LA TRIBUNE – One year after CMA CGM (owner of The Tribune), Brittany Ferries has just announced the arrival of several Breton shareholders in the capital, including Louis Le Duff, Alain Glon Holding and Roland Beaumanoir. How much are they investing and why?
Jean-Marc Roue : They are Breton industrialists from insurance, security, food production, catering and hospitality. Their personal investment ranges from 100,000 to 500,000 euros. Their capital investment strengthens the regional roots of the company. In 2022, during the christening of our ship Salamanca, Jean-Yves Le Drian (former President of the Brittany Region and Minister of Foreign Affairs) said, ” Brittany Ferries is the image of Breton audacity “I completely agree. Our historical shareholders, the vegetable cooperatives of Finistère (Sica de Saint-Pol de Léon, Prince de Bretagne brand) and the CCIs, have had the audacity to demonstrate that it was possible. Now, there is a kind of return of the favor from Breton industrialists, all beneficiaries of the spending of British customers that Brittany Ferries transports to France (9 million overnight stays) and which also allows the export of goods to the United Kingdom.
Decarbonization of maritime transport: “Shipowners are helpless in the face of the 2050 objective” (Edouard Louis-Dreyfus)
Does this entry not dilute the share of the main shareholders? What was the issue of this opening of capital?
The historical shareholders are a little less predominant but their share in the capital remains at 75%. The primary objective was to give Brittany Ferries a balance sheet that matches its ambitions, both in the renewal of its fleet (LNG and hybrid ships such as the Saint-Malo, which will reduce CO2 emissions by 20 to 25% and GHG (greenhouse gas) emissions by 10 to 20%, than rail transport (Cherbourg-Bayonne line). But the Covid-19 pandemic has passed by. These ambitions still exist, however the search for investors also aims to erase the negative effects of the health crisis. With the banks, the Brittany and Normandy regions, we dealt with the most urgent matter, which was to protect cash flow by postponing the maturity of debts on the banks’ side and the provision of repayable advances on the regions’ side. With the French State and CMA CGM, we started the recovery. CMA CGM initially agreed to go through convertible bonds, therefore without voting rights at the general meeting. This is a gesture of maritime solidarity that I salute once again.
In terms of results, you have just announced an increase in the volume of passengers booked of 6.5% (1.93 million) between November 2023 and October 2024, after growth of 11.3% in 2023 as well as a significant reduction in debt. What is the timetable for debt reduction and repayment of the PGE?
The repayment of the repayable advances (30 million euros) from the Brittany Region will take place on October 23 and those from the Normandy Region (35 million euros) at the beginning of November. The PGE will be fully repaid in the fall of 2028 over a six-year amortization period. By the end of November, 37 million euros of the 117 million loaned will have been repaid.
You also report a “rapid recovery capacity” and the launch of “new structuring and wealth-creating projects”. While waiting for the announcement of the 2023-2024 results next spring, what is driving the company’s activity (around 484 million euros in turnover)?
This rapid recovery is facilitated by the return of passenger customers and especially, this year, of British customers to France. The lines to and from Ireland are an expected growth driver on the freight side (1/5 of overall turnover, +4.3% in 2024) but much better than expected on the passenger side. The Cherbourg/Rosslare line saw a 28% increase with 35,000 passengers this year.
Brittany Ferries is set to become the majority shareholder of the Guernsey company, Condor Ferries (flagged to the Bahamas). Why invest in this company which connects the United Kingdom and France to the islands of Jersey and Guernsey?
To serve the Channel Islands and its inhabitants, by providing Brittany Ferries expertise. The political authorities of both islands wish to positively develop their relationship with France and its territories. Saint-Malo, where we are very well established, represents a major asset in meeting this vision. Brittany Ferries will apply to Condor Ferries the keys to its own success with shared management and strong values, starting with the defense of a social model for seafarers and a reinforced commitment to maritime decarbonization.For 50 years, Brittany Ferries has demonstrated that, with its unique model in Europe, it is the only one to respect the ambitions of the territories with which it engages.
What makes you different from your competitors (Irish Ferries, P&O Ferries, DFDS Seaways)?
Many companies have set up operations only to sometimes leave after a few months or years, because the activity is not considered profitable enough. This does not correspond to our concept. Brittany Ferries, which flies the French flag, will never be the richest of companies because beyond the financial aspects, the well-being of the women and men who live in the territories we serve is important to us. If we applied the recipe of our competitors, we would be much more profitable. That being said, these companies have also demonstrated their limits, like the low-cost companies in the air sector. When it no longer brings in enough money, they leave. The world is at a turning point and Europe in particular, the Brittany Ferries model is not a problem, it is the solution!
The implementing decrees of the law to combat social dumping on the Channel, signed in March by the former Secretary of State for the Sea Hervé Berville, have been published in the Official Journal. Can this law effectively curb the social model? low cost that you denounce and that you oppose to the French flag?
It’s now up to DGeneral Directorate of Maritime Affairs, Fisheries and Aquaculture (DGAMPA) to control the ships concerned to enforce the law and force the recalcitrant to stop modern slavery. With the social partners, shipowners of France, we are very careful about the controls as President Edouard-Louis Dreyfus recently recalled. At a time when everyone is demanding more social protection, and after a unanimous vote by both chambers of the French parliament, it would be the height of irony if the maritime administration did not put all the means to respect this law. We await the reports at the next meetings of the High Council of the Merchant Navy (CSMM).
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