Denmark’s DFDS reported its pre-tax loss in the seasonally weak first quarter widened to 118 million kroner ($ 20.5 million) from 98 million kroner ($17 million) a year earlier, as cargo traffic stalled on its key North Sea and Baltic shipping routes.
Northern Europe’s largest short sea shipping and logistics company managed to increase revenue by 1 percent to $469 million, but its operating loss soared 35 percent to $12.7 million.
“Continued stagnation in our key market in northern Europe put further pressure on prices in Q1, since overall supply of capacity is virtually unchanged,” said CEO Niels Smedegaard. “We foresee that this situation will also characterize the rest of the year.”
DFDS confirmed earlier this month that it has submitted a bid for Scandlines, the Danish-German ferry company, which is being sold by its private-equity owners.
DFDS is competing against two buyout firms, TPG Capital and Star Capital Partners. Scandlines is expected to fetch between $1.3 billion and $1.8 billion, with a sale likely to be concluded by the summer.