High fuel costs hit ICG profit

Irish Continental Group saw revenue and profit fall as freight volumes fell off and soaring fuel charges inflated operating costs.

But analysts said the key variable would be the performance of the tourism business during the summer.

The group’s business is traditionally weighted towards the second half of the year, when it generates a larger portion of its operating profit.

In the first 19 weeks of the year, some 427,600 passengers were carried on Irish Ferries, and 90,900 cars. That represented an increase in passengers of 1.4 per cent on 2011, and although the number of cars was down by 4.1 per cent, ICG said yeilds were higher.

The freight market also saw some reduction in volumes, with “roll on, roll off” volumes declining 3.7 per cent to 67.200 units over the period. Container freight was also down, falling 5.9 per cent to 140,900 teu (twenty foot equivalent units), and the number of units at ICG’s Dublin and Belfast terminals down by 4.7 per cent year on year.

Pretax losses widened to €3.2 million, from €1.2 million in the first four months of 2011.

Revenue for the first four months of 2012 fell slightly to €77 million, from €78.1 million a year earlier. Rising fuel costs pushed operating costs 1.2 per cent higher to €73.2 million, although non-fuel costs actually fell over the period.

Earnings before interest tax and depreciation fell to €3.8 million, compared with €5.8 million a year earlier.

The group also managed to shrink its net debt to €6.6 million, from €7.8 million at the end of December 2011.