Revenue rises at Irish Continental despite lower tourism volumes
By Josh White
Date: Friday 17 May 2019
(Sharecast News) - Ferry operator Irish Continental Group updated the market on carryings for the year to date to 11 May and financial information for the first four months of 2019 on Friday, reporting consolidated group revenue of €102.3m - an increase of 6.1%.
The London-listed company said net debt at the end of April was €88.4m, up from €80.3m as at 31 December.
Its board noted that its revenue was weighted towards the summer period due to the seasonality of tourism carryings.
Fuel costs were impacted by higher global fuel prices, compared to the corresponding period in the previous year.
In the ferries division, total revenues recorded in the period to 30 April amounted to €51.7m, including intra-division charter income, which was a 1.1% decrease on the prior year.
The firm said the decrease was primarily due to lower tourism volumes resulting from the planned suspension of fastcraft services on the Dublin-to-Holyhead route in the period up to 14 March compared to the prior year, partially offset through increased freight volumes.
For the year to 11 May, in the "seasonally less significant" period for tourism, Irish Ferries carried 95,000 cars - a decrease of 8.5% on the previous year.
Freight carryings were 109,500 roll on-roll off (RoRo) units, which was an increase of 6.6% compared with 2018.
The planned suspension of fastcraft sailings in the off-peak season was said to be the main reason for reduced tourism carrying in the period.
In addition, the company said the proposed withdrawal of the United Kingdom from the European Union had "some" negative impact on UK passenger bookings in the lead-up to the proposed exit date of 29 March.
"The recent agreement between the Irish and British government to continue and formalise the Common Travel Area whatever the outcome of the UK withdrawal negotiations is a positive development," the board said in its statement.
In its container and terminal division, total revenues recorded in the period to 30 April amounted to €53.2m, which was a 13.7% increase on the prior year.
That increase was said to have been driven by volumes, increased fuel surcharge against increased fuel costs and additional ancillary revenues.
For the year to 11 May, container freight volumes shipped were up 8.9% on the previous year at 129,000 20-foot equivalent units (teu), which was achieved through increased load factors and additional capacity.
Units handled at the firm's terminals in Dublin and Belfast increased 7.5% year-on-year to 119,600 lifts.
On the development front, Irish Continental said the 'W.B. Yeats', delivered in December, began sailings on 22 January, initially on the Dublin-to-Holyhead route before switching to the Dublin-to-France service during March, swapping with the 'Epsilon'.
The Dublin Swift also recommenced sailings on the Dublin-to-Holyhead fastcraft service during March.
"On 4 April, the group took delivery of the container vessel 'Thetis D', built in 2009 with a 1,421 teu container capacity," the board said.
"The vessel has been on charter to a third party since acquisition by the group.
"This increases the ICG owned container fleet to five vessels."
On 11 April, Irish Continental announced that it had entered into a hire purchase agreement for the sale of the vessel 'Oscar Wilde' to buyers MSC Mediterranean Shipping Company for an agreed consideration of €28.9m, payable in instalments over six years.
The vessel was delivered to the buyer on 25 April.
"At Belfast Port, where the group operates the sole container terminal at Victoria Terminal Three, a six-year extension to the current service concession agreement has been concluded with Belfast Harbour Commissioners (BHC)," the board added.
"The arrangement will now extend to September 2026 with an option to extend at the discretion of BHC for a further three years to 2029."
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