FERRY OPERATOR Irish Continental Group (ICG) yesterday reiterated its view that earnings would decline in full year 2011 due to rising fuel prices and weak tourism and freight demand.
ICG said the economic backdrop remains “challenging” and has affected both tourism and freight numbers so far this year.
“The continued high level of fuel prices, expected to result in a fuel bill for the year of approximately €52 million, means that earnings for the year, as previously indicated, will be lower than in 2010,” the company said in an interim management statement.
Stockbroker Davy is predicting that ICG will achieve earnings before interest, tax, depreciation and amortisation (Ebitda) of €49 million this year compared with €53.6 million in 2010.
ICG said yesterday that its revenues for the first nine months of this year rose to €211.5 million from €203.6 million.
But its Ebitda declined to €40 million from €45 million last year and its operating profit fell to €25 million from €27.8 million.
ICG said the reduction in Ebitda was due to “sustained high oil prices”, and “soft tourism markets”. Its fuel bill rose by €8 million in the first nine months of the year.
In the 10 months to the end of October, the number of passengers carried was down 1.7 per cent at 1,353,900, while car numbers were 4.7 per cent lower at 311,000.
RoRo freight volumes in the same period were 9 per cent up on last year. Container freight volumes were flat. ICG’s net debt stood at €13 million at the end of September.
