May 02
Love0

Knud E. Hansen To Design The New Finnlines Ro-Ro Ships

By 2019 Newsletter week 18

Knud E. Hansen has signed a contract with Nanjing Jinling Shipyard, China, for developing the basic design of three ro-ro vessels, based on the Finnlines / Grimaldi / Knud E. Hansen design.

The vessels are based on the same hull as the Grimaldi Green 5th Generation vessels. They are sister vessels, but customized to the needs of Finnlines with regards to heavy cargo and operation in the Baltic Sea.

Some details:

  • delivery as from 2021
  • Finnish/Swedish ice class, 1A Super
  • 5,800 lane metre
  • Length over all: 238m
  • The vessels will use electricity in port, with large lithium batteries. These batteries will be recharged during navigation, through shaft generators employing a peak shaving system.
  • Air lubrication system
May 02
Love0

P&O Ferries Sues UK Government

By 2019 Newsletter week 18

P&O Ferries is taking legal action against the UK government. The reason is the GBP 33 million given to competitor Eurotunnel, seen by P&O as unfair distortion of competition.

The money given to Eurotunnel was given by the Department for Transport, as compensation for the GBP 100 million contracts with Brittany Ferries, DFDS and Seaborne Freight. These contracts were to make sure that the companies would have enough ferry capacity in case of a no-deal Brexit.

(see also in our Media section)

May 02
Love0

International Arbitration Between Minoan And Tirrenia CIN For Damages On BONARIA And AMSICORA

By 2019 Newsletter week 18

In the 2018 financial report, the Vincenzo-Onorato-controlled company revealed that in April this year, “the subsidiary CIN Tirrenia was notified of an international arbitration dispute in London, activated by Minoan Lines S.A. and relating to the redelivery conditions of the vessels AMSICORA and BONARIA subject to a bareboat charter signed between the parties in July 2012 and ending on January 22, 2018.

The establishment of this dispute follows a letter of formal notice received by the subsidiary on January 14, 2019, wherein the legal firm representing the counterparty quantifies the request for compensation from CIN at EUR 4,559,000 for the alleged damage found on BONARIA, and EUR 4,225,000 for the alleged damage suffered by the vessel AMSICORA.

The legal opinion requested by Tirrenia CIN from a leading firm, however, deemed it improbable (due to the lateness of the report by Minoan and the absence of documented proof) for the requested compensation mentioned above to be accepted.

May 02
Love0

FINANCE

By 2019 Newsletter week 18

Scandlines Maintained Profitability In 2018, With Stable Operations And High Reliability Levels

The group’s two ferry routes completed more than 43,000 departures and transported 7.4 million passengers between Germany and Denmark. Freight traffic increased by 7% and surpassed 700,000 units in 2018.

Key figures (in EUR)

Group Revenue declined 2%: 477 million (487 million). Reason is a slight decline in car traffic and BorderShop visits driven by the unseasonably warm weather in the period from May to September, which dampened Scandinavians’ need to travel South.

Revenue from the two ferry routes was unchanged at 352 million following strong performance in the freight segment and continued progress on the Rostock-Gedser route, compensating for slightly declining leisure traffic on the Puttgarden-Rødby route during the year.

BorderShop revenue declined to 125 million (135 million) due to lower leisure travel and a weakening of the Swedish currency, which reduced Swedish customers’ incentive to visit the group’s BorderShops.

Profitability was maintained in 2018 as Scandlines generated profit from ordinary activities (recurring EBITDA) of 191 million (194 million) corresponding to a stable recurring EBITDA margin of 40% (40%).

While profitability was satisfactory and driven mainly by higher freight volumes and cost control, we are still far from reaching results posted by fixed connections and other infrastructure companies in the region.

.

May 02
Love0

Moby’s Challenging 2018 Is A Prelude To Better Performances In 2019

By 2019 Newsletter week 18

The Moby Group closes 2018 with growth in combination with challenges.

  • The ferries transported half a million additional cargo, especially on the vessels of the CIN subsidiary.
  • Excellent performance in ‘Revenues from onboard services’, (+8.8%) mainly attributable to the cruise-ferry business in the Baltic, and on the Corsica and ‘Sardinia routes.
  • Revenue in line with previous year.
  • Increase in operational costs (bunker, new start-ups ).

Achille Onorato, CEO of the Group agrees that 2018 was not an easy year. However, entering new business areas and finalising investments will be beneficial as from Q1, 2019.

Revenues by region:

  • Sardinia down 3.3% (less pax, less freight)
  • Sicily up 14.7% (more pax, more freight, new Naples-Catania route)
  • Tuscan Archipelago down 1.2%
  • Corsica up 3.9% (more pax, more onboard sales)
  • Baltic up 12.9% (onboard revenue)

Figures (in € thousands)

  • Revenues 584,335 (586,164)
  • Operating profit -21,071 (68,414)
  • Profit before taxes -58,112 (26,840)
  • Profit for the year -62,683 (22,947)
May 02
Love0

Stena AB’s ‘Restricted Group Data As Of December 31, 2018’

By 2019 Newsletter week 18

Ferry Operations

  • In December 2018 it was decided to close the route between Gdynia and Nynäshamn as from 1 January 2019.
  • As from September 2018 all technical and manning of all vessels within the Stena Line fleet is handled within Stena Line and the previous cooperation with Northern Marine has been resolved.
  • During 2018, a number of tonnage changes have been done throughout the whole fleet to prepare for the future and adapt to the customer needs.
  • +8.7% Revenue (ferry only)

Stena RoRo

  • In 2018, Stena RoRo sold STENA CARRIER and STENA FREIGHTER.
  • In 2018, Stena RoRo exercised four options at AVIC Weihai Shipyard. The company is now managing the construction of eight RoPax vessels ordered from the shipyard in China.

Stena AB highlights (in MSEK)

  • Revenue 21,824 (22,127)
  • Operational profit -2,340 (-869)
  • Profit before tax -3,372 (-2,062)
  • Profit for year -3,124 (-2,396)
May 02
Love0

First Quarter For Viking Line Unchanged

By 2019 Newsletter week 18

Key figures Q1

  • -4.5% Sales EUR 95.8 million (100.3)
  • +5.8% Operating income EUR -14.2 million (-13.5)
  • -4.3% Income before taxes EUR -15.4 million (-16.1).
  • -4.7% Income after taxes EUR -12.3 million (-12.9).

Future prospects unchanged: Operating income for 2019 will remain on a par with 2018 or improve.

Traffic figures Q1

Remark: this year, the busy Easter period is not in Q1 but in April, Q2.

  • -7,8% passengers
  • -4.0% cars
  • +8.8% cargo
May 02
Love0

IN THE MEDIA

By 2019 Newsletter week 18

UK Government Cancels Brexit Ferry Deals

The UK Department for Transport is cancelling contracts to provide extra ferry services after Brexit.
The government bought £89m worth of capacity from Brittany Ferries and DFDS.
Ending the contracts could cost the taxpayer more than £50m.
“We needed to be ready”, said Mr Grayling, the Transport Secretary. The cancelled contracts were part of a £4bn no-deal “insurance policy” the government had put in place.

May 02
Love0

Calmac Ferry Contract Woes: ‘Getting Rid Of These Vessels Would Be A Godsend’

By 2019 Newsletter week 18

Ferguson Marine Engineering Ltd (FMEL) last month launched legal action against Caledonian Maritime Assets Ltd (CMAL) in a row over a £97 million contract to build two new dual-fuel ferries for the Clyde and Hebrides Ferry Service.
Both ships look set to be months behind schedule.

Central to the dispute is the cost of building the two new ferries.
FMEL claims that the operator has demanded hundreds of design changes.
CMAL insists the work is covered by the original contract.