Hans J Marter

3 March, 2007

FAROESE shipping line Smyril Line yesterday (Friday) reported a small profit of £150,000 for 2006, following four years of massive losses.

Managing director Thomas Magnussen said yesterday that although 2006 had been a good year for the company, the restructuring process was not over yet.

"The first part of our turnaround strategy is over and has proved a success", said Mr Magnussen.

"We are very happy to see the deficit eliminated. If the positive development is to continue, this single result is not enough. There are still great challenges ahead. to secure a healthy growth in years to come."

Last year's growth was based purely on the company's new strategy initiated last year to turn its fortunes around.

"The new sales and marketing strategy on the European market is right for Smyril Line. The corporation is experiencing increases in all areas of income. Sales are up 23 percent, the number of passengers is up 40 percent, and cargo is up 17 percent.

"Operation is very efficient. Wages and other staff costs are unchanged in spite of the fact that the number of passengers is up 40 percent," Mr Magnussen said.

Shetland Development Trust had invested in a 19.6 per cent stake in the company, based on the company's vessel Norröna calling regularly at Lerwick.

However, as part of the restructuring of the company, the number of calls the Norröna is making to Lerwick Harbour has been reduced dramatically for 2007.

Smyril Line has replaced Lerwick with Scrabster on their timetable, linking Bergen as well as Torshavn to the north of Scotland. As a result the ferry will only call in Shetland once a week during the summer.

Mr Magnussen said that 2007 was a challenging year for the company but that the outlook was good. "Smyril Line expects continued growth in transportation of passengers and cargo," he said.