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.

The second quarter was characterised by:

• Financial result impacted by temporary revenue decline mainly explained by transitional changes in the ferry portfolio
• Positive result contribution from all four segments, but weaker results in Catering compared to second quarter last year
• 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 the second quarter compared to the second quarter 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 the quarter.

“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.

First half year 2019

Fjord1 reports NOK revenue of NOK 1.329 million, EBITDA of NOK 383 million and net profit after tax of NOK 118 million in the first half of 2019. 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.

The following key events took place in the first half of 2019:

• Delivery of the two 120 PCE ferries MF Giskøy and MF Suløy, in total 14 new vessels scheduled for delivery in the second half of the year, including MF Rovdehorn which was delivered on 9 July
• The connections Hareid-Sulesund, Brekstad-Valset, Arvågen-Mortavika-Daløy-Haldorsneset commenced 1 January 2019, while the routes Halhjem-Sandvikvåg and Flakk-Rørvik were terminated
• The company Vy Fjord1 Reiseliv AS was established, a joint venture between Vygruppen AS and Fjord1 ASA

Outlook

• Strong contract portfolio of NOK 24.5 billion total value through 2033, not including options
• Revenue expected to grow with new contracts gradually starting up from 1 January 2020
• NIBD expected to increase in the second half of 2019
• NIBD set for decline in 2020 due to improved operational cash flow, lower investments and sale of infrastructure