- € 37.4m consolidated revenue
- € 15.3m EBITDA
- € 8.1m consolidated Net Earnings after Taxes
- the performance of the parent company ThPA S.A. increased from € 34.7m, to € 37m in the 1st semester of 2021 (6.8%), with €1.5m additional revenues from the container terminal (6.2%) and €0.9m additional revenues from the conventional cargo terminal (9%).
Half-year Financial Report January–June 2021 (compared to January–June 2020)
- Sales EUR 71.5 million (97.5)
- Passenger-related revenue decreased 34.1% to EUR 50.1 million (76.0), while cargo revenue was EUR 20.4 million (20.7)
- Other operating revenue EUR 33.6 million (16.1)
- Operating income EUR 4.5 million (-27.4)
- Net financial items EUR -2.4 million (-2.1)
- Income before taxes EUR 2.2 million (-29.5)
- Income after taxes EUR 2.7 million (-23.7)
Key Figures H1
Passengers 538,348 (998,483)
Market share pax 32.1% (27.0%)
Cargo units 65,214 (62,409)
Market share cargo 16.8% (17.1%)
Market share pax cars 31.4% (24.1%)
- The outlook for the financial year 2021 is better than the outcome for 2020.
- Improved demand starting late in Q2, 2021 together with one-off items in the form of the sale of MARIELLA and the anticipated redemption of Viking Line’s terminal buildings including fixtures and fittings with the City of Turku will boost income.
- Uncertainty about how authority requirements, State aid, the impact of vaccination programmes and related restrictions on passenger traffic as well as market demand will affect Viking Line’s operations, results and financial position for the full-year 2021, but on the whole the Board of Directors believes operating income will be positive.
Second quarter 2021 (compared to second quarter 2020)
- Sales amounted to EUR 46.9 million (22.6)
- Operating income EUR 12.2 million (-5.9)
- Covid-19 continues to dominate the company’s operations and results, but at the end of Q2 Viking Line saw increased demand for services between Åland, Finland and Sweden.
- Traffic between Finland and Estonia has been greatly affected by restrictions.
- Results for the second quarter were dominated by Viking Line’s public service obligations (*) and cargo transports, but an increase in demand in the passenger sector was also discernible at the end of the period.
(*) During H1, the Group received aid for its public service obligations from Traficom for the Group’s vessels on the Turku–Mariehamn/Långnäs–Stockholm, Mariehamn-Kapellskär and Helsinki–Tallinn routes. It also received aid from the Development and Management Centre of Finland’s Centres for Economic Development, Transport and the Environment (known as ELY centres) and from Finland’s Local Employment and Economic Development Offices. The aid is recognized as State aid under other operating revenue.
Key highlights in H1, 2021
- Group revenue generated totalling €141.6 million, €10.8 million more than HY 2020
- RoRo freight travel patterns affected by new customs requirements following the exit of the UK from the EU.
- EBIT generated was a loss of €10.3 million, €0.8 million worse than HY 2020.
- EBITDA generated of €12.7 million, €2.7 million more than HY 2020.
- Gross cash balances of €131.1 million (31 December 2020: €150.4 million).
- Net debt at €112.1 million, €23.6 million higher than at the beginning of the year.
- No interim dividend declared (2020: nil).
- Commencement of a new ferry service between Dover (UK) and Calais (France) on 29 June. Second ship to be added in September.
- Further investment in environmentally friendly port equipment at Dublin Ferryport Terminals and increased capacity from 2022.
Commenting on the results, Chairman John B. McGuckian noted;
- Covid-19 pandemic continued to create an exceptionally challenging trading environment for the Group.
- The Group welcomes the introduction of the EU Digital Covid Certificate and the easing of restrictions on non-essential passenger travel, however, the timing of its introduction limits the benefits for the key summer season.
- On 31 December 2020, the UK and EU ended the post Brexit transition period. While trade flows have decreased between Ireland and Britain, our flexible fleet has allowed us to adjust capacity on our direct continental RoRo and container shipping services. While this has led to a reduction in RoRo volumes, the change in yield mix has resulted in increased RoRo revenues. This increase in revenue is particularly encouraging as it is against the backdrop of both the Covid-19 pandemic and the introduction of customs requirements on the Irish Sea.
- Still of concern to the Group is the lack of implementation of appropriate checks on goods arriving into Northern Ireland from Britain, which are required under the Northern Ireland Protocol. To the extent that goods are destined for the Republic of Ireland, this is causing a distortion in the level playing field as goods that arrive directly into the Republic of Ireland ports from Britain are being checked on arrival.
Some figures for ICG subsidiary Irish Ferries
-47.3% Car volumes (‘000) 29.8 (56.6)
-43.2% Passenger volumes (‘000) 132.8 (233.9)
-15.2% RoRo freight volumes (‘000) 126.7 (149.4)
- Revenue 4,213 DKK m (2,798 in Q2, 2020 and 4,241 in Q2, 2019)
- EBITDA before special items 897 DKK m (507 in Q2, 2020 and 989 in Q2, 2019)
- Profit before tax 328 DKK m (11 in Q2, 2020 and 456 in Q2, 2019)
- The growth was driven almost entirely by the freight activities, i.e. freight ferry and logistics.
- Mediterranean continued its strong performance, delivering app. 50% of the Group’s total profit increase.
- Passenger volumes remain impacted by travel restrictions.
Outlook 2021 unchanged
- EBITDA of DKK 3.2-3.6bn
- Revenue growth of 20-25%
- Passenger travel is picking up slower than expected
The European freight market stabilised and growth picked up during Q2 following the Brexit transition that impacted Q1 2021.
The current growth in the freight market, however, exceeds capacity due to shortages of truck drivers and equipment, particularly in the UK. This has led to a rise in haulage costs, longer lead times and less reliable supply chains as well as congestion in some ports. The market imbalance is expected to continue in Q3.
The UK will phase in full import border controls by 1 January 2022, including pre-notification requirements for products of animal origin by 1 October 2021.
Trade between the EU and Turkey continued to grow as the depreciation of the Turkish Lira, continued to benefit Turkish exports. The Turkish economy is expected to continue to grow, primarily driven by the export sector.
The Dover-Calais space charter agreement with P&O Ferries is expected to become operational around 1 October 2021. It will result in shorter waiting times for truck drivers.
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- Fast recovery from Brexit transition
- Mediterranean continued its progress
- Passenger services remained restricted
- EBITDA increased 23% to DKK 750m
- The EBITDA outlook for 2021 was raised following stronger than expected freight results for most business units.
- Uncertainty remains high and significant changes to outlook assumptions may still occur in the rest of the
- During Q1 trade between the EU and UK stabilised faster than expected. Earnings in 2021 for UK-linked activities are therefore no longer expected to be below 2020.
- The Mediterranean business unit improved earnings more than expected in Q1 and the positive earnings trend is expected to continue.
- In the Baltic region, freight ferry capacity in the market is still expected to increase compared to 2020.
- Irish Ferries has announced a plan to deploy ropax(es) between Dover and Calais in June 2021.
- The EBITDA for passenger services was reduced by around DKK 1bn in 2020 due to travel restrictions imposed to limit the spread of Covid-19. It is assumed that around 25%, compared to previously around 40%, of the decrease in 2020 is regained in 2021 as travel restrictions are now expected to be eased later in The high season for ferry travel is Q3 and the outlook is thus especially sensitive to the scope of restrictions in this quarter.
The Group’s revenue is still expected to increase by 20-25% compared to 2020. The main growth drivers are the addition of HSF Logistics Group, the opening of the new route between Ireland and France and an increase in passenger volumes.
- EBITDA outlook raised from DKK 3.0-3.5bn to DKK 3.2-3.6bn for 2021
- Reason: stronger than expected freight results in most business units. There was as anticipated a considerable slowdown in volumes linked to the UK in January following the UK stockbuilding in Q4 2020. Since then, volumes have recovered faster than expected.
- Uncertainty remains high and significant changes to outlook assumptions may still occur in the rest of the year.
- Total volumes in February 2021 were 4.5% above 2020.
- Volumes for routes calling the UK were up 4%.
- North Sea volumes were above 2020 driven by added capacity and continued stabilisation of trade between the UK and the EU, particularly for UK imports.
- Lower UK exports increased the number of empty trailers coming back to the EU.
- Volumes on the English Channel were likewise above 2020.
- Volumes on the new route between Ireland and France continued to be ahead of expectations.
- Baltic Sea volumes were above 2020 adjusted for the closure of the Paldiski-Hanko route. Mediterranean volumes were above 2020 in all main corridors.
- Total number of passengers in February 2021 was 92% below 2020.
- The decrease reflects a continued negative impact from travel restrictions related to Covid-19 on the two cruise ferry routes, of which Oslo-Frederikshavn-Copenhagen was suspended in February, and the Channel.
- In the Baltic Sea, passenger numbers were somewhat below 2020.
New Conference Venues For 2021 And 2022 Underline Interferry’s Global Vision
Interferry has confirmed locations for the 2021 and 2022 editions of its annual conference.
The global trade association’s 46th annual conference will take place in October 2021 in Santander, Spain, hosted by Brittany Ferries
The 2022 edition will be a twin-venue event in Marrakesh and Tangier, Morocco, hosted by FRS.