Norwegian ferry group Fjord1 has moved closer to a zero-emissions fleet with new deliveries and finance packages.
The company, controlled by Havila Holding principal Per Saevik, called 2019 a transitional year with "significant" investments.
It took delivery of nine hybrid electric ships from Norwegian and Turkish yards, as well as three upgraded ones.
And two more have already been handed over from Turkish shipbuilders in 2020, bringing the fleet to 91 operational ferries.
"We are currently about to complete a comprehensive vessel renewal programme which will turn the vessel fleet into the largest electrified vessel fleet in Norway, resulting in significant improvement of our environmental footprint," Fjord1 said.
In the fourth quarter, total investment was NOK 1.02bn ($107m), including NOK 115m in quays and infrastructure.
As of the end of last year, Fjord1 still had total future capital commitments of NOK 1.18bn relating to newbuildings.
Seven more vessels are still due from Norwegian yards.
New loans in place
The company revealed it has secured two new long-term borrowing facilities of NOK 1.21bn and NOK 1.57bn to fund new ships, as well as to refinance and repay old debt.
Fjord1 has a total of NOK 4.92bn of undrawn credit.
"The completion of the newbuild programme marks a major leap for Fjord1 towards an electrified fleet with low or zero emissions," the ferry owner said.
The company added that the transition is expected to continue gradually with additional upgrades of existing vessels for use of electricity.
"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,” chief executive Dagfinn Neteland said.
"In 2020, we will focus on getting new vessels and infrastructure fully operational."
A number of its ferries also run on LNG, but some vessels in the fleet date back to the 1960s and 1970s.
Fourth quarter turns red
The net loss for the fourth quarter was NOK 17m, against a profit of NOK 117.5m in 2018.
Revenue dropped to NOK 689m from NOK 772m as it experienced lower volumes on its ships.
Depreciation and impairment rose to NOK 117.3m, compared to NOK 85.6m the year before, while financial expenses hit NOK 71.9m versus NOK 12m.
Ebitda of NOK 177m was below Fearnley Securities' estimate of NOK 187m, but it added that revenue beat its forecast.
The net profit for the year was NOK 215m, down from NOK 540m in 2018.
Revenue in 2020 is expected to increase by between 10% and 15% compared to 2019.
It said there is a strong contract portfolio of NOK 24.5bn through to 2033.
The Saevik family's Havila Holding raised its stake to 66.5% by buying shares last year.
