DFDS DIVESTS OSLO CRUISE FERRY ROUTE TO ENHANCE TRANSPORT FOCUS
| INVESTOR NEWS no. 42 - 10 June 2024 |
DFDS has today entered into an agreement to divest the Oslo-Frederikshavn-Copenhagen (OFC) cruise ferry route to Gotlandsbolaget. Completion of the agreement is expected in October 2024.
The OFC route annually carries more than 700,000 passengers between Norway and Denmark. The route deploys two cruise ferries and has just over 800 sea- and land-based employees. Revenue in 2023 was DKK 0.9bn equal to 3% of the DFDS Group’s total revenue.
“It is with a heavy heart that we have found a new home for the Oslo route as it has been a part of DFDS since our foundation in 1866 and in addition a cherished public institution in Denmark and Norway. DFDS is however today a transport and logistics company bridging Europe and the route deserves a new owner that can continue to invest in and develop the great maritime experience the route offers for passengers”, says Torben Carlsen, CEO of DFDS.
The divestment reflects DFDS’ strategic focus on providing transport and logistics services using combinations of ferry, road, and rail. Transporting passengers by ferry alongside freight is a core activity for DFDS on the Baltic Sea, between the Netherlands and the UK, on the Channel, and on the Strait of Gibraltar.
The OFC route is first and foremost a passenger route (cruise ferry) given the route’s limited freight capacity and the market size for freight ferry services between the ports of the route. In addition, the OFC route’s primary customer segment is leisure, or mini cruise, passengers which sets it apart from the focus on passenger transport throughout the rest of DFDS’ route network.
The sale of OFC includes the two ferries deployed on the route (built in 1989 and 1994, respectively), terminal and port agreements as well as just over 800 employees in route operations and support functions. DFDS will after completion of the agreement provide certain support services to the buyer for an agreed and limited period.
The sales price of the OFC routes is approximately DKK 400m. The transaction is not expected to result in any material income statement impact in 2024.
The completion of the transaction is subject to customary closing conditions but no regulatory approval conditions apply.
Contact
Torben Carlsen, CEO
Søren Brøndholt Nielsen, IR
Dennis Kjærsgaard Sørensen, Media
About DFDS
We operate a transport network in and around Europe with an annual revenue of DKK 28bn and 14,000 full-time employees.
We move goods in trailers by ferry, road & rail, and we offer complementary and related transport and logistics solutions.
We also move car and foot passengers on short sea and overnight ferry routes.
DFDS was founded in 1866 and headquartered and listed in Copenhagen.
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