Eurotunnel traffic up but profits fall

Eurotunnel has seen truck traffic increase by 41%, year-on-year, during first six months of the year, despite the difficult weather conditions experienced in January, and revenue had increased by 22%. 

Howwever, the tunnel operator recorded a net loss of €45 million for the period – compared with a loss of just €5 million last year. 

CEO Jacques Gounon said in a statement that this had been mainly due to a delay in receiving insurance pay-outs for fire-related losses. 

In a bullish statement, Eurotunnel said: “Market share recovery continues, following the fire in September 2008, which resulted in one section of the tunnel being unavailable until February 2009 and which had an important impact on commercial services. 

“The [overall] cross-Channel truck market continues to be affected by the economic situation, with a decline in the market estimated at 17% for the first half of 2010, compared with 2008. 

“Truck shuttle traffic [through the tunnel], however, has increased by 41% compared with the first half of 2009 – up 35% in the first quarter and 48% in the second.” 

One ferry operator recently claimed Eurotunnel had started a price war in order to win back volumes it lost because of the fire. 

Eurotunnel said it had also managed to reduce its operating costs by €14 million (US$18m) in the first half of the year, resulting in a 3% increase in operating margin. 

It reported earnings before interest, tax, depreciation and amortisation (ebitda) of €143 million. but a net loss of €45 million – compared with a loss of €5 million during the same period last year. 

This, it said, was caused by the rise in financial charges because of an increase in inflation and the delay in receiving insurance payouts to cover tunnel repairs and other expenses after the fire. 

During the past six months, Eurotunnel acquired GBRf and won the contract to manage the rail freight zone at the port of Dunkirk.