Hurtigruten continues to lose money, despite the jump in income.
Hurtigruten opened the books for the fourth quarter on Tuesday night. They showed another big loss for the Norwegian travel company.
- The company had operating profit (EBITDA) minus 32.6 million euros in the quarter, which equates to minus NOK 358 million. In comparison, the company posted an adjusted operating result of minus 48.8 million euros in the fourth quarter of 2021.
- During the last three months of 2022, the company lost NOK 908 million after taxes. In the same period in the previous year, Hurtigruten lost just over 1 billion kronor.
- In total for the whole of 2022, the company faces a loss of NOK 2.3 billion.
Costs were higher than expected in the fourth quarter, driven by passenger costs related to flight disruptions, higher fuel prices and a strong dollar, says CEO Daniel Skgelram.
He expects this temporary increase in cost levels to subside in the first quarter, and that the dollar’s strong reversal against the krone will continue.
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Income increase
The Hurtigruten Group had a turnover of 135 million euros in the fourth quarter of last year. This equates to NOK 1.48 billion, an increase of 80 percent compared to the same period last year.
The company’s coverage ratio was 57 percent in the quarter, up from 41 percent in the fourth quarter of 2021.
The company explains that occupancy on Hurtigruten Expeditions, the company’s expedition flight, continues to be affected by corona testing regulations on boarding and travel disruptions in South America.
Further, the company writes that testing requirements for Hurtigruten missions in the first quarter of 2023 have been removed.
Funds collected
Last week, Hurtigruten announced a refinancing that will guarantee the operation of the shipping company.
– The proposed refinancing includes €80m in additional financing from the company’s shareholders, of which €25m has been made available with immediate effect, Skjeldam says.
The CEO looks to the future.
– We continue to see positive order momentum, and as of February 27, 2023, the company has sold a total of €140 million in new sales, a 100 percent increase compared to the same period last year and the best order period in the company’s history.
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