Hurtigruten shores up liquidity

2021-03-12T15:57:44+00:00 March 12th, 2021|Finance|

Norwegian Group Hurtigruten reported a significant fall in its 2020 revenues to €269 mill, compared to €609 mill for the previous year.

Fourth quarter 2020 revenues were €38.4 mill, against €128 mill in 4Q19.

EBITDA was a negative €18 mill for 2020, compared with a positive €123.2 mill for the previous year. Fourth quarter EBITDA was a negative €14 mill for 2020 and a positive €1.2 mill for 2019.

The company also revealed that as of 4Q20, its average monthly cash burn was €13 mill.

Hurtigruten said that its financial performance was impacted by only running two ships along the Norwegian coast recently. However, the number rose to five in January of this year.

Last October, the company initiated the sale of its real-estate portfolio on the Svalbard archipelago and expected to announce a transaction in the near future.

Pre-booking levels for 2022 were continuing to develop strongly and are currently 44% higher compared with the same time last year for 2021 with about 60% new bookings.

Hurtigruten thought that the travel pattern would resume gradually this year, resulting in a more normal operations by 3Q-4Q21.

Subsequently, on 1st March this year, Hurtigruten announced that it had secured a new €46.5 mill term loan facility, which can be used for its and its subsidiaries’ general corporate and working capital requirements.

The new facility is priced at E+800bps, matures in June, 2023 and ranks pari passu with Hurtigruten Group’s existing senior term and revolving facilities originally dated 9th February, 2018 and senior term facility dated 12th June, 2020.

With this new facility, as of 1st March, Hurtigruten had around €80 mill in available liquidity and undrawn facilities and about €6 mill in restricted cash, excluding the expected liquidity effect from the sale of the real estate.

This, together with the expected sale of the Svalbard real estate portfolio, gives Hurtigruten a very solid liquidity position as the resumption of operations moves closer, the company said.