Ferries group earnings rise 9%
EBITDA in the three months to September 30 rose to €25m while a 12% increase in operating profit to €19m for the period was delivered by the car ferries and shipping group. Sales for the quarter were up from €80.6m to €81.2m.
NCB’s John Sheehan said: “This is a solid statement in a challenging market. Cash generation remains consistently high, with projected free cash flow of €37.6m in 2010 representing a yield of 10%. Capital expenditure needs remain minimal and this level of profitability and balance sheet underpins the 6.7% yield. The stock trades on 12.8 x 2010 EPS and we maintain our buy stance.”
In the ferries division, the growth trends in the first half continued in Q3 with higher passenger numbers that rose by 5.9% that also resulted in better yields.
ICG’s roll on-roll off freight business suffered continued weakness, down 10.1% over the four months to end October.
Over the same time frame, container freight fell by 2.4% as the group declined business opportunities that would not have boosted earnings. The number of containers lifted fell 3%, the group said in its latest management update.
In the 10 months to October 31, 2010, passengers carried were up 8.9% at 1,377,000, while car numbers were down 1% at 326,300.
RoRo freight volumes in the same period were down 10.4% on last year at 148,300 units. Container freight volumes were 4.1% higher at 343,500 teu, while units handled at its port terminals were up by 1.6% at 139,200 lifts.
Group sales for the nine months to September 30, 2010, was €203.6m (2009: €200.4m, restated).
Sales in the ferries division was up 4% in the nine months, while the container and terminal division saw cumulative revenue fall 2%.
EBITDA for the nine months was €45.0m against €41.7m, while operating profit earned was €27.8m compared with €24.1m in the same period in 2009, an increase of 15.4%.
The figures show that the group had net debt at the end of the first nine months of 13.8m down from €26.9m at June 30, 2010.
Looking ahead the group said “the economic backdrop remains challenging” and “the impact of the impending adjustments in public finances in both Ireland and the UK is uncertain both with regard to tourism and freight demand”.
