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.

Victory For Fjord1 As It Is Being Awarded The Last Major Contract For The E39 Connection

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The Norwegian Public Roads Administration has awarded Fjord1 contracts for operation of the ferry connection Halsa-Kanestraum.
The contract has a length of ten years, from 2021 to 2030.
Fjord1 says it got the contract because they were offering the best price.

This route across the Halsafjord was the ‘last big battle’ on the E-39 axis and is a very important victory for Fjord1.

Fully electric ferries are a part of the conditions. However, the company is allowed to use temporary vessels for a period of 12 months.
The total car capacity of the three main ferries will be 360 PBE (Person Bil Enhet = car equivalent unit). A spare vessel needs to have a minimum capacity of 80 PBE.

The Norwegian Public Roads Administration has undertaken to rebuild the quay facility before the start of the contract, a work that is planned to be implemented during the autumn.

The contract foresees an AutoPASS ticketing solution.

The construction of the ferries will be decided later.

The route is currently run by Fjord1, with RAUMA (1988, 73 cars), ROMSDAL (1988, 73 cars) and SVANØY (1992, 89 cars).

FINANCE

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Fjord 1 Q4 Report: Business As Usual

Fjord 1 saw in Q4 an 11 % revenue growth due to start-up of new contracts in the ferry segment.

The company completed several additional dockings of its ferries, more than in 2017.

Fjord 1 saw a lower contribution from the tourist segment and associates.

  • +11% Revenue 772.1 MNOK (692.9)
  • -7% EBITDA 219.1 MNOK (234.3)
  • -23% EBIT 133.5 MNOK (173.4)
  • -13% Net Profit 117.5 MNOK (135.0)

Several new ferries have been delivered. Fjord 1 is continuing to invest in new eco-friendly ships and new contracts.

More Contracts For Fjord1

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Møre og Romsdal county municipality has awarded a contract for the ferry connections Eidsdal-Linge, Stranda-Liabygda, Hundeidvik-Festøy and Sæbø-Leknes-Standal-Trandal to Fjord1.
There was only one competitor: Norled.
The contract for inner Sunnmøre will apply from 1 January 2020 until 31 December 2033.
Works will be done to allow larger, new ferries on the Eidsdal-Linge route.
New ferries are also expected for Stranda-Liabygda.

The photo shows the quay in Eidsdal.

FERRY FINANCE

By | 2018 Newsletter week 34 | No Comments

Fjord1: Smooth Operator

Some highlights of Fjord1 ASA Group’s H1

  • 1,219 employees, 65 ferries and 4 passenger boats on 30 June.
  • Start-up of the first fully electrical operation Anda – Lote.
  • Start-up of two new connections in “Hordaland Rutepakke 1”.
  • Fjord1 has signed several contracts for newbuildings: Cemre 2, Havyard 5, Tersan 1.
  • Three newbuildings have been delivered: MØKSTRAFJORD and HORGEFJORD, (Tersan) and HUSAVIK (Havyard)

Financial results H1

+ Revenue NOK 1,372.7 million (NOK 1,368.4 million)
+ EBITDA NOK 476.9 million (NOK 448.1 million)

Outlook

+ Despite investment in bridges and tunnels, Fjord1 believes that ferries will continue to be a vital part of the Norwegian road infrastructure for the foreseeable future.
+ The Group has stable contracts.
+ Fjord1 is scheduled to take delivery of 5 ferries in Q4

Hull Of Fjellstrand’s New Battery Ferry Has Arrived In Norway

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The aluminium hull for the newest zero-emission ferry for Fjord1 has arrived at the Halsnøy Dock in Norway, for painting and mounting of thrusters.
During summer the superstructure will be mounted and the remaining equipment installed alongside the quay at Omastrand.
The ferry is developed by Fjellstrand and will operate on the route Halhjem-Våge, not far from the yard.
This 100% electric car ferry is a further developed version of the AMPERE.
Delivery will happen in December 2018.

Corvus Energy Secures Contracts For Two More Battery-Powered Ferries

By | 2018 Newsletter week 21 | No Comments

Corvus Energy has been selected by Norwegian Electric System (NES) to supply lithium ion battery-based energy storage systems (ESS) for two new all-electric ferries being built by Havyard for Fjord1. The ferries will operate on the Magerholm-Sykkylven route.
This follows a previous order in November 2017 to supply the ESSs for three similar newbuilt Fjord1 ferries that will operate on the Hareid-Sulesund route.

A Bright And A Green Future For Fjord1

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Fjord1 ASA can look back on a successful year 2017, and on an even more successful future. The company was able to sign several contracts for ferry routes. As a result several ferries are on order. The main focus is on environmental friendly solutions, with a mix of highly advanced zero- and low emission solutions.

On 15 August 2017, Fjord1 was listed on Oslo Stock Exchange’s main list, at a market capitalisation of NOK 3.4 billion.

Some consolidated key figures:

  • Total Income: NOK 2,794,136 (NOK 2,390,911)
  • EBITDA: NOK 985,255 (NOK 732,101)

Click on the cover to access a download link.

Seven Electric Ferries For Fjord1…

By | 2018 Newsletter week 10 | No Comments

Fjord1 has signed a contract for seven new ferries, on March 5. Five ferries will be built by Havyard Ship Technology, and two by the Cemre Shipyard in Turkey.
The Havyard site belongs to the Fjord1 group of companies, with the Sævik family as major shareholder in both companies. Havyard also delivers the design.
All ferries will be fully electric-powered.
The five Norwegian-built vessels will serve the “Nordmørspakken” (Kvanne-Rykkjem, and Edøya-Sandvika), and “Hordaland 1” (Fedje-Sevrøy, and Langevåg-Buavåg).
The two Turkish vessels will operate on Seivika-Tømmervåg.
The seven ferries will be delivered to Fjord1 in the autumn 2019, since the new concession for the different routes starts on 1 January 2020.