Operating profit rises at Eurotunnel

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Eurotunnel saw its operating profit increase 12 per cent last year to £163m (190m euros) – however this turned into a net loss of £49m (57m euros) owing to the absence of insurance indemnities and the charge for reconditioning a shuttle.

And the group said it anticipated growth in the freight market of between four and five per cent in 2011.

Chairman and chief executive Jacques Gounon said: “As announced previously, the delay in payment of the insurance indemnities has impacted heavily on our net result but the Group is working to rectify this situation.

“Eurotunnel has regained its place as leader in the cross-Channel market and is developing its activities in rail freight, a sector which fits perfectly with the Group’s ambitions for sustainable development.”

Sales were up 13 per cent to £630m (737m euros).

The group said it had regained its historic truck shuttle market share at the end of last year. “The cross-Channel truck market has experienced a significant contraction estimated at -16 per cent since 2007, although it did grow by three per cent in 2010.”

Eurotunnel is still involved in the legal ramifications of the fire in September 2008 -notably litigation launched by Eurostar and SNCF in May 2009 against Eurotunnel’s first–layer insurers which has resulted in the freezing of £50m (59m euros) of indemnities.

£9.4m (11m euros) of this was released in February 2011 and Eurotunnel said it was working to secure a settlement of the issue.


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