Stena Group Q1 Interim Report: Covid-19 Impact

By | 2020 Newsletter week 23 | No Comments

Ferry Operations were of course hit by the plunge in passenger volumes and the decrease in freight, due to Covid-19.

  • -53% EBITDA SEK 265 million
  • -10% cars
  • -15% passengers
  • -7% freight

Stena Line has taken steps to mitigate the financial impact of the Covid-19 situation. This includes closure of routes, reducing costs and number of employees.

RoRo Operations: chartering out of vessels

  • -9% EBITDA SEK 70 million

The decrease is mainly due to lower charter income due to the sale of KAIARAHI in the Q4 of 2019 offset by strong contract coverage and utilisation across the fleet.

FERRY FINANCE

By | 2020 Newsletter week 20 | No Comments

“Financial Aid Ok, But In Accordance With Existing Rules,” Says Emanuel Grimaldi

Q1: Finnlines Group’s revenue was almost on previous year’s level

  • Revenue EUR 130.5 million (-5%)
  • Result EUR 20.7 million (+28%)
  • Cargo units 186,000
  • Cars (not including passengers’ cars) 41,000
  • Passengers 121,000

“Operationally the quarter ended in difficult conditions, with a strong impact on passenger transport and a slowed down growth in business globally. Finnlines is not immune to this slowdown in global trade and we also need to mitigate the Covid-19 impact. Thus, we have taken steps to lower costs and have implemented cost-saving plan,” said CEO Mr Grimaldi in a news release.

“Governments across Europe have promised various emergency measures to shipping companies. This can lead to very unfair competition. Any financial aid has to be provided in accordance with existing rules, and that individual companies should not be singled out for support at the expense of more robust rivals. Any aid, either from governmental or from security of supply agencies, should be available to all shipping companies, regardless of their financial strength, in order to avoid distorting the marketplace and risking antitrust complaints. If the state intervenes, it has to intervene in a such way that it does not create unfair competition.”

Tallink Grupp To Get State Loan Up To EUR 100 Million

By | 2020 Newsletter week 20 | No Comments

The Government of the Republic of Estonia today approved the terms of a working capital loan to AS Tallink Grupp. The total amount of the loan limit is EUR 100 million and the loan can be issued in EUR 10-40 million tranches. The interest rate of the three-year maturity loan is 12-month Euribor +2%. The loan must be secured with the assets of the Company’s consolidation group and will be issued by SA KredEx.

The loan still needs to be approved by the Kredex Supervisory Board. This expected on Friday 15 May.

 

Tallink Grupp’s Q1 Shows A Deteriorated Overall Outcome – Freight Is Up

  • Unaudited consolidated revenue EUR 154.9 million (-13.4%)
  • Net loss EUR 30.2 million
  • Unaudited EBITDA EUR -1.3 million (3.8 million in Q1 2019).

The first two months of the year had set the company on a positive trajectory for the year with passenger numbers up in both January and February, by 12.4% and 8% respectively. However, as a state of emergency was declared in Estonia, Latvia and Finland due to the global coronavirus pandemic in mid-March and the company’s home market governments closed borders to stop the spread of the virus, the passenger numbers fell sharply by 59.3% in March and have reduced by 95.9% in April.

Good Start Of A New Era For Fjord1 – Q1 Results

By | 2020 Newsletter week 20 | No Comments

Q1

  • 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.

Outlook

  • 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.

FERRY FINANCE

By | 2020 Newsletter week 17 | No Comments

A Solid DFDS Publishes Preliminary Q1 Figures

  • Preliminary Q1 revenue decreased 1% to DKK 3.8bn (mainly due to drop in passenger revenue) and preliminary EBITDA before special items decreased 10% to DKK 610m.
  • Around half of the decrease in EBITDA was related to lower passenger activity caused by Covid-19. The other half of the decrease was due to a negative Covid-19 impact on freight, increased earnings in the comparison period Q1 2019 from UK stockpiling ahead of Brexit and a lower result for special cargo logistics mainly due to one-off costs.
  • Current key priorities are to take care of employees’ and partners’ health and well-being, to preserve jobs and to continue to provide vital ferry and logistics services for our customers as well as contributing to keeping Europe’s transport infrastructure open for business.
  • DFDS has a solid financial position.
  • Suspension since mid-March of two routes, Copenhagen-Oslo and Amsterdam-Newcastle, with a large overweight of passengers vs freight.
  • Freight capacity reduced since end-March/beginning-April in remaining network of 20 ferry routes that predominantly carry freight. Capacity is reduced through lay-up of currently 12 of 50 ferries as well as other measures to reduce the number of sailings. All 20 routes continue to operate.
  • Channel and Baltic Sea passenger activity reduced to only essential travel. Reduced number of drivers per cabin in Baltic Sea.
  • Participation in government wage and fixed cost compensation programs to preserve affiliation with employees and mitigate financial impacts.
  • Around 2,200 employees so far sent on paid leave within such programs in areas with reduced activity.
  • Cost saving and postponement initiatives, including hiring freeze.
  • Reduction of investments targeting a reduction of around 20% of the investments of DKK 2.3bn planned for 2020.

Key risks

  • Reliability and continuity of operations are contingent on employee health and continued exemption of our operations from lock-down initiatives.
  • Passenger earnings in the high season — June-August — are at risk.
  • Lower activity in certain sectors may reduce freight volumes. The automotive sector is a key risk in this regard.

DFDS expects to publish its final Q1 statements on May 7.

Pandemic Drags Down Viking Line’s Q1 Results

By | 2020 Newsletter week 17 | No Comments

Some key elements of the Q1 report.

  • Passenger traffic is marginal at present, since only the transport of people between the Finnish mainland and Åland is allowed.
  • Quick measures to cut costs have been necessary. Basically the entire staff has been furloughed.
  • Backed by Finland’s National Emergency Supply Agency’s decision to aid cargo traffic to ensure the security of supply, four of the Group’s vessels are serving the Turku – Långnäs (Åland) – Stockholm, Mariehamn – Kapellskär and Helsinki – Tallinn routes. Viking Line’s three other vessels are not in service.
  • While current cargo traffic generates revenue for each vessel to cover variable costs and a small portion of fixed costs, it does not generate positive operating income for the vessels in service.
  • To strengthen liquidity and safeguard the future of the Company, Viking Line has begun negotiations for additional funding. The intention is to use State guarantees proposed in a supplementary budget submitted to the Finnish parliament.
  • Operating income totalled EUR – 21.5m (-14.2).
  • Passenger-related revenue was EUR 63.2m (83.0), while cargo revenue amounted to EUR 11.3m (12.3). Net sales revenue was EUR 54.9m (70.1).

FERRY FINANCE

By | 2019 Newsletter week 33 | No Comments

BC Ferries released its Q1 results for the three months ended June 30.

Passenger and vehicle traffic levels are the highest the company has ever experienced in a Q1.

Net earnings for Q1, 2020 were CAD 12.2 million (6.0 million)

In this quarter, BC Ferries invested CAD 26 million as part of its 3.9 billion 12-Year Capital Plan that is focused on replacing ships and upgrading terminals. “We need to replace half of our fleet over the next 15 years as we incorporate clean technology and increase capacity,” said Mark Collins, BC Ferries’ President and CEO.

Moby’s EBITDA Shows Encouraging Positive Trend in Q1

By | 2019 Newsletter week 25 | No Comments

Moby’s EBITDA Shows Encouraging Positive Trend in Q1

Moby Group has published an interesting Q1 report with some positive trends, which show the company is on the path of recovery.

Some figures in million €

  • Revenues 102.2 (89.2 in Q1, 2018)
  • EBITDA recurring 20.2 (-15.6 in Q1, 2018)
  • Operating Profit -2.3 (-30.1 in Q1, 2018)
  • Net Result -15.0 (-40.6 in Q1, 2018)

The positive EBITDA trend is influenced by an increase of Revenue due to a positive performance in freight transport (€8.5m) and due to the capital gain obtained by the subsidiary CIN, consequently the sales of the ferries PUSCHMANN and AURELIA (€15m).

Interesting is also to follow the issues with the Italian Antitrust Authority. The Regional Administrative court of Lazio has issued a final judgment on the appeal finding that a significant part of the conduct alleged by the Italian Antitrust Authority had not been correctly verified.

The company also mentions in the report the two new Chinese-built vessels, which are expected in 2020 and 2021.

INTERESTING READS

By | 2019 Newsletter week 25 | No Comments

NGO ‘Robin Des Bois’ Sees a Drop in Ship Recycling in Q1

In its quarterly report, the NGO analyses the ship recycling.

This year is special, because of the European Regulation No 1257/2013 on ship recycling, which entered into force on 1 January 2019. It applies to ships flying the flag of a Member State which must now be scrapped in an approved yard. The number of approved yards increased from 26 to 34. Two Danish, five Norwegian and one Turkish yards have been added.

Following ferries have been scrapped (Hyperlink connects with Fakta Om Fartyg)

  • ALKYON (ex MAMBRO, SKOPELOS, GOTLANDIA, VIKING 2, GOTLANDIA)
  • EUROPEAN EXPRESS (ex MILLENIUM EXPRESS, HO MARU, TAKASHIHO MARU)
  • HORIZON (ex IONIS, IGNIS, DIGNITY, VIGNESSWARA, FERRY NANIWA).
  • MAWADDAH (ex KING MINOS, ERIMO MARU).
  • UTOPIA IV (ex AKATSUKI, NEW AKATSUKI)

FINANCE

By | 2019 newsletter week 19 | No Comments

Tallink Grupp: Cargo Revenues Continued to Increase, But Overall Revenue for Q1 Was Down

The group reports an unaudited net loss of EUR 25.3 million (net loss of EUR 19.6 million in Q1 2018) and an unaudited total revenue for the quarter of EUR 178.9 million, which is a 2.9% decrease compared to the same period last year.

At the same time, the group’s cargo business continued to increase both in volume and revenue in the first quarter of 2019. The transported cargo volumes increased in total by 2.7%, the cargo revenues increased by 1.5% or EUR 0.4 million and amounted to EUR 29.6 million in the first quarter.

In the Q1 the group made significant investments into the upgrade of its existing fleet with EUR 25.3 million invested mainly into the technical dockings of seven vessels.

Paavo Nõgene, CEO of AS Tallink Grupp said: “The challenging period of dockings is now behind us. Our vessels are fresh, modern and ready to offer our customers new and memorable experiences. We are ready and prepared for the next two quarters of our annual high season and our whole team here at Tallink Grupp will work extremely hard to improve the results of the next months and quarters of 2019.”