ICG reports loss but freight recovers

Ferry group Irish Continental said it made a pre-tax loss of €1.2 million between January and April this year, although its freight volumes showed some signs of recovery.

According to a preliminary statement from ICG, revenue rose 2.4 per cent to €77.5 million in the four month period and net debt was lower at €4 million. However, earnings before interest, tax, depreciation and amaortisation was 35 per cent lower than a year earlier at €5.2 million.

Passenger and rail freight revenue rose 4.5 per cent to €3.3 million as "roll on roll off" freight volumes climbed 11.7 per cent compared to a year earlier. Container freight was down 2.7 per cent year on year.

Passenger figures in the period between January and May 14th were 6.5 per cent lower to 430,100 people, but the same period in 2010 was boosted due to the air space closure as a result of the volcanic ash cloud. Car traffic was 1.4 per cent lower at 96,700 for the period.

On a like for like basis, however, the passenger volume was in line with the previous year.

The ferry group also recorded a rise in operating costs of 6.8 per cent, bringing them to €72.3 million as fuel costs soared 24 per cent. Higher port charges due to increased volume also impacted the results.

A €1.4 million revenue loss due to the termination of a charter contract was offset by depreciation savoings of €800,000 and interest receivable of €600,000.

Looking ahead to the rest of the year, ICG said rising oil prices and the resulting increase in fuel costs posed a threat to its financial performance in 2011. The latest hikes come after a €10 million rise in the cost of fuel for the company in 2010, and ICG said it would be a "significant challenge" to pass on the increase this year if oil was to remain at current prices.

"Notwithstanding the current difficult economic backdrop we are confident of passing on fuel cost increases through the cycle, as has been successfully proven by our business model in the past," it said in a statement.

The group welcomed the possible tourism boost from the Government's recently announced VAT reduction for the hospitality sector, but warned it was too early to make any predictions.