Despite uncertainties associated with the COVID-19 pandemic, Danish ferry and logistics company DFDS has raised its outlook for 2020 thanks to growing freight volumes.
EBITDA before special items has been raised from DKK 2.2-2.5 billion (around $350-$398 million) to DKK 2.5-2.7 billion (around $398-$430 million) in 2020.
As explained, DFDS’ outlook for 2020 has improved further as freight volumes in Q3 have developed more positively than expected. In most parts of DFDS’ freight network, both the ferry and the logistics activities have performed above expectations.
The continued tightening of travel restrictions have, on the other hand, reduced the number of passengers in Q3 below expectations. Activity levels are expected to remain low in Q4.
The positive development for the freight activities has more than offset the lower performance of the passenger activities, DFDS said, adding that the outlook for freight volumes is expected to remain robust through Q4.
As a result of the coronavirus health crisis, travel markets had come almost to a standstill through most of Q2 as travel restrictions led to suspension of ferry routes that predominantly carry passengers.
Consequently, DFDS’ revenue was down by 34 per cent and amounted to DKK 2.8 billion in Q2 2020. EBITDA also decreased by 49 per cent to DKK 507 million.
Most ferry routes reopened in late June through July 2020, leading to a pickup in freight volumes and an initial pickup in passenger volumes.
DFDS continues to operate all its passenger ferry schedules across Europe.