Volcano boost to ICG profits

THE volcanic ash emissions from Iceland in April provided a boost to first-half profits at ferry operator Irish Continental Group (ICG) as passenger numbers jumped 12%.

The company, which operates Irish Ferries saw pre-tax profits increase to €8.2 million for the first half of 2010, up from €5.8m last year.

As the airline industry was crippled from the ash disruption earlier in the year ferries group Irish Continental saw passenger numbers in the first half of 2010 grow 12% to 695,700. This helped to offset a fall in roll-on/ roll-off freight volumes.

Profits at its Irish Ferries division increased from €3.9m in the first half of last year to €6.5m while profits in the container and terminal business fell to €2.3m mainly due to restructuring costs in Dublin.

ICG, which operates on routes between Ireland, Britain and continental Europe also said earnings before interest tax and depreciation (EBITDA) were €20m against €18.8m in the same period last year, despite a 48% rise in fuel costs to €20.1m.

ICG chairman John B McGuckian said: “A strong performance on the passenger side of our business has more than offset continued difficult market conditions in the ro-ro freight business.

“We remain cautious on the economic prospects for the second half of the year but confident we are well placed to compete successfully in our market place.”

The results showed a 44.5% drop in net debt and an 88% rise in net profit which was boosted by a 61% fall in net interest, a 6.4% rise in EBITDA and a 90% cut in tax.

Davy analyst, Stephen Furlong said: “The business remains strongly geared to improving trends in freight and tourism. This is driven by top-line growth and/or competitor rationalisation.”