TT-Line books $723 million loss after ferry and terminal write-downs

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TT-Line $723M loss on ferries

Highlights

TT-Line recorded a $723 million loss for 2025-26, mainly due to a $646.9 million non-cash write-down of four ferries and two terminals.
The Spirit of Tasmania I and II valuations fell to $87.5 million, while IV and V dropped to $717.9 million due to new asset commissioning and weak buyer demand.
In May, TT-Line's ferry replacement program revealed a $717 million cost overrun, leading to a $506 million equity injection and a $410 million borrowing limit increase from the Tasmanian government.

Asset revaluations reshape annual result

As reported by ABC News, TT-Line says its $723 million accounting loss for 2025-26 is driven mainly by a $646.9 million write-down across its four ferries and two terminals, while the business still delivers a $1.5 million operating profit. Chairman Ken Kanofski says the revaluation is non-cash and does not affect the company's equity requirements, debt position or trading plans.

The write-downs cover Spirit of Tasmania I and II, reduced from $174.3 million to $87.5 million, Spirit of Tasmania IV and V, cut from $1.086 billion to $717.9 million, the Devonport terminal, lowered from $416.8 million to $282.8 million, and the Geelong terminal, revised from $311 million to $262.1 million. Kanofski says the lower valuation on the new vessels reflects the usual drop in value once new assets are commissioned, while the older ships are facing weaker buyer demand tied to Middle East unrest, higher interest rates and their fuel type.

In May, the ferry replacement program was disclosed as costing $717 million more than originally expected. In the same month, the Tasmanian government announced a $506 million equity injection into TT-Line and later lifted the company's borrowing limit by $410 million.

Fleet transition tests Tasmania ferry strategy

TT-Line is moving ahead with the transition to its new Bass Strait fleet, with the two new Spirit of Tasmania ferries due to begin service from the end of the month. At the same time, Spirit of Tasmania I has made its final crossing on Thursday and Spirit of Tasmania II is due to make its last voyage on Friday evening, with several parties said to be interested in buying one or both vessels.

The company says the business remains solvent and that its lender, TasCorp, and Tasmanian Treasurer Eric Abetz have approved changes to debt repayment dates. Kanofski says the outlook is very strong despite ongoing financial pressures, arguing that TT-Line is now operating with brand-new ships, berths and supporting infrastructure, even if returns in the early life of major assets are below longer-term expectations.

Our earlier coverage on geopolitical shocks and higher interest rates explained how persistent conflicts and elevated fiscal spending can keep funding costs high and strain borrowers’ resilience. We noted that the Russia-Ukraine war and the conflict in the Middle East have contributed to higher energy and food prices, feeding inflation and tightening financial conditions—dynamics that can weigh on credit outlooks and asset values across markets.

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