The state-controlled company that owns ferry operator CalMac which provides lifeline services to Scotland's islands has made a profit of £18.6m - after receiving a £165.424m public subsidy from the Scottish Government.
It is understood that no money was returned to the Scottish Government as it said that no dividends on the profits for the year to March 31, 2023 by David MacBrayne Ltd will be made. In 2022/23, DML made a loss of £3.71m.
The annual report of CalMac's parent company DML said that the profit was due to its decision to sell its 50% state in port operator and developer Solent Gateway Ltd to Associated British Ports, which raised £22.4m.
But it said that there had been a rise in losses over its operations from £991,000 to £4.949m CalMac said its "determination to provide a reliable ferry service" was demonstrated through its spend on maintenance - which has doubled in six years.
A DML spokesman said that the profits that were generated in the year would be "retained within the company balance sheet reserves".
DML's subsidy from the Scottish Government rose by £15.403m in a year from £150.021m.
Meanwhile CalMac spent £36.5m on maintenance and its annual overhaul programme.
The ferry operator said that with one third of vessels now over 30 years old and operating beyond their life expectancy, the spend has been "essential" to provide a lifeline service to island communities and is up from £20m in 2017.
CalMac said that the Scottish Government agency Transport Scotland and state-owned ferry and port operator Caledonian Maritime Assets Ltd also contributed funding to support maintaining the fleet.
CMAL invested £7.5m in 2023 up £2m from the previous year.
Robbie Drummond, CalMac’s chief executive, said: “CalMac has been operating in extremely challenging conditions in recent years. However, we have been doing everything in our power to provide a lifeline service to the communities we serve and that is why we are investing in maintenance at record levels.
“DML’s decision to sell its stake in Solent Gateway Ltd is an example of our entrepreneurial spirit and has supported our balance sheet this financial year.”
The DML report also shows CalMac operated 169,929 sailings over the 12-month period, the equivalent of 465 per day. The total number of sailings is an 11% increase on the previous financial year (152,275).
It said that the fleet benefitted from the arrival of MV Loch Frisa in June 2022, and she now serves Mull on the Oban-Craignure route and has freed up MV Coruisk to support other parts of the network.
Mr Drummond added: “This report shows that we are moving in the right direction albeit with a financial loss this year. However, we know that the service hasn’t always been up to the standards it needs to be and that some communities have felt the brunt of this more than others.
"We have been and will continue making a real effort to engage and listen to the people we serve and learn from recent challenges, and we are committed to improving.
“The arrival of six new major and seven small vessels in the next few years should transform the service across the whole network. The Transport Secretary and the communities we serve have made it clear that they want the next phase of the Clyde and Hebridean Ferry Services contract to be different, and we share that desire. CalMac’s aim is to be flexible, responsive and trusted and we will work hard with the Scottish Government and Transport Scotland to build closer relationships with all our stakeholders.”
DML said just over five million people travelled on a CalMac ferry throughout the year, with an average of over 13,700 passengers every day.
It said there was a 7% increase in car journeys on the previous year, with 1,441,649 vehicles travelling on the network.
CalMac said it continued to support businesses, with 80,768 trips by commercial vehicles.
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