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2024 Newsletter week 35

Aug 31
2

Irish Ferries profit saw an impressive growth of 80% in H1

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Here are the financial highlights from the Irish Continental Group’s H1 Financial Report for the half-year ended 30 June 2024: 

  • Revenue Growth: The Group’s revenue increased by 8.1% to €285.5 million, up from €264.0 million in the same period in 2023. 
  • EBITDA Stability: EBITDA slightly increased by 1.4% to €49.7 million, compared to €49.0 million in HY 2023, indicating stable operational efficiency. 
  • Operating Profit Improvement: Operating profit rose by 7.4% to €17.4 million from €16.2 million in HY 2023. 
  • Profit Before Tax: The Group reported a profit before tax of €14.6 million, an increase of 4.3% from €14.0 million in HY 2023. 
  • Earnings Per Share: Basic earnings per share grew by 10.7% to 8.30 cents from 7.50 cents in HY 2023, reflecting improved profitability per share. 
  • Interim Dividend: An interim dividend of 5.11 cents per share was declared, a 5.0% increase from the 4.87 cents per share in HY 2023. 
  • Net Debt: Net debt increased by 28.7% to €211.7 million, primarily due to the acquisition of the OSCAR WILDE ferry on a charter with a purchase obligation. 
  • Volume Growth: The Ferries Division saw significant growth in volumes, with car carryings up by 21.0% and RoRo freight units increasing by 10.5%. 
  • Container and Terminal Division: This division experienced an 8.7% increase in containers shipped and port lifts, though profitability was down due to lower rates and higher costs. 
  • Strategic Developments: The Group strengthened its position on the Dover-Calais route through a space charter agreement with P&O Ferries and the acquisition of the Oscar Wilde ferry. 
  • Cost Management: Operating costs increased by 7.8% to €188.1 million, with notable increases in fuel costs and expenses related to the EU Emission Trading System. 
  • Strong Liquidity Position: Despite the increase in net debt, the Group maintained a strong liquidity position with cash balances of €51.2 million.

Strong performance of Irish Ferries: 

  • Revenue Growth: The Ferry Division’s revenue increased by 9.9% to €197.6 million, up from €179.8 million in HY 2023. 
  • Operating Profit Surge: Operating profit nearly doubled, rising by 79.2% to €9.5 million from €5.3 million in the same period last year. 
  • Passenger Revenue Increase: Passenger revenues surged by 16.8%, driven by a 21.9% increase in passenger carryings, totaling over 1.33 million passengers. 
  • Car Volume Growth: Car volumes rose by 21.0% to 277,200 units, reflecting strong demand for travel. 
  • Freight Revenue and Volume Expansion: RoRo freight volumes grew by 10.5%, contributing to a 13.3% increase in freight revenues. 
  • Strategic Fleet Expansion: The introduction of the Oscar Wilde ferry on the Dover-Calais route enhanced capacity and service, contributing to overall growth. 
  • Market Share and Recovery: The division’s performance underscores its ability to capture market share in a recovering travel market post-pandemic. 
  • Strong Outlook: These results position Irish Ferries for continued growth and success in the second half of the year. 

Click on cover to view report

Aug 31
2

Fjord Line 2023 Annual Report

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The 2023 financial report for Fjord Line AS, published on 19 August 2024, highlights a challenging year with financial losses primarily due to high fuel prices and a slow recovery in passenger numbers post-pandemic. Despite these challenges, the company implemented cost-saving measures and worked on optimizing operations. The report indicates an overall negative financial performance, but it also emphasizes efforts to strengthen the company’s long-term financial stability and improve efficiency. 

 Main figures Fjord Line AS Group 

Revenues: 1469 MNOK (1666)
Operating Expenses: 1938 MNOK (1892)
Operating Result: -468 MNOK (-226)
Result: -823 MNOK (-411)
Comprehensive income for the year, net of tax: 101 MNOK (122 MNOK) 

 

  • High Season Performance: After two years of pandemic-related travel restrictions, Fjord Line achieved its highest-ever revenue during the 2022 high season. 
  • Financial Challenges: Rising LNG fuel prices, partly due to geopolitical events like Russia’s invasion of Ukraine, created a non-sustainable financial situation for Fjord Line. 
  • Vessel Conversions: STAVANGERFJORD and BERGENSFJORD, from single-fuel LNG to dual-fuel MGO/LNG to improve financial sustainability. 
  • Operational Flexibility: 
  • The dual-fuel capability provides flexibility to operate the vessels efficiently, regardless of fluctuations in LNG or MGO prices. 
  • Despite the ability to use MGO, Fjord Line remains committed to environmental sustainability and primarily operates on LNG. 
  • Strategic Changes in 2023: 
  • Terminated the Sandefjord-Strömstad route. 
  • Changed the destination from Langesund to Kristiansand for the vessels STAVANGERFJORD and BERGENSFJORD. 
  • Closed offices in Sandefjord and Strömstad, relocating functions to Bergen and Hirtshals. 
  • Concluded the sale of the vessel OSLOFJORD. 
  • Progress on Strategic Plan: The above measures align Fjord Line with its 3-year strategic plan for 2023-2026, marking 2023 as a transitional year. 
  • Outlook for 2024: 
  • 2024 is the first normal operational year since 2019 and is progressing well, with no extraordinary events impacting operations. 
  • To support the strategic plan and ensure sufficient financial flexibility, Fjord Line, along with its board and shareholders, has initiated steps to improve working capital, such as refinancing or capital injection. This process is expected to conclude in the second half of 2024. 
Aug 31
2

Color Line Interim Report H1, 2024

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Here are the financial highlights of the Color Group AS Interim Report for the first six months ending 30 June 2024: 

  • Operating Revenues: NOK 2,919 million (2023: NOK 2,733 million) 
  • Operating Expenses: NOK -2,530 million (2023: NOK -2,266 million), including NOK -60 million for environmental allowances 
  • Earnings Before Interest and Taxes (EBIT): NOK 96 million (2023: NOK 175 million) 
  • Profit Before Tax: NOK 88 million (2023: NOK 24 million 
  • Net Financial Items: NOK -8 million (2023: NOK -151 million), including gains from foreign exchange and derivatives 
  • Total Comprehensive Income: NOK 141 million (2023: NOK 44 million 
  • Net Cash Flow from Operating Activities: NOK 426 million (2023: NOK 421 million) 
  • Net Cash Flow from Investing Activities: NOK -12 million (including NOK 139 million from the ONS Ship Finance transaction) 
  • Net Cash Flow from Financing Activities: NOK 408 million (2023: NOK 3 million), with new unsecured bond loan of NOK 900 million issued 
  • Net Interest-Bearing Debt: NOK 3,889 million (2023: NOK 4,153 million 
  • Equity Capital: NOK 1,786 million (2023: NOK 1,548 million) 
  • Total Balance Sheet Value: NOK 9,297 million (2023: NOK 9,649 million) 

   Outlook 

  • Market Position: The company is well-positioned in the market with attractive commercial and operational concepts, a modern fleet, and a stable customer base. Despite economic uncertainties, demand for Color Line’s services has traditionally remained stable. 
  • Future Expectations: The market is currently perceived as strong, and the company expects positive results for the remainder of 2024. 
  • Financial Strategy: The company continues to focus on maintaining a diversified, long-term financing strategy. A new unsecured bond loan of NOK 900 million (maturing in April 2029) was issued in April 2024, and part of an existing bond loan (COLG16) was repurchased. 
  • Investments and Sustainability: Color Group remains committed to sustainability, with continued investments in innovative environmental technologies and energy efficiency measures. The company has also increased its hedging of bunker fuel consumption and environmental allowances for the coming years. 

Overall, Color Group is optimistic about its market position and financial performance for 2024, maintaining a focus on sustainable growth and operational efficiency. 

 Click on the cover to access the interim report 

Aug 31
2

P&O Ferries boosts North Sea freight capacity with new long-term ship charters

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P&O Ferries confirmed the addition of RoRo LONGSTONE to its fleet, increasing freight capacity on its route between Tilbury and i Zeebrugge.  

 P&O Ferries will also add the sister vessel to its fleet in late 2025.   

 LONGSTONE’s capacity is over 50% greater than P&O Ferries’ existing vessels on the Tilbury-Zeebrugge route. With 4,076 lane meters, the new ship is the first step of P&O Ferries’ demand-led expansion plan for its North Sea Services and is expected to begin service in early September.    

To complement this maritime expansion, P&O Ferries – with the support of its customers – has expanded its rail handling service in Zeebrugge with new intermodal services to/from Germany and Central Europe. This substantial boost in capacity for P&O Ferries’ Zeebrugge-Tilbury route, supported by the new rail connections, will facilitate smoother trade flows between the UK and Europe.    

 “We are expanding our North Sea network in response to the demand from our customers,” said Peter Hebblethwaite, CEO of P&O Ferries. “This long-term investment is just the first step of our expansion plan for this network. It is about having the right tonnage, underpinned by effective rail handling, to allow our customers to plan new opportunities. Boosting capacity on our routes between Tilbury and the continent of Europe is what our customers need, and will give them even greater direct access to London and its transport connections.”   

 “The efficiency and capacity of the vessel, along with integrated rail services will also help cut the carbon emissions associated with freight movements and reduce road congestion around ports and in the wider catchment area.” 

 “We will deliver significant growth of unaccompanied transportation on the North Sea by offering our customers scalable capacity and the right service package in ports and on our ferries. This contributes directly to the end-to-end logistics service offered by our parent company, DP World (**).”    

 (*) LONGSTONE is the former MARIA GRAZIA ONORATO, and has been a familiar ship in Zeebrugge when on charter to CLdN. Same for sister vessel ALF POLLAK, now renamed LISMORE. 

(**) In April 2024, DP World got a concession for 25 hectares in the port of Zeebrugge, a part P&O Ferries did not use any longer.    

Aug 31
2

CLdN: 3 LoLo and 3 RoRo departures per week between Rotterdam and Dublin

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 CLdN announced an expansion of its freight service between Dublin and mainland Europe by adding an additional load-on/load-off sailing to its Rotterdam-Dublin route. Starting from August 30, 2024, this new service will provide three direct LoLo and three direct RoRo departures per week from both Rotterdam and Dublin. This addition brings the total number of weekly sailings between Ireland and CLdN’s continental hubs in Rotterdam and Zeebrugge to 22.  

CLdN says it is the only operator offering this level of service between mainland Europe and Ireland. 

Aug 31
2

Zante Ferries is selling its ships

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On August 27, 2024, the Greek owned ferry operator Zante Ferries invited its shareholders to attend an extraordinary General Assembly that will take place at Zakynthos on September 22, 2024. There, it will be decided the fate of its ferries DIONISSIOS SOLOMOS (1990) and ADAMANDIOS KORAIS (1987) that will probably be sold.  

 Zante Ferries was founded in 1991 at Zakynthos and operated exclusively in the Ionian Sea. In 2008, they came to the Aegean Sea and routed ADAMANDIOS KORAIS -initially on the Central Aegean- and then Western Cyclades. In 2017, they brought the larger DIONISSIOS SOLOMOS on the line and left the Ionian service permanently.  

 After the selling off its ships, Zante Ferries will suspend its services within the Hellenic Coastal Shipping after 33 years. 

 Photo: Zante Ferries 

Aug 31
2

Daleela’s Greece – Cyprus connection extended 3 more years

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On August 23, 2024, the Cypriot Ministerial Council announced the extension of the agreement for the Greece-Cyprus line for 3 more years (2025, 2026, 2027). 

 According to the information, they reached that decision after evaluating the performance indicators, which revealed that since 2022, RoPax DALEELA has transported more than 21,000 passengers and more than 7,000 cars. 

 DALEELA is owned by Arab Ship Management (Jordanian interest) and chartered to Scandro Holding Ltd. Greece (Piraeus) – Cyprus (Limassol)  

The line has been subsidised with 5.5 million euros per year for the first three years (a total of 16.5 million euros). 

 Photo: Dimitris Mendakis 

Aug 31
1

IMAGE CARDS

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Hyundai Mipo Dockyard held a keel laying ceremony for the second of CLdN’s new G9e vessels at their shipyard in Ulsan, South Korea. 

This new ship will feature two conventional main engines along with two large 6 MW shaft generators, which can be used for power generation or electric propulsion. The design offers a high degree of flexibility, allowing for future integration of new fuels, fuel cells, and battery technology.  

Compared to CLdN’s largest vessels currently in operation, Celine and Delphine, the new ships will reduce CO₂ emissions by 40% while maintaining the same cargo capacity. 

The delivery of both vessels is scheduled for the first half of 2025. 

The picture shows representatives from Hyundai Mipo Dockyard, DNV (the classification society), and the Anglo-Eastern Technical Services Site Team, who are overseeing the process on behalf of CLdN. 

Source: CLdN on Linkedin 

P&O Ferries started running their ‘Turn-up and Go’ space charter with Irish Ferries on the Dover-Calais route, meaning ships will always be fully loaded for freight at peak, allowing freight to clear the port up to 25 per cent faster.  

The agreement is good for the customers (no waiting) and it also lowers the carbon footprint of the cross-Channel route by always fully loading the vessels. 

During the trial period, which began on 8th July, more than 12,000 freight vehicles were transferred between the two operators. 

 

A brand new 144,000 square meter port terminal was inaugurated at the Port of Gothenburg. The investment, amounting to approximately 60 million EUR, has been under construction for the past six years and was made to meet the increased transportation needs of Swedish industry. 

 Named “Arendal 2”, the terminal is also part of the port’s strategy to concentrate its terminal operations in the outer port area, further from the city center, and with direct connections to the port’s road and rail infrastructure as well as the local growing industrial cluster. 

Source and photo: Port of Gothenburg