New contracts boosted Fjord 1's earnings last year, but investments in electric vessels have caused the ferry company to take a 10% hit to its final result for 2018.
The Norwegian transport company’s net profit fell from NOK 602.6m in 2017 to NOK 540.3m ($62.6m) last year.
This was despite 11% revenue growth during both the fourth quarter and full year 2018, thanks to new ferry contracts.
Fjord 1’s investments in new electric vessels and remodelling of its existing vessels caused the company’s net interest-bearing debt increase by one-third during the fourth quarter, compared to the previous three months.
This resulted in a NOK 77m increase in interest costs and depreciation during the year.
Fjord 1 took delivery of seven new electric ferries during 2018.
Sixteen new vessels are to be delivered in 2019 and another five existing vessels will be retrofitted this year to run on electricity.
Delivery of a third electrical passenger‐boat has been postponed until April 2020, the company said in its results.
Fjord 1's ferries have NOK 22bn in contract coverage from the beginning of 2019 until the end of 2033, excluding options.
2020 will see the company commence services on nine new routes.
