Irish Continental Irish Continental Group Plc : Trading Statement
May 10 2018 - 2:00AM
UK Regulatory
TIDMICGC
TRADING UPDATE
Volumes (Year to date, 8 May 2018)
2018 2017 Change
Cars 100,400 98,000 +2.4%
RoRo Freight 99,500 95,800 +3.9%
Container Freight (teu) 116,400 115,100 +1.1%
Terminal Lifts 109,000 104,000 +4.8%
Irish Continental Group (ICG) issues this trading update which covers
carryings for the year to date to 8 May 2018 and financial information
for the first four months of 2018, i.e. 1 January to 30 April with
comparisons against the corresponding period in 2017. All figures are
unaudited.
Consolidated Group revenue in the period was EUR96.4 million, an
increase of 1.4% compared with last year. Net cash at the end of April
was EUR69.3 million compared with EUR39.6 million at 31 December 2017
which includes the proceeds from the sale of the "Jonathan Swift".
It should be noted that ICG's business is significantly weighted towards
the Summer period when a higher proportion of the Group's operating
profit is normally generated. Fuel costs continue to be impacted by
higher global fuel prices compared to the previous year.
Ferries Division
Total revenues recorded in the period to 30 April amounted to EUR52.3
million (including intra-division charter income), a 2.4% decrease on
the prior year. The decrease was attributable to lower external charter
income following the sale of the "Kaitaki" in June 2017 and the
redeployment of the "Westpac Express" from November 2017.
For the year to 8 May, in this seasonally less significant period for
tourism, Irish Ferries carried 100,400 cars, an increase of 2.4% on the
previous year, while freight carryings were 99,500 RoRo units, an
increase of 3.9% compared with 2017.
Container and Terminal Division
Total revenues recorded in the period to 30 April amounted to EUR46.8
million, a 6.1% increase on the prior year.
For the year to 8 May container freight volumes shipped were up 1.1% on
the previous year at 116,400 teu (twenty foot equivalent units), while
units handled at our terminals in Dublin and Belfast increased 4.8% year
on year to 109,000 lifts.
Fleet Update
W.B. Yeats
On 19 January 2018, the cruise ferry "W.B. Yeats" was formally named and
launched into the water. The "W.B. Yeats", which is undergoing
completion works following the launch was scheduled to commence sailing
with Irish Ferries between Ireland and France on the Dublin-Cherbourg
route on 12 July 2018.
On 18 April 2018 Flensburger Schiffbau-Gesselschaft & Co.KG ("FSG")
notified Irish Ferries that the delivery of the ship would be delayed to
"on or about 13 July 2018". As it takes a number of weeks to prepare a
ship for its first commercial sailing Irish Ferries searched the market
to find a replacement ship to cover the July scheduled sailings, but no
suitable ship was available. In the interests of minimising the level of
disruption to passengers, a decision was taken on 20 April to
immediately notify affected customers that Irish Ferries had to cancel a
number of sailings and the company activated its contingency plan of
releasing capacity on the "Oscar Wilde" sailings to France which had
been held back in case there was any delay in the arrival of the "W.B.
Yeats".
This precaution in holding back peak Summer capacity on the "Oscar
Wilde" has cost Irish Ferries approximately EUR2.5 million in lost
revenue. However, this action facilitated disrupted customers by
offering them an opportunity to sail the day before or the day after
their planned sailing, while giving customers 3 months' notice of the
change. Customers were also offered the option of a full refund. All
affected customers received a voucher for EUR150 towards a sailing to
the Continent in 2019.
Irish Ferries deeply regrets this inconvenience to our passengers which
is due to an extraordinary event beyond its control.
At this stage 94% of customers have chosen the option to reroute on
alternative Irish Ferries routes, 5% have sought a refund with 1% yet to
decide.
Sale of Jonathan Swift
On 30 January 2018, the Company announced the sale of the vessel
"Jonathan Swift" to buyers Balearia Eurolineas Maritimas S.A. for an
agreed consideration of EUR15.5 million less brokers commission. The
vessel was delivered to the buyer on 26 April 2018 and the cash
consideration will be utilised for general corporate purposes. The
disposal has generated a book profit for ICG of approximately EUR14.0
million.
The vessel "Dublin Swift" (formerly Westpac Express) replaced the
"Jonathan Swift" on the Irish Ferries fastcraft service on the Dublin -
Holyhead route on 27 April 2018. The "Dublin Swift" completed a
significant upgrade in passenger on board facilities prior to entering
service to bring it up to Irish Ferries service standards. The "Dublin
Swift" was acquired in June 2016 and had been on charter outside of the
Group up to the end of November 2017.
New ferry for the Dublin Holyhead Route
On 2 January 2018, ICG announced that it had entered into an agreement
with the German company Flensburger Schiffbau-Gesselschaft & Co.KG
("FSG") whereby FSG has agreed to build a cruise ferry for ICG at a
contract price of EUR165.2 million which is scheduled for delivery mid
2020. The cruise ferry is being built specifically for Irish Ferries
Dublin - Holyhead services. The investment provides Irish Ferries with a
significant increase in both its freight and tourism carrying capacity
on this fast-growing route. ICG intend to utilise credit facilities to
finance this investment. When completed, the vessel will be the largest
cruise ferry in the world in terms of vehicle capacity.
Dublin
10 May 2018
Enquiries
Eamonn Rothwell, CEO, +353 1 607 5628
David Ledwidge, CFO,
+353 1 607 5628
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Irish Continental Group plc via Globenewswire
http://www.icg.ie/
(END) Dow Jones Newswires
May 10, 2018 02:00 ET (06:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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