DFDS’ external insurance company has declared the ro-pax ship Lisco Gloria to be an insurance technical total loss. An extensive fire broke out on the ship on 9 October while it was en route from Kiel to Klaipeda.
DFDS will receive total compensation of 525m kroner, of which 420m kroner will be compensation for the ship's insured market value. The remaining compensation of 105m kroner relates to a hull interest triggered by declaration of total loss. The purpose of this is to safeguard against losses due to related costs such as operating losses, the accelerated deployment of a new ship and more. The compensation results in an accounting gain of 260m kroner in 2010, after deduction of costs.
Chartered replacement tonnage was put in service on the Kiel-Klaipeda route on 16 October. In the coming months the company will be looking for a permanent solution for a replacement ship.
On the basis of impairment tests conducted at year end, the company has identified a need to make write-downs on ships and goodwill of 180m kroner in 2010.
As a result of the above book profit of 260m kroner and the write-down of 180m kroner, the profit forecast for 2010 has been adjusted upwards by 80m kroner, from a profit before tax of 435m to a profit before tax of 515m kroner.
The ship is now laid up at the Fayard yard in Odense, Denmark. The ship was one of two on DFDS' route between Kiel and Klaipeda.
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