Irish Continental Trading Statement
November 25 2020 - 1:00AM
UK Regulatory
TIDMIRSH
Volumes (Year to date, 21 November 2020)
Financial summary
2020 2019 Change
Number Number %
Cars 122,700 369,700 -66.8%
RoRo Freight 293,500 281,200 +4.4%
Container Freight (teu*) 287,200 315,100 -8.9%
Terminal Lifts 258,600 293,000 -11.7%
------- ------- -------
*teu: twenty foot equivalent units
Irish Continental Group (ICG) issues this trading update which covers
carryings for the year to date to 21 November 2020 and financial
information for the first ten months of 2020, i.e. 1 January to 31
October with comparisons against the corresponding period in 2019. All
figures are unaudited.
Consolidated Group revenue in the period was EUR229 million, a decrease
of EUR79 million or 26% compared with last year.
The Ferries Division has faced challenging trading conditions in its
Irish Ferries passenger business following the continuation of travel
restrictions across the EU first introduced in mid-March as a
consequence of the COVID-19 pandemic. In the year to 21 November car
volumes are down 67% with total passenger volumes down 68% compared with
2019. This has had a material impact on passenger revenues, which were
71% lower in the year to 31 October 2020 compared to 2019.
Retention of the Common Travel Area (CTA) between Britain and Ireland is
of major benefit to the tourism and hospitality sectors in Ireland. The
current Irish Government position, of asking people from Britain who
visit Ireland to restrict their movements for two weeks, is not
consistent with that of the British Government who do not require people
travelling to Britain from Ireland to restrict their movements. In
addition, there continues to be an anomaly whereby people from Britain
visiting Ireland by travelling through Belfast and Larne are not asked
to restrict their movements. We continue to press the Irish Government
on this issue.
Irish Ferries ro-ro freight carryings have been more robust with
retention of full freight schedules providing critical logistical links
to the island of Ireland. In the year to 21 November ro-ro freight
carryings were up 4% compared with 2019.
In the Container and Terminal Division, the impact of Covid-19 has been
more limited. Compared to the prior year, to 21 November container
shipments are down 9% with container lifts at our terminals in Dublin
and Belfast down 12%.
The UK exited the EU on 31 January 2020 and entered a transition period
with a current end date of December 2020 during which negotiations of
new rules on trade, travel and business between the UK and the EU
continue to take place. There remains uncertainty over the nature of the
relationship post 2020. The Ferries Division is highly dependent on
trade flows between Ireland and the UK. Therefore any slowdown in either
economy as a result of the exit of the UK from the EU will likely have
an effect on Irish Ferries' carryings. We continue to work with all
relevant regulatory authorities to ensure that our systems are prepared
for the end of the transition period. Our customers also need to be
prepared for the administrative changes that will come about when
trading with the UK from 1 January 2021, regardless of a deal between
the EU and the UK.
With the severe decline of passenger business during the Covid-19
outbreak some ferry routes out of Ireland which are critically important
in providing essential services became cash negative. Recognising the
need to help certain routes remain open the Irish Government adopted a
Public Services Obligation (PSO) model covering the shortfall between
variable revenue and certain variable costs. This was not an approach
that we supported as we believe this model was liable to create
distortions in the marketplace and could be open to legal challenge. For
these reasons we decided not to participate in this PSO model, but we
committed, without any specific Government support, to continue
operating our lossmaking routes which provide a vital lifeline service
to our Island. The PSO scheme ceased on 12 July 2020. We will closely
monitor the Government's future response to assistance for Shipping and
Aviation to promote against any potential funding mechanism that may
lead to any market distortion.
The Group, where appropriate, has availed of Governments' staff
retention support schemes across Europe.
The Group remains in a strong financial position with cash and undrawn
committed credit facilities at 31 October of EUR232.4 million and net
debt of EUR96.7 million (pre-IFRS 16: EUR63.2 million).
Dublin
25 November 2020
Enquiries
Eamonn Rothwell, CEO, +353 1 607 5628
David Ledwidge, CFO, +353 1 607 5628
(END) Dow Jones Newswires
November 25, 2020 02:00 ET (07:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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