As expected, the first quarter’s adjusted operating profit was negative, largely due to seasonal operations, Swedish ferry operator, Gotlandsbolaget said in its first quarter 2025 report.
This year, the quarter also included Go Nordic Cruiseline, which had a significant impact on both revenue, costs and profit.
After a long period of good returns from its asset management, the company experienced negative unrealised currency changes for 1Q25, which also had a significant impact on the results.
For 1Q25, revenue amounted to SEK608.6 mill (SEK384.9 mill in 1Q24), while costs totalled SEK759.7 mill (SEK419.6 mill in 1Q24).
Compared to the previous year, the changes were mainly due to the takeover of the Oslo/Copenhagen route, which affected both revenue and costs.
Adjusted operating profit amounted to minus SEK177.3 mill (minus SEK66.7 mill), corresponding to minus SEK70.9 per share (minus SEK26.7 in 1Q24).
This quarter is a low season for the operations and compared to the previous year, it was negatively affected by the result from Go Nordic Cruiseline, which was taken over in 4Q24. Both cruise ferries, ‘Nordic Pearl’ and ‘Nordic Crown’, were drydocked during the quarter.
Profit after tax, including capital gains on sales, amounted to minus SEK225.2 mill (SEK37.2 mill in 1Q24), corresponding to minus SEK90.1 per share.
Significant events during the quarter included Gotlandsbolaget unveiling the new name for the Oslo/Copenhagen service – Go Nordic Cruiseline.
In February, Gotlandsbolaget ordered the large catamaran ‘Gotland Horizon X’, which is being built to operate with fossil-free fuels.
On 15th February, Board member, Eric Nilsson retired. He had been active in Gotlandsbolaget since the 1960s and has been Honorary Chairman of the company’s Board since 1989.
Recently appointed CEO, Björn Nilsson (pictured), commented: “As expected, the adjusted operating profit is negative for the first quarter; minus SEK177.3 mill, compared to minus SEK66.7 mill for 2024.
“However, since the quarter this year also includes Go Nordic Cruiseline, comparisons with the previous year should be made with caution. The purchase of Go Nordic Cruiseline also means a large difference in both costs and revenues for the group, compared to 2024.
“Our operations are largely seasonal, and so is the line between Oslo and Copenhagen. Both ships, ‘Nordic Pearl’ and ‘Nordic Crown’, have also been docked during the quarter and have undergone extensive upgrades, which has meant that they have been out of service and this has had a significant negative impact on the result.
“We are seeing somewhat weak demand for cruises in the Baltic Sea area, and thus ‘Birka Gotland’, and the result does not meet our expectations. ‘Birka Gotland’ is now implementing a number of measures and external activities to strengthen customer inflow and profitability.
“For Gotlandstrafiken, we are seeing an Easter effect, with Easter this year falling in the second quarter. If we disregard the effect this major travel holiday has on the number of passengers, we are seeing stable travel that meets our expectations.
“After a long period of good returns from our asset management company, Gotland Capital Management, we are seeing negative unrealised currency changes for this quarter, which is affecting the result.
“Our goal of offering climate-neutral crossings in the Gotland traffic by 2045 requires significant investments. During the quarter, we ordered ‘Gotland Horizon X’, a large-scale catamaran, designed to be powered by fossil-free fuels and also prepared to be powered by hydrogen.
“The chosen technology gives us important flexibility in a market where the availability and price of fossil-free fuels is uncertain.
“We have the same high long-term climate ambitions for our entire fleet. For Go Nordic Cruiseline, we have initially chosen to invest in existing tonnage to strengthen demand. Both ships operating the line have been docked and undergone extensive upgrades, where we have, among other things, replaced the interior of all cabins.
“In this way, we are building a more attractive product, for which we can make extensive long-term investments in new tonnage where both the on board experience and climate ambitions will be guiding factors.
“Spring has contained positive news for Swedish shipping, with the establishment of a bareboat register and the abolition of stamp duty. Both of these decisions have been requested by shipping for a long time and we also see it as positive, even if it does not affect our operations.
“However, unfortunately, there is still no information on the development of the tonnage tax, which is perhaps the most important for the development of Swedish shipping, and which has a major impact on our operations,” he concluded.
