LONDON (ShareCast) - (Sharecast News) - Ferry operator Irish Continental Group updated the market on its trading for the year-to-date, to 24 November, on Thursday, reporting revenue for the 10 months through October of €285.3m.
That was a decrease of 1.3% compared with last year, which the board put down to sailing disruptions and schedule changes in the ferries division, offset by revenue growth in the container and terminal division.

The London-listed firm said external charter revenues were €4.9m lower, following the sale of the Kaitaki vessel in May last year and Jonathan Swift in April of this year.

For the year-to-date, Irish Continental said group fuel costs continued to be impacted by higher average fuel prices compared to the prior year.

Net cash at the end of October was €33.9m, which included cash generated from trading to date net of the 20% deposit payment on the second new vessel and proceeds from the sale of the Jonathan Swift.

"There is heightened uncertainty at the moment over the manner of the proposed exit of the United Kingdom from the European Union," the board said in its statement.

"This is bound to be affecting the timing of corporate investment decisions and continued uncertainty may have a negative impact on consumer sentiment."

Looking at the ferries division, total revenues recorded in the period to 31 October amounted to €172.1m, including intra-division charter income, which was a 6.7% decrease on the prior year.

Irish Continental said €4.9m of the decrease was attributable to lower external vessel charter earnings following the disposal of the Kaitaki and the Jonathan Swift.

For the year to 24 November, Irish Ferries carried 365,400 cars, a decrease of 7.2% on the previous year, on the back of a 7.3% loss in sailings, which included planned reduced fast craft sailings of 20% due to a decision not to operate the Swift in the winter.

In the period since 30 June, car carryings dropped by 11.2% compared with the same period last year.

Freight carryings for the year to 24 November were 257,000 roll-on, roll-off (RoRo) units, which was a fall of 0.8% compared with 2017, on the back of a 4.1% loss in cruise ferry sailings.

In the period since 30 June, carryings slid by 5.6%.

Carryings in the period July to date compared to the prior year were adversely affected by significant disruptions to the schedules on the Dublin-Holyhead route, the board said, due to technical difficulties affecting the flagship vessel Ulysses.

"While Irish Ferries adjusted its fleet allocations to reduce the effect of these disruptions there remained a significant reduction in capacity."

The company sold the Jonathan Swift in April 2018, generating a profit after tax of €13.7m.

"The container vessel Ranger remains on time charter to a third party while the 'Elb' vessels remain on time charter to the Group's container shipping subsidiary Eucon," the board reported.

The W.B. Yeats, currently under construction by Flensburger Schiffbau-Gesellschaft, completed its sea-trials in early November and is undergoing final delivery adjustments.

"FSG have advised Irish Continental Group that the W.B. Yeats will be ready for delivery during early December.

"ICG would like to apologise once again for any disruption caused to our tourism and freight customers due to the delay in FSG delivering the ship, a delay that was an extraordinary event totally outside the control of ICG."

FSG were contracted to deliver a second new vessel during 2020.

In the container and terminal division, total revenues recorded in the period to 31 October amounted to €120.1m, or an 8.0% increase on the prior year.

For the year to 24 November, container freight volumes shipped were ahead 2.2% on the previous year at 299,800 teu, with a rate of growth of 3.8% in the period since 30 June.

Units handled at Irish Continental's terminals in Dublin and Belfast improved 5.1% year-on-year to 283,200 lifts.

In the period since 30 June, terminal throughput increased by 5.0%.

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