August 31, 2024
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.
