Clipper Group reports loss of $12m in 2017

While all underlying activities experienced growth and had positive developments, Clipper Group’s operating result was negatively impacted by the reorganizing of the underlying business and the sale of vessels. The equity ratio of Clipper Group is still solid at 43% (2016: 45%).

Operating result for 2017 is a loss of $12m compared to a profit of $10m in 2016. Impairment losses and losses from the sale of fixed assets accounts for $14m. Net result was negatively impacted by unrealised exchange rate losses and ended as a deficit of $19m (2016: -$13m). Net revenue of $218m was on par with 2016 ($221m)

Seatruck Ferries continued its strong pace in 2017. Compared with 2016, the total number of units including trade cars grew another 6%, while the total freight volumes grew with 10%. Seatruck has had the largest year-on-year growth among all its competitors and now holds 20% of the total Irish Sea ro-ro market.

2017 was a year with continued growth on all Danske Færger’s routes, where the number of cars grew by 6.3%. Overall revenue increased by 4.3% and the bottom-line increased from DKK44m to an impressive DKK124m.

During 2017, Danske Færger initiated the process of adapting the organization to meet the end of the Bornholm concession. This has resulted in extraordinary expenses related to redundancy costs 2018 onwards. During 2017, Danske Færger sold the last two of in total four vessels sailing Bornholm. All four vessels will continue to sail for Danske Færger until September 2018 when the company ceases to operate the Bornholm routes.

In December 2017, Clipper Group entered into a strategic partnership with Dania Ship Management and sold the majority of its shares in Clipper Fleet Management A/S. Clipper Group remains a shareholder in Dania Ship Management Bulk A/S.

During 2017, Clipper Group consolidated its activities into three primary locations; Copenhagen, Houston and Hong Kong, and consequently closed several other offices worldwide. 

Group CEO Peter Norborg commented on the Group’s bulk activities: “2017 turned out to be a significantly better market than 2016, and 2018 started on a positive note with overall earnings across all segments averaging at a six-year high. In addition, we continue to welcome new business partners into our dry bulk pools. “

Source: Clipper Group