The fourth quarter highlights:

  • Total revenue of NOK 689 million, EBITDA of NOK 159 million and net loss of NOK 17 million. 
  • Safe operations and a high activity level characterised the fourth quarter. Temporarily lower ferry volume explains the revenue decline compared to fourth quarter last year.
  • Progressed on Fjord1’s renewal programme in the quarter with delivery of five new vessels and three upgraded vessels.
  • Total investment of NOK 1 019 million, including NOK 115 million in quays and infrastructure.
  • Net interest-bearing debt (NIBD) increased to NOK 4.9 million due to investment in vessels and infrastructure.

 

“2019 was a transitional year with contract portfolio changes and significant investments. We are currently about to complete a comprehensive vessel renewal programme which will turn the vessel fleet into the largest electrified vessel fleets in Norway, resulting in significantly improvement of our environmental footprint. The investment programme is a key step towards our vision to become the most environmentally friendly provider of ferry transportation and to realise the value creation potential that lies in our large long-term contract portfolio”, says Dagfinn Neteland, CEO.

 

2019 highlights

  • Total revenue of NOK 2 724 million, EBITDA of NOK 819 million and net profit of NOK 215 million
  • The financial results reflect lower volumes and high investments in a transition year
  • Award of the long-term Halsa-Kanestraum contract for the 2021-2030 period
  • Delivery of nine new hybrid vessels and 3 upgraded vessels which will be operating on long term contracts and contribute to a safe, reliable and a more environmentally friendly ferry transport.

 

 “Fjord1’s long-term strategy and vision remains firm. The company is and will continue to be a leading player in the Norwegian ferry market, providing safe, reliable and environmentally friendly transport to customers. In 2020, we will focus on getting new vessels and infrastructure fully operational to release the value creation potential that lies in our large long-term contract portfolio”, Neteland continues.  

 

2020 ramp-up

  • New contracts started 1 January and 2020 will be a year of ramp-up of operations on new connections and ferry routes.
  • Revenues in 2020 are expected to increase by 10-15% compared to 2019. Operational cost will be impacted by timing of infrastructure completion.
  • Net interest-bearing debt is expected to reverse during 2020 as the vessel renewal programme is completed in 1H 2020, operational cash flow is set to improve, and more infrastructure assets are sold.
  • The completion of the newbuild programme marks a major leap for Fjord1 towards an electrified fleet with low- or zero emissions.
  • The transition towards a low emission fleet is expected to continue gradually with additional upgrades of existing vessels for use of electricity. The timing of electrification depends on completion of onshore infrastructure.

Outlook

  • Strong contract portfolio of NOK 24.5 billion total value through 2033 as of end 2019, excl. options and index regulations
  • 2020 revenue expected to grow by 10-15% compared to 2019
  • Net interest-bearing debt expected to increase further but set to decline in 2020 due to improved cash flow, lower investments and sale of infrastructure.