Irish Continental Group PLC acquires "Westpac Express"

[FerryMan]

http://otp.investis.com/clients/uk/icg1/rns/regulatory-story.aspx?cid=500&newsid=704936

Irish Continental Group plc : Acquisition of Vessel
Released : 15 Apr 2016

Irish Continental Group PLC acquires "Westpac Express".

Irish Continental Group PLC ("ICG") is pleased to announce that it has entered into an agreement for the purchase of the High Speed Craft "Westpac Express" from BALI Westpac 2006, LLC for $13.25m. Under the terms of the purchase agreement, title to the vessel will transfer to ICG on delivery which is expected by late May.

Upon delivery, the vessel will be bareboat chartered to a third party (Sealift Inc) for a firm period of four months with four further one year option periods and a final seven month option at the Charterer's option.

The vessel was built in 2001 by Austal Ships, Australia. It has a gross tonnage of 8,403 tonne, passenger capacity of 900 and a car carrying capacity of 182 units.

END

15 April 2016

Enquiries:

Eamonn Rothwell   Chief Executive Officer   +353 1 607 5628
David Ledwidge   Chief Financial Officer   +353 1 607 5628

[TC]

Interesting choice. Certainly no spring chicken at 15 years old. I have had a look on the web at her interior. Not the worst, but refit is a must.

Regardless of being 3 years older, P&O's HSC Express would have been a much better acquisition. Better interior, better looks, better facilities, more modern, and pretty much one careful owner from new.

[RorieLen]

Reading that news release, will we ever actually see this craft on the Irish Sea?

[Davy Jones]

A pure guess, but I seem to recall a rumour about Jonathan Swift moving on. Perhaps they have now decided to keep her (probably due to the fall in fuel costs or some other beneficial reason) but have a contracted agreement to abide by, hence the need to purchase another similar craft.

[Collision-course]

The Westpac Express is surprisingly similar to the Swift , either way its good to see the ICG fleet expanding (I have a vested interest as I am midway through an honors level transport science degree and might be knocking on their door for a job in the not too distant future ;D)

[Steven]

This appears to be a simple financing arrangement, much in the same way ICG acquired Pride of Bilbao and chartered her out to P&O, and also chartered out Isle of Innisfree.  I would say that ICG have acquired this vessel at a favourable rate and have managed to secure quite an attractive charter fee.  Its a pure financial arrangement, with ICG acting as a finance company.  As for her being intended to replace Swift, not very likely.  She is too similar for a start, being only marginally larger but without the ICG fixtures and fittings.  Why would they replace a craft with one almost the same but just 2 years younger?  If the full options are exercised in this agreement this vessel will be pretty much at the end of her life in any case.

[ferryfan]

The vessels seems to have been a cash cow for her owners, the US Navy have paid millions to Austal chartering the ship since 2001 and that is the charter due to expire in May 2016. From reading some related defence articles the ship has more that covered its manufacturing cost and earned massive profits for its owners, one six month charter extension in 2011 was for the sum of $8.23 million with 3 x 6 month options which seem to have been taken up giveing a total of over $30 million for a two year period. The price ICG have acquired it for could be described as a no brainer.
I agree that the ship is unlikely to ever visit Irish waters.

[Collision-course]

I notice that it is an unusual fastcraft in that it has bow and stern vehicle ramps/doors and not just a stern loader like the majority of fastcraft.

[ferryfan]

This articel from antor Fitzgerald Investment Bankers explains the reasons for ICG's recent purchase:
News
ICG announced the acquisition of a new high speed craft "Westpac Express" from Bali Westpac for $13.25m which is expected to be delivered to ICG in May. This newly acquired vessel which can carry 900 passengers, 182 cars and has a gross tonnage of 8,403 tonnes, is similar in size to ICG's Jonathan Swift ferry which can carry 800 passengers, 200 cars and has a gross tonnage of 6,000 tonnes.
Comment
ICG has arranged to lease this ferry to Sealift in the US for an initial 4 month period, with four further one year option periods and a final seven month option at the Charterer's option. If the vessel is fully leased for the year, it could generate c. €3.5m in EBITDA,meaning ICG effectively paid 3.4x EBTIDA for this vessel at current EURUSD FX rates, which appears to be another good piece of business done by ICG similar to the 4 LoLo ferries acquired in 2015 for €24m. Management remains on the lookout for attractive bolt on acquisitions and has significant financial headroom due to the strength of its balance sheet and highly cash generative nature of its business. We recently advised clients to take profit in ICG ahead of €5.50 as oil prices were pushing higher, and GBP was showing renewed signs of renewed weakness. We remain fundamentally bullish on the long term growth prospects of the business and ultimately look to pick up the stock on any weakness. We view €4.90 as first support and €4.50 as crucial support.
ICG is currently trading at 14.4x FY16e earnings.
Stephen Hall | Investment Analyst

[giftgrub]

This deal is win win for ICG, have to wonder why Austal are giving the revenue away, wonder is it a sweetener to entice ICG to order a new fast ferry to replace Swift, only really makes sense if something like that eventually happens. (Assuming Sealift carry on with charter, as they have for years).

[IFPete]

This was a good opportunity for Westpac Bank to move on an aging asset at a good price and a good business opportunity for Irish Ferries. I doubt if the vessel will come to the irish sea unless it is leased to the Irish Navy as a support vessel for UN missions at the end of its Sealift agreement.

I wonder if Poerto Rico will also find its way into Irish Ferries ownership.

Regarding a replacement for the Swift i guess it will happen, however i believe it will be two years away. My guess it will either Gotland or Visby or a new sister of Leonora Christina Austal Autoexpress 113m Catamaran.

Length overall  112.6 metres
Length (waterline) 101.3 metres
Beam (moulded) 26.20 metres
Hull depth (moulded) 8.50 metres
Hull draft (maximum) 4.85 metres

PAYLOAD AND CAPACITIES
Passengers 1'400 Passengers
Crew 30 to 35
Vehicles 357 Cars or  1'000 Tonnes'
Maximum axle loads:
Double Tyre (one axle) 12 tonnes
Single Tyre (one axle) 9 tonnes
Vehicle Deck Height 4.50 Metres.
Maximum Deadweight 1'000 Tonnes
Fuel Capacity 160'000 Litres

Speed 37.60 Knots.

[FerryMan]

http://otp.investis.com/clients/uk/icg1/rns/regulatory-story.aspx?cid=500&newsid=800794

Irish Continental Group plc : Westpac Express Charter Extension

Released : 30 Sep 2016 07:02

Irish Continental Group PLC ("ICG") is pleased to announce that, further to the announcement issued on 2 June 2016, the Charter to Sealift LLC of the High Speed Craft "Westpac Express" has been fixed for a further period of 12 months to October 2017. Sealift LLC in turn have chartered the Vessel to Military Sealift Command, a U.S government organisation. The charter is subject to usual US government procurement regulations.

The vessel was built in 2001 by Austal Ships, Australia. It has a gross tonnage of 8,403 tonne, passenger capacity of 900 and a car carrying capacity of 182 units.

END

30 September 2016

Enquiries:

Eamonn Rothwell   Chief Executive Officer   +353 1 607 5628
David Ledwidge   Chief Financial Officer   +353 1 607 5628

[ferryfan]

Charter of HSC Westpac Express to US military sealift command expires this month. Expect an announcement shortly as to the future of this vessel.

[Davy Jones]

Given the lowering of the price of Oil over recent years plus the possibility of Duty Free returning, ICG may be wise to retain the Dublin Swift service.

How well are J. Swift and Westpac Express showing their years, and is the service profitable at the moment? Also, has the decline of Stena's HSS brought extra revenue to the I.F. facility?

[FerryMan]

https://www.dvidshub.net/news/251149/japans-patriot-battalion-soldiers-validate-their-expeditionary-capabilities

A recent article on the Westpac use for the US military.