Eurotunnel has posted a narrower loss in the first half of the year due to a one-time gain but says it is unlikely full-year revenues will cover interest charges.
The Anglo-French Channel Tunnel operator said it lost €22 million in the first half of 2003 compared with a loss of €138 million in the year-ago first half. A one-time gain of €90 million from financial operations helped narrow the 2003 first-half loss.
Depressed demand and pricing pressures hurt the overall transport and freight sectors, and Eurotunnel said conditions likely would remain weak in the second half.
Interest cover was 87 per cent before capital expenditure compared to 101 per cent in the year ago period, and 77 per cent after capital expenditure versus 89 per cent last year.
Its underlying loss was €111 million compared with a year-ago loss of €110 million, on turnover of €393 million versus €441 million in the year-ago period.
Operating profit slipped to €119 million from €156 million, the firm said in a statement.
Eurotunnel also said it was in talks to offer new cross-Channel rail freight solutions as part of a bid to boost revenues. It said its application for a rail operator's licence was proceeding satisfactorily.
Eurotunnel said the fall in revenues came despite volume growth in truck and passenger businesses. Truck traffic was up 3 per cent, car traffic up 4 per cent and coach traffic up 15 per cent.