Scandlines improved performance in a challenging market in 2021

By | 2022 Newsletter week 17 | No Comments
  • Scandlines navigated market volatility and the impact of COVID-19 in 2021 and maintained margins thanks to a dedicated team effort and strict cost control.
  • Scandlines solidified its position as a green front-runner with a long-term investment in a new emission-free freight ferry and ambitions of making the Puttgarden-Rødby route emission free by 2030 and realising its zero-emission vision by 2040.
  • Traffic continued to fluctuate substantially in 2021 following political decisions to impose and lift travel restrictions in Scandlines’ markets in response to developments in COVID-19.
  • Based on a gradual rebound in traffic volume compared to 2020, Scandlines grew revenue by 20% to EUR 328 million and maintained the EBITDA margin at 41% following tight cost control measures and efficiency enhancements.
  • The two ferry routes generated revenue of EUR 260 million (2020: EUR 216 million) in 2021 as COVID-19 certificates were introduced, improving travel options, and government-imposed travel restrictions impacted fewer months of the year.
  • Full-year traffic figures increased by double digits across all categories compared to 2020, but volumes remained significantly lower compared to 2019 except for the freight business, which continued to deliver consistent growth throughout the year, ensuring the strongest performance ever.
  • The BorderShops saw higher activity in 2021 compared to 2020 and grew revenue by 19% to EUR 68 million.
  • Profit from ordinary activities (recurring EBITDA) grew by 59% to EUR 133 million (2020: EUR 84 million) corresponding to a recurring EBITDA margin at a pre-COVID-19 level of 41% despite earnings remaining significantly lower than before the outbreak of the pandemic.

Outlook

  • Car, passenger, and shopping traffic is expected to rebound strongly in the wake of COVID-19 with bus travel gradually returning to previous levels.
  • The strong freight traffic performance is expected to continue throughout the year.
  • Due to the continued high degree of uncertainty and very low visibility, management is currently not in a position to provide precise financial guidance for 2022.

Scandlines hires new CFO

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Jesper Mikkelsen Heilbuth will take up the position of Chief Financial Officer (CFO) on July 1, 2022, and join the shipping company’s executive board, reporting to CEO Carsten Nørland.

As CFO, Jesper Mikkelsen Heilbuth assumes responsibility for all Group functions in the areas of Finance, Treasury, IT, and Procurement.

Jesper Mikkelsen Heilbuth is 45 years old and since 2020 Group CFO and member of the management board of the international food group A. Espersen A/S. He is a certified public accountant and began his career in the auditing and consulting firm KPMG, after which he spent 10 years as Vice President, Head of Group Finance & Tax at the shipping and logistics company DFDS.

Jesper Mikkelsen Heilbuth replaces Per Johannesen Madsen, who in February 2022 announced his decision to leave the shipping company after 10 years as CFO.

Leclanché to supply 10 MWh battery system for Scandlines’ zero-emission freight ferry PR24

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The world’s largest hybrid ferry will be powered by a Leclanché liquid-cooled lithium-ion battery system manufactured at Leclanché’s European factories.

Leclanché’s Marine Rack System will incorporate the latest fast-charging 65Ah high cycle battery cells with a 10-year lifespan.

Announced in November 2021, Scandlines ‘ zero-emissions ferry project will be powered by an advanced 10MWh lithium-ion battery energy storage system (BESS) from Leclanché.

Leclanché is among a number of companies selected to provide key components, systems and expertise, including Norwegian companies Kongsberg Maritime and Norwegian Electric Systems (NES).

The ferry was designed by LMG Marin AS, Norway and will be built at Cemre shipyard in Turkey.

Scandlines zero-emission freight ferry will be 147.4 meters long. The cargo capacity of the double-ended ferry will be 66 cargo units and carry a maximum of 140 passengers at a speed of 10 knots.

As a hybrid ferry, the crossing time between the two ports will be 45 minutes. In purely electric operation, the crossing time is 70 minutes and the ferry is emission-free.

Scandlines is looking for a new CFO

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Scandlines CFO Per Johannesen Madsen has decided to leave the German-Danish ferry operator and will resign from his position by the end of August 2022 at the latest.

Per Johannesen Madsen has been CFO and part of Scandlines’ Executive Management since 2012, responsible for the overall financial management of the group and its financial reporting. He has been in charge of a number of departments and projects – including the sale of Scandlines as a company and of the Helsingborg-Elsinore route. Now Per Johannesen Madsen has decided to continue his journey outside Scandlines.

Per Johannesen Madsen will continue his work for Scandlines until further notice and will also contribute to ensuring a smooth transition once a new CFO has been found. He will resign from his position by the end of August at the latest.

Scandlines orders zero-emission freight ferry for the Puttgarden-Rødby route

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An emission-free freight ferry will be built for Scandlines

  • Design and builders: LMG Marin and Cemre Shipyard
  • The ferry will enter service in 2024
  • Route Puttgarden-Rødby
  • Capacity: 66 freight units (+23% compared to the ships it will replace, HOLGER DANSKE and KRONPRINS FREDERIK).
  • Crossing time 1 hour, if fully electric
  • Crossing time 45 min. if hybrid
  • The ferry can also be used as backup ferry for one the four current double-ended ferries
  • Berth 3 in Rødby and Berth 1 in Puttgarden must be rebuilt to also load lorries on the upper deck.
  • A new lorry storage area will be established in the terminal of Puttgarden.
  • The ferry will initially exclusively charge in Rødby. Already in 2019, Scandlines invested in a 50 kV / 25 MW power cable to Færgevej in Rødbyhavn. This cable will now be extended to the ferry berths, where a transformer and charging station will be installed. In the longer run, the plan is to also be able to charge in Puttgarden when a good solution has been found for the purchase of green energy.
  • The modular construction of the vessel makes it possible to later adjust the vessel in order to also carry cars.
  • Length: 147.4 m
  • number of passengers: 140
  • Service speed: 18 knots

Carsten Nørland Succeeds Søren Poulsgaard Jensen as Scandlines’ CEO

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“Søren has done an excellent job and positioned Scandlines well for the future as a green and competitive provider of critical infrastructure connecting Continental Europe and Scandinavia. Carsten Nørland brings the right commercial and international skills and experience to carry on the good results in the coming years towards the opening of the Fehmarn tunnel and beyond,” says Chairman of Scandlines’ Supervisory Board, Vagn Sørensen.

Carsten Nørland is 52 years old and holds a MSc. in Economics and Business Administration from Copenhagen Business School. Before his seven years at Royal Unibrew, he held leading positions with international responsibilities in Copenhagen Airports, Flügger and Masterfoods/MARS inc.

FERRY NEWS

By | 2021 Newsletter week 17 | No Comments

Scandlines: A Positive Result In A Challenging Year

Annual Report Scandlines: a summary

  • Scandlines maintained operations during the pandemic and delivered satisfactory profitability despite a dramatic decline in traffic volumes and revenue following travel restrictions and border closures.
  • The status of the two ferry routes as critical infrastructure was underlined.
  • -43% total revenue (from EUR 475m to 273m).
  • -39% revenue from the 2 ferry routes because of travel restrictions and border closures.
  • -50% car and passenger traffic volumes.
  • -6% freight.
  • Scandlines maintained operations and continued to provide frequent departures, a high reliability level and flexibility to meet customer demand and keep the vital supply of medicine, food and other necessities flowing.
  • -54% revenue BorderShop.
  • EBITDA 84m (188m)
  • EBITDA margin 31% (40%)
  • Despite the turbulence in 2020, Scandlines generated a positive result and decided to return the Danish compensation of EUR 9 million allocated to cover fixed costs.

Start of the Construction of Fehmarn Belt Tunnel

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Works on Scandlines’ biggest competitor can start.

The longest combined road and rail tunnel in the world, with two double-lane motorways and two electrified rail tracks, will link Germany and Denmark under the Fehmarn Belt.

The 18km long tunnel is due for 2029.

At the end of September, the Scandlines Group’s lawsuit was heard before the Federal Administrative Court in Leipzig. On 3 November the court confirmed the planning approval decision as legal.

Scandlines said it is particularly pleased that the court has taken the safety of the ships into account and that the barges used to bring excavated material to Denmark have to give way to the Scandlines ferries in order not to disturb the operations.

Scandlines is not pleased with the planned road works, which will downgrade the current connection. This gives a competitive advantage to the tunnel. “It cannot be that Femern A/S can design worse access to our ferry terminal, ”says Søren Poulsgaard Jensen. Further steps will be taken.

Border Restrictions Halve International Ferry Travel from Denmark

By | 2020 Newsletter week 37 | No Comments

Organisation Danish Shipping (Danske Rederier) has calculated that the total number of passengers for Scandlines, Fjord Line, ForSea and DFDS in June, July and August has largely been halved compared to the same period last year.

“The bad summer comes on top of a lost spring, and it would be naive to think that Danes, Germans, Swedes or Norwegians will start traveling as usual in the coming months. The situation at the borders is completely unpredictable, so the shipping companies are facing some challenging months, ”says Jacob K. Clasen, Deputy CEO.

At Scandlines, CEO Søren Poulsgaard Jensen believes that it is the border closure in particular that caused an impact.

Like other Danish ferry companies, Scandlines has used the government’s help packages to send employees home for salary compensation and help to cover fixed expenses. But the bad summer will still cost jobs in the shipping company, says Søren Poulsgaard Jensen to Søfart.