Travel restrictions due to the corona pandemic continue to weigh on Norwegian, the company writes in a stock exchange release.
0.59 million passengers have flown Norwegian so far this year, compared to 5.31 million in the same period last year.
At the same time, Norwegian refers to a successful reconstruction earlier this year, and writes that they are ready for future growth and increased demand for flights.
Norwegian boss Geir Karlsen
Photo: Astrid Husø
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The reconstruction plan to the previously distressed airline was approved in May this year.
– Norwegian is now in a much stronger financial situation, and can plan for the future with new confidence, says CEO Geir Karlsen in the stock exchange announcement.
Norwegian ended with an operating profit of negative NOK 766 million in the second quarter of this year, the recent report to the company shows. The second quarter, from April to June, used to be a strong season for the company.
For the full six months, the operating profit was minus NOK 2.28 billion.
NRK
explains
Quarterly report on 1, 2, 3
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What are quarterly reports?
Every quarter, ie every three months, listed companies must publish what they have earned, and what they have spent or lost money on, in the last three months. They present these figures in a report, which is published every quarter. Some companies only publish reports every six months.
And in the fourth quarter, or the last six months, the annual report often also comes. Then the company summarizes what they have earned, and what they have spent or lost money on, throughout the past year.
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Why do companies tell you how it goes?
The quarterly figures show how the company is actually doing. Whether they lose money, or make a lot of money, and what they possibly lose money on.
In addition, the companies on the stock exchange have shareholders, who have an interest in knowing how the company is doing. Shareholders are those who own shares in the company, and can therefore be involved in deciding how the company is to be run. You can have small and large holdings, but how things go with the company can mean a lot for the value of the shares that the owners have. It is also useful for those who are considering buying shares in the company.
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But I’m not a shareholder. Why should I care then?
Yes! On the Oslo Stock Exchange, there are a number of state-owned companies, in which all Norwegians, through the state, have ownership interests. In those companies, you are actually a shareholder. It is especially important that Norwegians and the state get to know how things are going.
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What is the result?
The result of the company is the sum of what the company has earned, and what it has used or lost, during the last three months. If the result is a plus, the company has earned more than it has spent. If there are red numbers in the result, the company has lost or spent more than it has earned. Then the company goes into the red, and the company has lost money.
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What do write-downs mean?
When a company takes write-downs, it means that they expect that the value of what they own will be, or is, worth less than what they were worth before.
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What does it mean for the company to pay dividends?
If the result is a profit, the company has a profit. Then the company can choose to pay out money to the shareholders. The sum that the shareholders receive is determined by the board of the company, and depends on how large an ownership share each individual shareholder has. And that sum is called dividend.
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What in the world is EBIT and EBITDA?
Twisted concepts that mean result. EBIT is the operation before the company has paid taxes and interest. EBITDA is the operation before the company has paid taxes and interest, and taken depreciation.
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New CEO
Profit before tax ended at NOK 1.59 billion in the first half of 2021, up from a loss of NOK 4.792 billion in the same period last year.
Quarterly figures show what a listed company has earned and lost in the last three months. The same applies to half-year figures, but here the company refers to the last six months that have passed.
The airline ended with a turnover of NOK 590.8 million, a decrease from NOK 7.14 billion in the same period the year before.
Most of this came from the second quarter – in the last three months of the half-year, Norwegian earned NOK 335.5 million.
This is Geir Karlsen’s first presentation of results as CEO of the Norwegian airline, which earlier this summer was through a change of leadership.
Karlsen was CFO under former CEO Jacob Schram, who was asked by the board to resign in June.
In the wake of Schram’s departure a bonus scheme that included both Schram and Karlsen attracted attention.
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