DFDS: Q2 performance better than expected

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Read the Q2 2023 interim click on cover

“We have raised our outlook as we continued to deliver strong operational performance in Q2, and despite headwind in some regions, we achieved a result that was better than expected.”

Torben Carlsen, CEO DFDS

  • Q2 revenue decreased 3.2% to DKK 6.9bn but increased 2.5% adjusted for bunker surcharges, driven by higher passenger and logistics revenue.
  • Freight ferry revenue was below last year as lower volumes were partly offset by higher rates.
  • Q2 EBITDA decreased 5% to DKK 1,404m.
  • The freight ferry EBITDA of DKK 754m was 20% lower than last year as Q2 2022 earnings were boosted by elevated Channel earnings and exceptionally high levels of oil price spreads, that have now normalised. Moreover, Q2 2023 volumes were lower than last year.
  • The Q2 passenger EBITDA increased 28% to DKK 350m as results were improved across the route network.
  • Logistics Division’s EBITDA increased 26% to DKK 345m driven by acquisitions.

For the first half-year (H1), revenue increased 2% to DKK 13.3bn compared to the same period last year and H1 EBITDA increased 5% to DKK 2,413m. EBITDA was DKK 5,090m for the last twelve months (LTM, 2022-23).

 Outlook 2023
The EBITDA outlook is raised to DKK 4.8-5.2bn (previously DKK 4.5-5.0bn) following better than expected H1 financial performance. Revenue is overall still expected to remain at the same level as 2022.

The outlook is detailed on page 9 in the full report.

DFDS July volumes: freight closing in on last year, passengers up 9%

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Ferry – freight

  • Total volumes in July 2023 were 7.2% below 2022. Volumes were 4.9% below 2022 adjusted for Channel.
  • North Sea volumes were robust on most routes but a slowdown in Swedish imports and a dip in fresh produce volumes to the UK due to weather conditions reduced overall volumes compared to 2022.
  • Mediterranean’s volumes were below last year as growth is being reduced by measures to curb inflation in Türkiye and European demand is stagnating.
  • Channel volumes were below 2022 which reflects the redistribution of market shares that took place in July 2022 in the wake of a ferry competitor’s suspension of sailings in 2022.
  • Baltic Sea market conditions are starting to become more comparable to 2022 as the war’s impact on volumes did not fully materialise in 2022 until after the summer. July volumes were still below last year.
  • For the last twelve months 2023-22, the total transported freight lane metres decreased 11.0% to 38.8m from 43.6m in 2022-21. The decrease was 4.3% adjusted for Channel.

Ferry – passenger

  • The number of passengers increased 9.3% driven by more passengers on the Channel and Baltic routes. The number of cars were up 3.8% due to primarily more cars on the Channel.
  • For the last twelve months 2023-22, the total number of passengers was 4.4m compared to 2.5m in 2022-21.