Trading Statement - Seite 2

With the cessation of passenger business during the COVID-19 outbreak some ferry routes out of Ireland which are critically important in providing essential services became cash negative. Recognising the need to help certain routes remain open the Irish Government adopted a Public Services Obligation (PSO) model covering the shortfall between variable revenue and certain variable costs. This was not an approach that we recommended as we believe this model was liable to create distortions in the marketplace and could be open to legal challenge. For both these reasons we decided not to participate in this PSO model, but we committed, without any Government support, to continue operating our lossmaking routes which provide a vital lifeline service to our Island.

We will continue to work closely with all relevant authorities and closely monitor the developing situation. The Group, where appropriate, has availed of Governments’ staff retention support schemes across Europe.

We would like to take this opportunity to thank the crews on our ships, our terminal and office staff, our passengers who have travelled for essential reasons, our freight customers and their drivers who all continue to work in very difficult circumstances.

ICG has terminated its contract with the German shipbuilder FSG, who were contracted to build a new vessel for Irish Ferries. This follows the yard making an application through the German courts system to be placed in debtor in possession management under the oversight of an Insolvency Monitor. As part of the original contract with the yard, ICG paid a deposit on this vessel for 20% (€33 million) of the purchase price with the remaining 80% due on delivery of the ship. This deposit was protected by third party guarantees and has now been returned to ICG.

The Group is in a strong financial position to weather this COVID-19 storm and we would refer investors to our cash and undrawn credit facilities position at 31^st December 2019.

 

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Dublin
11^th June 2020

 

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Enquiries:
Eamonn Rothwell, Chief Executive Officer  Tel: [phone] Email: [e-mail]
David Ledwidge, Chief Financial Officer  Tel: [phone] Email: [e-mail]
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Media enquiries: 
Q4 Public Relations    Tel: [phone] Email: [e-mail]
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