The Steam Packet’s operating profit fell in 2024, the latest accounts show - but freight revenues rose sharply and passenger numbers were the highest since 2007.

Accounts for the Steam Packet Group and its subsidiary for the 12 months to December 31, 2024, will be laid before next month’s Tynwald sitting.

The Isle of Man Steam Packet Company Limited reported an operating profit of £9.7m, down 8% from £10.5m in 2023, while the group’s operating profit was £7.2m, a 9.9% fall on the previous year.

This was largely due to a 15% increase in other operating costs and depreciation linked to the Manxman and MV Arrow.

The larger capacity of the Manxman, introduced in mid-2023, helped boost total passenger numbers to 630,279 – the highest since 2007 and a 1.2% increase on the previous year.

This contributed to a 6.8% rise in passenger ticket revenues, boosted by strong TT volumes.

Manxman’s increased lounge and cabin capacity, combined with enhanced catering and retail provision, also helped increase passenger service revenues by 12%.

Freight revenues during the year grew by 19%, driven by higher volumes of imports to the Isle of Man.

But total operating costs rose by 10% – or 14% for the group – due to the operation and maintenance of an expanded fleet since Manxman’s introduction and substantial increases in Liverpool port charges.

The Sea Services Agreement requires the Manannan fastcraft, introduced into service with the Steam Packet in 1998, to be replaced by the end of 2026, but the board is seeking an extension to that deadline.

Meanwhile, the Ben-my-Chree is currently on charter to Stena on its Fishguard to Rosslare route. That charter is due to end in May.

From July 23, the Ben will operate a new regular service to Dublin and Larne in Northern Ireland.

It is the first time in more than 15 years that the Isle of Man has had a regular scheduled service to and from Ireland.

Passenger cabins will no longer be available on the Ben as they have all been converted to crew accommodation to allow it to operate as a full ‘live-on’ vessel.

Infrastructure Minister Tim Crookall had been due to make a statement on the new Sea Services Framework in Tynwald this week, but the item was withdrawn.

MHKs were told last week that the Steam Packet has repaid £27.3m of a £154m loan it received from the Manx Treasury.

The Manx government issued £400m of 30-year bonds in September 2021 to raise funds for major projects including clean transportation, energy efficiency, affordable housing, education and healthcare.

From the £400m bond issue, £154m was allocated to the Steam Packet, provided at an interest rate of 1.7%, and used to purchase the new Manxman and refinance an existing loan relating to the company’s move into state ownership.

The total amount repaid so far is £27,339,454 including interest.

The Steam Packet was nationalised in 2018 at a cost to the taxpayer of £124.3m.