Copenhagen, February 28, 2014
“Progress was achieved partly through a sharp focus on customers, which has streng-thened our market share, and partly through continuous streamlining of operations. We have benefited from growth in the North Sea market, but declining activity in Russia has reduced volumes in the Baltic Sea region. We improved our result in the English Channel, but the area remains a major challenge,” says DFDS’ CEO Niels Smedegaard.
Following a focused effort in 2013, we succeeded in releasing cash of over DKK 300m from working capital. This contributed to increase cash flow from operations to DKK 1.5bn. The free cash flow (FCF) of DKK 558m equals a cash flow yield of 10%.
In accordance with DFDS’ capital and distribution policy, a dividend of DKK 14.00 per share of nominal value DKK 100, equal to DKK 186m, and a share buy-back of DKK 200m is proposed (see separate announcement on share buy-back).
Outlook for 2014 “DFDS is strongly positioned, both financially and strategically, even though market growth is expected to remain low and competitive pressures will persist. In 2014, we will continue to work on creating synergies by expanding our European network through acquisitions. Our focus on improvements and streamlining will continue at full strength,” says Niels Smedegaard.
Revenues are expected to rise by around 6%, of which 2% points reflect the full-year impact of company acquisitions in 2013. Operating profit (EBITDA) is expected to be DKK 1,250–1,400m before special items. The result for 2014 will still be negatively impacted by operations on the Channel, irrespective of the UK competition authorities' final decision in May. Investments are expected to comprise around DKK 1.1bn.