DFDS’s operating profit grew 5 percent in the second quarter from a year ago, as a rebound in traffic on key North Sea routes offset a slowdown in Russian shipments and increased competition on the English Channel.
Northern Europe’s largest short sea shipping and logistics group posted an operating profit of 307 million kroner ($54.8 million) in the three months through June, against 293 million kroner in the same period in 2012.
The Danish firm boosted revenue by 3 percent to 3 billion kroner from 2.97 billion kroner.
DFDS reiterated its forecast for a full year operating profit of 1.1 billion to 1.3 billion kroner before special items.
“We had aimed to achieve a larger improvement, but the current unsustainable competitive situation on the (English) Channel reduced financial performance,” said CEO Niels Smedegaard.
“The UK economy is emerging from recession, and freight volumes are increasing in several of the markets linked to the North Sea. However price pressure is still widespread, including passenger markets.”
While Channel traffic increased, demand slowed in Russia, resulting in lower volumes on the Baltic route network.