EMEA News
Another ECA Operator Posts Record Result for 2015 Q3
Danish ferry and transportation firm DFDS says that it achieved a "record result" during 2015's third quarter, and follows Finnlines Plc (Finnlines) as the second Emissions Control Area (ECA) focused operator this week to report such a feat.
DFDS's revenues during the period were reported to be DKK 3,792 million ($545 million), up 6.3 percent year on year, or 11.2 percent when adjusted for route closures in 2014.
The company attributes the revenue increase largely to a 9 percent growth in freight shipping volumes, as well as a 11 percent increase in passenger numbers, and rising unit revenues.
There was little mention of the impact from bunker prices on the firm's bottom line, with the introduction of January 1, 2015's tougher ECA rules previously feared to put the sector at risk of fire sales and bankruptcies this year - a situation that has failed to materialise since last year's oil price collapse has pushed prices in some ports to 10 year lows.
DFDS however did note that while its logistics division's revenue increased by 9.5 percent, that revenue growth was somewhat offset by lower fuel surcharges to customers.
The firm says its EBITDA operating profit during the third quarter was DKK 843 million ($121.12 million), a 35 percent increase from the same period during the previous year.
"Our investment in customer focus and constant pursuit of operating efficiency enabled us to benefit from growth in several of our key markets and deliver a record result in Q3," said Niels Smedegaard, DFDS CEO.
"We will continue our work of raising results for underperforming activities and preparing DFDS for future challenges."
In May, DFDS reported that it had achieved its highest-ever first quarter operating profit and turned around its loss-making English Channel route.
