Dispute hits Irish Ferries shares

SHARES in Irish Ferries operator ICG fell as a dispute with ship’s officers brought services to a standstill as the company laid off ratings.

The shares fell by 22 cent, 1.95%, to €11.08, knocking close to €4 million off the company’s opening market capitalisation of €260m.

Financial analysts expect the company to hold its ground in the dispute.

Davy Stockbrokers’ Stephen Furlong told clients in a note yesterday: “Despite being the low season for tourism, the financial impact of the company is c. €1.5m of operating profits a week.

“We expect the company to stand firm.”

Mr Furlong noted that ICG issued a stock exchange announcement outlining that it has paid out, with effect from November 30, in excess of €8m to over 80% of the Ireland/France crew who opted for the voluntary severance package and have already left the company.

Mr Furlong said that those who chose to remain in the company, approximately 25 people, have been offered positions on Irish Sea services.

“We are now left with the crazy situation of an all-out strike by SIPTU voted for by less than 5% of the workforce on an issue where the employees directly involved have accepted and largely left the company.

“Furthermore, the Ireland-France route was losing market share competing against the likes of low cost airlines and state-funded Brittany Ferries. It appears we are returning to the dark ages,” he told clients.