DFDS reported 15% EBITDA increase in Q3 2016

DFDS SeawaysThe Danish shipping and logistics group DFDS reported 15% year-on-year EBITDA increase in Q3 2016, amounting to 0.97 billion DKK. The result was achieved through cost reduction and business optimization, while the sales remained at the previous year’s level and amounted to 3.8 billion DKK. The revenues from shipping operations for third quarter increased by 2.5% yoy to 2.74 billion DKK. The growth was driven by increased volumes of cargo transportation by 16.8%, while number of passengers rose by 9.9%. The profitability of freight per unit of cargo increased, the yield of passenger traffic decreased due to the depreciation of the British currency.

On routes of transportation through the English Channel the freight volumes rose by 30% and passengers rose by 15%, as a result of setting additional vessels and increase the frequency of flights on the Dover-Calais service. In the third quarter DFDS capacity on services between continental Europe and the UK exceeded the last year’s level by 34%.

The company also expanded operations in the Baltic Sea, as since September the operator DFDS entered into an agreement with the Estonian company Navirail purchase route Paldiski (Estonia-Finland-Hanko).

The Danish shipping and logistics group DFDS operates a fleet of 55 Ro-Ro ships, which is with one vessel more than last year. In September, the company placed an order for the delivery of two new vessels. The order is worth about 1 billion KDD and vessel will start operations on the routes in the North Sea since 2019.

The revenue of DFDS logistics units for the third quarter amounted to 1.2 billion DKK, which is 5.8% lower than an year earlier. The fall was due to a decrease of the British currency, bunker surcharges, as well as the traffic volume of refrigerated cargo and steel in the UK. In part, this decline was offset by earnings on new contracts in Sweden, England and Germany.