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Tag: DFDS | Ferry Shipping News

Apr 12
1

DFDS adds EKOL to its portfolio

By | 2024 Newsletter week 15 | No Comments

DFDS acquires international transport network connecting Türkiye and Europe from Ekol Logistics, strengthening DFDS’ market position in the transport corridor between Türkiye and Europe. The transaction is expected to be completed in Q4 2024, pending EU merger control approval.

Source: DFDS Media

The financial outlook for 2024 has been revised:

  • The DFDS Group’s revenue is in 2024 now expected to increase by 8-11% compared to 2023 assuming the acquisition is closed at the beginning of Q4 2024. The previously expected revenue increase in 2024 was 5-8%.
  • The 2024 outlook for EBIT is unchanged DKK 2.0-2.4bn.
  • Due to an expected integration period of 2-3 years, the time for achieving the financial ambition of a ROIC of around 10% in 2026 is extended to 2027.
  • The above-mentioned acquisition is at closing expected to increase DFDS’ financial leverage, NIBD/EBITDA, by around 0.3x on a pro forma basis.
  • The financial ambition of reducing financial leverage to 2.5x in 2026 is unchanged as is the financial ambition of generating an annual Adjusted free cash flow of DKK 1.5bn in the period 2024-2026.

Photo: EKOL

Apr 12
1

DFDS and H2 Energy publish new hydrogen propulsion feasibility study

By | 2024 Newsletter week 15 | No Comments

During the past year, H2 Energy and DFDS have worked together on a project to analyse the feasibility of retrofitting large ferries with a hydrogen propulsion system. Now, the project has been finalized contributing with important knowledge for further analysis on the use of hydrogen as an alternative fuel for sea and road transport. The project was supported by the Danish Maritime Fund.

DFDS has recently launched its ‘Vessels of tomorrow’ programme, which will see two methanol, two electric and two ammonia vessels added to the company’s fleet over the next six years.

Although hydrogen is not included in the programme and DFDS is not planning to use hydrogen as a fuel in the very near future, DFDS will continue to contribute to the development of knowledge on hydrogen as part of the company’s ongoing analysis of possible net-zero scenarios for both vessels and road transport.

Read more here (DFDS) and here:

Feasibility Study Retrofit of an Existing RoRo Ferry with a Hydrogen-Electric Propulsion System Final Report

Photo: DFDS

Mar 15
1

DFDS February volumes

By | 2024 Newsletter week 11 | No Comments

Ferry – freight

  • Total volumes in February 2024 were 15.7% above 2023 and up 11.1% adjusted for the addition of Strait of Gibraltar routes in 2024 and closure of the Calais-Tilbury route in 2023.
  • The month’s high organic growth reflects to some extent a relatively low activity level in February 2023.
  • North Sea volumes were above 2023 driven mainly by an uplift in volumes between the UK and the Netherlands, Germany, and Denmark.
  • Mediterranean volumes were above 2023 as volumes picked up on all routes, especially between southern Türkiye and Italy.
  • Channel volumes were also in February above 2023 driven by the Dover Strait routes as well as higher volumes between Ireland and France.
  • Baltic Sea volumes also continued above 2023 despite reduction of capacity between Estonia and Sweden compared to 2023.
  • For the last twelve months 2024-23, the total transported freight lane metres decreased 4.9% to 39.2m from 41.3m in 2023-22. The decrease was 5.3% adjusted for the addition of Strait of Gibraltar routes and the Calais-Tilbury route closure.

Ferry – passenger:

  • The number of passengers in February 2024 were 69.9% above 2023 and up 16.0% adjusted for the addition of Strait of Gibraltar routes.
  • The adjusted increase was driven by more Channel passengers while the number of passengers on other routes were below 2023.
  • The number of cars were 51.3% above 2023 and up 7.2% adjusted for Strait of Gibraltar.
  • For the last twelve months 2024-23, the total number of passengers increased 19.9% to 4.8m compared to 4.0m for 2023-22. The increase was 13.4% adjusted for the addition of Strait of Gibraltar routes.
Feb 09
1

DFDS Q4 interim & full-year report: solid result for 2023

By | 2024 Newsletter week 6 | No Comments
  • EBITDA of DKK 5.0bn in line with Win23
  • Revenue up 2% to DKK 27.3bn
  • Ferry & Logistics network expanded
  • Adjusted free cash flow of DKK 2.8bn
  • Total dividend and share buyback of DKK 600m
  • EBIT 2024 outlook of DKK 2.0-2.4bn (2023: DKK 2.3bn)

Q4 2023

  • Challenging freight markets
  • EBITDA reduced 5% to DKK 1.0bn
  • Cash inflow of DKK 1.5bn from sale and leaseback of three ferries
  • CO2 ferry emission intensity lowered 2%

OUTLOOK 2024

  • EBIT of DKK 2.0-2.4bn
  • Revenue growth of 5-8%
  • Adjusted free cash flow of around DKK 1.5bn

“We’re pleased to deliver a solid result for 2023 despite challenging freight markets. Our ferry and logistics network has been expanded significantly, and in 2024 we will focus on unlocking value as we start executing on our new strategic and financial ambitions,” says Torben Carlsen, CEO.

Read the Q4 2023 interim and full-year report here.

Feb 09
1

DFDS January volumes: good start to the year

By | 2024 Newsletter week 6 | No Comments

Ferry – freight

  • Total volumes in January 2024 were 10.1% above 2023 and up 5.1% adjusted for the addition of Strait of Gibraltar routes and closure of the Calais-Tilbury route.
  • North Sea volumes were above 2023 partly due to the addition of further automotive volumes on one route.
  • Mediterranean volumes were below 2023 following a slow start as volumes picked up through the month.
  • Channel volumes were above 2023 driven by the Dover Strait routes.
  • Baltic Sea volumes were also above 2023 despite reduction of capacity between Estonia and Sweden compared to 2023.
  • For the last twelve months 2024-23, the total transported freight lane metres decreased 6.7% to 38.7m from 41.6m in 2023-22.

Ferry – passenger

  • The number of passengers in January 2024 were 87.4% above 2023 and up 2.7% adjusted for the addition of Strait of Gibraltar routes.
  • The adjusted increase was driven by more Channel passengers while the number of passengers on other routes were below 2023.
  • The number of cars were 58.4% above 2023 and on level with 2023 adjusted for Strait of Gibraltar.
  • For the last twelve months 2024-23, the total number of passengers increased 19.7% to 4.7m compared to 3.9m for 2023-22.
Jan 12
1

With the acquisition of FRS Iberia/Maroc, DFDS officially enters the Strait of Gibraltar

By | 2024 Newsletter week 02 | No Comments

DFDS has completed the acquisition of FRS Iberia/Maroc and thus enters the Strait of Gibraltar short-sea ferry market connecting Spain and Morocco. [announcement]

The acquisition expands DFDS’ network to a region where growth is expected to be supported by nearshoring of supply chains closer to Europe.

Expected annual trade growth of 8% between Morocco and Europe for the next five years.

The integration of the passenger business is expected to benefit from sharing of operating and yield management capabilities, not least from the Channel short-sea routes. Optimisation of digital distribution channels is moreover expected to increase the share of online bookings.

The freight activities will be strengthened by becoming part of a pan-European freight ferry network. The integration is also expected to benefit from a customer overlap and cross sales opportunities.

Integration synergies are expected to be driven primarily by growth synergies as limited cost synergies are expected. The integration is expected to be completed within three years.

FRS Iberia/Maroc will become part of the Ferry Division and their top management team consisting of Ronny Moriana Glindemann and Tim Gädecken have joined DFDS and will continue to manage the business.

Dec 15
0

DFDS strategy update

By | 2023 Newsletter week 50 | No Comments

DFDS’ strategy and financial ambitions have been updated as the Win23 strategy period, 2018-2023, comes to an end.

  • Organic growth focus to unlock value from expanded network.
  • Green transition ambition of 6 green ferries on the water by 2030
  • Financial ambitions 2024-2026:
    • Increase ROIC to above 10%
    • Annual Adjusted Free Cash Flow of minimum DKK 1.5bn
    • Financial leverage, NIBD/EBITDA, of 2.5x by 2026

Towards 2030, focus will shift to unlocking the value of the expanded network by accelerating organic growth through increased exposure to high-growth markets, enhanced network capabilities, and increased relevance for freight customers requiring bundled transport and logistics solutions.

Five routes will be pursued to unlock the value of the expanded network and reach financial targets:

  • Protect & Grow Profits – Organic growth focus driven by expanded product range and bundling of products to meet customer demand. Benefit from broader geographical network and access to high-growth markets. Enhance competitive cost base and capacity utilisation focus.
  • Standardise to Simplify – Standardise operating procedures across our network to reduce complexity, enable growth and faster response to market developments. Reduce cost to serve through higher operating efficiency.
  • Digitise to Transform – Further develop and grow self-service customer options. Provide more transparency and green data to enable flow optimisations. . Automate port terminal operations, deploy AI to enhance planning and prediction capabilities for sea and land transport. Future-proof tech platform to adopt new technologies faster and offer easier connectivity.
  • Moving to Green – Achieve short-term climate plan targets through the Every Minute Counts ferry scheduling program and technical upgrades. Electrify port terminal and warehouse operations. Decarbonise trucking by switching to biofuel and battery driven trucks. Prepare green ferry newbuilding program and continue to develop partnerships to increase supply of green fuels.
  • Be a Great Place to Work – Safety First program rollout. Adapt to new expectations among employees and provide engaging leadership. Promote diversity, equity, and inclusion among managers as well as office and non-office colleagues.

Six planned newbuildings:

  • The 2030 target of a 45% reduction in ferry emission intensity for the existing fleet is unchanged. This includes the ambition to have six green ferries in operation by the end of 2030. The baseline for the emission reduction target is 2008.
  • The ambition to become a net zero company by 2050 is unchanged.
Dec 15
0

DFDS November Volumes: Freight 2% Lower, Passengers 4% Higher

By | 2023 Newsletter week 50 | No Comments

Ferry – freight:

  • Total volumes in November 2023 were 1.5% below 2022.
  • North Sea volumes were below 2022 due to lower volumes between the UK and on the other side Scandinavia and the Continent.
  • Mediterranean volumes were just below 2022 due to the current general slowdown in demand.
  • Channel volumes were above 2022 driven by the Dover Strait routes.
  • Baltic Sea volumes were below 2022 due to a continued lower activity level in Sweden and the Baltic countries.
  • For the last twelve months 2023-22, the total transported freight lane metres decreased 8.9% to 38.5m from 42.3m in 2022-21.

Ferry – passenger:

  • The number of passengers increased 4.4% driven by primarily more Channel passengers.
  • The number of cars decreased 2.4%.
  • The total number of passengers increased 26% to 4.5m for the last twelve months, 2023-22, from 3.5m in 2022-21.
Oct 20
0

Electric ferries across the English Channel? By 2030 says DFDS

By | 2023 Newsletter week 42 | No Comments

The French Minister for Foreign Trade, Attractiveness and French Nationals Abroad, Olivier Becht and CEO of DFDS, Torben Carlsen, met to discuss decarbonisation of the shipping sector and the electrification of maritime traffic across the English Channel.

DFDS commits to invest in innovation and technology and deploying a fleet of battery-powered vessels in the Eastern Channel by 2030.

Source: DFDS

Oct 20
0

DFDS: Sell & Leaseback

By | 2023 Newsletter week 42 | No Comments

To increase financial flexibility, DFDS has entered into an agreement with Navigare Capital to sell and leaseback three freight ferries: FLANDRIA SEAWAYS, HUMBRIA SEAWAYS and SCANDIA SEAWAYS.

  • Total sales price of DKK 1.46bn
  • Leasing period 5 years
  • The agreement includes a right of first refusal to purchase the ferries at the end of the leasing period.