25.7 million lower than at the beginning of the year.

Depressed economic activity and travel restrictions = significant reduction in passenger traffic while freight activity across the Group has been less affected.

The Group has continued to focus on its strategic development and has retained a strong liquidity position.

ICG H1 PPT Presentation
ICG H1 Final Report
Sep 03
0

Color Line’s H1 Affected by Pandemic – Strong Customer Base Is Encouraging

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Traffic volumes in H1, 2020:

  • -62% passengers 621,781 (1,634,408)
  • -4.2% freight units 85,759 (89,503)

Financial figures H1, 2020:

  • Operating revenues NOK 1,116 million (2,278) from which:
    • Revenue Cargo NOK 248 million
    • Norwegian Government compensation scheme NOK 129 million.
  • Operating loss/profit NOK -189 million (290)
  • Operating loss (EBIT) NOK -490 million (-8)

Facts

  • Adverse effects in connection with the measures imposed by the authorities in response to the coronavirus.
  • Extensive cost-cutting measures, including temporarily laying off employees (approximately 2 200 personnel).
  • Color Line suspended all passenger traffic on all its services in mid-March, with the exception of two ships operating between Norway and Denmark and a ro-ro vessel operating between Norway and Germany.
  • In mid-June, the company resumed passenger-carrying services between Norway and Denmark. At the same time, services to Germany were again permitted, with passenger embarkation in Oslo only, combined with goods traffic.

Outlook

  • Color Group is expecting to report earnings that are substantially lower than last year, and results will very much be dependent on the nature of the restrictions imposed by the authorities in the coming months.

+    Strong customer base, modern tonnage, excellent track record.

Download the H1 Report 2020
Sep 03
0

Norled H1: Increased EBITDA Profitability

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Norled operates ferries, fast ferries and tourist boats in Norway.

Especially the tourist boats and the onboard kiosks were affected by Covid-19.

Financial figures H1, 2020:

  • Revenue NOK 987 million (1,136)
  • Operation costs NOK 770 million (926)
  • EBITDA NOK 217 million (210)
  • EBIT NOK 100 million (114)
  • Net Income NOK 34 million (68)

Decrease in revenue is mainly due to changes in contract portfolio.

Norled ended 5 contracts at year end 2019, and started 4 new contracts 1. January 2020.

Increased EBITDA profitability is mainly due to changes in contract portfolio. EBITDA profitability in Q2 is affected by the COVID19 epidemic, mainly with reduced traffic revenue. Especially the expressboat segments related to tourist routes and charter activity have been negatively affected by the COVID-19.

As a result of COVID-19, there is a risk of delays in the construction and delivery of new vessels. The company is constantly working to optimize a plan with temporary vessels on the routes where there may be delays in delivery

Norled is owned by the Nordic infrastructure fund CapMan Infra and the Canadian company CBRE Caledon Capital Management.

Norled Report H1/Q2 Report
Sep 03
1

CLdN to start of a new RoRo-service: a triangle trade between Leixões (PT) – Dublin (IE) and Liverpool (UK)

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With effect from week 37, CLdN will operate one sailing per week from Leixões to Dublin, followed by calling Liverpool.

  • Threat of disruption on the short Channel routes is an opportunity
  • Brexit: administrative burden when using land bridge solutions
  • British Government desires to promote unaccompanied solutions
  • CLdN anticipates direct EU trade between Iberia and Ireland, linking into Liverpool, UK will offer environmental benefits and be less prone to disruptions or interruptions as seen on the short straights.
  • Schedule: Leixões (Friday) – Dublin (Monday) – Liverpool (Monday) – Dublin (Wednesday) – Leixões (Friday).

In June 2020, CLdN started a Santander – Dublin – Liverpool route (FerryShippingNews)

Sep 03
0

The Danes Stayed in Denmark: Record Summer Figures for Molslinjen

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The summer season on Bornholm has broken all records.

Because of Covid-19, Germans couldn’t come to the Danish island. Instead, Corona motivated Danish people to spend their holiday on Bornholm.

Molslinjen, which operates the ferry routes to and from Bornholm, saw record figures from week 26 to 34.

  • +2.7% passengers (in total 643,841)
  • +15.0% cars
  • -21.5% German tourists

Molslinjen operated two catamarans between Ystad and Rønne.

Sep 03
0

Tallink Prepares for the Dark Months

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1/9: ISABELLE laid up

6/9: VICTORIA I will operate Tallinn-Stockholm route and Riga-Stockholm route.

13/9: SILJA SERENADE will be suspended from traffic after it arrives in Helsinki from Riga. The vessel’s return to traffic will depend on the future developments of the pandemic situation, changes in travel restrictions between the countries and any decisions regarding government support for maritime transport services.

Lay-offs Finnish crew expected.

16/9: BALTIC QUEEN to replace SILJA SERENADE on Helsinki-Riga

Early October:

  • ROMANTIKA laid up until 31 March 2021 or until further notice.
  • SILJA SYMPHONY suspended from regular traffic.
Sep 03
0

Tallink Grupp Begins Extensive Reorganisation

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Tallink informed the company’s staff that it will this week notify the Estonian Unemployment Insurance Fund and the Estonian Independent Maritime Workers Union of commencing further collective redundancies processes.

In addition, the company has initiated a further collective redundancies process in Latvia.

Within the company’s Finnish subsidiary, extensive lay-offs of both onshore and onboard personnel are already in place, which will continue for now either full time or part time. Nearly all 1,200 Tallink Silja OY employees are affected by the lay-offs.

Altogether, the processes will impact up to 2,500 Tallink Grupp employees

Paavo Nõgene, CEO of Tallink Grupp, asked for support of the State. “Germany is a good example of the state offering vital support to businesses, with salary compensation schemes being extended in the country at least until the end of 2021.”

Sep 03
0

More GNV Ships Deployed To Accommodate Quarantined Migrants

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GNV ALLEGRA is the third GNV ferry deployed as accommodation vessel for quarantined migrants.

Soon after this news, it was announced that also RHAPSODY and SNAV ADRIATICO from GNV’s fleet are en route to Palermo and will be deployed as accomodation vessels for migrants/

With GNV AZZURA and AURELIA, selected earlier by the Italian government and still employed, that makes 5 GNV ships on charter to the Government.

Since the summer season in Sardinia is ending earlier than expected (covid-19 infections were on the rise in august among tourists), many ferries are available.