Stena’s ‘most profitable year’ in over a decade
Stena Line doubled its profit level in 2005 to more than £19 million, giving the ferry operator its best result since 1994.
The company, which operates eight routes to Ireland and the Continent from the UK as well as 10 routes in Scandinavia to the Continent, beat its target of £12 million and more than doubled the 2004 figure of £8 million.
The result came despite passenger and car volumes falling by eight and seven per cent respectively, in line with the general market trend last year. Freight volumes rose by eight per cent.
Higher oil prices have had a “major impact” on Stena Line’s business, admitted managing director Gunnar Blomdahl, who also described passenger levels as “lacklustre”.
“Fuel is one of our biggest costs and we follow the oil price trend carefully so that we can take the appropriate measures when required. Last year we took a number of measures, including launching a major energy-saving scheme throughout the Stena Group. However, we were still forced to raise our fuel surcharge in 2005,” he said.
Blomdahl said last year’s performance was achieved despite a “weak trend on the private travel market”.
He said: “The strong profit has been achieved through a combination of the positive trend of our freight business and that we have successfully kept down our costs. This shows that we have chosen the right strategy and we have a sound balance between travel and freight.
“Investing in the business is very important for us. It’s partly about increasing our freight capacity but also investing in refitting our vessels, mainly to create an attractive onboard environment with, for example, modern restaurants, shops and cabins. It’s also partly about significantly investing in developing our products, facilities and service, so that we become the first choice for people who want to travel and thereby turn around the lacklustre performance of our private travel volumes.”
Report by Phil Davies
Phil Davies
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