Color Line reports record year

2024-03-27T18:24:07+00:00 March 27th, 2024|Finance|

Norwegian ferry company, Color Line, has reported the best earnings in its history.

This was powered by high demand, stable production and increasingly more cost-effective operations and provides a solid point of departure for further commercial development and the green transition in the coming years, the company said.

In 2023, Color Line reported an EBITDA of NOK1.4 bill, including non-recurring effects, up from NOK1.2 bill in 2022.

The company’s EBIT was NOK819 mill, up from NOK598 mill in 2022.

“Despite continued geopolitical tensions and macroeconomic uncertainty, 2023 became a good year for Color Line. This illustrates that we have a highly attractive and robust product portfolio, with increasing demand from our markets abroad compensating for the effects of the weakening of the Norwegian currency,” explained CEO, Trond Kleivdal (pictured).

Color Line transported around 3.5 mill passengers and 180,000 freight units (12m equivalents) in 2023, against about 3.6 mill passengers and 190,000 freight units in 2022.

Last year, Color Line operated a fleet of five ships on four international routes between Norway, Denmark, Sweden and Germany, having sold ‘Color Viking’ and the cargo vessel ‘Color Carrier’ in late-2022.

Green transition, further digitalisation and cost-efficiency measures ensured that Color Line’s operated modern ships. The company has reduced CO2-emissions in its transport network by more than 40% from 2000 through fleet renewals, early introduction of shore power and a broad range of measures to lift its energy and climate efficiency.

“Going forward, the company will aim to further strengthen its position within the green transition, including adapting its operations to the phase-in of shipping in EU’s Emission Trading System,” Kleivdal added.

Color Line is also continuing to develop its digital systems and solutions, which includes focusing on increased cyber security through cloud-based solutions.

This digital transformation will also enable better distribution of the company’s product portfolio and contribute towards further operational streamlining, the company claimed.

Color Line is also experiencing solid demand for 2024 and expects a high season in line with 2023.

The company said it was focusing on continuous improvement and implementing efficiency measures throughout the organisation, in order to be best prepared to meet future demands and expectations.

“The maritime sector is expected to go through both the green shift and the digital transformation over the course of the coming years.

“Despite this, the Norwegian shipping industry is experiencing a gradual weakening of its framework conditions, which is challenging its ability to adapt and develop,” Kleivdal said.

Net outstanding interest bearing debt was NOK3.750 mill as of 31st December, 2023, excluding a hybrid bond loan of NOK627 mill, which was down NOK173 mill from the previous year, which was down NOK 655 million from 4 405 million as at the end of 2022.

Available liquidity at year end was around NOK1,100 mill.