PICKUP IN DEMAND FASTER THAN EXPECTED
• Rebound in freight volumes at end of Q2 and in July
• Encouraging pickup in passenger demand for reopened routes
• Exceptional negative profit impact from passengers in Q2
• Outlook improved: EBITDA of DKK 2.2-2.5bn now expected for 2020 (previously: likely to be reduced towards DKK 2bn)
Q2 2020
• Revenue down 34% to DKK 2.8bn
• EBITDA down 49% to DKK 507m
• Passenger activities cause most of profit decrease
OUTLOOK 2020
• EBITDA of DKK 2.2-2.5bn expected. Previously: likely to be reduced towards DKK 2bn (2019: DKK 3.6bn)
• Investments of around DKK 1.6bn, unchanged
DFDS CEO Torben Carlsen said, “Our outlook is improved. Freight volumes have picked up and the demand for ferry travel is encouraging on our reopened passenger routes. It is uncertain whether the pickup in demand is sustainable and we therefore remain alert.”
Revenue decreased DKK 1.4bn to DKK 2.8bn in Q2 and EBITDA before special items decreased DKK 483m to DKK 507m.
The travel restrictions imposed to limit the spread of Covid-19 created an exceptional negative set of circumstances for the passenger activities that led to a drop in their EBITDA of DKK 366m compared to 2019. Freight ferry and logistics activities performed better than expected in Q2 with a decrease in EBITDA of DKK 117m, including non-allocated items, with Logistics only decreasing DKK 7m.
Outlook 2020
The outlook for 2020 has improved following a faster than expected pickup in freight volumes towards the end of Q2 and in July. The reopening of all passenger services and a quick pickup in demand from passengers, especially between Norway and Denmark, has also reduced uncertainty.
As a consequence of the improved outlook, EBITDA before special items is now expected to be DKK 2.2-2.5bn in 2020. The expectation for EBITDA before special items was previously that it was likely to be reduced towards DKK 2bn.
“Uncertainty remains elevated and the outlook and its assumptions can still change significantly in the rest of the year,” the company stated.
Sea News, August 12
