Irish Ferries owner Irish Continental Group has reported lower pre-tax profits and flat revenues for the six months to the end of June amid the continued return towards pre-pandemic travel patterns after the disruption caused by Covid-19.
ICG said its half year revenues increased by 0.3% to €264m while its pre-tax profits fell by 9.1% to €16.2m from €17.4m the same time last year.
The company has declared an interim dividend of 4.87 cent per share, up from the dividend of 4.64 cent last year.
In May 2023, the group chartered the Oscar Wilde cruise ferry for an initial 20 month period with further extension options. The vessel entered service on the Rosslare-Pembroke route.
ICG said it had benefited from the continued normalisation in passenger travel levels after Covid in all its markets, growth in its Roll on Roll off (RoRo) freight carryings and the strengthening of its position on the Dover-Calais route.
Tthe continued return of passenger travel alongside the continued support of its freight customers on both its old and new routes resulted in the highest ever revenue levels in the Ferries Division, it added.
But this was partially offset by a reduction in revenues in the Container and Terminal Division which has been impacted by a significant drop in container volumes due primarily to a weakness in the deep sea market.
"While the strong revenue performance in the Ferries Division has continued year to date, we remain cautious over the timing of a recovery in container shipping volumes and the impact of potential cost increases arising out of environmental levies," Chairman John B McGuckian said in today's results statement.
"Nevertheless, given the strength of our business model, our balance sheet and the diversity
of our income flows we remain confident about our future prospects," he added.
ICG said that revenues in its Ferries Division rose by 7.1% to €179.8m while operating profits fell by 7% to €5.3m.
The number of cars carried in the first six months of the year were 229,100, up 7% on the same period last year, while total passenger carryings rose by 22% to 1,091,900.
Meanwhile, freight carryings reached 348,200 units, an increase of 5.5% over the same time last year. ICH said the increase reflected the impact of increased tonnage on the Dover-Calais route.
The company said that revenues in its Container and Terminal Division fell by 8.6% to €101.5m while operating profits were down 10.3% to €15.7m.
Total containers shipped by Eucon were down 15.9% due to weak export and import levels in China and the continued effect of over stocking following the Covid-19 pandemic and subsequent supply chain difficulties.
ICG noted that fuel costs decreased to €7.1m from €9.7m as a result of a fall in global fuel prices as well as reduced consumption.
The company said that in spite of persistent inflationary pressure, other costs decreased in line with the fall in volumes and core fleet reduction from to six to five vessels.
Meanwhile, containers handled at ICG's container terminals in Dublin and Belfast fell 7.5% to 152,500 lifts from 164,900 lifts in 2022.
Dublin Ferryport Terminals' activity was down 5%, and lifts at Belfast Container Terminal were down 11.4%, the company added.
Shares in the company were lower in Dublin trade today.
