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Tag: Gotlandsbolaget | Ferry Shipping News

Dec 20
2

Paving the Way for Climate-Neutral Shipping: Gotlandsbolaget’s Major Biogas Investment

By | 2024 Newsletter week 51 | No Comments

Gotlandsbolaget is taking a giant step towards achieving climate-neutral crossings between Gotland and the mainland by 2045

Partnering with Andion CH4 Renewables and Equitix New Generation Fund, Gotlandsbolaget is investing in a state-of-the-art biogas plant near Eskilstuna, scheduled to produce high-quality liquefied biogas (LBG) by the end of 2026.

Key highlights:

  • 5,400 tonnes of high-quality LBG annually.
  • A 10-year agreement with Destination Gotland to purchase the majority of the plant’s output.
  • 100,000 tonnes of CO₂ reduction over a decade compared to fossil LNG.

Photo: Mike Louagie

Dec 02
2

Summary of Gotlandsbolaget Quarterly Report (January–September 2024)

By | 2024 Newsletter week 48 | No Comments

Financial Performance (July–September 2024)

  • Revenue: 1,002.7 MSEK (up from 968.5 MSEK in 2023).
  • Adjusted operating profit: 318.2 MSEK (up from 277.6 MSEK in 2023).
  • Net profit after tax: 230.4 MSEK (down from 247.2 MSEK in 2023).
  • Earnings per share: 92.2 SEK (98.9 SEK in 2023).

Financial Performance (January–September 2024)

  • Revenue: 1,991.7 MSEK (up from 1,895.5 MSEK in 2023).
  • Adjusted operating profit: 278.8 MSEK (up from 222.9 MSEK in 2023).
  • Net profit after tax: 322.7 MSEK (down from 503.1 MSEK in 2023).
  • Cash flow from operations: 617.1 MSEK (up from 483.0 MSEK in 2023).

Key Events (Q3 2024)

  • Successful summer season for Birka Gotland, with nearly 38,000 passengers during 27 calls to Gotland.
  • Preparations completed for the acquisition of the Oslo-Fredrikshavn-Copenhagen route, officially taken over on 31 October 2024.
  • Announcement of funding for hydrogen supply system research at Uppsala University Campus Gotland.

Key Events Post-Q3 2024

  • Acquisition of Crown Seaways (1994) and Pearl Seaways (1989) from DFDS, with plans for extensive onboard investments.
  • Swedish government confirmed inclusion of Gotland ferry traffic in the FuelEU Maritime requirements, encouraging emissions reduction.

Strategic Focus

  • Expansion in Nordic passenger shipping, including the Oslo-Fredrikshavn-Copenhagen line.
  • Development of next-generation eco-friendly vessels, including the Horizon series and hydrogen-powered Horizon X catamaran.
  • Commitment to climate-neutral Gotland ferry traffic by 2045, contingent on improved infrastructure for fossil-free fuels.

Challenges and Initiatives

  • Decrease in passenger numbers (-1.5%) and vehicle volumes (-2.2%) in Q3 2024.
  • Efforts to advocate for the inclusion of Gotland traffic in Swedish tonnage tax reforms to ensure competitiveness.

Financial Stability

  • Equity attributable to shareholders: 5,502.1 MSEK.
  • Solid liquidity with cash and short-term investments totaling 4,337.8 MSEK.
  • Reduced investments compared to the previous year, primarily focused on ship renovations and property upgrades.

For further details, refer to the full report on Gotlandsbolaget’s website.

Aug 24
2

Q2/H1 Results Gotlandsbolaget

By | 2024 Newsletter week 34 | No Comments
  • Revenue and Profitability: Revenue for January-June 2024 increased to 989.0 MSEK, with a reduced operating loss of -39.4 MSEK, driven by stronger results in Gotlandstrafiken. (but also negatively affected by establishment costs from the share in Gotland Alandia Cruises). 
  • Strategic Expansion: Gotlandsbolaget acquired DFDS’s Oslo-Copenhagen route, including two cruise ferries and 800 employees, aligning with their growth strategy in passenger shipping. 
  • Operational Highlights: Renewal of the Gotlandstrafiken contract for 2027-2035, with an option for two more years. 
  • Future Outlook: Focus on expanding on-land operations on Gotland and enhancing energy and technology initiatives. 

At the end of June, Gotlandsbolaget secured the contract to operate Gotlandstrafiken from 2027 to 2035, with an option for a two-year extension. The bid, which was competitive across the EU, is based on using a Swedish flag, Swedish crew, and Swedish agreements, with financial and strategic management handled by a Danish subsidiary. If Sweden updates its tonnage tax system, Gotlandsbolaget plans to shift full management responsibilities back to Gotland, pending a government decision by 2025. 

Source: Gotlandsbolaget (in Swedish) 

Jun 14
2

DFDS to sell Oslo-Frederikshavn-Copenhagen route to Gotlandsbolaget

By | 2024 Newsletter week 24 | No Comments

DFDS has agreed to sell the Oslo-Frederikshavn-Copenhagen cruise ferry route to Gotlandsbolaget, with the sale expected to be completed in October 2024.

The Oslo-Frederikshavn-Copenhagen route

  • 700,000 passengers annually
  • Limited freight
  • Two cruise ferries: Pearl Seaways and Crown Seaways
  • 800 employees
  • Generated DKK 0.9bn in revenue in 2023, representing 3% of DFDS Group’s total revenue.
  • A long-standing part of DFDS since its foundation in 1866 and an important public service in Denmark and Norway.

The sale includes the two ferries, terminal and port agreements, and 800 employees, with DFDS providing certain support services post-sale for a limited time. The sale price is around DKK 400m.

The deal comes about a year after Gotlandsbolaget bought Birka Stockholm (now Birka Gotland) . It is for the Swedish company yet another step in the strategic direction to expand in passenger shipping.

The two vessels will not be reflagged in connection with the transaction and no layoffs are planned as part of the transfer of the route.

Mar 22
1

Gotlandsbolaget: 2023 marked by economic recovery

By | 2024 newsletter week 12 | No Comments
  • Entered 2023 with historic loss but made necessary decisions in 2022.
  • Economic recovery in 2023 due to stabilized fuel costs, streamlining, and adjusted ticket prices.
  • Achieved adjusted operating profit of 161.7 MSEK, turning loss into profit.

Financial performance:

  • Revenues at 2,366.4 MSEK, lower than previous year.
  • Costs at -2,187.6 MSEK, lower due to discontinuation of Rostock line and vessel divestment.

Transition in fuel:

  • Shifted from LNG to MGO in 2022 to mitigate fuel cost increases and avoid Russian gas.
  • Negative impact on emissions.
  • Started gradual return to LNG due to stabilized fuel prices.

Long-term goal of climate-neutral travel by 2045 remains despite challenges.

  • Challenges include low requirements in ongoing tender by Trafikverket for new technology investments.

Gotlandstrafiken’s role:

  • Submitted bids for 2027-2035 concession period.
  • Confidence in ability to adapt regardless of concession outcome.
  • Opportunity to operate during peak demand even without main concession.

Focus on development and expansion:

  • Strong liquidity supports investment in ships, properties, and new ventures.
  • Acquisition of Birka Gotland and partnership with Viking Line for Baltic cruises signals focus on passenger shipping.
  • Investing in biogas production on Gotland and exploring further investments in fossil-free fuels.
  • Exciting prospects and significant investments in local hotel and property operations on Gotland.

Read the annual report (in Swedish) here.

Remark

EQT-owned Molslinjen demands that the tender for the ferry service to Gotland be redone. In a letter to the Minister of Infrastructure and to the Swedish Transport Administration, it is claimed that the tender requirements are bad for the environment and cost the state SEK 5 billion in unnecessary expenses.

Source: Dagens industri (in Swedish, and paywalled)

Feb 23
1

Austal and Gotlandsbolaget sign MOU to construct a multi fuel, low emission, high-speed catamaran

By | 2024 Newsletter week 08 | No Comments

Austal and Gotlandsbolaget have signed a Memorandum of Understanding to develop a construction contract for the ‘Gotland Horizon X’ catamaran concept, first announced in April 2023.

‘Gotland Horizon X’ is a high-speed aluminium catamaran that will utilise gas turbines in a combined cycle to transport up to 1,450 passengers, cargo and vehicles between the Swedish mainland and the island of Gotland.

Under the terms of the MOU and proposed construction contract, the high-speed catamaran will be designed by Austal and constructed at the Austal Philippines shipyard.

Dec 08
0

Viking Line + Gotlandsbolaget = BIRKA GOTLAND

By | 2023 Newsletter week 49 | No Comments

In August, Viking Line and Gotlandsbolaget presented a new joint investment in cruise traffic between Stockholm, Mariehamn and Visby. Now it is clear that the Baltic Sea’s new cruise vessel will be called BIRKA GOTLAND.

Under the leadership of CEO Susanne Kaarnimo-Knight, BIRKA GOTLAND will offer cruises from the end of March 2024.

Around Easter 2024, the first cruise will depart from Stockholm to Mariehamn. During spring and summer, the ship will also go via Visby on selected departures.

After that, the destinations are gradually expanded during the summer months with several popular destinations such as Härnösand, Ystad, Bornholm and Riga.

Nov 24
0

Gotlandsbolaget: Q3 and First 9 Months

By | 2023 Newsletter week 47 | No Comments
  • Despite a slight decrease in the number of travellers, Gotland remains a strong summer destination.
  • Measures taken to strengthen the results, such as efficiency improvements and adjusted ticket prices, have had a positive economic impact, leading to an improved adjusted operating result compared to the loss in 2022.
  • During Q3, Trafikverket distributed the procurement documentation for the contracted Gotland traffic for the period 2027–2035. The primary goal is to renew confidence, but in the event of not winning the contract, there are plans to continue operating traffic between Gotland and the mainland.
  • Additionally, efforts are ongoing for the development of a new cruise line in collaboration with Viking Line, investments in accommodation facilities on Gotland, local biogas production, and technological advancements to reduce emissions from ferry traffic.

Q3, 2023

  • Revenues: SEK 968.5 million (1,140.2)
  • Costs: -690.9 MSEK (-958.4)
    • Revenues and costs are lower than the previous year.
    • Mainly impacted by items related to Stockholms Reparationsvarv and Hansa Destinations.
    • Also influenced by ships sold during the second half of 2022 and the first half of 2023.
  • Adjusted Operating Profit: SEK 277.6 million (181.8)
    • Corresponding to SEK 111.0 (72.7) per share.
    • Improvement due to the negative result for Hansa Destinations in the previous year.
    • Adjusted prices in Gotlandstrafiken and stabilized fuel prices contributed to the improvement.
  • Capital Gains on Sale of Vessels: SEK 19.1 million (0.5) net.
  • Financial Net: SEK 17.3 million (4.8)
    • Higher interest rates and increased investments in the money market.
    • Negative exchange rate effects.
  • Profit After Tax (including capital gains on sales): SEK 247.2 million (162.9)
    • Corresponding to SEK 98.9 (65.1) per share.

First 9 months of 2023

  • Revenues: 1,895.5 MSEK (2,395.3)
  • Costs: -1,711.4 MSEK (-2,363.0)
    • Both revenues and costs for the period are lower than the previous year.
    • Mainly due to the inclusion of items related to Stockholms Reparationsvarv and Hansa Destinations in the previous year.
    • Also influenced by ships sold during the second half of 2022 and the first half of 2023.
  • Adjusted Operating Profit: 222.9 MSEK (32.6)
    • Corresponding to 89.2 SEK (13.0) per share.
    • Improvement attributed to the negative result for Hansa Destinations in the previous year.
    • Adjusted prices in Gotlandstrafiken and stabilized fuel prices contributed to the improvement.
  • Net Capital Gains on Sale of Vessels: 280.3 MSEK (0.4)
  • Financial Net: 137.9 MSEK (10.7)
    • Positive currency exchange effects.
    • Higher interest rates and increased investments in the money market.
  • Profit After Tax (including net capital gains on sales): 503.1 MSEK (11.3)
    • Corresponding to 201.2 SEK (4.5) per share.
Aug 25
0

The Swedish Competition Authority approves cooperation between Gotlandsbolaget and Viking Line

By | 2023 Newsletter week 34 | No Comments

Viking Line and Gotlandsbolaget announced on 9 August 2023 that they are forming a joint company with the task of developing and offering cruises with BIRKA STOCKHOLM between Stockholm-Mariehamn and Stockholm-Mariehamn-Visby.

The completion of this business transaction and the start-up of the new joint venture are contingent on the approval of the Swedish Competition Authority. The Swedish Competition Authority has (on August 23, 2023) announced that they are deciding to leave the concentration without action, which means that the deal is proceeding according to plan.