Bruce Barnard, Special Correspondent | Mar 01, 2012 9:55AM EST
DFDS grew 2011 pre-tax profit by 36 percent from a year ago to a record $133 million, but the company expects higher oil prices and tougher competition on North Sea roll-on, roll off routes to push down 2012 earnings
Europe’s largest short-sea shipping and logistics company revenue was up 18 percent year-over-year to $2 billion, partly reflecting the contribution from Norfolkline, its $470 million acquisition from Denmark’s A.P. Moller-Maersk in 2010. The Copenhagen-based company’s operating profit also increased by 18 percent to $269 million, driven by synergies from the merger with Norfolkline and improved efficiency.
“In 2011 we succeeded in achieving our two most important strategic objectives: the planned synergies from Norfolkline were reached, and then some, and the profit from logistics activities was improved significantly by more than 100 million kroner [$17.9 million],” said CEO Niels Smedegaard.
“It looks as if market conditions are set to become more challenging in 2012. We therefore foresee limited organic growth, but envisage opportunities to grow by acquisitions. We are ready for new growth, also financially.”
DFDS expects North Sea traffic to decline by around3 percent in 2012, while the more robust Baltic region likely will grow by 2 to 4 percent. The company forecast unchanged revenue in 2012 and a pre-tax profit before special items of $80 million $89.6 million.
-- Contact Bruce Barnard at brucebarnard47@hotmail.com.