Safe Restart Funding Helps BC Ferries Address COVID-19 Impacts

By | 2021 Newsletter week 8 | No Comments

Q3

-39.6% or 2.9 million passengers

-22.3% or 1.6 million vehicles

Year-to-date

-42.1% or 10.6 million passengers

-26.9% or 5.3 million vehicles

The effects of COVID-19 have negatively impacted BC Ferries’ traffic and revenues over the current year. This trend is expected to continue in the near term as the province recovers from the effects of the pandemic.

In December 2020, BC Ferries received $308 million from the Safe Restart Program, a federal-provincial initiative.

BC Ferries applied nine months’ worth of Safe Restart funding, or $154.8 million, to Q3 revenues. Without this relief, the net loss for the three months ended December 31, 2020 would have been $56.4 million.

As a result of the funding, BC Ferries recorded net earnings of $98.4 million for the three months ended December 31, 2020, compared to a net loss of $8.3 million in the same quarter in the prior year.

On a year-to-date basis, BC Ferries’ net earnings were $74.3 million to December 31, 2020. Without federal-provincial Safe Restart funding, the company would have had a net loss of $80.5 million, compared to net earnings of $98.9 million in the same period in the prior year.

The Year Was A Real Challenge For Wasaline

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Due to Covid-19 the turnover decreased during the year with 46.4%.

The passenger turnover decreased by 71.8% and passenger volume by 72%.

Turnover for the cargo traffic increased with 7.5% and cargo volume increased with 6.6%.

The operating result decreased with 133% = €-745,000 (€2,114,000)

  • Passengers: 57,415 (204,704)
  • Cars: 14,532 (46,312)
  • Cargo units: 16,969 (15,913)
  • Departures: 816 (826)

The pandemic will strongly affect Wasalines result also in 2021.

Restrictions are expected to continue during the year.

During the year the newbuilding project with AURORA BOTNIA has proceeded according to the plan at RMC, Rauma and will continue intensively until the delivery expected in April-May 2021. There is a risk of delay in the delivery, though, due to the Covid-19.

Tallink Grupp’s Latest Statistics Reveal Impact of Pandemic

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Tallink’s Q4 and December statistics reveal the total impact of COVID-19 on the company’s annual passenger, vehicle and cargo figures.

  • -61.8% passengers in 2020
  • -82.5% Latvia-Sweden
  • -81.9% Estonia-Sweden
  • -66.1% Finland-Sweden
  • -52.3% Estonia-Finland
  • -36.7% passenger vehicles in 2020

Despite the many challenges during the year, the company transported a total of 359,811 units of cargo during 2020, which is only 5.2% less than during the full year 2019.

Paavo Nõgene, CEO of Tallink Grupp, said commenting on the results, “…. the company has weathered this storm as well as possible… and we are ready to carry on our battle through the storms and are determined to begin the road to recovery in 2021”

Passenger-driven Company BC Ferries Suffers from Pandemic

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BC Ferries released its second quarter results today for the three and six months ended September 30, 2020. COVID-19 continues to have a significant impact on the company’s operations and financial results.

  • Net earnings for Q2 of fiscal 2021 were $37.8 million, $57.2 million lower than the same quarter of the previous year.
  • Year-to-date, since April 1, 2020, net losses were $24.2 million, compared to net earnings of $107.2 million in the same period in the prior year, a decline of $131.4 million.
  • Revenue for Q2, at $247.6 million, was down $81.7 million year-over-year.
  • Revenue for the six months ended September 30, 2020 was $385.0 million, down $190.7 million over the same period in the prior year.

During the quarter, BC Ferries carried:

  • 5.5 million passengers (-29%)
  • 2.5 million vehicles (-14%)

Year-to-date, the company has carried:

  • 7.7 million passengers (-43%)
  • 3.8 million vehicles, (-28.7%)

Covid-19 Hits Tallink Grupp’s Employees and Q3 Results

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“Having started the year with over 7,200 dedicated employees in the group this year, we are faced with the reality of this number of good employees, dedicated and passionate tourism sector people in our company falling below the 5,000 mark by the end of this year.”

Tallink Grupp’s CEO Paavo Nõgene

Q3 is normally the high season for Tallink Grupp. This year it has been heavily affected by the pandemic and its travel restrictions.

  • -7% Trips
  • -55.8% Passengers
  • -1.9% Cargo units
  • -50.0% Consolidated revenue

EBITDA was EUR 5.7 million (EUR 83.2 million in Q3 2019)

Net loss was EUR 23.9 million (EUR 54.6 million in Q3 2019).

Q3 financial result was impacted by the following factors:

  • Significant decrease in operating expenses
  • Negative impact from one-off costs related to redundancies process in the amount of EUR 3.1 million
  • Positive impact from support measures, including the temporary salary compensation measure in Sweden and exemption from ships’ fairway dues in Estonia.

Outlook: “Due to the ongoing Covid-19 situation the earnings outlook has become uncertain and continues to be largely subject to external factors such as the states’ decisions regarding the timing of lifting of the travel restrictions, allowing passenger traffic as well as the duration of the recovery period.”

Portsmouth Port Leads the Way in Covid-19 Readiness

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Portsmouth International Port says in a press release that it has become one of the first in the UK, recognised by independent assessors, for its new protocols to manage and reduce the risk of COVID-19 infections.

Portsmouth is a major transport hub, with passenger sailings now operating again between France and Spain, and its continued role as a lifeline route for the Channel Islands. The port had to quickly adopt government safety measures to protect both staff and customers.

Andrew Williamson, passenger operations manager said: “Our aim was to give passengers confidence that the new preventative measures we have put into place are of the highest standard, and to highlight the benefits of international travel by sea. This verification from DNV GL provides further reassurance about the efforts we are taking to keep them safe.”

Port of Piraeus PPA Weathers the Covid Storm Pretty Well

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  • -5.8% turnover EUR 66.5 million (70.6)
  • -4.7% profit before tax EUR 20.9 million (21.9)
  • -2.2% earning after taxes EUR 15.5 million (15.9)

This change is mainly due to the significant reduction of revenues from:

  • the cruise sector EUR 3.7 million,
  • the revenues of the Coastal Shipping sector by EUR 1.6 million
  • the revenues from the Car Terminal by EUR 2.2 million

The above decrease was mainly counterbalanced by an increase in revenues at the Container Terminal and revenues from the Ship Repair sector.

The Danes Stayed in Denmark: Record Summer Figures for Molslinjen

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The summer season on Bornholm has broken all records.

Because of Covid-19, Germans couldn’t come to the Danish island. Instead, Corona motivated Danish people to spend their holiday on Bornholm.

Molslinjen, which operates the ferry routes to and from Bornholm, saw record figures from week 26 to 34.

  • +2.7% passengers (in total 643,841)
  • +15.0% cars
  • -21.5% German tourists

Molslinjen operated two catamarans between Ystad and Rønne.

Pandemic Affects BC Ferries’ Q1 Results of Fiscal 2021

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COVID-19 had a significant impact on first quarter results (April-May-June)

  • Net losses CAD 62 million (net earnings CAD 12.2 million)
  • Revenue CAD 137.4 million (CAD 246.4 million)

At the outset of the pandemic, ferry traffic dropped dramatically and was down 75 to 80% across the system in a matter of days. With the easing of travel restrictions, traffic at the end of June partially recovered and was down approximately 35% compared to this period last year.

  • -11.4% round trips 18,249.5
  • -61.5% passengers 2.2 million
  • -46.7% vehicles 1.3 million

BC Ferries is one of the entities included in the federal government’s transit funding of $540 million in response to the impact of COVID-19. This transit funding is to be matched equally by the Province for a total funding envelope of CAD 1.08 billion.

FERRY FINANCE

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Sharp Deterioration In Viking Line’s Results Due To The Impact Of COVID-19

Sales

  • H1 -57% EUR 97.5 million (227.0)
  • Q2 -82% EUR 22.6 million (131.1)
  • H1 Operating income EUR -27.4 million (-8.8)
  • H1 Net financial items EUR -2.1 million (-2.2)
  • H1 Income before taxes EUR -29.5 million (-11.0).
  • H1 Income after taxes EUR -23.7 million (-8.7).

The ongoing COVID-19 pandemic has caused a serious deterioration in the Group’s operating conditions. Viking Line reacted quickly to the crisis and adjusted operations to the changed market. Salary and other employment benefit expenses decreased during the second quarter. A large percentage of the staff in Finland was furloughed. In Sweden and Estonia, government-funded furloughs were also made use of.

During the period March 19-June 18, the group received aid from Finland’s National Emergency Supply Agency for cargo traffic to ensure the security of supply for four of the Group’s vessels serving the Turku – Långnäs – Stockholm, Mariehamn – Kapellskär and Helsinki – Tallinn routes.

The Group’s three other vessels were not in service at times during the period March – June. Although cargo traffic generated revenue to cover variable costs and a small percentage of fixed costs for each vessel during the second quarter, it did not generate positive operating income for the vessels in service that received aid

Revised Outlook

Change in prospects: The impact of COVID-19 pandemic has continued to cause a deterioration in the Group’s consolidated results and financial position during the peak season as well. Results for Q3, when the most of the Group’s income for the year is generated, will be significantly worse than in previous years due to the COVID-19 pandemic. The earnings outlook for the financial year 2020 has therefore been revised. Income for the full financial year will be negative.