Stena Line profits slump

Stena Line saw operating profits for 2008 halve to £23 million against £52 million the previous year.

The company attributed the drop to a combined result of high oil prices during 2008, the financial crisis and the general slowdown in the economy.

However, the results exceeded Stena Line’s initial forecast for the year.

Stena Line general manager for travel on the Irish Sea Dermot Cairns said: “2007 was a record year for Stena Line and we expected a lower profit for 2008 on the back of extremely high oil prices and the recent major investments, not to mention the economic downturn in 2008’s last quarter.

“We were satisfied with the final results and were particularly grateful to the UK travel trade, who provided us with 35% of the hotel breaks we sold to Ireland last year.”

And he warned: “Tough times are ahead though, and we will have to make adjustments.

“Our advantage is that we are prepared to quickly adapt our business to the prevailing market conditions, which is important in the current business climate.

“We’ll continue working closely and communicating with our partners in the trade, as well as investing heavily so our business is in the right shape for the future.”
 
Stena Line is building two of the world’s largest ferries which are due to enter service carrying 1,200 passengers each on the Harwich-Hook of Holland route in February and August 2010.

The company has also invested around £14 million on the refit and refurbishment of ten ships across its five Irish Sea routes.

“The two superferries due to appear on the North Sea are in many ways pioneering in terms of their design and level of energy-efficiency whilst the Irish Sea refits will benefit agents selling to the increasing numbers of travellers seeking holidays within the British Isles,” said Cairns.

“We are also continuing to improve our services and offering to agents, as well as to the different customer groups we reach through them.”

He added: “We believe that we have a good chance of attracting more passengers to our routes and destinations as people are keeping a tighter grip on their wallets and demand better value for money alternatives.

“This is a competitive advantage we have on all our markets. In the UK for example we continue to sell our ‘Hotel breaks to Ireland’ product through the trade, which include fully packaged ferry-based holidays with breakfast and free travel and accommodation for children.

“We will ensure support and product training for our agents, providing educational trips and continuing to offer them a favourable commission rate of 10%.”