Irish Continental posts decline in operating profit

Ferry operator Irish Continental Group posted operating profits of €25m for the nine months to end September, down from €27.8m for the same period last year.

Operating profits for the third quarter stood at €18.5m, a decline on the €19m recorded in Q3 2010.

However the company said turnover at €84.9m for the quarter was up 4.6% on the same time last year.

EBITDA of €23.9m compared with €25m in the same quarter in 2010.

ICG said the reduction in EBITDA was due to sustained high oil prices (up €3.7m in the quarter) and soft tourism markets, partially offset by higher yields in the car market and volume growth in freight.

Group revenue for the nine months to September 30 was €211.5m, up from €203.6m for the same period in 2010.

"The impact of the adjustments in public finances in both Ireland and the UK is affecting both tourism and freight demand," ICG said in an Interim Management Statement.

"Nevertheless, we have carefully managed our cost base and our operational capacity to continue to be able to compete successfully in this tough trading environment.

"The continued high level of fuel prices (expected to result in a fuel bill for the year of approximately €52m) however means that earnings for the year, as previously indicated, will be lower than in 2010."