The year in review for Smyril Line
May 7, 2021
The Smyril Line Group has held its annual general meeting. The results for 2020 showed a surplus of 7,8 million DKK. This is considerably lower than previous estimates. The lower surplus is a direct result of the COVID-19 pandemic. Bearing this in mind, the Board of Directors and Group Management are satisfied with the overall result. Smyril Line will not allocate dividend for 2020.
2020 was a difficult year for the tourist industry. Smyril Line was also affected by this. The downturn has been significant. Fewer tickets were sold for passenger transport with Norröna, and there were fewer stays at Hotel Brandan and Hotel Hafnia than anticipated. In total, Smyril Line’s turnover for tourist activities decreased by approximately 170 million DKK.
Norröna went through a major refurbishment during the winter 2020/2021. 50 additional cabins were added, and the old cabins were updated. A new café was built on the top deck. Other repairs and changes were also made. For example, a new lounge with sofas and chairs was added.
Norröna was added to the fleet in 2003. Back then, people’s expectations were not the same as today. As such, the shipping company deems it necessary to keep up with the times and fulfil the demands of passengers travelling with Norröna.
Smyril Line believes that opportunities are good in the Faroese tourist industry, but the current situation with the COVID-19 restrictions makes the work difficult. Nobody knows exactly what to expect within this particular industry.
Smyril Line’s cargo transport activities have not been impacted by the pandemic and went according to plan in 2020. In addition to Norröna, Smyril Line has five freight vessels in its fleet: Eystnes, Hvítanes, Akranes, Mykines and Mistral. Smyril Line has been renting Mistral.
Cargo transport activities increased in 2020. The route between the Netherlands and Norway, served by the freight vessel Akranes, was added to Smyril Line’s route network. Akranes sails weekly between Rotterdam in the Netherlands and Tananger, Bergen, Trondheim, Rørvik and Hitra in Norway.
The total number of personnel working for the company is approximately 500. The majority are Faroese.
The prospects for Smyril Line are good. Cargo transport activities are expected to remain steady, and the outlook for an increase in tourist activities is positive. The demand for the Faroe Islands and Iceland as holiday destinations is increasing. As such, the Group has taken the necessary steps to accommodate an increase in demands within the tourist industry by expanding the total capacity of Norröna and the hotels.