Increased activity levels and operating profit
Clipper Group A/S annual report published
Clipper Group A/S has released its annual report for 2016. Operating profit increased from 6 to 10 million USD due to increased activity levels. However, net result was negatively impacted by unrealized exchange rate loss and ended as a deficit of 13 million USD, succeeding the positive results from 2014 and 2015. Net revenue of 221 million USD was higher than in 2015, and the equity ratio was further strengthened to 45%.
Clipper Group A/S is the Danish subsidiary of Clipper Group Ltd. The primary activities of the Danish subsidiary are ro-ro activities on the Irish Sea (Seatruck Ferries) and ferry services in Denmark (Danske Færger), as well as technical management of vessels (Clipper Fleet Management). The majority of Clipper Group’s core business activities within dry bulk is situated in Clipper Group Ltd, and therefore not included in this annual report.
“The underlying business, activity level and operating profit of Clipper Group A/S is strong, and both Seatruck and Danske Færger have performed exceptionally well in 2016 with significantly more freight and passengers transported than in 2015,” says Flemming Steen, CFO of Clipper Group. “The net result deficit of 13 million USD is mainly due to unrealized exchange rate loss on EUR loans and loss on the sale of two ferries.”
For the last few years, Seatruck has kept breaking volume records, and 2016 was no exception. The number of transported units increased by no less than 18.7% compared to 2015, and Seatruck took an 18% share of the Irish Sea ro-ro freight traffic. Whereas Brexit has had negative influence on Seatruck in 2016 in terms of unrealized currency loss, it has not influenced volumes.
Compared to 2015, traffic increased on all Danske Færger’s seven routes in 2016, in total by 6.3% on cars and 3.6% on passengers.
Read the entire press release here.