ICG earnings hit by high fuel costs

Revenue at Irish Continental Group (ICG) rose in the first half of the year, but the company saw its profits and earnings fall as fuel costs rose.

The first half of the year is seasonally less profitable, and ICG said last year's figures were lifted by the impact of the ash cloud from the Icelandic volcano that disrupted air space and forced travellers to seek alternative methods of travel.

The shipping group said revenue rose 3.4 per cent to €126.6 million for the six months, compared with €122.4 million in 2010.

However, basic earnings per share fell 26 per cent to 24.4 cents in the first half from the year-earlier period, while earnings before interest, taxation, depreciation and amortisation were 19.5 per cent lower for the period, at €16.1 million. Operating profit fell 26.1 per cent to €6.5 million, compared with €8.8 million a year earlier.

Group fuel costs rose to €24.4 million compared with €20.1 million in the same period in 2010.

"The economic outlook remains challenging with austerity programmes affecting both consumer demand for travel and freight markets but we are structured to compete and to continue to generate cash notwithstanding this backdrop," chairman John McGuckian said.

Passengers and cars were both down by more than 3 per cent compared with last year, when traffic surged as a result of the ash cloud.

However, the roll on, roll off freight business rose strongly, gaining 12 per cent in volume terms, and the port lift sector gained 14.5 per cent. 

The company said cash generation remained strong, with net debt of only €14.4 million.

Shares in the company were 0.7 per cent higher at €14.80 on the Dublin market this afternoon.