Despite challenging market conditions due to COVID-19 and Brexit, Clipper Group-owned Seatruck Ferries Group improved earnings and gained market shares in 2021.

Seatruck Ferries’ performance is reflected in the annual report for Clipper Group A/S, the holding company for Seatruck Ferries and a few dormant companies with no or limited activity.

According to the annual report, Seatruck Ferries’ revenue was up 11% to USD 113 million USD in 2021. Growth was driven by higher freight rates and positive exchange rate effects, partly offset by lower volumes.

While overall freight volumes on the Irish Sea were down 7.8% due to Brexit and COVID-19, Seatruck Ferries’ volumes only decreased by 3.1% as the company invested heavily in its IT systems to provide customers with best-in-class connectivity and seamless Brexit integration. In addition, shortage of drivers forced more customers to ship cargo on unaccompanied trailers, which is Seatruck’s core business.

Operating profit (EBIT) improved to USD 14 million, corresponding to a profit margin of 12.7% in 2021 versus 11.4% in 2020.

Clipper Group’s net profit for 2021 was USD 16 million vs. a loss of USD 7 million in 2020. The improvement was due to higher operating profit, currency gains on EUR loans as well as a tax income related to the joint taxation scheme for the Danish companies in Clipper Group.

Market leader

Seatruck Ferries owns eight ro-ro vessels, two of which are chartered out, while six vessels operate on the company’s routes between UK and Ireland. As a freight only ferry company, Seatruck’s core business is the shipment of unaccompanied trailers, but the vessels also carry driver-accompanied trailers, trade cars, vans, caravans, machinery, abnormal loads, and hazardous cargo. Seatruck in 2021 consolidated its position as the market-leading ro-ro operator on the Irish Sea.

Continued progress in 2022

Clipper Group’s earnings are expected to further improve in 2022. The joint impacts of COVID-19, Brexit and driver shortages are accelerating growth in the unaccompanied trailer sector on the Irish Sea and Seatruck Ferries is well positioned to further benefit from this trend.

Consequently, Clipper Group’s operating result in 2022 is expected to be in the range of USD 15.0-16.5 million.

The UK Government has announced a review of seafarer renumeration with the aim of introducing UK National Minimum Wage (NMW) payment on all ferries whilst in UK territorial waters. Any such changes will not impact Seatruck Ferries, as the company already pays UK NMW to all its seafarers.

Read Clipper Group’s 2021 Sustainability Report