#ICGresults - Shipping operator Irish Continental Group (ICG) expected to report another strong year of growth writes The Irish Times when on Monday it releases full-year results (now available by clicking here)
In the first 10 months of the year, group revenue was up 1.6 per cent, car volumes by 3 per cent and roll-on/roll-off freight by 5 per cent.
It is thought that ICG’s new purpose-built ferry will double the freight capacity of the chartered Epsilon when it arrives next year, and increase tourism capacity by three and a half times.
Describing ICG as “one of the best-managed transport companies in Europe”, Davy has predicted Ebitda of about €83 million for 2016, up from €75.5 million in 2015. It has upgraded ICG’s price target to 600p (20 per cent upside) and reiterated its “outperform” rating.
“The backdrop of Brexit and rising fuel prices provides an excellent entry point,” Davy said. “ICG has an enviable track record of best-in-class operating efficiency, excellent capital allocation and an extremely strong (and we believe improving) competitive position.”
Investors are encouraged to look toward 2018.
“Cost headwinds mean that we are trimming estimates in FY2017. We expect ship chartering costs to rise and fuel headwinds, particularly in heavy fuel oil, of over 40 per cent,” Davy said. “However, there is little sign of declining volumes and we assume 1 per cent growth in cars and 5 per cent growth in RoRo [roll-on/roll-off] for FY2017.”