Cross-Channel route Dieppe – Newhaven remains in the hands of DFDS

By | 2022 Newsletter week 42 | No Comments

The Seine-Maritime Department has confirmed DFDS, the current operator of the Dieppe Newhaven “Transmanche Ferries” route, as the operator until 2027.

Ferry company Brittany Ferries was the other candidate but was not selected.

Ropax ferries SEVEN SISTERS and COTE D’ALBATRE are owned by the region (Syndicat Mixte de Promotion de l’Activité Transmanche) and chartered to DFDS.

In the communication (see French press release on Twitter), a lot of emphasis is put on the values of the French flag against the social dumping on other ferry routes.

https://twitter.com/sebastienjumel/status/1582038633707892739/photo/1

DFDS September Volumes: Freight continues growth in Mediterranean and North Sea

By | 2022 Newsletter week 41 | No Comments

Ferry – freight:

  • Due to lower volumes on the Dover Strait and on the Baltic Sea, total volumes in September 2022 were 7.5% below 2021. Freight volumes were above 2021 in all other regions.
  • North Sea volumes were above 2021 despite a negative impact from a strike in Felixstowe port as volumes to a large extent were diverted to the Immingham port instead.
  • Volumes in the Mediterranean network continued to grow driven by Turkish industrial production and exports.
  • Channel’s volumes were below 2021 following lower activity on the Dover Strait on account of a decrease in total market volumes and addition of capacity by Irish Ferries.
  • Channel’s year-to-date volumes were 0.3% above 2021.
  • Baltic Sea’s volumes were below 2021 due to the war in Ukraine, although to a lower extent than in previous months.
  • For the last twelve months 2022-21, the total transported freight lane metres decreased 1.5% to 43.1m from 43.8m in 2021-20.

Ferry – passenger

  • The number of passengers increased more than three times to 371k equal to 82% of volumes in September 2019, the latest comparable month pre-Covid-19.
  • The number of cars equalled 89% of volumes in 2019. Channel’s volumes were reduced by the addition of capacity by Irish Ferries.
  • For the last twelve months 2022-21, the total number of passengers was 3.3m compared to 0.8m in 2021-20 and 5.1m in 2019.

DFDS August volumes: strong passenger demand, freight remains robust in most regions

By | 2022 Newsletter week 37 | No Comments

Ferry – freight:

  • Due to lower volumes in the Baltic Sea region and on the Dover Strait, total volumes in August 2022 were 5.2% below 2021.
  • Freight volumes were higher than in 2021 in all other regions.
  • North Sea volumes were above 2021 despite a negative impact from a strike in Felixstowe port.
  • Volumes in the Mediterranean network continued to grow, even though fires in the Trieste region held back volumes, driven by higher Turkish industrial production and exports.
  • Channel’s volumes were below 2021 following a decrease on the Dover Strait due to partly lower total market volumes, and partly addition of capacity by a third ferry operator.
  • Baltic Sea’s volumes were below 2021 due to the war in Ukraine.
  • For the last twelve months 2022-21, the total transported freight lane metres decreased 1.4% to 43.3m from 43.9m in 2021-20.

Ferry – passenger:

  • The number of passengers increased fourfold to 693k equal to 82% of volumes in August 2019, the latest comparable month pre-Covid-19.
  • The number of cars equalled 85% of volumes in 2019.
  • The Channel business unit’s volumes were reduced by addition of capacity by a third ferry operator.
  • For the last twelve months 2022-21, the total number of passengers was 3.0m compared to 0.7m in 2021-20 and 5.1m in 2019.

DFDS receives BBB- investment grade credit rating from scope

By | 2022 Newsletter week 35 | No Comments

DFDS A/S has received a first-time issuer rating of BBB- with stable outlook from Scope Ratings GmbH (Scope). DFDS A/S’ senior unsecured debt was also rated BBB- in line with the issuer rating.

The rating corresponds to an investment grade credit rating. It has been obtained to support and enhance access to capital markets as well as to optimise the financing cost on future bond issuances.

Nordea advised DFDS A/S as Sole Rating Advisor in the credit rating process.

Decisive step in the design of the world longest-range, zero-emission ferries

By | 2022 Newsletter week 34 | No Comments

Lloyd’s Register has granted Approval in Principle for the hydrogen-fuelled ferries for Torghatten Nord AS.

This is an important step towards starting the construction of the two ferries. The ferries shall enter operation in October 2025.

Powered by green hydrogen, the two revolutionary ferries will have zero emissions during the 3.5 hours journey between Bodø and Lofoten.

DFDS Q2: Strong growth

By | 2022 Newsletter week 33 | No Comments
  • Q2 EBITDA up 63% to DKK 1.46bn
  • Higher earnings across all business units
  • Passengers coming back faster than expected
  • Extraordinary dividend of DKK 4.00 per share confirmed
  • Full-year EBITDA outlook raised to DKK 4.4-4.8bn on 18 July 2022

Group revenue increased 67% to DKK 7.0bn driven by the ongoing recovery in the number of ferry passengers and yields as well as price increases of freight ferry services and logistics solutions to cover rising energy and other costs. In addition, revenue was increased by the acquisitions of HSF Logistics Group in September 2021 and ICT Logistics in January 2022.

EBITDA increased 63% to DKK 1,459m. The total freight EBITDA for ferry and logistics activities before special items increased 25% to DKK 1,204m driven by higher earnings in all business units.

The total Q2 EBITDA for passenger activities in the Channel, Baltic Sea, and Passenger business units increased to DKK 255m from DKK -70m in 2021 as earnings improved in all three business units on the back of the ongoing recovery in passenger travel. The Q2 passenger EBITDA was 15% below 2019, the latest pre-Covid-19 year.

Outlook 2022

On 18 July 2022, the outlook for EBITDA before special items was raised to DKK 4.4-4.8bn following a stronger than expected recovery in passenger earnings as well as higher freight ferry volumes and earnings (previously DKK 3.9-4.4bn, 2021: DKK 3.4bn). The revenue growth outlook has been updated to around 40% (previously around 35%) due to higher revenue from both passenger and freight activities. The outlook is detailed on page 10 in the full report.

DFDS July volume report: strong passenger recovery, drop in channel freight market

By | 2022 Newsletter week 33 | No Comments

Ferry – freight:

Total volumes in July 2022 were 6.2% below 2021. Activity was overall robust in freight markets except for parts of the Baltic Sea region and the Channel Dover Strait corridor.

North Sea volumes were overall below 2021 as UK routes were on level while routes between Sweden and the Continent were below 2021. The latter decrease was due to lower automotive and paper volumes as well as high activity for these segments last year in July. Volumes in the Mediterranean network continued to grow reflecting a high level of Turkish industrial production and exports.

Channel’s volumes were below 2021 following a decrease in total market volumes. Baltic Sea’s volumes were below 2021 due to the war in Ukraine. Volumes were mainly lower between Germany and Lithuania.

For the last twelve months 2022-21, the total transported freight lane metres decreased 0.6% to 43.6m from 43.9m in 2021-20.

Ferry – passenger:

The number of passengers increased fivefold to 639k equal to 90% of volumes in July 2019, the latest comparable month pre-Covid-19. Transport segments recovered faster than leisure segments. The number of cars equalled 92% of volumes in 2019.

For the last twelve months 2022-21, the total number of passengers was 2.5m compared to 0.8m in 2021-20 and 5.1m in 2019.

DFDS: Niels Bach in memoriam

By | 2022 Newsletter week 33 | No Comments

Former DFDS group CEO Niels Bach passed away at the age of 89 years.

From 1985 to 1998 he headed and navigated DFDS through a very important time. Under his leadership the company managed to turn around from loss making, after a failed American Cruise ferry investment, to the beginning of the strong player in shipping and transport that we know of today.

Niels Bach also held many other top positions in the shipping industry, such as Chairman of the Danish Shipowners association, Port of Frederikshavn and Roblon A/S.

As board member he was very active in The Lauritzen holding, Port of Copenhagen, and Arkil Holding.

Niels Bach was a knight of the Danish order Dannebrog.

DFDS Expands Irish Logistics Network

By | 2022 Newsletter week 30 | No Comments

DFDS has acquired 100% of the share capital of Lucey Transport Logistics Ltd based in Dublin, Ireland.

Lucey Transport Logistics is an Irish provider of transport and logistics solutions, primarily to consumer goods companies. Door-door transports are provided for full- and part-loads as well as distribution services. The logistics solutions include warehousing, inventory management, bonded storage, and product rework and labelling.

Solutions are supported by a distribution centre in Dublin and regional warehousing facilities in key locations across Ireland and Northern Ireland totalling 38k m2. Operations also include 70 trucks and more than 400 trailers. Lucey Transport Logistics was founded in 1932 and has 240 employees. Annual revenue was DKK 240m (EUR 32m) in 2021.

Lucey Transport Logistics adds domestic Irish transport and logistics capabilities that complement DFDS’ existing activities in the region. These include transport and logistics solutions based in Ireland and Northern Ireland, door-door container and trailer solutions between Ireland, the Continent, and the Nordics, as well as a freight ferry route between Ireland and France (Rosslare-Dunkirk).

DFDS’ 2022 Outlook Raised After Strong Q2

By | 2022 Newsletter week 29 | No Comments
  • DFDS’ outlook for 2022 has improved following a strong recovery in passenger earnings in Q2. In addition, freight ferry volumes and earnings were higher than expected.
  • EBITDA outlook raised to DKK 4.4-4.8bn from DKK 3.9-4.4bn for 2022
  • Revenue growth outlook raised to around 35% from around 30%
  • Demand for freight and passenger services is expected to remain robust in the next couple of months. This demand may, however, be dampened later in 2022 by a slowdown driven by developments in the macro environment and by supply chain constraints.
  • Uncertainty remains elevated and significant changes to the outlook may therefore still occur.