EMEA News
DFDS Drops 2020 Outlook on Covid-19 Impact
North European ferry operator DFDS has suspended its 2020 outlook and scrapped its dividend in the light of market uncertaintly from the impact of covid-19.
Two passenger routes, one between Newcastle and Amsterdam, the other linking Copenhagen and Oslo, are suspended until further notice, the company said.
Passenger travel on predominately freight routes will be pared down to essential travel only. Passenger ferry demand accounted for around 16% of DFDS total revenue last year.
"Until now freight activity has been in line with expectations but has started to decrease as manufacturing plants suspend operations and demand in general is impacted by the lock-downs," the company said.
"The further restrictions on intra-European travel and general lock-down measures have significantly reduced financial visibility and the outlook for 2020 is therefore suspended.
"The outlook will be updated once it is possible to assess the financial impact of covid-19.
"Among other things, more visibility on the duration of the lock-downs and demand development post the lock-downs is required.
"In view of the reduced financial visibility, the Board of Directors has decided not to propose the payment of a dividend at the annual general meeting to be held in April 2020."
The company first quarter results will be reported on 7 May.
