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DFDS made progress in Q2
Copenhagen, 2013-08-22
• Q2 operating profit (EBITDA) improved by 5% to DKK 307m
• Turning point for North Sea
• New investment of DKK 300m in environmental technology in 2014
• Focus on working capital improved Q2 cash flow by over DKK 100m
• EBITDA profit expectation of DKK 1,100-1,300 for 2013 maintained
The improvement was mainly due to higher freight volumes in North Sea. Activity was also higher on the Channel, although price competition increased.
Operating profit for the other transport and logistics activities was overall in line with last year, while higher non-allocated Group costs, partly due to activities concerning acquisitions, reduced the result.
“We are pleased with the improved financial performance and the successful reversal of the trend in North Sea. We had aimed to achieve a larger improvement, but the current unsustainable competitive situation on the Channel reduced financial per-formance,” says CEO Niels Smedegaard.
The UK economy is now emerging from recession, and freight volumes are increasing in several of the markets linked to the North Sea. However, price pressure is still widespread, including passenger markets. In Russia, demand is slowing, which led to lower volumes on the Baltic route network.
“We continue our efforts to improve the top line, lower costs and reduce our working capital, and in recent months prospects for the economies of Northern Europe have brightened. All in all, we maintain our profit expectations for the full year,” says Niels Smedegaard.
DFDS press release
