Ferry Shipping

By | 2021 Newsletter week 7 | No Comments

Viking Line Reports 2020: “A Difficult, Challenging Year

January–December 2020 (2019) in EUR

188.8 million (496.4) Sales

26.9 million (0.4) Other operating revenue

-49.3 million (17.4) Operating income

-3.6 million (-3.8) Net financial items

-52.9 million (13.6) Income before taxes

-42.3 million (10.8). Income after taxes

-69.4% Passengers 1,927,302 (6,300,480)

-6.2% Cargo units 125,693 (133,940)

Cargo market share of approximately 17.1% (18.4)

Comments from President and CEO Jan Hanses

  • Because of the pandemic, the Group was forced to report a loss in 2020.
  • The challenge in 2020 was to run operations when demand evaporated due to various restrictions.
  • At year-end we recorded a loss of four million passengers.
  • Of our four operating areas – cargo, passenger cars, cruise passengers and passengers in scheduled service – only cargo functioned normally.
  • Focus on cutting costs. Furlough measures.
  • State aid measures from Finland, Sweden and Estonia
  • Liquidity loans totalling EUR 38.7 M, which are backed by State guarantees.
  • Deferral of loan repayments was also obtained from Finnvera and Finlands Exportkredit Ab.

Outlook for the full financial year 2021: It is too soon to quantify the impact of all the pandemic-related issues on earnings since there is great uncertainty about the trend. As a result, no earnings forecast is provided for 2021.

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.

Viking Line’s Cooperation Negotiations Have Concluded

By | 2020 Newsletter week 44 | No Comments

Viking Line has concluded its cooperation negotiations concerning land-based staff in Finland and Åland. Similar negotiations in Sweden were concluded in September, while negotiations with land-based staff in Estonia are expected to be completed in October.

The negotiations have involved the entire company’s land-based staff of about 570 people in Finland, Sweden, Estonia and Åland. The measures have led to a reorganization, cuts, centralization and streamlining of some functions as well as changes in some people’s job descriptions in order to better meet the company’s needs. Nearly 200 people have been affected by the negotiations, and staff cuts amounts to a number of 180.

About 70 people will be offered new jobs and contracts.  In addition to the staff cuts, most of Viking Line’s land-based and shipboard staff will continue to be on part-time or full-time furlough.

As for shipboard staff, the Swedish-flagged VIKING CINDERELLA concluded negotiations in accordance with the Swedish Act on Co-Determination in the Workplace in October, with the result being a staff reduction of 76 jobs. Some of these people may be offered work in jobs that have changed. On the Estonian-flagged Viking XPRS, negotiations on staff reductions were concluded, with the result being a staff reduction of 56 jobs.

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.

Agreement with Financiers and Finnish Government on Liquidity Loans of €43 million

By | 2020 Newsletter week 43 | No Comments

The Finnish Government approved the State of Finland’s guarantees on Viking Line´s liquidity loans up to €38.7 million. Using the liquidity loans, Viking Line aims to further secure its cash position and ensure business continuity during the exceptional situation caused by the coronavirus crisis. In addition to the Finnish State guarantees, commercial banks are guaranteeing €4.3 million.

The arrangement is compliant with EU State aid regulations.

Viking Line’s CEO: “All Ships Are for Sale if the Price is Right”

By | 2020 Newsletter week 38 | No Comments

The pandemic-related financial problems of shipping companies may lead to the sale of ferries and the permanent deterioration of Finland’s maritime connections.

Viking Line’s CEO Jan Hanses talks about overcapacity in the Baltic and Viking Line’s attempt to sell ferries (with interest from the Med).

Government communications receive harsh criticism from Tallink’s CEO Margus Schults. “The messy communication about the restrictions has been going on the whole summer. People do not dare to travel, even if it would be allowed and safe.”

Sundbusserne Opens A New Route Between Toldboden (Copenhagen) and Helsingborg

By | 2020 Newsletter week 29 | No Comments

The new Sundbusserne route, which will have three daily departures from Copenhagen and Elsinore, respectively, starts on 17 July.

The route is intended as an extra experience when tourists choose to experience Copenhagen or Helsingborg during the holiday, but commuters are also welcome.

The route will be operated by the passenger-only LEA ELIZABETH, from Wednesdays to Sundays, during summer.