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DFDS annual report 2009 passenger shipping 31
Activity trends
The activity level on the Copenhagen-Oslo route was affected by the
slowdown in the economy and the depreciation of the NOK, resulting
in a 3 % decline in passenger numbers compared to 2008.
The passenger composition also changed, with fewer passengers from
the business and conference segment, although this was partially offset
by more holidaymakers. In addition, the number of passengers originating
from overseas declined by 16 %. Costs were reduced, primarily because of
lower oil prices and the effects of Project Lighthouse. Ticket revenue and
onboard revenue per passenger was 5 % lower and 3 % when adjusted
for exchange rates. The route’s freight activities were handled by DSV via
a space-charter agreement until September 2009, when DFDS Seaways
took over. Freight earnings on the route were slightly lower in 2009 as a
result of the general decline in the freight market.
The Amsterdam-Newcastle route made significant improvements
in financial performance in 2009 as a result of increased market share
and lower costs for operations and bunkers. Despite difficult market
conditions, including the weakened pound sterling and lower demand
in Great Britain, the number of passengers increased by 10 % compared
to 2008. This rise, primarily in the Dutch and German markets,
can be attributed to increased marketing and sales efforts directed
towards especially tour operators. The UK market remained on a par
with 2008. The route’s freight turnover was reduced by 19 % in 2009.
The Esbjerg-Harwich route’s passenger revenues and financial
performance were transferred from Ro-Ro Shipping to Passenger
Shipping at the start of 2009. The route made positive progress in
2009, with a 9 % increase in passenger numbers. Most of the increase
was attributable to the Danish market.
Queen of Scandinavia, which has been laid up since the closure of
the Bergen-Newcastle route in September 2008, was chartered out as
a hotel ship for 105 days in 2009. At the end of the year, the ship was
transferred to non-allocated items.
Operating profit before depreciation (EBITDA) was DKK 314
million, an increase of 62 % or DKK 120 million compared to 2008.
The results for 2009 and 2008 are not directly comparable due to
the aforementioned transfer of the Esbjerg-Harwich route, closure of
the Bergen-Newcastle route and the chartering out of a passenger
ship. Adjusted for these factors, and for restructuring costs related to
Project Lighthouse and VAT refunds in 2008, EBITDA rose by DKK
97 million to DKK 298 million, from DKK 201 million in 2008. Approximately
70 % of this increase was due to lower net bunker costs,
including hedging transactions, which constitute a large part of the
saving. The rest of the increase was mainly due to the Amsterdam-
Newcastle route, on which increased passenger earnings and savings
on operational and port costs led to significantly improved performance
and compensated for lower freight earnings.
Depreciation amounted to DKK 211 million, an increase of DKK
31 million, of which DKK 33 million was due to a write-down on the
Queen of Scandinavia.
Operating profit (EBIT) was then DKK 103 million.
Average invested capital was DKK 1,693 million in 2009, a reduction
of 6 % compared to 2008, as depreciation exceeded the level of
investment. At year end, the capital invested in Queen of Scandinavia,
amounting to DKK 152 million, was transferred to non-allocated items.
The ship’s invested capital is thus included in Passenger Shipping’s
invested capital throughout 2009. Return on invested capital was 6.3 %
compared with 0.8 % in 2008.
PASSENGER AND FREIGHT ROUTES (RO-PAX)
PASSENGER AND FREIGHT ROUTES (CRUISE FERRY)
SALES AGENCY
PORT OF CALL
DFDS Canal Tours
DFDS Canal Tours operates canal tours in the Port of Copenhagen
using 16 boats, including two with restaurants. The number of guests
in 2009 was 720,000, which is on a par with 2008. The boats are also
hired out for charter trips.
In 2009, one of the tourist boats was converted from motor-driven
to battery-operated, which has multiple environmental benefits. Work
has been done on concept development, including guided tours in a
greater number of languages, dinner cruises, art cruises and architectural
cruises.
Financial performance in 2009 was satisfactory.
OSLO
Financial performance
Revenue in 2009 was DKK 1,620 million, 9 % or DKK 159 million lower
than in 2008. Adjusted for the transfer of the Esbjerg-Harwich route’s
passenger revenue at the start of 2009, the closure of the Bergen-
Newcastle route in September 2008 and the chartering out of Queen
of Scandinavia in 2009, revenue fell by 7 % or DKK 116 million.
The adjusted revenue relates to the Oslo and Amsterdam routes,
where 2 % of the decline can be attributed to lower revenue from
oil-price surcharges due to lower oil prices in 2009. Most of the
remaining decline is attributable to the Copenhagen-Oslo route, which
was affected by 3 % fewer passengers, the weakening of the NOK and
generally lower revenue per passenger. On the Amsterdam-Newcastle
route, revenue from ticket sales and catering rose by 10 % adjusted for
the weakened GBP, in line with the increase in the number of passengers.
However, this increase was more than offset by lower revenue
from tobacco sales and freight.
NEWCASTLE
HARWICH
ESBJERG
AMSTERDAM (IJMUIDEN)
HAMBURG
COPENHAGEN