The Malta Independent 24 October 2021, Sunday

Gozo Channel’s sees increase in revenue after easing of Covid-19 travel restrictions

Wednesday, 2 December 2020, 17:32 Last update: about 12 months ago

In 2018, Gozo Channel registered a pre-tax profit of €839,259, documents tabled in Parliament show. In the previous year, the company had registered a pre-tax loss of €940,173.

The financial accounts were tabled by Economy Minister Silvio Schembri in reply to a Parliamentary Question by PN MP Chris Said.

According to the report, accompanied by an audit by PwC, the company also had a net positive equity of €17 million in 2018. “It is estimated that until the expiration of the current Public Service Contract (PSC), the group is in a position to sustain this financial position,” the report reads.

The company said that that the fact that the current PSC expired on 30 September 2017 “poses a major uncertainty on the group’s future operations.” The group said it intends to tender for the new PSC call.

The company also referred to the effects of the ongoing Covid-19 pandemic on its financial situation. “The Maltese government has implemented a number of measures aimed at reducing the spread and risk of this virus, including restricting travel between Malta and Gozo during the period from April 2020 to June 2020. The group’s business was impacted negatively by this measure. During the period when this measure was effective, the group embarked on a number of cost savings measures and entered into new financing arrangements to enable it to compensate for its reduced revenue. Since the easing of the restrictions, the group’s turnover is gradually increasing.”

“Using the best judgment at the time of approving these financial statements, an impact assessment has been carried out by the group. Cashflows have been reviewed and measures have been put in place to sustain the business during this crisis. Although revenue will be less than originally planned, the group is expected to meet its liquidity requirements as necessary, and to continue to operate the ferry service between Malta and Gozo.”

 

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