Smyril Line is tourning a profit
05-03-2010

 

– This confirms that over the last year the changes made and restructuring measures taken were the right ones, says Peter Holm, Smyril Line CEO.

 

On January 1, 2009 Smyril Line set sail with a changed sailing schedule and a transformed onboard structure. The objective was clear: focusing activities and optimizing operations and revenues. The focus had to shift from administration to service. The company set out to make this happen by streamlining its structure and making it more horizontal. The concrete goal was generating a DKK 13 million profit, a goal Smyril Line has reached with these annual accounts.

 

Sales were around as expected. On the Faroese market sales were slightly slower than hoped; however, they exceeded forecasts on others, particularly the Danish and German markets. Moreover the budgeted costs were on target and Smyril Line was even more cost-effective than expected in some areas. A DKK 5 million provision was made on the budget for exchange losses and debt write-offs, yet Smyril Line’s final results still show a net profit of DKK 15.8 million.

 

New possibilities

The changes made to Norröna’s sailing schedule updated its destinations to only include the ones in greatest demand, which were previously sold out during the high-season. This has doubled capacity on these routes over the summer when demand peaks. The new sailing schedule has also lead to great savings; it has enabled Norröna to sail with a much smaller crew most of the year. Overall it prepares Smyril Line for the growth it intends to achieve over the coming years.

 

Peter Holm stated that the new sailing schedule also entails challenges:

 

– The summer timeframe is tight, there is a risk of delays, but this all went smoothly last summer. Not least thanks to our crew and staff who did an outstanding job. It would not have been possible either without the excellent cooperation with the Faroese, Icelandic and Danish customs authorities.

 

A successful turnaround

– The management was always convinced that our plan would lead us to port; it was therefore not difficult to take the necessary steps and dare to make changes. We were also always convinced that raising capital in November 2008 would not be in vain. On the contrary, it was a good investment in Faroese tourism and society, which, moreover, will prove a source of profit for old and new shareholders alike, says Peter Holm.  

 

Klaus Kjærulff, Chairman of the Board, also welcomed the results and the team’s achievements:

 

– A turnaround like Smyril Line’s would have been impossible without highly competent staff and skilful management. On behalf of the board I want to thank staff and management for their exemplary enthusiasm, competence and hard work, said Klaus Kjærulff, also thanking shareholders for their trust in Smyril Line. He welcomed the excellent annual results, which signal the course Smyril Line plans to steer to generate considerable yields on their investments over the coming years.    

 

The annual accounts will be presented to Smyril Line’s general meeting in April.

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tkr./DKK thousand	2009	2008
Høvuðstøl / Financial highlights
Nettosøla / Net sales	211.513	207.830
Bruttovinningur / Gross profit	109.360	52.874
Starvsfólkaútreiðslur /Staff costs	-48.657	-60.556
EBITDA / EBITDA	60.703	-7.682
Niðurskrivingar / Write downs	0	-121.461
Avskrivingar / Depreciations	-20.345	-20.723
EBIT / EBIT	40.358	-149.866
Úrslit av kapitalpørtum / Result from	1.872	912
Fíggjar útreiðslur, netto / Interest payables	-26.403	-58.930
Úrslit áðrenn skatt / Result before tax	15.827	-207.884
Ársúrslitið / Net profit	15.827	-207.8