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"When it rains, it rains," said Stephen Furlong, Davy badyst on Monday, noting the latest debacle of the Irish Continental Group (ICG). This time, it is his ship Ulysses which operates on the Dublin route to Holyhead.
Repairs to one of the ship's propellers mean that it will remain out of service for at least a week longer, if not two. This follows a series of cancellations due to the late delivery of the new WB Yeats which is to operate between Ireland and France. Problems with the shipbuilder, FSG, caused cancellations, resulting in the flight of nearly 20,000 pbadengers.
These are poorly synchronized developments for a company with a unique exposure to fuel price fluctuations and the Brexit drama. The ICG price fell by 11.5% in one day after the Brexit vote, before settling at € 4,161 on July 6th, 2016.
It has since recovered this lost ground, reaching its record of 6,029 € in October 6th last year.
This year has been a different story, with shares trading at € 5.16, more than 165 million euros have been wiped out of its value since October 2009.
As we move towards The EU's exit talks, ICG hopes a soft-Brexit having told shareholders in March that the increase in fuel costs and declining profits from the pound sterling have declined.
Brokers estimate the absence of Odysseus will cost the company between 1.5 and 2 million euros a week. This follows the estimated costs of 7 million euros related to the late arrival of WB Yeats .
However, overall, fleet problems are relatively minor. As reported by Patrick O. Donnell, Goodbody badyst, the late delivery of WB Yeats must be considered in the context of a ship having a life expectancy. about 40 years old
Be that as it may, ICG must embark on a major charm offensive to regain public support and appease the shareholders as it begins to navigate rough waters.
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