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DFDS enters 5-year agreement with Stora Enso and opens new route

COMPANY ANNOUNCEMENT NO 14
 

DFDS to transport 700,000 tons of paper annually for Swedish paper producer Stora Enso on a new route between Gothenburg and Zeebrugge. DFDS will acquire two freight ferries for the route. The contract runs for a minimum of five years.

DFDS and Stora Enso have today entered into a 5-year agreement to annually carry around 700,000 tons of paper and board products between Gothenburg and Zeebrugge. Stora Enso has the option to extend the agreement with three year

Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. Stora Enso has annual sales of
EUR 10.5bn and 26,000 employees.     

"We are very pleased to expand our cooperation with Stora Enso and look forward to supporting their growth through an efficient and flexible route operation. We likewise look forward to offer the transport market additional capacity and services between Sweden and Belgium", says Peder Gellert Pedersen, Executive Vice President, DFDS Group, and Head of Ferry Division.

DFDS opens new route
To accommodate the volumes of the agreement, DFDS will open a route between Gothenburg, Sweden, and Zeebrugge, Belgium. The new route will be operated by three freight ferries. Two freight ferries - Slingeborg and Schieborg - will be acquired from third party owners for DKK 270m.

In addition, one freight ferry will be transferred from DFDS` existing route between Gothenburg and Ghent that currently deploys four freight ferries. The significant increase in departure frequency between Sweden and Belgium will enhance customer services and support the growth of our customers.

The route is expected to begin operating mid June, 2019 and reach revenue in excess of DKK 300m in 2020.

Outlook 2019
DFDS Group`s outlook for 2019 is unchanged with regard to revenue and earnings.

DFDS` investments in 2019 are now expected to be around DKK 2.8bn compared to previously DKK 2.5bn.

Kontakt
Søren Brøndholt Nielsen, IR +45 33 42 33 59
Gert Jakobsen, Communications +45 33 42 32 97

Capital markets day 2019
DFDS` ledelse holder kapitalmarkedsdag for institutionelle investorer og analytikere 18. juni i København. For mere information og tilmelding, klik her.

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act. UK_OMX_No_14_09_05_2019_Zeebrugge


This announcement is distributed by West Corporation on behalf of West Corporation clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: DFDS A/S via GlobeNewswire

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