Business Irish

Friday 17 August 2018

Irish Ferries to take hit of up to €5m over cancellations

The announcement from Irish Ferries operator ICG of another delay to the delivery of the WB Yeats ship is set to hit earnings at the company by a further €4m-€5m
The announcement from Irish Ferries operator ICG of another delay to the delivery of the WB Yeats ship is set to hit earnings at the company by a further €4m-€5m
Ellie Donnelly

Ellie Donnelly

The announcement from Irish Ferries operator ICG of another delay to the delivery of the WB Yeats ship is set to hit earnings at the company by a further €4m-€5m, according to Davy analysts.

The group had already taken a hit of €2.5m in lost revenue from cancellations announced earlier this year.

On the back of this, analysts have reduced their financial year 2018 earnings estimate for ICG to €74m from €78.5m.

However, the stockbroker group added that while the news, which sees the holiday plans of up to 19,000 passengers thrown into disarray, is "disappointing to all concerned" it does not see the setback as material in the context of a 40-year useful life of the ship.

Davy is leaving its financial year 2019 earnings forecast for ICG unchanged at €91m.

Flensburger Schiffbau-Gesellschaft (FSG), the German ship builder commissioned to deliver the new vessel, said that the setbacks are "due to delays in the delivery of interior components for public areas and on the electrical system installation in the hull and deckhouse".

In April this year, a further 2,500 Irish Ferries bookings were disrupted when it cancelled sailings between July 12 and 29.

However, 95pc of those chose to switch to Irish Ferries' other cruise ferry, the Oscar Wilde.

Following the latest disruption, all Dublin-Cherbourg sailings up to September 13 have been cancelled.

The ship is now set to debut this autumn on its Dublin-Holyhead route.

Customers affected by the cancellations are being offered a €150 voucher - however, it can only be used on Ireland-France routes "next year" and not the 2018 season.

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