Danish shipping and logistics company DFDS has raised its outlook for 2016 having beaten previous expectations for the first quarter of 2016 amid positive market trends on most routes in the network.
Specifically, the revenue is expected to increase by 6 percent, excluding surcharges, as revenue growth above expectations in the shipping division is offset by lower revenue growth in the logistics division due to reduced fuel surcharges and depreciation of the British pound, says the company in its Q1 report.
The group’s EBITDA before special items is now expected to increase to a range of DKK 2,300-2,500m compared to a range of previously DKK 2,100-2,300m.
In the first quarter of 2016, the company’s revenue went up by 6 percent to DKK 3.1 billion (around USD 0.5 bn) and by 9 percent excluding revenue from bunker surcharges, an increase of 5.5 percent compared to 2015.
The profit before tax for Q1 was DKK 157 million, an improvement of DKK 173 million. The profit after tax was DKK 143 million (USD 22.01 millon).
DFDS’ EBITDA increased by 77 percent to DKK 405 million driven by higher earnings in the company’s shipping division.
DFDS said that its route network carried 19 percent higher freight volumes and 25 percent more passengers in Q1. Channel’s volume growth of 36 percent for both freight and passengers was a main driver of the growth following a significant capacity increase on Dover-Calais in Q1.
“All parts of DFDS’ route network and key logistics activities contributed to the best Q1 result so far. It reflects the ongoing transformation of DFDS that our weakest quarter is now in black numbers,” Niels Smedegaard, DFDS’ CEO comments.
In Q1, DFDS deployed two new Channel ferries on the Dover-Calais route. The ferries were renovated and upgraded and DFDS now operates a total of six ferries out of Dover to Calais and Dunkirk respectively, with three ferries on each route.