Danish ferry and logistics company, DFDS, has reported a 1.8% drop in third quarter revenue to DKK7.2 bill but the revenue increased 6.7% when adjusted for ferry bunker surcharges.
The adjusted growth was driven by higher ferry revenue and other revenue from logistics acquisitions.
The 3Q23 EBITDA of DKK1,592 mill was on a par with 3Q22.
Freight ferry EBITDA of DKK535 mill was 26% lower than last year, due to a spike in oil price spreads in 3Q22. However, underlying freight ferry earnings were on level with 2022, despite lower volumes.
The 3Q23 passenger EBITDA increased 29% to DKK758 mill, as results improved across the whole route network.
Logistics Division’s EBITDA increased 8% to DKK319 mill driven by acquisitions while underlying performance was below last year, due to lower activity levels and one-off costs.
Year-to-date 1Q23-3Q23 revenue increased 1% to DKK20.5 bill, compared to the same period last year and EBITDA for the same period increased 3% to DKK4,004 mill.
For the past 12 months, EBITDA was DKK5,092 mill (LTM, 2022-23).
The 3Q23 adjusted free cash flow was DKK503 mill and DKK1.69 bill for LTM.
Net interest-bearing debt (NIBD) was reduced 1% from the previous quarter on the back of the positive cash flow.
As for this year’s outlook 2023, EBITDA was firmed up to DKK4.9-5.2 bill (previously DKK4.8-5.2 bill) as the 3Q23 financial performance was ahead of expectations.
The investment outlook, excluding acquisitions, was reduced to DKK0.1 bill (previously DKK 1.6 bill) following the sale and leaseback of three ferries announced in October, 2023.
“We have firmed up our outlook on the back of a solid quarter, not least a very good passenger result. Freight markets are currently challenging and we continue to adapt our ferry and road capacity to optimise utilisation.” CEO Torben Carlsen said (pictured).