Reduced expenses, chartering out m/v Nordnorge and favourable exchange rates improved results by NOK 130 million in the second quarter of 2009.
Hurtigruten achieved a profit of NOK 157 million in the second quarter, compared with NOK 26 million for the same period of last year. Profit for the first half was NOK 24 million, compared with a loss of NOK 186 million in the same period in 2008. This represents an improvement of NOK 210 million.
Profits were affected by higher revenues from the public procurement contract, chartering m/v Nordnorge and lower bunkers, administration and payroll costs. Reduced expenses for m/v Fram and a decline in revenues from Svalbard also affected results. Fewer passengers were partly offset by better average prices and higher onboard spending.
M/v Nordnorge was chartered throughout the quarter as a hotel ship. This charter has been extended until 13 August 2009.
As in preceding periods, the second quarter was affected by Hurtigruten’s extensive restructuring programme. This work is on schedule. The new Polar Global booking system has been introduced in the Nordic region, and the booking function for this part of the world has been transferred to a sub-contractor in Tallinn. After a challenging start-up, the department is moving into normal operation. Downsizing has been completed in the Nordic region and is under way in Britain and the USA. Germany and the rest of the sales organisation will downsize during the second half.
The restructuring will strengthen Hurtigruten’s opportunities to compete over the new tender. Results for the first half show that the group is making good progress.
“It’s gratifying that the positive development we saw in first quarter is continuing,” says CEO Olav Fjell. “The restructuring already shows improvements on the cost side. Bookings are still weaker than last year, but active sales and marketing efforts have limited the decline.”
Here is the presentation given from auugust 20th in replay:
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