Cheaper fuel helps P&O Ferries steer its way to £13m profits, but trading conditions remain 'competitive'
By Sarah Bridge for The Mail on Sunday
Published: 22:01 GMT, 21 November 2015 | Updated: 22:01 GMT, 21 November 2015
Passenger and freight shipping operator P&O Ferries jumped back into the black last year as cost-savings and cheaper fuel led to higher profit margins.
Earlier this year in a boost to P&O’s passenger services, rival ferry operator MyFerryLink, owned by Eurotunnel, was ordered by the Competition and Markets Authority to stop running cross-Channel ferries. However, the decision is currently under appeal.
P&O Ferries, which runs ships between the UK, Ireland and the Continent as well as transport across Europe in its Ferrymasters logistics division, recorded sales of £942.5million in the year to December 31, 2014, down slightly on £966.9million the previous year.
Challenges ahead: Company directors at the Dubai World Corporation, which owns P&O Ferries, said that trading conditions remained 'extremely competitive', with key issues being low freight rates and overcapacity
However, the company, which is ultimately owned by Dubai World Corporation, turned a previous £10.2million pre-tax loss into a £13 million profit, aided by an internal refinancing, and said that economic conditions in 2015 were improving further.
Company directors said: ‘Trading conditions remain extremely competitive, with the ongoing challenges of overcapacity on key routes and low freight rates continuing to constrain growth and profitability'.
The company, which was founded in the 1960s and is now the largest operator of cross-Channel services, employs 3,700 workers. The highest-paid director – understood to be chief executive Helen Deeble – was paid £435,000 last year.
Read more: http://www.thisismoney.co.uk/money/markets/article-3328582/Cheaper-fuel-helps-P-O-Ferries-steer-way-13m-profits-trading-conditions-remain-competitive.html#ixzz3tOqloGTH
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