ANNUAL RESULTS 2013
Revenues above €1 billion at €1.092 billion, an increase of 12%1
An EBITDA of €449 million (+7% excluding insurance indemnities2)
An improvement in operating profit of €45 million2 for the Fixed Link and Europorte segments
Net profit after tax of €101 million (including net tax income of € 81 million)
A 25% increase in the dividend to €0.15, to be proposed to the AGM on 29 April (€0.12 in 2012)
The board of directors, under the chairmanship of Jacques Gounon, finalised the accounts for the year to 31 December 2013 at its meeting on 12 March 2014.
Jacques Gounon, Chairman and Chief Executive Officer of Groupe Eurotunnel SA, stated:
“In 2013, the Eurotunnel Group recorded another record year despite the highly competitive environment. In this year, the 20th anniversary of the Channel Tunnel, the Group has set itself new targets for the creation of value, with an objective for EBITDA of more than €500 million3 in 2015.”
IMPORTANT EVENTS IN THE PAST YEAR
- Channel Tunnel Fixed Link Concession
In 2013, Eurotunnel’s Shuttle Services carried 2.5 million passenger vehicles and 1.4 million trucks.
On Saturday 17 August, Le Shuttle broke its previous record for the summer, carrying almost 16,000 passenger vehicles. It is the most intense traffic ever achieved in a single day since 1994.
Launched on 31 May, the ETICA scheme (Eurotunnel Incentive for Capacity Additions), which is intended to encourage the launch of new rail freight services, has contributed to the 10% increase in the number of rail freight trains compared to 2012.
Eurostar broke through the barrier of 10 million passengers. According to a report commissioned by the Eurotunnel Group, volumes could potentially reach 14 million passengers by 2020.
The Intergovernmental Commission (IGC) recognised in December that Eurotunnel can legitimately recover the long-term costs of the Fixed Link via its access charges levied on railway operators using the Channel Tunnel, as set out in the Railway Usage Contract.
The Channel Tunnel was named “Major Civil Engineering Project of the last 100 years” by the FIDIC, the International Federation of Consulting Engineers. The jury, composed of engineers and public project managers, unanimously selected the longest undersea tunnel from the 150 entries which came from all five continents.
- Europorte and its subsidiaries
A positive contribution to 2013 revenue growth (€239 million, equivalent to an increase of +16%). The Europorte proposition is based on service quality and punctuality, which has enabled new orders to be won.
The extension of the activity in France in the cereals and automotive sectors, combined with a diversification into petrochemicals and an increase in tonnage have consolidated the growth.
GB Railfreight, the third largest rail freight operator in the UK, also continues to develop. In particular it has renewed for a period of 5 years its contract with one of its major customers, Network Rail, for the transport of materials for the maintenance of the UK railway network. This new contract brings with it a significant increase in activity and turnover. GBRf has also won an extension of its contract for the transport of more than a million tonnes of spoil for the Crossrail project which will open in 2018.
Europorte generated a positive EBITDA of €19 million, an increase of €17 million, demonstrating the strong improvement in the profitability of the Eurotunnel’s Group’s rail freight segment.
In July 2013, the Eurotunnel Group acquired three ferries which it leases to the SCOP SF, an independent operating company. MyFerryLink is responsible for the sales and marketing of the service.
On 4 December 2013, the Competition Appeal Tribunal quashed the decision of the Competition Commission, which had announced a prohibition on the ferries operating services out of the port of Dover, and referred the decision back to the Competition Commission, which is expected to deliver a new decision in May 2014.
MyFerryLink has won customers with a proposition adapted to their needs and high quality services, with a freight market share of 9% for the full year in 2013 and revenues of €74 million, compared to just €7 million for the four and a half months of activity in 2012. The results for MyFerryLink in 2013 – 316,811 cars and 326,274 freight units transported – show the need for a new maritime option for crossing the Channel.
On a comparable basis, excluding the insurance indemnities, the operating margin, (EBITDA) of €449 million increased by 7% compared to 2012. The EBITDA of MyFerryLink is -€22 million. The operating result for the Fixed Link and Europorte segments is improved by €45 million.
The net cost of debt service, at €269 million increased by €4 million compared to 2012, mainly due to the impact of the 2% increase in margin on the Tranche C debt since July 2012, which is partially compensated by the decrease in inflation rates.
The Eurotunnel Group’s pre-tax profit for the 2013 financial year was €20 million, compared to a profit of €27 million for 2012 (which included €30 million in insurance indemnities).
Taking into account a net tax credit of €81 million, resulting mainly from the initial recognition of a deferred tax asset, the Group’s net result after tax in 2013 is a profit of €101 million.
The free cash-flow generated in 2013 amounted to €129 million. The available cash at 31 December 2013 was € 277 million, after net capital expenditure of €49 million, the payment of a dividend (€65 million), the share buyback programme (€35 million) and €46 million paid in respect of the first scheduled repayments on the Term Loan.
The activity remains positive, led by the upturn in the UK economy. Markets could, this year, see growth as strong as that experienced in 2013, with the British public making increasing numbers of short breaks to the Continent via Le Shuttle. The Group remains confident in its capacity to generate sustainable growth and, through the development of its vectors for growth, to further strengthen its resistance to the vagaries of the economy. The Eurotunnel Group expects growth in its revenues and its EBITDA in accordance with the following objectives: all things being equal
2014: €460 million EBITDA
2015: at least €500 million EBITDA
In the medium term, several factors work in favour of the Eurotunnel Group:
The introduction of the new MARPOL environmental regulations for the ferries, with a 10-fold reduction in sulphur emissions. Eurotunnel is recognised as the most environmentally friendly cross-Channel operator.
Continuing growth in the Short Straits passenger and truck markets
The launch of new rail destinations such as London/Amsterdam
Get the full results in the attached document below.
- All comparisons with the 2012 income statement are made at the exchange rate for 2013, £1 = €1.187.
- In 2012, the Eurotunnel Group received a one-off income of €30 million in insurance indemnities, accounted for in other income, in the EBITDA (operating margin), and in the overall result.
- At current exchange rates