TT-Line Company, the ferry operator owned by the Tasmania State Government in Australia, has reported an AU$723 million (US$508 million) accounting loss for the 2025–26 financial year after writing down the value of its Spirit of Tasmania ferries and its Bass Strait terminals.
The result includes AU$646.9 million (US$454.7 million) in asset write-downs. The company also posted an operating profit of AU$1.5 million (US$1.1 million).
The new Ro-Pax ferries Spirit of Tasmania IV and Spirit of Tasmania V had their combined book value reduced from AU$1.086 billion (US$760 million) to AU$717.9 million (US$504.6 million), a cut of AU$368.1 million (US$258.7 million). The outgoing Spirit of Tasmania I and Spirit of Tasmania II were written down from a combined AU$174.3 million (US$122.5 million) to AU$87.5 million (US$61.5 million).
The Devonport terminal's valuation dropped from AU$416.8 million (US$293 million) to AU$282.8 million (US$198.8 million). For the Geelong terminal, it declined from AU$311 million (US$219 million) to AU$262.1 million (US$184.2 million).
TT-Line Chairman Ken Kanofski said the impairments were non-cash and did not alter the company's equity request, debt position or trading arrangements.
"It's really the accounting catching up with all the issues that have been well publicised for some time now," he told ABC News.
Kanofski said weaker buyer interest amid Middle East instability and elevated interest rates, along with the vessels' fuel type, contributed to the lower valuations of the outgoing ships. He said lender TasCorp and Tasmanian Treasurer Eric Abetz had approved changes to the company's debt repayment dates.
"We've been solvent at all times, and we remain that way," he said.
In November 2025, Tasmanian Auditor-General Martin Thompson said he had considered TT-Line insolvent when issuing his audit report that August. The board disputed his assessment.
In May, the state government announced AU$506 million (US$356 million) in equity over four years to cover past capital cost overruns on the ferry replacement programme.
Spirit of Tasmania I completed her final crossing on October 22, and Spirit of Tasmania II was scheduled to follow on October 23.
Several parties have expressed interest in the pair, but no buyer has been secured.
The replacement ferries were built in Finland by Rauma Marine Constructions.
Spirit of Tasmania IV arrived in Devonport in August for berth testing.
Both new ships are scheduled to make their inaugural passenger sailings on October 31, from Geelong and Devonport respectively. Each has 301 cabins and accommodates 470 more passengers on each sailing than the outgoing ships.
