Clipper Group A/S comes back from 2017 losses

Clipper Group A/S has published its 2018 results and has seen vast improvements. EBIT for 2018 was $13m versus a loss of $12m in 2017. Its net profits were $0.5m for 2018, whereas a loss of $19m was recorded in 2017.

The progress was driven by volume growth and a better performance by Seatruck Ferries. Seatruck Ferries recorded volume growth of 7.5% in a market where it claimed total volumes grew by 2.7%. Seatruck Ferries now reportedly holds 19.9% of the total ro-ro market on the Irish Sea, where the company operates 3 routes between the UK and Ireland with close to 80 weekly sailings. Revenue from continuing operations for Seatruck Ferries grew by 10.5%, whereas the group’s exits from its ferry, fleet management and dry bulk segments almost halved reported revenue to $113m.

For 2019, it expects to slightly increase EBIT but expects net profit to be lower than 2018 due to higher interest costs on loans and higher depreciation related to the purchase of the 4 ro-ro vessels in 2018.

There have seen several changes to the composition of Clipper Group A/S. The group’s owner Clipper Group Ltd implemented a strategy to focus exclusively on ro-ro and dry bulk. This has meant the separation of operations within fleet management and ferry services (Danske Færger), while all dry bulk activities were transferred to Clipper Bulk Shipping Ltd (a sister company). These changes effectively transformed Clipper Group A/S into a holding company for Seatruck Ferries and several companies with no or limited activities.

Source: Clipper Group A/S