Danish ferry and logistics company, DFDS reported a 5% drop in EBITDA to DKK1.4 bill for the second quarter of this year, while the adjusted free cash flow was DKK601 mill.
However, the EBITDA outlook for the full year was raised to DKK 4.8-5.2 bill from DKK4.5 to 5 bill, following better than expected first half of the year financial performance.
“We have raised our outlook, as we continued to deliver strong operational performance in 2Q23, and despite headwinds in some regions, we achieved a result that was better than expected.” CEO, Torben Carlsen said (pictured).
Second quarter revenue decreased by 3.2% to DKK6.9 bill but increased 2.5% adjusted for bunker surcharges, driven by higher passenger and logistics revenue.
Freight ferry revenue was below last year, but lower volumes were partly offset by higher rates. The freight ferry EBITDA of DKK754 mill was a 20% drop on 2Q22, when earnings were boosted by elevated Channel revenues and exceptionally high levels of oil price spreads, that have now normalised. Moreover, 2Q23 volumes were lower than last year.
The 2Q23 passenger EBITDA increased 28% to DKK350 mill, as results improved across the route network. Logistics Division’s EBITDA increased 26% to DKK345 mill driven by acquisitions.
For the first half year of this year, revenue increased 2% to DKK13.3 bill, compared to the same period last year and EBITDA increased 5% to DKK2,413 mill.
Net interest-bearing debt (NIBD) was reduced 4% from 1Q23 on the back of a positive cash flow.