Clipper Group A/S has released its annual report for 2017. While all underlying activities experienced growth and had positive developments, operating result is negatively impacted by the reorganizing of the underlying business and the sale of vessels. The equity ratio of Clipper Group A/S is still solid at 43% (2016: 45%).

Operating result for 2017 is a loss of 12 million USD compared to a profit of 10 million USD in 2016. Impairment losses and losses from the sale of fixed assets accounts for 14 million USD. Net result was negatively impacted by unrealized exchange rate losses and ended as a deficit of 19 million USD (2016: -13 million USD). Net revenue of 218 million USD was on par with 2016 (221 million USD)

Seatruck Ferries gains market share with unaccompanied trailers model

Seatruck Ferries continued its strong pace in 2017. Compared with 2016, the total number of units including trade cars grew another 6%, while the total freight volumes grew with 10%. Seatruck has had the largest year-on-year growth among all its competitors and now holds 20% of the total Irish Sea ro-ro market.

Seatruck Ferries	2017	2016	2015	2016/2017 increase
Volumes (unit)	361,750	343,446	289,343	6%
Volumes (freight)	338,853	307,518	258,302	10%
Market share	19.6%	17.9%	16.0%	1.7pp

Seatruck’s busiest routes continue to be the ones out of Dublin.

Danske Færger increases activity and bottom-line

2017 was a year with continued growth on all Danske Færger’s routes, where the number of cars grew by 6.3% and the number of passengers by 4.3% In addition, sales onboard all routes increased. The growth is partly driven by additional government funded price reductions, and partly by successful promotion campaigns initiated by Danske Færger. Overall revenue increased by 4.3% and the bottom-line increased from 44 million DKK to an impressive 124 million DKK.

Danske Færger	2017	2016	2015	2016/2017 increase
Number of passengers (1,000)	4,466	4,282	4,135	4.3%
Number of cars (1,000)	1,195	1,125	1,058	6.3%

During 2017, Danske Færger initiated the process of adapting the organization to meet the end of the Bornholm concession. This has resulted in extraordinary expenses related to redundancy costs 2018 onwards. During 2017, Danske Færger sold the last two of in total four vessels sailing Bornholm. All four vessels will continue to sail for Danske Færger until September 2018 when the company ceases to operate the Bornholm routes.

Consolidation of Ship Management services

In December 2017, Clipper Group A/S entered into a strategic partnership with Dania Ship Management and sold the majority of its shares in Clipper Fleet Management A/S. Clipper Group remains a shareholder in Dania Ship Management Bulk A/S.

Reorganization of the core business

Clipper Group A/S serves as the administrative company for the Group. During 2017, Clipper Group consolidated its activities into three primary locations; Copenhagen, Houston and Hong Kong, and consequently closed several other offices worldwide.

Other activities

Clipper Group A/S is a wholly-owned subsidiary of Clipper Group Ltd., whose core business area is dry bulk shipping. Group CEO Peter Norborg comments on the Group’s bulk activities: “2017 turned out to be a significantly better market than 2016, and 2018 started on a positive note with overall earnings across all segments averaging at a six-year high. In addition, we continue to welcome new business partners into our dry bulk pools. “

Clipper Group Ltd. is incorporated in the Bahamas but with headquarter in Denmark and subject to full Danish taxation. Clipper Group Ltd. does not publish its annual report.

CONTACT
Emma Wahlberg, Group Communication Officer: +45 3038 5015 / ewa@clipper-group.com

ABOUT CLIPPER GROUP
Clipper Group is an industry leader in dry-bulk operating a fleet of around 150 handysize and supramax vessels, transporting a wide range of cargo from dry bulk to break bulk. In addition to bulk, we have strong complementary businesses in the ro-ro and ferry segments. Clipper is headquartered in Copenhagen and employs a staff of around 150 on shore. Read more at clipper-group.com.