Danish ro-ro owner DFDS has logged a 43% drop in earnings in the first quarter despite the fact the pandemic only really took a grip in Europe in the last few weeks of the period.
In its preliminary results to 31 March, the company said earnings before interest and taxes was down to DKK 133m ($19m) from DKK 234m in 2019, while profit before tax dropped to DKK 98m from DKK 159m.
Revenue was down slightly at DKK 3.81bn, against DKK 3.87bn.
DFDS said the quarter was relatively unaffected until March lockdowns started being imposed in Europe.
Two passenger routes were closed in March and passenger travel on other routes was reduced to only essential travel.
Freight volumes holding up
Freight volumes suffered less, and DFDS is insulated to an extent from pandemic effects because about 80% of revenue comes from cargo not passengers.
All of DFDS' freight activities continue to operate through the lockdowns, but capacity has been reduced since the end of March. It has laid up 12 ships out of 50.
The company warned that passenger earnings in the high season between June and August are at risk from the duration of European lockdowns.
DFDS said: "Our current key priorities are to take care of our employees' and partners' health and well-being, to preserve jobs and to continue to provide vital ferry and logistics services for our customers as well as contributing to keeping Europe's transport infrastructure open for business."
About 2,200 employees so far have been sent on paid leave.
There is a hiring freeze in place and a reduction of investments has been targeted, equating to 20% of the DKK 2.3bn planned for 2020.
"DFDS is in a solid position with regard to both liquidity resources and financial flexibility to meet challenges and opportunities that may arise from present and future market conditions," it added.
As of 31 March, liquidity resources amounted to DKK 1.7bn, consisting of cash and cash equivalents of DKK 0.3bn and undrawn committed credit facilities of DKK 1.4bn.
In April, additional committed facilities of a minimum of DKK 750m have been secured.
