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.

FERRY FINANCE

By | 2020 Newsletter week 31 | No Comments

Irish Continental Group H1: Strong Freight Performance Despite Pandemic

It is no surprise to see that the transportation of goods has kept ICG busy, while the passenger figures dropped considerably.

Volumes (Half Year 30 June 2020)

  • -65.0% Cars
  • -2.7% RoRo Freight
  • -11.7% Container Freight (teu)
  • -13.5% Terminal Lifts

H1 Finance (unaudited)

  • -21.6% Consolidated Group revenue €130.8 million
  • -33.3% Total revenues €61.6 million

The decrease was principally due to lower passenger volumes resulting from the travel restrictions introduced across the EU due to the Covid19 pandemic.

FERRY PORTS

By | 2020 Newsletter week 16 | No Comments

Italian Ports 2019 Statistics

Statistics 2019, provided by the Italian ports’ association Assoporti reveal the following trends:

  • -2.3% roro traffic in tons
  • -1.1% roro traffic in units
  • +5.1% passengers or 55,914,734 passengers. Of them, 11,969,005 were from cruise vessels, 17,724,678 from ferries and 26,221,051 were transported on the short sea ferry links and in the Strait of Messina.
  • Cruise market and short sea ferry links increased significantly (respectively +11% and +5%) while the ferry traffic was stable.

MSC Acquires Toll Shipping’s VICTORIAN RELIANCE

By | 2020 Newsletter week 10 | No Comments

A company belonging to Mediterranean Shipping Company bought the 1999-built roro VICTORIAN RELIANCE. The ship is already flying the Portuguese flag (Madeira) and will be renamed JOLLY BLUE.

The name indicates she will be chartered by Ignazio Messina who already operates the sister vessel JOLLY EXPRESS on the Rades (Tunis) – Gioia Tauro (Italy) – Naples (Italy) route.

The roro vessel is on her way to Singapore.

FERRY FINANCE AND STATISTICS

By | 2020 Newsletter week 10 | No Comments

Irish Continental Group plc: Preliminary Statement of Full Year Results

ICG reports a solid financial performance for the year ended 31 December 2019.

Irish Continental Group

+8.2% Revenue

+26.9% EBITDA (pre non-trading items)

+8.2% EBIT (including non-trading items)

  • EBITDA increase of €18.4 million principally due to improved schedule integrity, the introduction of the W.B. YEATS and the implementation of IFRS16.
  • Revenue increased €27.2 million (8.2%) to €357.4 million.
  • B. YEATS cruise ferry delivered in December 2018 and entered service in January 2019.
  • In April 2019, the group entered into a bareboat hire purchase agreement for the sale of the OSCAR WILDE to MSC Mediterranean Shipping Company SA, for a total gross consideration of €28.9 million to be paid in instalments over 6 years. The profit in 2019 from this sale was €14.9 million.
  • Second new cruise ferry investment of €165.2 million ordered in 2018. Contracted for delivery in 2020.

 

Ferries Division

  • +8.3% Revenue
  • +1.8% Operating costs
  • +25.3% EBITDA
  • +7.1% Operating profit
  • +10.4% roro units
  • +2.6% passengers
  • +2.2% car

FERRY FINANCE

By | 2019 Newsletter week 46 | No Comments

Q3 in brief:

  • Q3 EBITDA on level with 2018 despite UK slowdown. This slowdown in trade between UK and continental Europe continued through Q3 and lowered freight volumes on the North Sea ferry routes and passenger volumes on the Channel.
  • Logistics Division increased EBITDA 15% in Q3 as contract logistics in UK & Ireland and other activities across the division performed well despite of the UK slowdown.
  • The Channel freight market share was increased in Q3.
  • Mediterranean’s revenue growth continued but earnings were held back by a rise in costs due to operational challenges. A simplified route and port terminal structure was introduced in Mediterranean at the start of Q4.

+2.0% Revenue DKK 4.5bn

-0.2%  EBITDA DKK 1.2bn

+4.0% Profit before tax DKK 647m

Outlook 2019

Due to the ongoing European slowdown, expected revenue growth is now around 6% (previously: 6-8%). To reflect a reduced risk of a no-deal Brexit occurring in 2019, the outlook range for EBITDA before special items is narrowed to DKK 3.55-3.75bn (previously: DKK 3.5-3.8bn).

FERRY FINANCE

By | 2019 Newsletter week 45 | No Comments

Finnlines Is On Track

The Finnlines Group’s results for January–September were:

  • +0.6% Revenue = EUR 450.8 (447.9) million
  • +6% EBITDA = EUR 136.8 (129.0) million
  • +8.6 Result = EUR 81.8 (75.3) million

In spite of the slowdown in the Finnish economic growth, Finnlines still is on track to achieve another excellent result.

Strong Financial Returns For Scotland’s Ferry Operator

By | 2019 Newsletter week 45 | No Comments

Transport and logistics operator, David MacBrayne Ltd, which operates CalMac Ferries has seen an increasing number of passengers visiting the iconic Scottish western isles.

For the first time, CalMac carried more than 5.6 million passengers and more than 1.4 million vehicles as part of yet another year on year increase.

  • +2.3% Revenue = GBP 215 million (210)
  • +69% Profit before tax GBP 7.1 million (4.2)

FERRY FINANCE

By | 2019 Newsletter week 34 | No Comments

Fjord1 Q2/H1: Lower Volumes And High Investments In A Transition Year

Q2, 2019

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

H1, 2019

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.

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.