Fuel, Currency Headwinds Hit Irish Continental Though Volumes Increase

8th Mar 2018 10:12

LONDON (Alliance News) - Ferry operator Irish Continental Group PLC said Thursday earnings fell in 2017 as costs and currency headwinds bit, though revenue was up on increased volumes in all operations.

Earnings before interest, tax, depreciation, and amortisation for 2017 slipped 3% to EUR81.0 million, but pretax profit did rise to EUR87.7 million from EUR60.4 million.

Revenue for the year was up 3% year-on-year to EUR335.1 million. Roll-on/roll-off freight volumes were up 0.5% to 287,500 units, cars carried rose 2.4% to 424,000, while container volumes increased 5.9% year-on-year and port lifts handled were up 3.0%.

Ebitda was hit, Irish Continental said, by previously guided increases in fuel costs and currency headwinds provided by a weaker UK pound. Fuel costs, it said, increased EUR8.1 million year-on-year.

Pretax profit was boosted by EUR28.7 million from the sale of the MV Kaitaki vessel to New Zealand ferry operator KiwiRail.

The company is to pay a final dividend of 8.15 euro cents per share for 2017, bringing the total to 12.16 cents, a 5% year-on-year increase.

Irish Continental's Ferries division did well, the company said, despite higher fuel costs, posting a revenue rise of 1.1% to EUR212.1 million, though Ebitda fell 4.8% to EUR67.3 million.

Revenue in the other division, Container & Terminal, rose 6.5% to EUR131.9 million, with Ebitda also increasing, by 7.0% year-on-year, to EUR13.7 million.

Since the beginning of 2018, car and passenger volumes have increased, as have container carryings and port lifts. Stronger world fuel prices have been offset by a positive benefit from a weaker dollar, Irish Continental said.

However, Irish Ferries have been hurt by "prolonged bad weather" in the first two month of 2018, meaning conventional sailings decreased 9% on a year before. The unit carried 43,800 RoRo units in the period, down 3.3% from a year before.

Chairman John McGuckian commented: "2017 was another successful year for the group. Despite the headwinds of increased fuel costs and weaker sterling, the company delivered Ebitda of EUR81.0 million with revenues increasing by 3.0% to EUR335.1 million. This was achieved due to the continued volume growth in all of its operations.

"In the next phase of the group's development we are looking forward to the arrival of the new cruise ferry MV WB Yeats in summer 2018."

London shares in Irish Continental were up 0.4% on Thursday at 5.73 euro cents each.

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