- 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.
The two ferries were built to enter service on 1 January 2020, on the route Magerholm – Sykkylven.
Regular crossings will be on battery, however, if needed there is a backup with biofuel.
The ferries are equipped with four engines from Norwegian Electric Systems, who also supplied power systems, switchboards etc.. The propulsion system comes from Kongsberg and the batteries are from Corvus and NES.
Q3 key figures
-14% Turnover NOK 705 million
+28% EBITDA NOK 278 million
+68% Net profit after tax NOK 115 million
- The profit contribution has been positive from all segments (ferry, passenger boat, catering and tourist).
- Sales will grow next year when new contracts start on 1 January 2020.
- 2019 is a transitional year with changes in the contract portfolio and major investments in zero- and low-emission vessels and the development of charging infrastructure.
- Fjord1 currently has 17 hybrid electric vessels in the ferry fleet and by the second half of 2020 the company will have an additional 13 hybrid electric vessels in operation. On January 1st, Fjord1 will start operating nine new connections in Hordaland, all with new environmentally friendly technology. A large part of the ferry fleet in Fjord1 will be zero emissions and contribute to a positive effect on the environmental footprint through significantly reduced CO2 emissions.
- During the second half of 2020, the company will operate 30 electric ferries and 19 connections will be electrified. The Anda-Lote connection has been running electric for 1.5 years, and experience after passing 50,000 charges shows that the technology works as expected.
Fjord1 Q2/H1: Lower Volumes And High Investments In A Transition Year
Fjord1 reports revenue of NOK 689 million, EBITDA of NOK 225 million and net profit after tax of NOK 104 million in the second quarter.
Financial result impacted by temporary revenue decline mainly explained by transitional changes in the ferry portfolio
Overall stable operations in a period with high overall activity due to preparations of new contracts starting up in 2020 and seasonal variations
High investments in newbuilds, rebuilds, quays and infrastructure to allow for zero- and low emission fuel and strengthen competitiveness in future tenders
Temporary increase in net interest bearing debt (NIBD) to 3.7 billion – remaining in compliance with loan covenants
Current year is a transitional year for Fjord1 with significant investments in vessels and infrastructure combined with preparations for start-up of new contracts next year. This led to a decline in revenue and EBITDA and an increase in the NIBD level in Q2 compared to last year.
In addition, the loss of the high traffic route Halhjem-Sandvikvåg in Bjørnefjorden, with effect from 1 January 2019, explains lower volumes and revenues in Q2.
“Despite that we are in a transitional year with lower volumes and large investments, we have positive results in all four segments and EBITDA-margin of 33% which is at the same level as second quarter last year.”, says Dagfinn Neteland, CEO
“We are satisfied with the operational progress in the second quarter. Following quarter end, we are pleased to have signed the contract for the Halsa-Kanestraum connection for the period 2021-2030. The signing on 16 August, marks our position as a leading player in the Norwegian ferry market”, says Neteland
Revenue of NOK 1.329 million, EBITDA of NOK 383 million and net profit after tax of NOK 118 million
The revenue was down by 12% compared to first half 2018, mainly explained by the ongoing transitional changes in the ferry portfolio and loss of high traffic route Halhjem-Sandvikvåg. The revenue is temporarily down in 2019 but set to grow with new contracts starting up 1 January 2020.