- Cargo handling increased by 8.25 % in H1
- Of the 100,000 trucks and trailers handled, more than half were unaccompanied for the first time.
- The largest increases were recorded on the routes to Gothenburg and to Klaipeda. In total, 3.66 million tonnes of freight were handled in Kiel in the first half of the year.
- The strongest part the Ostuferhafen with the forest products and logistics centre. (DFDS: 9 departures / week).
- Restart in June of Kiel – Oslo route by Color Line.
- Three more vessels to be converted in zero-emission
Fjord1 has contracted Norwegian Electric Systems (NES) to act as system integrator and deliver power control, distribution and battery systems on three ferries set to be converted from gas and diesel propulsion to zero-emission battery operation.
NES will also deliver equipment and control systems for four battery charging stations.
After this, NES will have installed battery systems on board 21 zero-emission ferries.
Once converted, the three vessels will operate on the Drag – Kjøpsvik and Bognes – Skarberget ferry services in North Norway, from December 2022.
Photo, from left: SVP Sales at NES Stein Ruben Larsen, Sales manager at NES Martin Aasheim and Project and Technology Manager at Fjord1 ASA, Nils Kristian Berge.
Tersan signed a contract with Norway’s Fjord1 ASA for the construction of two environmentally friendly vehicle and passenger ferries.
- To be delivered in Q2, 2023
- Designed by HAV Design firm
- Length 84 metres / 248 people including crew / 80 cars / 6 trucks.
- Fast charging of batteries during port call
- Able to operate in all-electric mode, hybrid mode and diesel-electric mode
- Routes: Stranda – Liabygda (NB1113) and Eidsdal – Linge (NB1114)
- NB1113 and NB1114 will be the 8th and 9th ferry that Tersan will build for Fjord1
- -8% Revenue (NOK 691 million) because of the phasing out of one ferry contract and lower revenue in the Catering segment due to the pandemic.
- +2% EBITDA (NOK 198 million)
- EBITDA margin increasing to 29% from 26% The improvement in margin reflects lower operating costs for the electric vessels.
- Investments amounted to NOK 124 million in the first quarter.
- Net interest-bearing debt (NIBD) stood at NOK 5,400 million as of 31 March, a decline of NOK 103 million from the close of 2020.
- Fjord1’s long-term contract portfolio, is worth NOK 21.2 billion
Fjord1 is confident that there will continue to be a strong demand for safe, environmentally-friendly and reliable transport in coastal regions in the future. Fjord1 assesses new tender opportunities in the Norwegian market on an ongoing basis, as well as opportunities outside of Norway.
The company expects more moderate revenue growth in 2021, with cost improvements continuing to support operating margins.
- Statens Vegvesen (Norway’s Road Administration) has set Fjord1 ASA as the winner of the contract for operating the two connections Bognes – Skarberget and Drag – Kjøpsvik in Nordland.
- The contract is for 10 years (01.12.2022 until 30.11.2032, with an 18-month extension option).
- The route is actually operated by Torghatten Nord.
- One of the conditions was the zero-emission character of the operation.
With more new vessels added, and new route contracts, the ferry division of Fjord1 has done a good job with a revenue increase of 14%.
The tourism division (fjord sightseeing etc) was of course affected by the absence of foreign travellers.
- New ferry contracts secured revenue growth of 9% and EBITDA-margin of 33%
- Ferry and Passenger Boats are shielded by contract structures based on capacity and sailing frequency, not traffic volumes.
- Continued operating profit for Catering despite revenue reduction
- Negative results from joint ventures and associates in Tourism due to strict Covid-19 travel restrictions. There was rise in domestic tourism in July.
Ferry Division Q2
+14% Revenue NOK 698 million (612)
+17% EBITDA NOK 227 million (194)
+15% EBIT NOK 112 million (97)
Fjord1 now has 5 “electric” routes
- Anda-Lote on E39 outside Sandane (GLOPPEFJORD and EIDSFJORD)
- Krokeide-Hufthammar outside Bergen (MØKSTRAFJORD and HORGEFJORD)
- Husavik – Sandvikvåg outside Bergen (HUSAVIK)
- Brekstad-Valset in Trøndelag (VESTRÅTT and AUSTRÅTT)
- Hareid-Sulesund on Sunnmøre (HADARØY, GISKØY and SULØY)
Renewal programme comprising 25 vessels coming to an end
- Delivered in Q1: FLORØY, SILDAFJORD, GRIP, BØMLAFJORD and SMØLA
- Delivered in June: MØRING
- The last vessel in the current programme was delivered in August
Fjord1’s Second Largest Owner Sells To Havila
Perestroika AS, a company controlled by Frederik W. Mohn, has on 13 May 2020 entered into an agreement with Havila Holding AS and Havilafjord
Holding 2 AS to sell all of its shares in Fjord1 ASA, constituting 18.459.849 shares, and representing 18.46% of the issued share capital of Fjord1.
Following completion of the transaction, Perestroika will no longer hold any shares or votes in the Company.
Perestroika was the second largest shareholder f Fjord1, after Havilafjord AS. Perestrika is a company from Frederik W. Mohn, one of Norway’s richest people.
Havila shipowner Per Sævik is now by far the largest owner of Fjord1.
- Revenue NOK 752 million (+17%) after the start-up of new routes on 1 January 2020
- EBITDA NOK 194 million (+23%)
- Reduced frequency on ferry and passenger boat routes due to travel restrictions have had a limited financial impact, although the effects on Catering and Tourism have been significant.
- The vessel renewal programme is coming to an end, with five vessels delivered in Q1. Two deliveries remain out of a total of 25 new and upgraded vessels.
- Fjord1 views 2020 as a ramp-up year, with the start-up of several new ferry contracts, the completion of the vessel newbuild programme and further progress in the electrification of the fleet. Fjord1 is well-equipped to navigate this more uncertain market environment, with a long-term contract portfolio of NOK 22.8 billion and exciting long-term prospects in the tourism industry.
- Travel restrictions for technical personnel from Germany and Italy may delay the completion of electrification infrastructure. Such delays could postpone the start-up of fully electric ferry routes. This will in turn, postpone the release of government-funded NOx compensation for the new vessels, public infrastructure payments and expected fuel cost savings, as well as the turning point of the net interest-bearing debt.
- Fjord1 believes there will be demand for safe, environmentally friendly and reliable transport in coastal regions in the future.
- Fjord1 assesses new tender opportunities in the Norwegian market on an ongoing basis, as well as opportunities outside of Norway.
- Fjord1 has a strong contract portfolio of NOK 22.8 billion in total value through 2033, excluding options and index regulation.
- In 2020, revenue is expected to grow by 10-15% compared with 2019. The increase will be driven by the new ferry connections that started 1 January 2020.
- Revenue NOK 2,724 million (-12%)
- EBITDA NOK 819 million
- Net profit NOK 215 million
- Award of the long-term Halsa-Kanestraum contract for 2021-2030
- Delivery of 9 new hybrid vessels and major retrofit of 3 existing vessels.
“2019 was a transitional year with contract portfolio changes and significant investments. We are currently about to complete a comprehensive vessel renewal programme which will turn the vessel fleet into the largest electrified vessel fleets in Norway, resulting in significantly improvement of our environmental footprint. The investment programme is a key step towards our vision to become the most environmentally friendly provider of ferry transportation and to realise the value creation potential that lies in our large long-term contract portfolio”, says Dagfinn Neteland, CEO
2020: 9 new connections
- New contracts started 1 January.
- Revenues in 2020 are expected to increase by 10-15% compared to 2019. Operational cost will be impacted by timing of infrastructure completion.
- Net interest-bearing debt is expected to reverse during 2020 as the vessel renewal programme is completed in 1H 2020, operational cash flow is set to improve, and more infrastructure assets are sold.
- The completion of the newbuild programme marks a major leap for Fjord1 towards an electrified fleet with low- or zero emissions.
- The transition towards a low emission fleet is expected to continue gradually with additional upgrades of existing vessels for use of electricity. The timing of electrification depends on completion of onshore infrastructure.
Havila Becomes Major Shareholder of Fjord1
On Monday 9 December 2019, Per Sævik’s Shipping company Havila (through its wholly owned subsidiary Havilafjordn Holding AS) bought for NOK 676 million shares in Fjord1. By this move, Havila holds 66.5% of the Fjord1 shares.
On Tuesday 10 December, Havila secured capital for the acquisition from a fund managed by Vision Ridge Partners. Together they hold 70.35 million shares, representing 70.35% of the shares of Fjord1.
The intention of the parties is to cooperate as partners in developing Fjord1 into an integrated transportation and tourism company, through a potential consolidation with Havila Kystruten AS. Havila Kystruten has four ships under construction, to be used as from 2021 on the Norwegian Coast. (remark: two of these ships, to be built by Barreras, have been canceled)
Frederik Wilhelm Mohn has in the meanwhile announced that he resigns from the Board of Directors in Fjord1 ASA with immediate effect.