Irish Ferries owner reports recovery in container volumes in first quarter

Maritime transport operator Irish Continental Group (ICG) has reported a jump in container and roll-on/roll-off (RoRo) freight volumes through the early months of the year as it looks to put a challenging 2023 for volumes behind it.

Revenue at the Irish Ferries owner jumped to €177 million in the five months to May 4th, an increase of 8.3 per cent on the same period last year, it said in a trading update on Thursday.

The performance was driven mainly by an increase in the volume of cars carried by ICG ferries to more than 153,000, a jump of 21.2 per cent compared with the first four months of 2023. Total revenue at the ferries division climbed 12 per cent to €119.7 million over the period.

RoRo volumes also increased 16.5 per cent while container volumes registered a 6 per cent increase to 104,400 TEU (20ft equivalent unit). Volumes handled at ICG’s terminals in Dublin and Belfast totalled 113,400 units, an increase of 10.1 per cent year on year.

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However, total revenue at its container and terminals declined 1.1 per cent to €68.8 million. ICG said the revenue figure includes charges related to “fuel movements, emission costs under ETS [the European emissions trading system] and the impact of changes in the cost of chartering ships.”

Davy Stockbrokers, which left its guidance for full-year earnings before deductibles at ICG unchanged at €138 million, said the figures point to a potentially “record year” for the transport group. “We expect some normalisation of volume growth in the summer; nevertheless, operating leverage (we currently assume 4.5 per cent revenue growth) should help significantly with any cost increases incurred,” analysts said.

Yet just 37 per cent of ICG earnings last year were weighted towards the first half of the year, with the busy summer period the “key” to the group’s full-year performance, Davy said. “Nevertheless, the Dover-Calais recovery and market share performance, the strong Irish Sea and, in particular, the RoRo and container/terminal business point to a likely record year for ICG.”

In its 2023 annual report published in March, the transport group said its performance in the container and terminal business division had been more challenging, with volumes lower as export and import levels weakened in China, and supply-chain difficulties and subsequent overstocking hitting volumes in the earlier part of the year.

But ICG noted that this decline in its business had come after a number of years of record growth and profitability.

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