New refinancing for Fjord Line
The restrictions from the government, in light of the covid-19 pandemic, has hit Fjord Line hard. Owners, loaners and governments have helped secure future operations for the second time during the covid-19 pandemic for the ferry company Fjord Line. This ensures that Fjord Line can continue to build on the strong position Fjord Line had before the covid-19 pandemic.
Fjord Line have now secured a new financial platform that lasts until May 2022, in a comprehensive refinancing plan that both owners and loaners have contributed with. This is the second refinancing Fjord Line has secured during the covid-19 pandemic. In the period from Mai 2020 to April 2022 the total sum of refinancing will be on 950 million NOK.
In this new refinancing plan Fjord Lines owners will contribute with new capital of 50 million NOK. In total the owners have contributed with 100 million NOK in the two refinancing plans. Loaners have primarily contributed with postponement of installments and done amendments in the loan conditions (covenants) to support the company through the demanding time.
– The last year has been very demanding for Fjord Line. Governmental restrictions have made it impossible to maintain a normal operation on our ferry routes to and from Norway. Therefor we deeply appreciate that our owners and loaners have faith and trust in that Fjord Line, not only gets through this crisis, but ensures that the company will be well equipped to resume the operation when the governments revoke the travel restrictions, says CEO Brian Thorsted Hansen.
Fjord Line has experienced a dramatic loss in turnover and result before taxes in 2020. Preliminary figures show that the turnover for 2020 is on 729 million NOK, a negative turnover on 55 percent. In certain periods with very limited travel activity our turnover was reduced to 90 percent, compared to 2019.
Fjord Line has received 198 million NOK in cash support in the period between March to October. Fjord Line is working on finalizing a new application for November/December, which we expect to be in size of 70 million NOK.
Through 2020 Fjord Line has gone through tremendous efficiency and cost cuts. It has been performed painful, but absolutely necessary staff reductions. Except from a short period in the summer, 3 out of 4 ships have been docked. Last remaining ship has been in limited traffic, only securing freight of cargo to and from the continent.
– We are looking forward to see travel restrictions revoked in order for us to resume our operation, says Hansen.
Key figures for Fjord Line in 2020 (group) – preliminary figures
|Result before tax||-140||79||-219|