COPENHAGEN, May 21 (Reuters) – Danish ferry and transportation firm DFDS is on the takeover trail, its chief executive said, after reporting its highest first-quarter operating profit on record and turning around its loss-making English Channel route.
Earnings before interest, taxes, depreciation and amortization (EBITDA) more than doubled to 228 million Danish crowns ($34 million) from a year ago led by the shipping division, the firm said, also raising its full-year forecast.
“We are placing bids on other companies on a regular basis,” Chief Executive Niels Smedegaard told Reuters. Last year it bought British logistic firms Stef Transport and Quayside, both minor players in a fragmented industry.
DFDS operates around 50 freight and passenger ships mainly on routes in Northern Europe. In its results, DFDS said monetary easing in Europe and lower oil prices had supported economic activity.
By 0925 GMT, shares in DFDS were up 4.9 percent while the main Copenhagen index was down 0.02 percent.
COMMITTED TO CHANNEL ROUTE
Smedegaard said the company had sped up the closure of loss-making routes – including the 139-year-old service between Esbjerg in Denmark and Harwich in England – and moved vessels around its network more efficiently.
It was committed to its business in the English Channel, where it faces tough competition and which had swung into profit after losing money in 2013 and 2014.
Operators on the route have complained they were being squeezed by Groupe Eurotunnel, which also runs cross-channel trains.
Eurotunnel was ordered by UK Competition regulators to close the MyFerryLink operation down by July 9 and said it was seeking buyers. But last week, an appeals court said the business could continue to operate there.
The competition authorities can appeal that decision and Smedegaard said he expected the case to rumble on for another year.
DFDS lost around 100 million crowns in 2013 on its activities in the English Channel and around 40 million crowns last year but Smedegaard said the unit has recovered.
“We have no plans to give up the business… We are making money (there) now,” he said.
DFDS raised its full-year EBITDA guidance to between 1.65 billion crowns and 1.75 billion crowns from 1.55 to 1.65 billion.
($1 = 6.7054 Danish crowns) (Reporting by Ole Mikkelsen; editing by John Stonestreet)
SINGAPORE, April 24 (Reuters) – Demand for liquefied natural gas (LNG) to power ships will rise this year on attractive prices, while more dual-fuel vessels join the global fleet, industry executives said....
ROME (Reuters) – An Italian judge on Friday cleared three migrant sea rescue charities that had been accused of abetting irregular immigration in complicity with human traffickers, throwing out a case opened...
(Bloomberg) — The closure of one of the East Coast’s busiest ports after the collapse of Baltimore’s Francis Scott Key Bridge has so far not led to broad price increases,...
April 19, 2024
Total Views: 2190
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.