Irish Continental Group trading update (11 May)

By | 2022 Newletter week 19 | No Comments

ICG financial information for the first four months of 2022

  • Consolidated Group revenue €161.2 million, an increase of 80.5% compared with last year and a 57.6% increase on 2019.
  • Increase in net debt: primarily derived from strategic capital expenditure mainly comprising the acquisition of two vessels (ISLE OF INNISFREE, ISLE OF INISHEER). Including IFRS 16 lease obligations, net debt figures were €174.2 million compared to €142.2 million at year end.

Ferries Division

  • Total revenues recorded in the first four months amounted to €98.3 million (2021: €37.1 million) (including intra-division charter income), a 165.0% increase on the prior year (90.1% increase on 2019).
  • The increase was principally due to the easing of travel restrictions as compared to the same period last year, increased fuel surcharges and the new Dover – Calais service which commenced in June 2021.
  • For the year to 7 May, Irish Ferries carried 123,600 cars, an increase of 682.3% on the previous year.
  • Freight carryings were 223,900 RoRo units, an increase of 170.7% compared with 2021. Excluding volumes on the Dover – Calais route, Irish Ferries carried 65,300 cars (an increase of 313.3% on 2021) and 100,800 RoRo freight units (an increase of 21.9%).
  • Performance against the prior year in the period since last trading update to 5 March shows strong growth, with car carryings and RoRo freight (excluding Dover – Calais carryings) up 442.4% and 17.2% respectively on the same period in 2021.

Irish Continental Group: 20% higher revenues in a challenging year

By | 2022 Newsletter week 11 | No Comments

Financial Summary for the full year 2021   

+20.7% Revenue €334.5m (€277.1m)

+24.2% EBITDA (pre non-trading items) €52.3m (€42.1m), principally due to increased revenues and a continued focus on cost optimisation

+98.1% EBIT (including non-trading items) €-0.2m (-10.4m)

+74.5% Basic earnings per share

In 2021, the Group commenced Irish Ferries’ services on the new Dover – Calais route. The services commenced on the 29 June 2021 with the deployment of THE ISLE OF INISHMORE, followed by ISLE OF INNISFREE onto the route on the 16 December 2021.

The Group purchased a third ship for the route, the ISLE OF INISHEER. (H1, 2022)

In 2020, the Group was successful in the public tender to operate a container depot at the new Dublin Inland Port.

Dublin Ferryport Terminals placed an order for five new electric rubber-tyred gantry cranes which will be delivered and commissioned in the second half of 2022. This is in addition to four similar units previously commissioned. The deployment of these electric cranes will allow to meet the target of reducing emissions in the container terminals by 70% in 2025 (versus 2020) and reaching net zero emissions in the container terminals by 2030.

Furthermore, the delivery of these cranes and the relocation of the empty depot facility to the Dublin Ferryport Inland Depot will increase the capacity of Dublin Ferryport Terminals.

Year-end net debt, after strategic capital expenditure of €41.7 million, was €142.2 million, 2.6 times EBITDA under banking covenant definitions.

The Group is in a strong financial position with available liquidity comprising cash and committed bank facilities of €118.9 million at 31 December 2021.

Source: Irish Continental Group

Irish Continental Group has seen its revenue improve 22%

By | 2021 Newsletter week 47 | No Comments

Irish Continental Group

  • Consolidated Group revenue in the period was €279.7 million, an increase of €50.2 million or 21.9% compared with last year.
  • This was partially offset by an increase in costs, primarily fuel which increased by €17m (60%) versus 2020 due to increased sailings and higher global prices.
  • The Group remains in a strong financial position with cash and undrawn committed credit facilities at 31 October of €142.4 million and net debt of €114.4 million (pre-IFRS 16: €64.1 million).

Volumes (Year to date, 20 November 2021)

Ferries Division (Irish Ferries)

  • Improved trading conditions in its passenger business following the easing of travel restrictions across the EU in mid-July with the introduction of the EU Digital Covid Certificate.
  • Brexit negatively impacting freight volumes but positively impacting freight revenue as more freight customers take the longer direct route to France.
  • Total revenues recorded in the period to 31 October were €144.5m, up 24%.
  • On a like for like basis (excluding Dover-Calais) over the same period, compared with 2020: Roro volumes are down 20% but roro revenue is flat as more customers use the Dublin-Cherbourg route where rates are higher given the longer journey time.
  • Car volumes are up 16%
  • The impact of Covid related restrictions has had a significant impact on Passenger traffic with car volumes year to date on a like for like basis (excluding Dover Calais) down 61% compared with 2019 but reassuringly with the easing of restrictions car volumes in the period 22nd Aug to 20th November 21 were only down 22% compared with the same period in 2019.

Volumes (since last Trading Update, 21 August 2021)

Irish Continental Group acquires another ferry for Dover – Calais

By | 2021 Newsletter week 47 | No Comments

Irish Continental Group plc will acquire CIUDAD DE MAHON from Trasmed GLE in January 2022.

The vessel will serve the Dover – Calais route operated by Irish Ferries after dry docking and branding changes.

The vessel was built in 2000 as NORTHERN MERCHANT and had Dover as her port of registry at that time.

Passenger capacity 589. Freight unit carrying capacity 91.

Irish Ferries commenced services on the Dover – Calais route on 29 June 2021.

The plan was to have a three-ship operation, with up to 30 sailings per day on the route with sailings in each direction approximately every 90 minutes.

Fleet:

  • ISLE OF INISHMORE
  • ISLE OF INNISFREE (ex CALAIS SEAWAYS) was delivered to the Group on 3 November 2021. She is currently undergoing drydocking and is expected to commence services on the route during December.
  • CIUDAD DE MAHON is expected to commence services in Q1,

The introduction of the two extra vessels represents a total investment of €35.5m

Trading Update From Irish Continental Group

By | 2021 Newsletter week 19 | No Comments

Volumes (Year to date, 8 May 2021)

-62.5% cars

-18.9% roro

+11.4% TEU containers

+11.3% terminal lifts

Financial information for the first four months of 2021

Consolidated Group revenue in the period was €89.3 million, an increase of 0.4% compared with last year and a 12.7% decrease on 2019.

 

Ferries Division

  • Total revenues recorded in the period to 30 April amounted to €37.1 million (including intra-division charter income), -9.4% (-28.3% on 2019). The decrease was principally due to the continued restrictions on non-essential passenger travel. This was partially offset by an increase in freight revenues.
  • Total freight revenues +5.2% over the same period in the prior year and decreased by 1.0% versus the same period in 2019.

Recent Developments

  • ICG welcomes the recent comments made by the Irish Government about the reintroduction of unrestricted travel in the Common Travel Area between Britain and Ireland. Urgent clarity is needed regarding dates so that ICG can ensure it is ready from an operational perspective.
  • On 26 March, ICG subsidiary Irish Ferries announced that it would commence a new ferry service on the Dover – Calais route. Plans are significantly advanced with a view to commencing this service during summer 2021.

(*) note from editor: the Irish Ferries ropax service will be started with ISLE OF INISHMORE. We understand a second vessel has been secured and will be added later.

Irish Continental Group Annual Report: RoRo Freight Up, Pax Down

By | 2021 Newsletter week 11 | No Comments
  • Revenue -22.5% to €277.1 million
  • EBITDA -51.5% to €42.1 million principally due to Covid-19 travel restrictions
  • EBIT -116% to -€10.4 million

Year-end net debt after total capital expenditure of €30.1 million was €88.5 million, 2.1 times EBITDA (pre-non-trading items), and 1.7 times under banking covenant definitions.

Strong financial position with available liquidity comprising cash and committed bank facilities of €240.8 million at 31 December 2020.

Ferry Division: -65.8% cars and -66.3% passengers, but roro freight units went up 7.1% (or 335,000 units in total)

Outlook

Covid-19 has had a material impact on ICG’s passenger business, and any recovery is unlikely while government restrictions remain in place, however ICG remains hopeful that the rollout of vaccinations will result in a return to international travel in our markets during 2021.

The current demand on the direct routes to the Continent is expected to decrease as importers, exporters and government agencies become more familiar with new requirements following Brexit.

The ICG report says that decline will be in favour of the landbridge, which has the benefits of cost, frequency, time and reliability.

Irish Continental Group: Strong Financial Position in spite of Challenging Conditions

By | 2020 Newsletter week 48 | No Comments

Volumes (Year to date, 21 November 2020)

  • -66.8% Cars 122,700 (369,700)
  • -68% Passengers
  • +4.4% RoRo Freight 293,500 (281,200)
  • -8.9% Container TEU 287,200 (315,100)
  • -11.7% Terminal Lifts 258,600 (293,000)

Financial information for the first ten months of 2020:

Consolidated Group revenue €229 million (-26%)

The Ferries Division has faced challenging trading conditions in its Irish Ferries passenger business following the continuation of travel restrictions. In the year to 21 November car volumes are down 67% with total passenger volumes down 68% compared with 2019. This has had a material impact on passenger revenues, which were 71% lower in the year to 31 October 2020 compared to 2019.

Brexit

The Ferries Division is highly dependent on trade flows between Ireland and the UK. Therefore any slowdown in either economy as a result of the exit of the UK from the EU will likely have an effect on Irish Ferries’ carryings. The company continues to work with all relevant regulatory authorities to ensure that our systems are prepared for the end of the Brexit transition period.

The Group remains in a strong financial position with cash and undrawn committed credit facilities at 31 October of €232.4 million and net debt of €96.7 million (pre-IFRS 16: €63.2 million).

Irish Continental Group H1: Freight is Stable – Strong Liquidity Position

By | 2020 Newsletter week 36 | No Comments

Traffic volumes in H1, 2020 (Ferries Division)

  • -63.9% Passengers 233.9k (648k)
  • -64.9% Cars 56.6k (161.2k)
  • -2.7% RoRo freight 149.4k (153.6k)

Financial figures H1, 2020 (ICG)

  • Revenue EUR 130.8 million (166.8)
  • EBITDA EUR 10 million (30)
  • EBIT EUR -9.5 million (11.6)

Gross cash balances EUR 132.5 million (31 December 2019: 110.9 million).

Net Debt at EUR 103.3 million is 25.7 million lower than at the beginning of the year.

Depressed economic activity and travel restrictions = significant reduction in passenger traffic while freight activity across the Group has been less affected.

The Group has continued to focus on its strategic development and has retained a strong liquidity position.

FERRY FINANCE

By | 2020 Newsletter week 31 | No Comments

Irish Continental Group H1: Strong Freight Performance Despite Pandemic

It is no surprise to see that the transportation of goods has kept ICG busy, while the passenger figures dropped considerably.

Volumes (Half Year 30 June 2020)

  • -65.0% Cars
  • -2.7% RoRo Freight
  • -11.7% Container Freight (teu)
  • -13.5% Terminal Lifts

H1 Finance (unaudited)

  • -21.6% Consolidated Group revenue €130.8 million
  • -33.3% Total revenues €61.6 million

The decrease was principally due to lower passenger volumes resulting from the travel restrictions introduced across the EU due to the Covid19 pandemic.

FERRY FINANCE

By | 2020 Newsletter week 25 | No Comments

A Strong Irish Continental Group Cancels Its Newbuilding

1)

In a statement, Irish Continental Group said that Covid-19 makes it difficult to estimate the full year financial impact on the Group.

Reason is the significant reduction in current passenger traffic and forward bookings for what is normally the peak Summer passenger season for ICG’s Irish Ferries services.

“It is very difficult to estimate the full year financial impact on the Group, as the reduction in passenger revenue will be material. In the period from 1/1 to 6/6 car volumes are down 62% with total passenger volumes down 60%.

The impact of Covid-19 on roro has been limited.  Roro volumes are down 4%, container volumes are down 13% with container lifts on ICG terminals down 14%.

2)

In the statement, ICG also talks about the Public Services Obligation (PSO) model from the Irish Government. “This was not an approach that we recommended as we believe this model was liable to create distortions in the marketplace and could be open to legal challenge. For both these reasons we decided not to participate in this PSO model, but we committed, without any Government support, to continue operating our lossmaking routes which provide a vital lifeline service to our Island.

3)

ICG announced it has terminated its newbuilding contract with the German shipbuilder FSG.

4)

The Group is in a strong financial position to weather this Covid-19 storm.