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.
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.