DFDS’ financial results for the full year 2018 have reached a record high.
The Danish RoRo giant's operating profit was up 10.6% to DKK 3.0bn for 2018, compared to DKK 2.7bn the previous year.
Revenue was DKK 15.7bn ($2.4bn) for the full year 2018, up 9.7% on the DKK 14.3bn posted in 2017.
“We reached a new all-time high result in 2018 and growth is set to continue in 2019 on the back of our recent expansion in the Mediterranean,” said Niels Smedegaard, DFDS’ chief executive.
“Timely investments in new freight ferry capacity will support our customers’ growth. We are well prepared to help them through any Brexit outcome.”
Freight ferry volumes developed through the year in line with European growth, the company said in its report.
Reduced visibility on Brexit and global trading caused a decrease in volumes during the second half of 2018 compared to the first half.
Lower trading between Europe and Turkey also impacted volumes during the second half of the year.
A dividend of DKK 4.0 per share has been proposed, compared to DKK 10.0 in 2017.
The group projects 10-12% revenue growth during 2019.
Investments in 2019
DFDS will invest DKK 2.5bn during 2019, most of which will be spent on new vessels and upgrades to the existing fleet, including fitting scrubbers.
The group this year plans to spend DKK 1.2bn on the eight RoRo newbuildings it has on order.
Three freight ferries will be delivered in 2019, with another trio arriving in 2020 and the rest in 2021.
The group said it plans to invest DKK 250m in scrubbers this year.
Good fourth quarter
DFDS saw a strong fourth quarter, which it said was driven by expansion of its route network in the Mediterranean.
Revenue for the quarter increased 13.1% from DKK3.5bn to DKK 4.0bn.
EBITDA increased 19.7% during the quarter to DKK 688m from DKK 574m.
Volumes in northern Europe were down 3% during the quarter and flat for the year.
