The improvement is primarily due to stronger results in the Gotland traffic but has also been negatively impacted by costs related to the takeover of the new line. The result has also been positively affected during the period by our operations related to BIRKA GOTLAND.

• The net profit from the sale of ships amounted to SEK 0.0 million (19.1).

• The financial net amounted to SEK 6.5 million (17.3), which was positively affected by higher interest income but negatively by exchange rate changes.

• The profit after tax including sale profit on sales amounted to SEK 230.4 M (247.2) corresponding to SEK 92.2 (98.9) per share.

The period January-September 2024

• Revenues amounted to SEK 1,991.7 million (1,895.5). The costs amounted to -1,677.2 MSEK (-1,672.6). The income and costs have been affected by services provided for Gotland Alandia Cruises and the discontinued operations within product tank. At the same time, lower fuel costs and higher revenues in Gotlandstrafiken have had a positive impact on the result. The result has also been burdened by implementation costs related to the takeover of the new line between Oslo-Fredrikshamn-Copenhagen and the start-up of BIRKA GOTLAND.

• Adjusted operating profit amounted to SEK 278.8 million (222.9), corresponding to SEK 111.5 (89.2) per share. The improvement is primarily due to an improved result in Gotland traffic but has at the same time been negatively affected by costs related to the takeover of the new line and the start-up of BIRKA GOTLAND.

• Capital gains on the sale of ships amounted to SEK 0.0 million (280.3).

• The financial net amounted to SEK 168.8 million (137.9) as a result of rising interest rates and increased investments in the money market, but with a lower positive impact from exchange rate effects.

• The profit after tax, including capital gains on sales, amounted to SEK 322.7 million (503.1), corresponding to SEK 129.1 (201.2) per share.

Significant events during the quarter

• In September, Gotlandsbolaget announced that a donation is funding a two-year postdoctoral research position at Uppsala University Campus Gotland, focusing on supply systems for hydrogen for shipping.

Significant events after the quarter

• In June, Gotlandsbolaget and DFDS announced that the Danish shipping company is selling the line between Oslo-Fredrikshamn-Copenhagen to Gotlandsbolaget for approximately DKK 400 million. On 31 October, Gotlandsbolaget took over the line. The deal includes the cruise ferries CROWN SEAWAYS (1994) and PEARL SEAWAYS, (1989) and a business with roughly 800 employees.

• On 19 November, the government announced that ferry traffic to and from Gotland will be covered by the requirements for emission reductions according to FuelEU Maritime. The regulation contains incentives for overachieving against the climate goals.

Comment from the CEO, Håkan Johansson:

“A good summer for Birka Gotland

During the spring, BIRKA GOTLAND, our collaboration with Viking Line, premiered. The summer has shown high travel with the cruise ship and the line has contributed positively to the quarter's results. During the months of June-August, nearly 160,000 travelers chose to cruise with BIRKA GOTLAND. Gotland was called 27 times during the season and these departures have had a very good occupancy with almost 38,000 passengers, which is pleasing for the Gotland tourism industry.

For the group as a whole, the adjusted operating profit amounted to SEK 323.2 million (277.6). Traffic with BIRKA GOTLAND has made a positive contribution during the quarter, but the improvement compared to 2023 is mainly due to improved results in Gotland traffic.

During the period June to August, nearly 940,000 people travelled with Gotlandstrafiken, which is an increase of approximately 2,000 passengers from the previous year. During the quarter, however, the number of passengers decreased by 1.5 percent compared to 2023. Travel during the important summer months as a whole shows once again that Gotland stands as one of Sweden's most attractive travel destinations.

Continued expansion in passenger shipping in the Nordics

The quarter involved intensive work with prepare the takeover of the line between Oslo-Fredrikshamn-Copenhagen. On 31 October, we took over the operations from DFDS according to plan. Gotlandsbolaget now covers two more Nordic capitals and the transaction is an important step in our strategy to expand within passenger shipping. The line between Oslo-Fredrikshamn-Copenhagen is an attractive combination of passenger shipping and cruises, and we see great potential in developing it.

The line is currently served by the cruise ferries CROWN SEAWAYS and PEARL SEAWAYS, in which we will now make major investments to develop the onboard experience. The renovation of the ships is central to our plans to increase the number of passengers in the coming years.

We plan to start work on new ships for the line in the next few years. There, the focus will be on both the onboard experience for the passengers and the ships' climate impact. We have high ambitions for our entire fleet regarding climate impact, and this applies to the Gotland traffic as well as the line between Oslo-Fredrikshamn-Copenhagen.

Shipping of the future

In June, the Swedish Transport Administration announced that we will continue to be trusted to operate Gotlandstrafiken 2027-2035. This has meant that we have further intensified the work on next-generation vessels for the Gotland traffic. Our goal is to offer climate-neutral crossings in Gotlandstrafiken by 2045 at the latest, which requires significant investment.

In recent years, we have been working on next-generation ships: the Horizon series – concept ships developed for fossil-free propulsion, and work on Horizon X, a high-speed catamaran that can be powered by hydrogen and other fossil-free fuels, is well advanced.

Gotlandsbolaget continues to invest in new technology and research to develop both Gotlandstrafiken and passenger traffic in general. But to achieve a climate-neutral Gotland traffic by 2045, efforts are required that we ourselves have no control over: increased production of fossil-free electricity and fuels as well as infrastructure, in and outside ports.

Gotland traffic should be included in a developed Swedish tonnage tax

We are proud to have won the procurement of Gotlandstrafiken for the period 2027-2035 in full competition throughout the EU. As communicated in connection with the award, our winning bid was submitted from a Danish subsidiary. This is to be able to compete with other European shipping companies on equal terms. Our tender is based on a Swedish flag and Swedish crew with a Swedish collective agreement, and the Danish subsidiary will be responsible for financial and strategic management. The Swedish government is working with a developed Swedish tonnage tax, but it is currently unclear whether the Gotland traffic will be included in this.

The Swedish Shipping Association is working to make the Swedish tonnage tax competitive for Swedish shipping companies, and we look with confidence at the possibility that traffic between Gotland and the mainland will also be included. If such a decision is made in 2025, we have the opportunity to also place the responsibility for financial and strategic management on Gotland, just like today. It should be a matter of course that there must be competitive conditions for such a strategic infrastructure as the ferry traffic to Gotland to be able to be controlled entirely from Sweden.

On 19 November, we welcomed the government's announcement that ferry traffic to and from Gotland will be covered by the requirements for emission reductions according to FuelEU Maritime. In consultation responses and dialogues, we have been clear that the traffic between Gotland and the mainland would not benefit from an exception. Instead, the regulation is positive for the development of Gotland traffic, as it contains incentives to overperform against the climate goals, and we are well prepared to meet the requirements.”

© Shippax