Irish Continental Group plc invests €144 m...

Company Announcement

Irish Continental Group plc invests €144 million to build a new cruise ferry

Irish Continental Group plc ("ICG") has entered into an agreement, with the German company Flensburger Schiffbau-Gesselschaft & Co.KG ("FSG"), whereby FSG has agreed to build a cruise ferry for ICG at a contract price of €144 million.

The cruise ferry will accommodate 1,885 passengers and crew, with 435 cabins and with capacity for 2,800 lane metres of freight (165 freight vehicles) plus an additional dedicated car deck with capacity for 300 passenger cars.

The Agreement between ICG and FSG provides that the cruise ferry is scheduled for delivery in May 2018. 20% of the contract price will be paid in instalments during the construction period. The balance of 80% will be paid on delivery. ICG intend to utilise a combination of existing cash resources and loan facilities to finance the cruise ferry. The pre-delivery instalment payments to FSG will be protected by means of bank guarantees.

This cruise ferry will be designed and built to the highest standards of cruise shipping, and equipped with efficiency and comfort in mind. Emissions scrubber technology (not included in the above price) and ballast water systems will meet current and known future environmental regulations and will deliver optimal fuel consumption while minimising related costs. The cruise ferry will be powered by four main engines delivering 33,600KW of power which will ensure a high degree of service reliability similar to that already achieved by the existing owned fleet of modern cruise ferries.

The cruise ferry will be designed to best meet the operational seasonality of our business. This flexibility in design includes the ability to service all of Irish Ferries existing routes, and will provide even greater route management options.  The cruise ferry will also adhere to Ice Class specification which will allow for a wide geographic area of operation.

Passenger facilities will be spread over 4 decks and will offer a choice of 435 cabins to include suites with their own private external balconies, along with deluxe and standard class accommodation. In addition to a superb choice of bars, restaurants (to include both á la carte and self-service options), special provision has been made for premium Club Class passengers, with a dedicated  lounge featuring  private access direct from the vehicle decks. A choice of state of the art entertainment options and cinemas, dedicated facilities for freight drivers, as well as retail outlets and onboard facilities for pets, will ensure that all our passengers will be comfortable and engaged throughout their journey.

It is likely that this new cruise ferry will be introduced on routes served by the chartered ship MV Epsilon, (currently year round services Dublin - Holyhead midweek, and Ireland - France on weekends). The cruise ferry will provide additional freight and tourism capacity on both routes and will deliver a much enhanced onboard experience for all customers. In addition to increased capacity, the cruise ferry will deliver significant cost savings to the group and improved route and fleet management efficiencies.

Cruise Ferry Particulars

	Cruise Ferry Details
Gross tonnage (estimated)	50,000 t
Deck  capacity (Maximum) Trucks or Cars	165     1,216
Deck capacity (Mix) Trucks and Cars	165     300
Passenger/crew capacity	1,885
Passenger Cabins	435
Engine/output (4 engines)	33,600 KW
Speed	22.5 knots

Referring to the announcement Eamonn Rothwell, Chief Executive Officer, commented that;

"This investment underpins the confidence the Group has in both the freight and passenger tourism markets between Ireland, Britain and France. The construction of a cruise ferry of this size will offer a premium experience for all our customers, in line with our commitment to deliver the best in service, in reliability and flexibility across all our routes. We also expect to be well positioned to accommodate the changing expectations of our customers, and to benefit from significant operational and financial benefits following the delivery in 2018."

31 May 2016

END

Enquiries:          
Eamonn Rothwell, CEO                  Tel [phone]
David Ledwidge, CFO                    Tel [phone]

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Source: Irish Continental Group plc via Globenewswire

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