SHARES IN Irish Continental Group (ICG) closed up 1.2 per cent in Dublin yesterday in spite of the ferry operator reporting flat financials for the first four months of this year.

While Irish Continental Group recorded a 10 per cent increase in passenger traffic during the period, helped in April by the closure of airspace due to the volcanic ash crisis, its roll-on roll-off (RoRo) freight volumes fell by 15.1 per cent due to increased competition on its routes from Dublin to Holyhead and Liverpool.

ICG said the decline in the total RoRo market “has halted” after about 18 months of overall decline with small growth in the first quarter of 2010, but increased competition has affected ICG’s performance in this sector.

The number of cars using ICG’s services fell by 5.6 per cent in the period while container freight volumes were up 10.5 per cent.

It said some freight levels being offered are “unsustainably low”.

ICG posted revenues of €75.7 million for the period from January 1st to the end of April. This was 0.7 per cent lower on the same period of 2009.

Its earnings before interest, tax, depreciation and amortisation (Ebitda) was flat at €8 million.

The ferry group continued to make progress on reducing its net debt, which declined to €16 million at the beginning of May from €21.7 million at the end of December 2009.

ICG said its liquidity remained strong with gross cash balances of €25 million.

ICG said it experienced a 49 per cent increase in foot and coach passengers between April 15th and 21st due in large part due to the volcanic ash crisis, which closed European air space.

In terms of the outlook, ICG said forward bookings for Irish Ferries had improved in recent weeks as “uncertainty about the effects of volcanic ash on air travel continues”.

The company said it hoped to win repeat business from customers who used its services during the closure of airspace.

Irish Continental Group also said the recent weakening of the euro against sterling was a “positive development” for tourism to Ireland and for exports to Britain, “both of which are core business flows for ICG”.