Stena’s ‘most profitable year’ in over a decade

Wednesday, 22 May, 2006 0

Stena Line doubled its profit level in 2005 to more than £19 million, giving the ferry operator its best result since 1994.

The company, which operates eight routes to Ireland and the Continent from the UK as well as 10 routes in Scandinavia to the Continent, beat its target of £12 million and more than doubled the 2004 figure of £8 million.

The result came despite passenger and car volumes falling by eight and seven per cent respectively, in line with the general market trend last year. Freight volumes rose by eight per cent.

Higher oil prices have had a “major impact” on Stena Line’s business, admitted managing director Gunnar Blomdahl, who also described passenger levels as “lacklustre”.

“Fuel is one of our biggest costs and we follow the oil price trend carefully so that we can take the appropriate measures when required. Last year we took a number of measures, including launching a major energy-saving scheme throughout the Stena Group. However, we were still forced to raise our fuel surcharge in 2005,” he said.

Blomdahl said last year’s performance was achieved despite a “weak trend on the private travel market”.

He said: “The strong profit has been achieved through a combination of the positive trend of our freight business and that we have successfully kept down our costs. This shows that we have chosen the right strategy and we have a sound balance between travel and freight.

“Investing in the business is very important for us. It’s partly about increasing our freight capacity but also investing in refitting our vessels, mainly to create an attractive onboard environment with, for example, modern restaurants, shops and cabins. It’s also partly about significantly investing in developing our products, facilities and service, so that we become the first choice for people who want to travel and thereby turn around the lacklustre performance of our private travel volumes.”

Report by Phil Davies

Phil Davies

Queensland – where it’s rude not to stare Here in Queensland, there’s plenty to do. But there’s even more to...

The city has been the vibrant heart of Japan for over 400 years, and is a crossroads where tradition meets...

At Wilderness Safaris we believe in creating life-changing journeys and have been doing so for over 39 years. Our purpose...

Global Hotel Alliance brings together a unique collection of independent hospitality brands for GHA DISCOVERY, a multi-brand loyalty programme. GHA...

Air Transat is Canada’s number one leisure airline. It flies to some 60 international destinations in more than 25 countries...

Arival advances the business of creating amazing in-destination experiences. We provide events, insights, and community for creators and sellers of...

Virtuoso is the leading global network of agencies specializing in luxury and experiential travel, with more than 20,000 advisors. We...

Nium was founded on the mission to build the global payments infrastructure of tomorrow, today. With the onset of the on-demand...

Classic Collection is where travel expertise and personal service combine to create the perfect luxury holiday. Our travel agent partners...

Discover Sarawak Revealing a side of Asia unlike anywhere else, Sarawak offers an alternative for those seeking humble authenticity far...

ECOMMPAY is an international payment service provider and direct bank card acquirer, engineering bespoke payment solutions for clients worldwide. Our...

Holiday Extras is the UK market leader in airport parking, airport hotels, worldwide airport lounges, destination car hire, airport transfers...

NSW, Australia Welcome to New South Wales – a place to feel free, feel alive, feel new. As the official...

Why Avalon Waterways: Happiness flows on an Avalon river cruise. From Asia to South America and Europe to the Nile,...

Destination British Columbia (Destination BC) is a Provincially funded, industry-led Crown corporation that supports a strong and competitive future for BC’s...