Virtu Maritime Limited Group recorded a pre-tax profit of €8 million during 2023 (2022: €793,000 pre-tax loss), as the demand for Malta-Sicily high-speed ferry services was “strong” throughout the year.
The results were announced in the group’s Annual Report for the financial year ended 31st December 2023, published on Monday.
Virtu Maritime Limited Group is engaged in the operation and charter of express vehicle and passenger ferry services, operating in Malta, Gozo, and Sicily. During 2023, Virtu Ferries, a subsidiary of the group, and rival Gozo Fast Ferry merged to offer a unified fast ferry service to and from Gozo. Aside from this, Virtu Maritime Limited Group also deploys its HSC Maria Dolores vessel for charter-hire activity in other countries.
During 2023, the group generated €53.9 million in revenue, a sharp increase of 28.7 per cent from 2022’s €41.9 million. €45.6 million of that income came from ferry service, accommodation and excursions. €1.5 million was brought in from food and beverage sales, while €6.8 million came from charter hire and related income. Additionally, because the group is offering a social service through the Malta-Gozo fast ferry service, Government compensated the company for stabilising ferry fares following the agreement with Gozo Fast Ferry.
Cost of sales for the year experienced gradual growth at €36.6 million (2022: €34.9 million), with the increase largely a result of vessel operating expenses and employee benefit expenses. Administrative expenses for 2023 amounted to €6.2 million, while finance costs totalled €3.2 million.
Virtu Maritime Limited Group stated that the demand for Malta-Sicily high-speed ferry services, both passenger and vehicular, was strong throughout the year, with there being increase in passenger numbers and vehicular traffic across all categories. This vehicular traffic consists of private cars, trailers, and trucks or vans.
Additionally, it added that charter hire income was also “higher than anticipated.” The HSC Maria Dolores had operated charter-hire activity between Morocco and Spain, since April 2022, yet this agreement was terminated in early December 2023. The vessel was then redeployed in the Eastern Mediterranean until the end of March 2024. Presently, it is in Malta for routine maintenance, and will then be redeployed on charter in the Mediterranean from around May or June of this year.
In addition to this, the Gozo route improved during the year after an accord was reached on a services agreement which is being extended on a monthly basis pending conclusion of an EU approved Public Service Obligation (PSO) agreement.
Virtu Maritime Limited Group stated that its operations continued to benefit from the strong recovery in the tourism sector together with the improved economic environment following the COVID-19 pandemic. This is expected to be sustained in 2024, as the group remarked that the while conflicts in Ukraine and the Middle East have led to uncertainty and volatility to oil-related markets, they have “since adjusted to the reality of supply constraints and prices.”
As at the end of 2023, the group’s total asset base amounted to €200.3 million (2022: €196.2 million), with current assets totalling €25.2 million (2022: €16.9 million). The Board of Directors did not recommend the payment of a dividend, and has proposed that the balance of retained earnings amounting to €20.8 million, together with the €3,000 in accumulated losses, be carried forward to the next financial year.
Looking ahead, Virtu Maritime Limited Group anticipates that it will continue to benefit from the ongoing recovery in the tourism sector, strong freight related demand, moderating volatility in the fuel markets, the conclusion of a PSO agreement related to Gozo operations, and the re-chartering of HSC Maria Dolores. It expects the “continuation of current, or even enhanced, levels of profitability and cash generation” for the group.
