Tallink Grupp Reports Net Loss

By | 2021 Newsletter week 8 | No Comments

Tallink Grupp reported an unaudited net loss of EUR 108.3 million for the 2020 financial year (net profit of EUR 49.7 million in 2019), resulting from travel restrictions, border closures and states of emergency due to the global COVID 19 pandemic.

Consolidated revenue amounted EUR 442.9 million (949.1 million)

EBITDA EUR 8.0 million (171.1 million)

Gross profit EUR -43.5 million

-62% passengers

-5.2% cargo units

-20% trips

Attempts to boost its operations by setting up various temporary routes during summer 2020 and by operating a number of special cruises where possible. These attempts were once again curbed in autumn 2020 by travel restrictions.

Investments EUR 100.1 million.

Mainly prepayment instalments for the new LNG-fuelled vessel MYSTAR (2022).

Also increasing the company’s cargo capacity by acquiring roro SAILOR.

The group ended the year with a total liquidity buffer of EUR 147.1 million (EUR 128.9 million in 2019).

Employee numbers: from 7240 at the end of 2019 to 4237 at the end of 2020.

Tallink Grupp’s CEO Paavo Nõgene: “As we wait for the COVID storm to pass and borders to reopen for travelling, we continue to develop business areas we feel will give us a strategic advantage going forward and enable us to spread risks, make preparations for offering our services again with an even stronger focus on safety and sustainability and get ready to provide safe and happy journeys and to reunite people around the Baltic sea after a year of separation.”

Tallink: Negative Covid Test Result Prior To Boarding

By | 2021 Newsletter week 8 | No Comments

Tallink Grupp will require passengers travelling to Finland to present a negative COVID-19 test result certificate or a certificate from the GP evidencing that the passenger has recovered from coronavirus. The new requirement follows a strong recommendation from the Finnish Health Authority (Terveyden ja hyvinvointilaitos) to all shipping companies operating passenger ferries between Finland and neighbouring countries to introduce such a requirement.

Michalis Sakellis: “Ferry Companies May Be Forced To Divest Their Assets In Order To Survive”

By | 2021 Newsletter week 8 | No Comments

In a recent interview published in the Reporter.gr, the Chairman of the Hellenic Passenger Shipping Business Association, Mr. Michalis Sakellis, pointed out the following:

  • The year 2021 is expected to be worse than 2020 for the Hellenic Coastal Shipping, threatening the liquidity of the ferry companies as well as ferry services in Greece.
  • According to the Ferry Operator’s estimates, the first semester of 2021 was lost. They hope that the summer will be saved (July – August), but this will depend on the course of the pandemic.
  • The financial support provided by the state is not enough to cover the additional cost of fuel (65%-70% increase) and the near future is uncertain.
  • The renewal of the Greek Coastal fleet is also a major issue. Currently, the average age of the coastal fleet is 28,1 years and the fleet renewal project is estimated at EUR 4 billion for the next 15 years.
  • The current situation threatens the sector financially. The year 2020 ended with losses of EUR 130 million, while in 2021 losses are expected to be even greater.
  • It is possible that Ferry companies may be forced to sell their best ferries in order to survive. Development, with adverse effects on coastal shipping services.

Two Tenders For Maritime Continuity Between Italy Mainland And Islands Launched

By | 2021 Newsletter week 8 | No Comments

Italy’s transport ministry has just launched two separate tenders for the next cycle of the maritime continuity with the islands.

Tender for:

  1. The regular link between the Sardinian ports of Arbatax, Olbia and Civitavecchia which will have to be served for five years with two ro-pax ships. Tender price is EUR 83 million.
  2. The regular link between the port of Termoli and the Tremiti islands for the next three years: in this case tender price is EUR 20 million and one high-speed vessel is required.

Deadline for submitting the offers is April 20.

Tension Between Moby And The Ad Hoc Group Of Bondholders

By | 2021 Newsletter week 8 | No Comments

As the expiring date of March 28 for submitting the debt restructuring proposal is rapidly approaching, tensions are increasing between Moby and its bondholders.

Last week, news provider Reorg Research reported that the “ad hoc group” controlling 50% of the bonds issued by the Onorato-lead ferry company had sent a counterproposal in response to the Italian shipping company’s latest draft restructuring plan. “The bondholders are focusing on the size of the investment from Moby’s new potential partner Europa Investimenti, which is deemed to be too low. They also believe that the targeted returns on investment for Europa Investimenti are too high and not at market rates” sources said.

Another source of concern for the ad hoc group is Moby’s future governance, which according to the company’s plan, should remain in the hands of the Onorato family.

Victory For Corsica Ferries, At Last

By | 2021 Newsletter week 8 | No Comments

The Administrative Court of Appeal of Marseille condemns the Territorial Collectivity of Corsica to pay Corsica Ferries France the sum of €86.3 million in compensation for the damage it suffered as a result of the illegal subsidy provided by the Collectivity to SNCM.

This subsidy was given for the ferry service provided by SNCM and CMN between the Port of Marseille and Corsica, in the period between July 2007 and December 2013.

On top of the payments for the public service contract, the alliance SNCM/CMN received 40 million per year for the so-called additional service for the transport of passengers during peak periods.

The European Commission considered in 2013, that the financial compensation paid by

Corsica under this additional service were incompatible with the freedom of competition in the internal market. In 2014 the Commission ordered the refund of this illegal subsidy.

After endless legal fights, Corsica Ferries has finally obtained a favourable decision.

Safe Restart Funding Helps BC Ferries Address COVID-19 Impacts

By | 2021 Newsletter week 8 | No Comments


-39.6% or 2.9 million passengers

-22.3% or 1.6 million vehicles


-42.1% or 10.6 million passengers

-26.9% or 5.3 million vehicles

The effects of COVID-19 have negatively impacted BC Ferries’ traffic and revenues over the current year. This trend is expected to continue in the near term as the province recovers from the effects of the pandemic.

In December 2020, BC Ferries received $308 million from the Safe Restart Program, a federal-provincial initiative.

BC Ferries applied nine months’ worth of Safe Restart funding, or $154.8 million, to Q3 revenues. Without this relief, the net loss for the three months ended December 31, 2020 would have been $56.4 million.

As a result of the funding, BC Ferries recorded net earnings of $98.4 million for the three months ended December 31, 2020, compared to a net loss of $8.3 million in the same quarter in the prior year.

On a year-to-date basis, BC Ferries’ net earnings were $74.3 million to December 31, 2020. Without federal-provincial Safe Restart funding, the company would have had a net loss of $80.5 million, compared to net earnings of $98.9 million in the same period in the prior year.

Seven New Ferries For Scotland

By | 2021 Newsletter week 8 | No Comments

Caledonian Maritime Assets Ltd, in partnership with Transport Scotland and CalMac, is commencing a major programme to replace up to seven small ‘loch class’ vessels serving the Clyde and Hebrides Ferry Services network.

The programme timeline has not been finalised, but it is expected the procurement process for the replacement vessels will begin within the next 12 months.


The Year Was A Real Challenge For Wasaline

By | 2021 Newsletter week 8 | No Comments

Due to Covid-19 the turnover decreased during the year with 46.4%.

The passenger turnover decreased by 71.8% and passenger volume by 72%.

Turnover for the cargo traffic increased with 7.5% and cargo volume increased with 6.6%.

The operating result decreased with 133% = €-745,000 (€2,114,000)

  • Passengers: 57,415 (204,704)
  • Cars: 14,532 (46,312)
  • Cargo units: 16,969 (15,913)
  • Departures: 816 (826)

The pandemic will strongly affect Wasalines result also in 2021.

Restrictions are expected to continue during the year.

During the year the newbuilding project with AURORA BOTNIA has proceeded according to the plan at RMC, Rauma and will continue intensively until the delivery expected in April-May 2021. There is a risk of delay in the delivery, though, due to the Covid-19.