Clipper ferry holding company Clipper Group A/S has revealed ro-ro acquisitions as it returned to the black for 2018.
The Danish operation, which now effectively consists of Irish Sea ro-ro outfit Seatruck Ferries, said operating profit came in at $13m, against a loss of $12m in 2017.
The net result was $0.5m, compared to a loss of $19m in the previous year.
The company revealed that last year Seatruck acquired four ro-ro vessels for $124m.
It now owns all of its seven ships on the Irish Sea, plus one additional ro-ro that is chartered out externally.
"Earnings progress was driven by continued volume growth and better earnings in Seatruck Ferries," it said.
"Also, the aggregate impairment losses and losses on sale of assets were reduced to $1m, down from combined losses of $20m in 2017."
Operation streamlined
In 2018, the company's owner Clipper Group sold off the daughter operation's interest in Danish Ferries, while the dry bulk activities were transferred to Clipper Bulk Shipping.
Last month, Clipper Bulk announced a series of initiatives to strengthen its business platform amid weak dry bulk markets.
These included agreements to strengthen the company’s financial position, a downsizing of the organisation and office network.
It no longer owns any bulkers on a 100% basis, but does still have a handful of vessels under joint-venture structures.
Continuing revenue for Seatruck grew by 10.5%, whereas the exits from its ferry, fleet management and dry bulk segments almost halved reported revenue to $113m.
Seatruck recorded a volume growth of 7.5% in a market where total volumes grew by 2.7%.
It now holds 19.9% of the total ro-ro market on the Irish Sea, where the company operates three routes between the UK and Ireland with close to 80 weekly sailings.
Looking ahead, the company expects to slightly increase operating profit this year, driven by a continued positive commercial development in Seatruck.
The net figure is expected to be lower than 2018 due to higher interest costs on loans and higher depreciation related to the purchase of the four ro-ros.
