Redlands ferries help Sealink to record profit

The Minjerribah is one of many Sealink ferries operating in Moreton Bay: Photo: Chris Walker

MV Minjerribah is one of many ferries operated in Moreton Bay by Sealink Travel Group

Moreton Bay ferries helped power Sealink Travel Group to a record profit in 2016 with the company announcing a 139% increase in net after tax profit to $22.3 million.

The strong financial performance by Australia’s largest marine tourism and transport company was boosted by contributions from the following ferry and barge services recently acquired from Transit Systems Marine (TSM):

  • Ferry services to North Stradbroke Island
  • Ferry and barge operations for the Bay Islands in Southern Moreton Bay;
  • Barge service for a sand contract from North Stradbroke Island.
  • Ferry operations in Gladstone to service the Curtis Island gas plants
  • Moggill cable ferry across the Brisbane River

This acquisition, in November 2015, doubled the size of Sealink’s fleet to 60 vessels. Subsequently, the Group’s fleet has increased to 73 vessels.

When announced, the TSM deal was reported to be worth $125 million. Sealink’s 2015/16 accounts show a total purchase consideration of $115.1 million.

In just 8 months since its acquisition, Sealink’s TSM division contributed about one third of the Group’s revenue but more than half of its profit before interest and tax.

Sealink Travel Group results for 2015/16
Sealink Group Total TSM Division contribution
Revenue $177.3 m $58.4 m (32.9%)
Profit before interest and tax $34.2 m $17.6 m (51.5%)

Sealink Managing Director Jeff Ellison said the new TSM business unit is comfortably meeting expectations.

“We are well placed to continue growing our tourism-related businesses in a competitive environment” he said.

In its latest Investor Presentation, Sealink notes that:

The Government is investing in tourism for Stradbroke Island as a result of Stradbroke Island sand mining ending in 2019.

Sealink also announced that:

In December 2015, Sealink secured a further five year contract to provide a tug and barge service to transport mineral sands from North Stradbroke Island to Pinkenba on the Brisbane River. Given the long term commitment, SeaLink purchased a tug, custom designed barge and an excavator. The new agreement commenced on 1 January 2016.

Mr Ellison said all of Sealink’s businesses (except SeaLink Gladstone) are well-positioned to improve upon their FY 2016 full year result, assuming average business and weather conditions.

Sealink expects its Gladstone earnings, which comprise about 62% of TSM business unit sales, to decrease by $2 million in FY 2017 upon completion of the LNG plant construction phase.

Further reading

SeaLink Travel Group announces strong full year result

Sealink Travel Group Limited Investor Presentation Year ended 30 June 2016

Sealink Travel Group Ltd Financial Report for the year to 30 June 2016

The Advertiser: SA-based SeaLink cruises with 140pc profit jump

Redlands2030 – 13 August 2016

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One thought on “Redlands ferries help Sealink to record profit

  1. In reference to statements that recent arrangements were healthy for competition, i would be curious to know….. When Toondah Harbour was classified as a priority development area, and for some inexplicable reason, against State infrastructure access guidelines, Toondah Port was leased to a private company, did this private lease ensure a monopoly over all commercial contracts and opportunities, and secondly, is there any deterrant to RCC issuing commercial licenses to other competing operators? Would competitors be permitted to operate out of Cleveland’s only official Port and State owned facility (as per state provisions), and if so, would their operations be potentially under the influence of private lease control (representing an embargo arrangement and high risk discouraging competition from entering the market), or would competitors have to secure alternative port arrangements, and if so, what arrangements exist to entertain competition and improve jobs, access and competition in the area? The answer might provide more clarity is distinguishing the differences between port and marina (Raby Bay) terms and conditions. Thank you for any forthcoming clarification.

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