Eurotunnel profits hit by fire and snow
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by business editor Trevor
Sturgess
Fire, snow and recession have dented
profits at Eurotunnel.
The Channel Tunnel operator today (9)
reported a slump in net profit to £1.26m in 2009, down from £30m
the previous year.
Eurotunnel's financial performance was
affected by the aftermath of the devastating Chunnel fire in
September 2008 which partially closed the tunnel until February 9
last year.
Services were also cancelled during
the Big Freeze in December.The Anglo-French business said that the
truck market had fallen by a fifth compared to 2007.
Profit would have been higher but for
claims by Eurostar, the high-speed operator, and SNCF, French
Railways, with Eurotunnel's insurers regarding the partial tunnel
closure.
The legal dispute has delayed
insurance payments to Eurotunnel which has had to put aside £62m
until a ruling is made.
It said Eurotunnel was taking "all
appropriate measures" to ensure it receives full compensation for
losses to which it is entitled under the insurance policies.
"These actions do not call into
question the principle of compensation, but they do delay the
receipt of payments awaited from the insurers."
Eurotunnel welcomed a rise in Eurostar
passengers to 9.2m despite disruptions caused by the fire and train
failures in the run-up to Christmas.
Eurotunnel cut costs and reduced its
debt servicing charges by £56m. It said that insurance premiums,
which increased to £28m last year following the fire, would reduce
to £19m in 2010. It is also proposing a dividend for shareholders
following the group's annual meeting on May 26.
Jacques Gounon, chairman and chief
executive of the Eurotunnel Group, said: "The results for the year
2009 are proof or Eurotunnel's resilience in the face fo
difficulties, Our group has remained profitable in an unfavourable
economic context.
"This performance shows that the group
is in good shape to benefit from the economic recovery, as soon as
it begins. The payment of a dividend is a demonstration of our
confidence and determination for 2010."
Tuesday, March 09 2010
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