SHARES IN Irish Continental Group (ICG) rose by 2.3 per cent yesterday despite the ferry company reporting a 59 per cent decline in its operating profit for the first six months of this year.

Declines in tourism and consumer spending and reduced freight traffic resulted in ICG’s operating profit declining to €7.1 million in the six months to the end of June from €17.3 million in the same period of 2008.

Its revenues fell by 28 per cent to €119.8 million during the period, while its earnings before interest, tax, depreciation and amortisation were 36 per cent lower at €18.8 million.

Stockbroker Davy said the results were in line with its expectations, and ICG was “well placed both financially and operationally to take advantage of a resumption in economic growth”.

ICG’s passenger traffic during the six months declined by 8.8 per cent to 621,000, while the number of car journeys was down 5.9 per cent at 159,000.

Its roll-on/roll-off freight volumes fell by 22 per cent, while container freight declined by 31.5 per cent.

The decline in revenues was partially offset by a 24 per cent reduction in costs, through lower payroll, fuel, vessel time charter costs and volume-related port charges.

ICG did not provide any guidance for the second half of the year but this period is historically more profitable for the company.

ICG said it was “disappointed” that it has not been able to negotiate lower charges with a number of the ports it deals with.

Speaking to The Irish Times, ICG chief executive Eamonn Rothwell added: “We are having some difficulties with the State-owned ports in the Republic. We think they should be making a much bigger contribution.”

Mr Rothwell noted that Dublin Port has frozen its charges for this year, but said this wasn’t enough. “Keeping them the same is not sufficient as far as we are concerned. We’re having to lower our costs.”

Mr Rothwell said ICG would like to see “at least a 10 per cent reduction” in charges being applied in Dublin. “We haven’t been getting very far with that,” he added.

Mr Rothwell declined to comment on the impact the current court proceedings involving Liam Carroll’s Zoe group of companies might have on the developer’s 29.3 per cent stake in ICG.

Shares in ICG closed in Dublin yesterday at €12.07.