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Tag: Pandemic | Ferry Shipping News

Jan 14
1

Viking Line Concludes a Challenging Year

By | 2021 Newsletter week 2 | No Comments

Due to the pandemic, Viking Line’s business environment was extremely unfavorable, with enormous economic consequences for the shipping company.

  • Only 4 of Viking Line’s 7 vessels were in regular service during the year
  • -70% passengers = 1.9 million (6.3)
  • -6.1% cargo units = 125,693 (133,940)
  • High levels of freight on Turku–Mariehamn–Stockholm and Helsinki–Tallinn routes.
  • Also good news: In autumn, Viking Line’s new, climate-smart vessel VIKING GLORY will be delivered and is already attracting great interest.
Oct 22
0

Deterioration in Viking Line’s Results Due to the Impact of the Pandemic

By | 2020 Newsletter week 43 | No Comments

January–September 2020

  • Sales €154.2 million (380.8)
  • Operating revenue €16.7 million (0.2)
  • Operating income €-35.2 million (17.5)
  • Net financial items €-3.1 million (-3.6)
  • Income before taxes €-38.3 million (13.9)
  • Income after taxes €-30.8 million (11.1)

Q3, 2020

Sales €56.6 million (153.8)

Operating income totalled €-7.8 million (26.2)

  • Q3 = most of the Group’s income is usually generated, this year negative
  • A large percentage of the staff in Finland was furloughed.
  • Travel restrictions, inconsistent communication from authorities affected travel and sales.
  • Uninterrupted passenger and cargo service in spite of pandemic
  • Liquidity at end of Q3 was stretched and remained at same level since then. Negotiations with financiers were conducted. On October 15, the Finnish Government issued State guarantees for additional loans totalling €38.7 million, which will secure liquidity.
  • The Finnish Transport and Communication Agency (Traficom) launched a tender process for a public transport service provider on Turku–Mariehamn–Stockholm, Mariehamn–Kapellskär and Helsinki–Tallinn routes. Viking Line intends to take part in the tender process.

Future prospects unchanged: Income for the full financial year will be negative.

Oct 15
1

Fjord Line is Looking for a New CEO

By | 2020 Newsletter week 42 | No Comments

The pandemic continues to pressure the ferry industry in a way never seen before.
This might require another approach in the top management.
Earlier, it was Janette Bell who left P&O Ferries.
On 13 October Arne Roland took over from Rickard Ternblom, who has led Fjord Line since 2015.

Arne Roland will act as CEO until a new is found. Roland has extensive management experience, including from Aker-systemet and CHC Helikopter Service.

Linkedin job offer for new CEO

Sep 03
0

FERRY SHIPPING

By | 2020 Newsletter week 36 | No Comments

A Terrible Summer Season Forces Brittany Ferries to Take Further Action

Brittany Ferries announced the closure of some easterly routes. Caen-Portsmouth however remains open.

Westerly routes will see the arrival of a new vessel in December.

Negative

  • Decision by the UK government to impose quarantine restrictions resulted in 65,000 pax cancellations and less bookings for autumn
  • BF was hoping for a summer season with 350,000 pax (instead of the normal 700,000+)
  • BF will only reach 200,000 passengers maximum
  • Passengers = 75% of BF’s income

Positive

  • BF has re-affirmed that its foundations are strong
  • Reservations for the 2021 season are strong (100,000 pax booked for 2021)
  • Newbuilding GALICIA enters service in December, on UK-Spain

Result

  • Five-year recovery plan
  • Closure of Cherbourg-Portsmouth, Le Havre-Portmouth, Saint-Malo-Portsmouth.
  • Cherbourg-Poole will also remain closed for the remainder of the year (closed since March)
  • CONNEMARA laid up as from 7 September
  • BRETAGNE laid up as from 7 September, no further service until 22nd March
  • BARFLEUR not in service for rest of 2020
  • ETRETAT laid up until further notice
  • KERRY no Roscoff-Rosslare service as from 7 September
  • CAP FINISTERE 3-month technical lay-over as from December
  • ARMORIQUE laid up Q1, 2021
Source: Brittany Ferries
Sep 03
0

Stena Group H1: Strong Tanker Operations versus Ferries and Offshore

By | 2020 Newsletter week 36 | No Comments

The Covid-19 outbreak is affecting Stena’s Business Areas in different ways and there has been a negative financial impact on the Stena AB Group as from mid-March.

EBITDA trends (+/-)

  • -Ferry operations
  • – Offshore drilling
  • +Tanker operations
  • +Property

Key H1 figures Stena AB

  • Total revenues SEK 16,632 million (SEK 16,973 million)
  • Direct operating expenses SEK 12,027 million (SEK 11,287 million)
  • EBITDA SEK 2,894 million (SEK 4,265 million)

Segment: Ferry Operations

  • EBITDA, excluding redundancy costs, SEK 514 million (SEK 1,369 million)
  • Redundancy costs for closing routes amounting to SEK 302 million.
  • Car volumes decreased 53%, passenger volumes decreased 52% and freight volumes decreased 11%.

Segment: RoRo Operations

  • EBITDA from chartering out Roll-on/Roll-off vessels SEK 114 million (SEK 151 million)
  • The decrease is mainly due to lower charter income due to the sale of the vessel KAIARAHI in Q4, 2019.

Change in vessel measurement policy

Stena has decided to change the measurement policy for vessels in the Ferries section and in the Offshore Drilling section as of January 1, 2020.

The remeasurement has:

  • increased the value of ferries with SEK 4.3 billion
  • decreased the value of drilling units in the segment with SEK 3.1 billion

Effect on H1: Depreciation, Amortisation and Impairment Depreciation and amortisation charges increased by SEK 142 million to SEK 3,668 million (SEK 3,526 million)

Outlook

“Given the uncertain situation, it is not currently possible to predict the full potential impact on the Stena AB Group.“

Stena AB Group Q2 and H1, 2020
Sep 03
0

Irish Continental Group H1: Freight is Stable – Strong Liquidity Position

By | 2020 Newsletter week 36 | No Comments

Traffic volumes in H1, 2020 (Ferries Division)

  • -63.9% Passengers 233.9k (648k)
  • -64.9% Cars 56.6k (161.2k)
  • -2.7% RoRo freight 149.4k (153.6k)

Financial figures H1, 2020 (ICG)

  • Revenue EUR 130.8 million (166.8)
  • EBITDA EUR 10 million (30)
  • EBIT EUR -9.5 million (11.6)

Gross cash balances EUR 132.5 million (31 December 2019: 110.9 million).

Net Debt at EUR 103.3 million is 25.7 million lower than at the beginning of the year.

Depressed economic activity and travel restrictions = significant reduction in passenger traffic while freight activity across the Group has been less affected.

The Group has continued to focus on its strategic development and has retained a strong liquidity position.

ICG H1 PPT Presentation
ICG H1 Final Report
Sep 03
0

Color Line’s H1 Affected by Pandemic – Strong Customer Base Is Encouraging

By | 2020 Newsletter week 36 | No Comments

Traffic volumes in H1, 2020:

  • -62% passengers 621,781 (1,634,408)
  • -4.2% freight units 85,759 (89,503)

Financial figures H1, 2020:

  • Operating revenues NOK 1,116 million (2,278) from which:
    • Revenue Cargo NOK 248 million
    • Norwegian Government compensation scheme NOK 129 million.
  • Operating loss/profit NOK -189 million (290)
  • Operating loss (EBIT) NOK -490 million (-8)

Facts

  • Adverse effects in connection with the measures imposed by the authorities in response to the coronavirus.
  • Extensive cost-cutting measures, including temporarily laying off employees (approximately 2 200 personnel).
  • Color Line suspended all passenger traffic on all its services in mid-March, with the exception of two ships operating between Norway and Denmark and a ro-ro vessel operating between Norway and Germany.
  • In mid-June, the company resumed passenger-carrying services between Norway and Denmark. At the same time, services to Germany were again permitted, with passenger embarkation in Oslo only, combined with goods traffic.

Outlook

  • Color Group is expecting to report earnings that are substantially lower than last year, and results will very much be dependent on the nature of the restrictions imposed by the authorities in the coming months.

+    Strong customer base, modern tonnage, excellent track record.

Download the H1 Report 2020
Aug 20
0

FERRY FINANCE

By | 2020 Newsletter week 34 | No Comments

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.

Press Release Viking Line
Aug 13
0

FERRY SHIPPING

By | 2020 Newsletter week 33 | No Comments

According to the recent XRTC Business Consultants report, the Hellenic Coastal Shipping is entering a new era due to the pandemic.

The passenger traffic reduction by 50% will probably cause possible movements within the sector as well as allow new entries.

The most important points of the report are the following:

  • The passenger traffic of 2020 will be reduced by 49% compared to 2019 (about 8,88 million passengers compared to 18,2 million last year). The first five months of 2020 were disappointing for the ferry companies, as there was a drop of 60% in the transport traffic. As a result, only a few ships are currently operating –due to the pandemic- in order to cover the needs of this years’ high season, while many other ships remain moored including the majority of the high-speed crafts.
  • The winter of 2020-2021 will be particularly difficult for the sector, as the revenues from both the first semester and the summer season 2020 is not enough to cover sufficiently the operators’ financial and operational needs. So, the only way to stay afloat is to take a direct state or European subsidy.
  • The Greek ferry market should immediately take action on two levels: The first level is related to its survival while the second to its long-term maintenance and sustainability through European funds. At both levels, state aid is necessary.
  • This year’s financial results are not expected to be positive for the ferry operators, apart from a small number of companies that serve exclusively public interest lines. It is therefore important that both investors and financiers deal with the situation prudently in order to avoid an imminent immediate collapse of the companies.
  • Today, the large ferry operators (Attica Group, Minoan Lines and ANEK Lines) control about half of Greece’s transport traffic. The other half is controlled by comparatively new companies (leading Seajets), who have managed to control – with their fleet (65 conventional and high-speed crafts) – significant shares mainly in the Aegean markets and inter-island travel.
Aug 06
0

Increased Protocol and Strict Measures on Board Greek Ferries

By | 2020 Newsletter week 32 | No Comments

On August 2, the Hellenic Ministry of Shipping and Island Policy announced the change in the health protocol with an increase of the passenger capacity on board coastal ferries to 80%.

The protocol on the ships with cabins is also increased to 85%, while the minimum distance of 1,5 meters is maintained between the passengers.

The passenger and crew cabins would accommodate up to four people if they are first- or second-degree relatives or people with disabilities with their escort.

At the same time, it was decided the mandatory use of face mask –from August 4 to August 18, 2020- inside and outside the ferries.

The passenger protocol in the high-speed crafts will be also increased to 80% only if they have High Efficiency Particulate Air (HEPA) filters and their installation and operation is certified according to the manufacturer’s instructions.

The shipowner, the operator and the ferry masters are responsible for the preparation of the aircraft-type seats coverage plan for each ship. Passengers, masters and crew members are required to comply with COVID-19 outbreak prevention and control measures before boarding, during boarding and when disembarking on passenger – car ferries that perform domestic trips.

For any violation of the provisions and measures the fines imposed are:

  • to passengers, naval agents and crew members the administrative fine is 150 euros
  • to ship-owners, operators and ship masters the administrative fine is 1.000 euros.