Channel tunnel operator Eurotunnel keeps profit goals despite Brexit

PARIS: Channel tunnel operator Eurotunnel said yesterday that the outlook for the British economy remained positive despite Brexit, as it kept its forecasts for more profit and dividend growth for this year and next.

Eurotunnel carries Eurostar high-speed trains between Paris, Brussels and London, as well as shuttle trains containing passenger cars, coaches and freight trucks.

“We are very calm about our guidance. We continue to do well and to improve our EBITDA and our revenue. At this stage we are very positive and we confirm our 2017 and 2018 goals for profitability and dividends,” chief executive Jacques Gounon told a conference call on first-half results.

Eurotunnel lost as much as a third of its market value in the immediate aftermath of Britain’s vote in favour of Brexit and leaving the European Union back in June 2016, despite offering reassurances that it would not suffer.

Eurotunnel, however, said in a statement that it did not see any significant impact from Brexit on its business in the first-half, although it continued to keep a close eye on the matter.

The International Monetary Fund predicted on Monday that Britain’s economy now looked set to grow by 1.7 per cent this year, down from a forecast made in April of 2.0 per cent.

The IMF said its downgrade reflected Britain’s weaker-thanexpected growth in the early part of this year.

“We are expecting some growth in Britain, albeit not an exceptional growth. Our traffic is holding up and the summer is looking good,” Gounon said.

Eurotunnel kept its forecast for earnings before interest, taxes, depreciation and amortisation (EBITDA) of 530 million euros (US$618 million) this year and 560 million in 2018. This would compare with EBITDA 2016 of 514 million.

It was also still targeting a dividend of 0.30 euros per share for 2017 and 0.35 euros for 2018. — Reuters