Q2 Profits Up as DFDS Improves Bunker Spending

by Ship & Bunker News Team
Friday August 22, 2014

Denmark's DFDS Group reports it more than doubled its profit for Q2 2014 to DKK 195 million ($34.6 million) compared with the same period last year, while revenues rose 8 percent to DKK 3.3 billion ($586 million).

"The quarterly result was again somewhat ahead of our expectations, and July, the first month of our Q3 high season, was also slightly above expectations," said CEO Niels Smedegaard.

"We expect our North European shipping and logistics services to continue to grow moderately, whereas the conflict between Russia and Ukraine is adversely impacting certain routes in our Baltic Sea network."

Smedegaard said the company raised its full-year range for earnings before interest, taxes, depreciation, and amortization (EBITDA) by DKK 50 million ($8.9 million) to a range between DKK 1.3 billion ($231 million) and DKK 1.45 billion ($258 million).

"On cost efficiency, we continue to focus on a range of improvement and efficiency projects," he said.

The company reported improved results for its North Sea activity, due partly to savings on bunker costs.

The company announced in April that it will close one ferry route partly because of the added costs related to new sulfur emissions standards in Emissions Control Areas (ECAs).