Hurtigruten Group has secured a new fully committed EUR 55 million subordinated shareholder loan facility from its shareholders.
The new shareholder loan will be utilised to finance ongoing environment projects being undertaken by Hurtigruten Norway, and also deliver working capital to support a number of other growth opportunities across the Hurtigruten Group (HRG).
Hurtigruten Norway is currently in the midst of the largest environmental upgrade program to its fleet ever undertaken by a European cruise ship operator. The upgrade will deliver a number of benefits across the fleet, key among them the projected reduction of CO 2 emissions by up to 25% and NOX emissions by up to 80% through the conversion of three vessels into battery-powered hybrid ships and the installation of SCR systems on a further three ships.
Daniel Skjeldam, Hurtigruten Group CEO says the quantum of funding secured reflects the strong confidence of HRG’s shareholders in the Group.
“Our owners continue to show continued support for our dedication to push the tourism industry in a sustainable direction, and that they’re eager to invest in the long-term growth of our company. That’s the kind of ownership that enables and encourages us to make the necessary choices for our future,” Skjeldam remarked.
“We’ll continue to invest in Hurtigruten Norway, Hurtigruten Expeditions and Hurtigruten Destinations, and we will fulfil our promise to become a zero-emission company by 2050.”
The company noted its forward bookings on the Original Coastal Express, Hurtigruten Expeditions and Hurtigruten Svalbard were robust, with gross sales for the 12-month period from Q3 2022 to Q2 2023 at the same levels in the corresponding period pre the pandemic (Q3 2019 to Q2 2020), while delivering higher yields across all business units and destinations.
In the six months from April to September 2022, HRG anticipates its total revenue will be around the same level as the equivalent period in 2019 (pre-pandemic).