FERRY FINANCE

By | 2019 Newsletter week 50 | No Comments

Havila Becomes Major Shareholder of Fjord1

On Monday 9 December 2019, Per Sævik’s Shipping company Havila (through its wholly owned subsidiary Havilafjordn Holding AS) bought for NOK 676 million shares in Fjord1. By this move, Havila holds 66.5% of the Fjord1 shares.

On Tuesday 10 December, Havila secured capital for the acquisition from a fund managed by Vision Ridge Partners. Together they hold 70.35 million shares, representing 70.35% of the shares of Fjord1.

The intention of the parties is to cooperate as partners in developing Fjord1 into an integrated transportation and tourism company, through a potential consolidation with Havila Kystruten AS. Havila Kystruten has four ships under construction, to be used as from 2021 on the Norwegian Coast. (remark: two of these ships, to be built by Barreras, have been canceled)

Frederik Wilhelm Mohn has in the meanwhile announced that he resigns from the Board of Directors in Fjord1 ASA with immediate effect. 

Fjord1 Celebrates the Arrival of ROVDEHORN and SKOPPHORN

By | 2019 Newsletter week 47 | No Comments

ROVDEHORN and SKOPPHORN are the 7th and 8th ferry built by Havyard for Fjord1. In total, 13 ships have been ordered. The hulls are built in Turkey, the outfitting is done in Norway.

The two ferries were built to enter service on 1 January 2020, on the route Magerholm – Sykkylven.

Regular crossings will be on battery, however, if needed there is a backup with biofuel.

The ferries are equipped with four engines from Norwegian Electric Systems, who also supplied power systems, switchboards etc.. The propulsion system comes from Kongsberg and the batteries are from Corvus and NES.

Fjord1 Is Ready For A New Year With New Contracts

By | 2019 Newsletter week 47 | No Comments

Q3 key figures

-14% Turnover NOK 705 million

+28% EBITDA NOK 278 million

+68% Net profit after tax NOK 115 million

  • The profit contribution has been positive from all segments (ferry, passenger boat, catering and tourist). 
  • Sales will grow next year when new contracts start on 1 January 2020.
  • 2019 is a transitional year with changes in the contract portfolio and major investments in zero- and low-emission vessels and the development of charging infrastructure. 
  • Fjord1 currently has 17 hybrid electric vessels in the ferry fleet and by the second half of 2020 the company will have an additional 13 hybrid electric vessels in operation. On January 1st, Fjord1 will start operating nine new connections in Hordaland, all with new environmentally friendly technology. A large part of the ferry fleet in Fjord1 will be zero emissions and contribute to a positive effect on the environmental footprint through significantly reduced CO2 emissions.
  • During the second half of 2020, the company will operate 30 electric ferries and 19 connections will be electrified. The Anda-Lote connection has been running electric for 1.5 years, and experience after passing 50,000 charges shows that the technology works as expected.

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

By | 2019 Newsletter week 27 | No Comments

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

By | 2019 Newsletter week 8 | No Comments

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

By | 2018 Newsletter Week 46 | No Comments

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

By | 2018 Newsletter week 26 | No Comments

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.