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Tag: 2024 | Ferry Shipping News

Nov 14
2

DFDS 2024 Outlook Lowered by Market Slowdown and Termination EKOL Acquisition

By | 2024 Newsletter week 45 | No Comments

DFDS’ EBIT outlook range for 2024 is revised following results below expectations driven by mainly a more widespread slowdown in Europe than previously expected as well as intensified competition in northern European land transport markets and the Mediterranean freight ferry market.

The current market conditions are expected to continue for the rest of the year whilst a rebound in activity was previously expected for the rest of the year.

The termination of the share purchase agreement to acquire the international transport network of EKOL Logistics may moreover in Q4 2024 entail some financial impact.

As a consequence, the EBIT 2024 outlook range is lowered to DKK 1.5-1.7bn from previously DKK 1.7-2.1bn, and the outlook for the adjusted free cash flow is changed to around DKK 1.2bn from previously around DKK 1.5bn.

The revenue growth 2024 outlook is changed to 8-10% from previously 8-11% as revenue from EKOL Logistics was previously included in the revenue outlook.

Oct 25
2

Tallink Grupp Publishes 2024 Q3 Results

By | 2024 Newsletter week 43 | No Comments

Q3

  • Passengers:
    Tallink Grupp carried 1,715,496 passengers in Q3 2024, a 3.4% decrease from 1,775,821 in Q3 2023.
  • Trips:
    The company operated 1,840 trips in Q3 2024, an increase of 131 trips compared to 1,709 trips in Q3 2023.
  • Revenue:
    Revenue for Q3 2024 was EUR 231.9 million, a 3.7% decline from EUR 240.7 million in Q3 2023.
  • EBITDA:
    EBITDA for Q3 2024 stood at EUR 68.4 million, down 16.7% from EUR 82.1 million in Q3 2023.
  • Net Profit:
    Q3 2024 net profit was EUR 36.8 million, a 24.4% decrease compared to EUR 48.7 million in Q3 2023.
  • Liquidity Buffer:
    At the end of Q3 2024, the company’s liquidity buffer amounted to EUR 107.6 million, compared to EUR 199 million at the end of Q3 2023.
  • Investments:
    Investments in Q3 2024 were EUR 5.6 million, down from EUR 6.1 million in Q3 2023.
  • Loan Repayments & Dividends:
    The company repaid loans worth EUR 27 million and made dividend payments of EUR 44.6 million in Q3 2024.

First Nine Months (1 January – 30 September 2024):

  • Revenue: EUR 602.3 million, a 6.1% decline from EUR 641.6 million in the same period in 2023.
  • EBITDA: EUR 149.5 million, down from EUR 177.7 million in 2023.
  • Net profit: EUR 45.5 million, down from EUR 76.7 million in 2023.

The financial result of the first 9 months of 2024 was impacted by the following factors:

  • Low consumer and business confidence in the home markets as well as mounting geopolitical tensions.
  • The number of vessels on charter dropped from 5 in the beginning of the year to 3 as at the end of the third quarter.
  • Sale of the cruise vessel Isabelle in the first quarter of 2024.
  • Two vessels in lay-up including the cruise vessel Romantika the charter agreement of which was prematurely terminated in September 2023 and MV Superfast IX (formerly Atlantic Vision) the charter agreement of which ended in May 2024.
  • Payment of dividends in the amount of EUR 44.6 million in the third quarter of 2024.
  • Income tax expense on dividends in the amount of EUR 9.2 million was recorded in the second quarter of 2024. In the third quarter of 2024, income tax on dividends was paid in the amount of EUR 4.9 million (EUR 4.3 million of the dividend tax expense was offset by prepaid income tax).
  • Repayment of long-term loans in the amount of EUR 59.5 million.

CEO’s Outlook (Paavo Nõgene):
Despite challenging market conditions and the fragile economic environment, Tallink Grupp’s third quarter results are strong. With two vessels suspended, the company has still managed to deliver confidence-inspiring results. The company remains lean and aims to reinstate its regular dividend payments in 2025, barring any unforeseen disruptions during the remainder of the year.

For a more detailed report: Tallink Newsroom

Sep 15
2

DFDS August volumes: good high-season passenger month

By | 2024 Newsletter week 37 | No Comments

Ferry – freight:  

  • Total volumes in August 2024 were 7.4% above 2023 and up 4.4% adjusted for the addition of Strait of Gibraltar routes in 2024 and closure of the Calais-Tilbury route in 2023. 
  • North Sea volumes were above 2023 following mixed activity levels across the route network. Mediterranean volumes were in August above 2023 driven by higher volumes on all routes. 
  • Channel volumes continued in August to be above 2023 as did volumes on the Baltic Sea routes. 
  • For the last twelve months 2024-23, the total transported freight lane metres increased 5.0% to 40.5m from 38.6m in 2023-22. The increase was 2.6% adjusted for the addition of Strait of Gibraltar routes and the Calais-Tilbury route closure. 

Ferry – passenger:  

  • The number of passengers in August 2024 was 68.7% above 2023 and up 9.1% adjusted for the addition of the Strait of Gibraltar routes. The adjusted increase was driven by higher Channel volumes. The number of cars were 55.1% above 2023 and up 9.7% adjusted for Strait of Gibraltar. 
  • For the last twelve months 2024-23, the total number of passengers increased 41.3% to 6.2m compared to 4.4m for 2023-22. The increase was 7.6% adjusted for Strait of Gibraltar. 
Aug 31
2

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

By | 2024 Newsletter week 35 | No Comments

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

Color Line Interim Report H1, 2024

By | 2024 Newsletter week 35 | No Comments

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 24
2

Rederi AB Eckerö H1: All-time high cargo and passenger volumes during the period March to June 

By | 2024 Newsletter week 34 | No Comments

Key points summarising the first six months of 2024: 

  • Passenger and Cargo Records: The period from March to June 2024 saw all-time high cargo and passenger volumes, with March and June setting new records for the Finland-Estonia route. 
  • Impact of Dockings: The docking of FINLANDIA and ECKERÖ at the beginning of the year led to a 6% reduction in departures, contributing to a 6% decrease in total passenger numbers compared to the first half of 2023. 
  • Cargo Growth: Despite fewer departures, cargo volumes grew by 3% compared to the first half of 2023, with a 9% increase in cargo units transported per departure. 
  • Revenue Decline: Sales for the first half of 2024 were 99.5 million EUR, a 3% decrease from the same period in 2023, mainly due to the reduced number of departures. However, sales per passenger increased by 4%. 
  • Profit Margins and Operating Result: The operating result was 2.7 million EUR, down from 6.5 million EUR in the previous year. Adjusted for vessel sales, the operating result was negative at -0.5 million EUR. 
  • Fleet Updates: The company sold SHIPPER in January 2024 for 4.5 million EUR, resulting in a pre-tax profit of 3.2 million EUR. 
  • Market Share: The company’s passenger market share on the Finland-Estonia route decreased slightly to 27%, while the cargo market share remained steady at 36%. The Åland-Sweden route maintained a dominant passenger market share of over 80%. 
  • Fuel Efficiency Gains: The docking and maintenance of FINLANDIA led to a significant improvement in fuel efficiency, with a 12% reduction in fuel consumption compared to the first half of 2023. 
  • Financial Position: Net debt was reduced to 5.5 million EUR by the end of June 2024, down from 10 million EUR at the end of June 2023, while the equity ratio improved to 50.1%. 
  • Outlook: The company reported a strong start to the third quarter, with record cargo and passenger volumes in July, but noted ongoing geopolitical instability as a potential risk factor for the remainder of the year. 

Source: Rederi AB Eckerö PDF 

Photo: Eckerö – Kaupokalda.com  

Aug 17
2

XRTC’s annual report on the Greek ferry industry for 2024

By | 2024 Newsletter week 33 | No Comments

“Greek Ferry Industry 2024: The Green Journey Begins.”  

It is the 23rd annual study conducted by XRTC Business Consultants Ltd. The report (in Greek) provides an economic analysis of major ferry companies such as ANEK, ATTICA, and Minoan Lines, as well as smaller and medium-sized companies within the Greek ferry market. 

 

Key Highlights: 

  1. Mergers and Acquisitions: The report discusses the significant merger of ANEK by ATTICA, making ATTICA the largest ferry operator worldwide in terms of passenger capacity. 
  2. Market Dynamics: The Greek ferry market has evolved into an oligopoly, dominated by ATTICA and Seajets, with a significant presence from the Grimaldi Group through Minoan Lines. 
  3. Financial Performance: The financial performance of major companies in 2023 showed significant improvement, driven by a reduction in fuel costs and an increase in demand. ATTICA and Minoan Lines, in particular, posted strong results. 
  4. Challenges and Investments: The report identifies challenges such as the need for fleet renewal and environmental upgrades, with companies like ATTICA and Minoan Lines planning investments in new ships to meet environmental standards. However, smaller companies face difficulties in accessing financing. 
  5. Fuel and Environmental Regulations: New European regulations, including the “FuelEU Maritime” initiative, require the use of low-sulfur fuels, posing additional challenges for the industry. 
  6. Ticket Prices: The report highlights a significant increase in ferry ticket prices over recent years, with some routes seeing up to a 60% increase compared to 2019. The high cost of ferry travel in Greece is noted as being significantly higher than in other parts of Europe. 
  7. Tourism: While the tourism sector in Greece saw a record 33 million visitors in 2023, this has not fully translated into increased ferry usage, as many tourists arrive by air and only use ferries for inter-island travel. 
  8. Hydroplanes: The report also mentions the slow development of hydroplane services in Greece, with only a few water aerodromes fully licensed, though progress is being made. 
Jul 26
2

Tallink Grupp Q2: stable result

By | 2024 Newsletter week 30 | No Comments

Q2 

  • -5.8% passengers (1,451,768)
  • -11.4% cars (209,760)
  • +1.7% freight units (86,813)

Unaudited financial results:

  • -8.5% Consolidated revenue EUR 210.0 million
  • EBITDA EUR 46.6 million (EUR 68.5 million in Q2 2023)
  • Net profit for the period was EUR 6.1 million (EUR 33.4 million in Q2 2023).

H1 

  • -1.4% passengers (2.6 million)
  • Unaudited financial results:
  • -7.6% revenue EUR 370.4 million.
  • EBITDA EUR 81.1 million (EUR 95.6 million in January-June 2023).
  • Net profit was EUR 8.7 million (EUR 28.0 million in January-June 2023).

Some background

Reduced charter revenues with 3 of the company’s vessels chartered out as at the end of the quarter (4 at the beginning of the quarter), compared to 7 vessels chartered out in the same period last year, meaning charter revenues in 2024 were significantly lower.

Two of the company’s vessels currently in lay-up (Romantika and Superfast IX, the charter contracts for which had ended), compared to no vessels in lay-up in Q2 2023.

Results were impacted by the income tax recorded on the dividends in the amount of EUR 9.2 million in the quarter.

Comments by CEO Paavo Nõgene

  • Consumer confidence is showing no signs of improving.
  • Geopolitics have an additional impact on Tallink’s region’s tourism development.
  • Trying to find the best work opportunities for the two vessels currently in lay-up.

CLICK to read AS Tallink Grupp Unaudited Consolidated Interim Report Q2 2024 

Jul 19
2

Growth for Port of Antwerp-Bruges in first half of 2024

By | 2024 Newsletter week 29 | No Comments

Positive trend in container throughput expands to other product groups 

RoRo traffic dropped in the first half of 2024 by 5.7% – a minor improvement compared to the end of the last quarter.  

The congestion at the RoRo terminals persists due to the altered business model of the car manufacturers stockpiling at the ports, decreased ​ demand and delayed exports caused by sailing around the Cape of Good Hope. This resulted in a decrease in throughput for all transport materials by 13.2%. The lower throughput of second-hand cars in particular (-45.8%) contributed to this, followed by high & heavy (-22.7%), trucks (-17.6%) and new cars (-9%).  

Throughput of unaccompanied cargo (excluding containers) carried on RoRo vessels, on the other hand, rose by 2.4%. The decline in throughput to and from the United Kingdom (-4.6%) was more than compensated by an increase in throughput to and from Spain and Portugal (+35%), Scandinavia (+18%) and Ireland (+1.4%). 

For the complete results: Newsroom Port of Antwerp Bruges 

Click for the complete results: Newsroom Port of Antwerp Bruges
May 10
2

DFDS Q1: ahead of expectations for the quarter driven by the Ferry Division

By | 2024 Newsletter week 19 | No Comments

Q1 2024

  • Revenue up 11% to DKK 7.0bn
  • EBIT reduced 45% to DKK 200m
  • Adjusted free cash flow of DKK -327m
  • CO2 ferry emission intensity lowered 3%

OUTLOOK 2024

  • EBIT of DKK 2.0-2.4bn
  • Revenue growth of 8-11%
  • Adjusted free cash flow of around DKK 1.5bn

Torben Carlsen, CEO:

  • 2024 is the first year of new strategy “Moving Together Towards 2030” focused on unlocking the value of DFDS’ expanded network through organic growth and transitioning to become a greener company.
  • Ekol Logistics: transaction is expected to close in Q4 2024.
  • FRS: the newly acquired ferry routes on the Strait of Gibraltar were off to a good start.
  • High priority: improving earnings for activities that currently face market headwinds such as the Baltic Sea and Channel ferry networks as well parts of Cold Chain logistics activities.
  • The short-term decarbonisation of ferry activities is on target, and in parallel DFDS is laying the groundwork to achieve its ambition of having six green ferries on the water by the end of 2030.
  • Market environment remains mixed: a higher than expected pick-up in ferry volumes across most of the network in Q1 while land transport network mostly faced flat or lower volumes.
  • Persistent overcapacity enhanced pricing pressure in certain market areas.
  • “While we are on track to deliver on our outlook, we continue to focus on improving profit through operational efficiencies across our network in parallel with the execution of our strategy.”

Click on cover to read more