If 2023 was the year of recovery, then 2024 was the year when Swedish ferry operator, Gotlandsbolaget set full speed ahead, the company said when presenting its annual and fourth quarter 2024 results.
The company said it was pleased with the renewed confidence to operate Gotlandstrafiken, and with the acquisition of the Oslo/Copenhagen route, and had taken an important step in line with its strategy.
After a few turbulent years marked by the pandemic and recession, the island of Gotland traffic has stabilised.
For the fourth quarter of last year, revenues totalled SEK630.3 mill (SEK470.9 mill 4Q23), while expenses were SEK690.6 mill (SEK515 mill in 4Q23).
Compared with the previous year, the changes were mainly due to the takeover of DFDS’ Oslo/Copenhagen route, which affected both revenues and costs.
In addition, lower costs in the Gotland traffic sector had a positive impact during the quarter.
Adjusted operating profit amounted to a negative SEK60.6 mill (-SEK61.2 mill in 4Q23), corresponding to minus SEK24.2 (-SEK24.5 in 4Q23) per share.
Profit after tax, including capital gains on sales, amounted to SEK53.1 mill (minus SEK98.7 mill in 4Q23), corresponding to SEK1.2 (minus SEK39.5) per share.
For the full year, revenues amounted to SEK2,622 mill (SEK2,366.4 mill in 2023), while expenses amounted to SEK2,367.8 mill (SEK2,187.6 mill in 2023).
Compared to the previous year, the change was mainly due to the fact that revenues and expenses for the last two months of the year included the new Oslo/Copenhagen route.
At the same time, higher revenues and a lower cost level in Gotland traffic had a positive effect.
However, costs were affected by the start-up costs in connection with the takeover of the Oslo/Copenhagen route and the establishment of Birka Gotland.
Adjusted operating profit for 2024 totalled SEK218.2 mill (SEK161.7 mill in 2023), corresponding to SEK87.3 (SEK64.7 in 2023) per share.
The improvement was mainly due to a stronger result in Gotland traffic.
Net profit, including capital gains on sales, amounted to SEK375.6 mill (SEK404.5 mill in 2023), corresponding to SEK150.2 (SEK161.8 for 2023) per share.
Significant events during the quarter and after the end of the period, included:
• On 31st October, Gotlandsbolaget took over the Oslo/Copenhagen route from DFDS. The business comprises around 800 employees, and the deal included the cruise ferries ‘Nordic Pearl’ (formerly ‘Pearl Seaways’) and ‘Crown Seaways’ (which will be renamed ‘Nordic Crown’).
• In December, Gotlandsbolaget announced that the company is investing in the construction of a biogas plant and securing volumes of biogas for the Gotland traffic.
• In mid-February this year, Gotlandsbolaget ordered a large-scale catamaran, ‘Gotland Horizon X’. The ship is being built to run on the fossil-free fuels of the future. The builder is the Australian shipyard – Austal.
• On February 15, Board member Eric Nilsson passed away. He had been active in Gotlandsbolaget since the 1960s and was Honorary Chairman of the company’s Board of Directors since 1989.
Commenting, CEO Håkan Johansson, said: “With 2024 behind us, we sum up an eventful year, characterised by important future-oriented investments and the great success of having won the Swedish Transport Administration’s trust to continue operating Gotlandstrafiken during the next concession period (2027/2035).
“In addition to these advances, which required a great deal of commitment during the year, we have continued to develop the Group and strengthen our existing operations.
“The Group’s adjusted operating profit for 2024 improved to SEK218.2 mill. The development was driven by stronger results in Gotland traffic, while start-up costs in Birka Gotland and costs for the takeover of the Oslo/Copenhagen route had a negative impact.
“The Birka Gotland cruise line was launched in the spring. Putting a new product on the market always involves an establishment phase, and after a somewhat sluggish start, passenger volumes were satisfactory during the summer.
“In November, it was announced that a new CEO of Gotland Alandia Cruises, which operates Birka Gotland, is underway, and there are several initiatives underway that further strengthen the product.
“The takeover of the Oslo/Copenhagen route in the fourth quarter means that we are now calling at two more Nordic capitals and marks an important milestone in our strategy to expand in passenger shipping. The focus is now on developing the route and increasing passenger volumes.
“As a first step, we are carrying out extensive upgrades of the vessels. ‘Nordic Pearl’ was docked in January, 2025 to get new cabins and a renovation of the public spaces, and in March it will be ‘Crown Seaways’ (future ‘Nordic Crown’) turn to undergo the same upgrade. Thus, both vessels will be out of service during parts of the first quarter of 2025.
“In the spring, the line’s new name, Go Nordic Cruiseline, will be launched. A name that we want to depict the line’s proud Nordic heritage and history, but also reflect the development that we are now making.
“Our goal is to offer climate-neutral crossings in the Gotland traffic by 2045 at the latest, which requires significant investments. To reduce carbon dioxide emissions, large volumes of fossil-free fuels are required.
“At the end of 2024, we announced our investment in a biogas plant being built outside Eskilstuna. The deal also secures access to climate-smart biogas of the highest quality, corresponding to approximately 10% of Destination Gotland’s total fuel needs over 10 years.
“At the beginning of 2025, we ordered ‘Gotland Horizon X’, a large-scale catamaran designed to run on the fossil-free fuels of the future. The vessel is being built by Australian Austal Limited and is equipped with gas turbines and a multi-fuel solution, which gives the vessel high efficiency and the ability to use several different fossil-free fuels.
“The investment is the single largest in Gotlandsbolaget’s history, and the chosen technology gives us important flexibility in a market where the supply of fossil-free fuels is uncertain.
“The win in the Swedish Transport Administration’s procurement of the Gotland traffic was one of the most important events of the year for us. But there are still question marks that we need answers to.
“Our tender was submitted by a Danish subsidiary that will be responsible for financial and strategic management. This is to be able to compete with other European shipping companies on equal terms, despite the large difference in tonnage tax that prevails between Sweden and the rest of Europe.
“The Swedish government is working on a developed Swedish tonnage tax, but it is currently unclear whether Gotland traffic will be included in this.
“It should be self-evident that such strategically important infrastructure as ferry traffic to Gotland should be able to be controlled entirely from Sweden on competition-neutral terms.
“If a decision on whether a developed tonnage tax includes Gotland traffic comes in 2025, we will have the opportunity to place responsibility for financial and strategic management on Gotland, just as today. If not, strategic functions in Gotlandstrafiken will be controlled from Denmark.
“On 15th February, 2025, Eric D Nilsson passed away. Eric’s importance to Gotlandsbolaget’s and Gotland’s development is difficult to put into words. His ability to develop and lead the company to make wise ship deals has laid the foundation for what we are today.
“His vision of bringing Gotland and the mainland closer together through modern ships and traffic systems has fundamentally changed Gotland’s conditions. We remember Eric with great warmth and respect,” Johansson concluded.
