Profits down 10% at ICG

Operating profits at Irish Continental Group fell by 10 per cent (€2.8 million) to €25 million in the first nine months of the year due to higher oil prices and a soft tourism market.

The ferry operator reported a 3.8 per cent increase in revenue to €211.5 million in the year to September but earnings before tax, interest, depreciation and amortisation (EBITDA) fell by about 12 per cent to €40 million.

Fuel costs in the first nine months were €38.6 million – up by €8 million on the same period last year. ICG said it expected its full year fuel bill to amount to €52 million which would see earnings fall below 2010 levels.

Third quarter turnover increased by €3.7 million year on year but ICG saw reductions in both operating profit, down €500,000 to €18.5 million, and EBITDA, which fell by €1.1 million to €23.9 million.

"The reduction in EBITDA is due to sustained high oil prices (up €3.7 million in the quarter) and soft tourism markets partially offset by higher yields in the car market and volume growth in freight," ICG said.

ICG said revenues in its ferries division was largely flat in the first ten months of the year but that revenues in its container and terminal division increased by 9.7 per cent year on year.

Car number fell by 4.7 per cent to 311,000 in the first 10 months of the year and passenger numbers also declined - by 1.7 per cent to 1.35 million.

Freight volumes were up 9 per cent year on year at 161,600 units which ICG said reflected "the benefits of reduced competing capacity on the Dublin Liverpool route".

ICG said a dividend of €8.2 million was paid during the third quarter and that net debt fell by €1.4 million in the same period to €13 million.

In a statement, ICG said the economic backdrop remained challenging and that adjustments in public finances in both Ireland and the UK were affecting both tourism and freight demand.

"Nevertheless, we have carefully managed our cost base and our operational capacity to continue to be able to compete successfully in this tough trading environment."