Eurotunnel Group 2016 annual profits up

01/03/2017 - 06:30

Revenues increased by 4% to €1.023 billion1 EBITDA increased to €514 million

Net consolidated profit increased strongly to €200 million

An 18% increase in the dividend, to €0.26 per share, to be proposed to the AGM on 27 April 2017

Jacques Gounon, Chairman and Chief Executive Officer of Groupe Eurotunnel SE stated:

2016 was the best year in our history. Our three core businesses each outperformed their sector: the Fixed Link is a unique asset in the infrastructure world, ElecLink has entered its construction phase and Europorte is the most efficient company in its sector. Our outlook is very good and we are announcing new improved objectives for 2017 and 2018.


Objectives (at an exchange rate of £1=€1.175 and on the basis of the existing scope)

    • EBITDA 2017: €530 million
    • Dividend 2017: €0.30
    • EBITDA 2018: €560 million
    • Dividend 2018: €0.35



  • Channel Tunnel Fixed Link Concession

In 2016, Eurotunnel’s Shuttles transported 2.66 million passenger vehicles and 1.64 million trucks, a strong growth.

Le Shuttle achieved a car market share of 55% for 2016. Pet Travel, which is a factor of customer loyalty, also saw a record year, with 301,159 domestic pets transported (+16% compared to 2015).

Le Shuttle Freight ended the year with a new all-time record of 1,641,638 trucks transported and outperformed the market with a share of 39.2%.

The securing of the Coquelles terminal since October 2015 and close cooperation with the law enforcement authorities has prevented any disruption to traffic.

Eurostar carried more than 10 million passengers in 2016, despite the context. The increase in traffic towards the end of the year and the coming launch of services between London and Amsterdam at the end of 2017 are further indicators of growth in traffic.

  • Europorte and its subsidiaries

The Eurotunnel Group completed the sale of its British rail freight subsidiary, GB Railfreight, to EQT Infrastructure II on 15 November 2016.

Europorte’s revenue has reduced by 6% compared to 2015, a reduction principally linked to the long succession of SNCF strikes in the spring and to the reduction in the volume of cereals to be transported.

Despite this background, EBITDA is at break-even, a validation of the strategy which favours value added contracts.

  • ElecLink

On 23 August 2016, the Eurotunnel Group completed the purchase of the 51% share in ElecLink held by Star Capital and today holds 100% of the capital.

Siemens began the construction of the new convertor stations, Balfour Beatty and Prysmian are in charge of the supply and the installation of the cable in the Tunnel.

Commercial operations are due to start at the beginning of 2020.



Consolidated revenues for the Group for the year ending 31 December 2016 reached €1.023 billion, an increase of €39 million (+4%) compared to 2015.

Operating costs increased by +1% to €509 million.

Consolidated EBITDA reached €514 million, an increase of €32 million compared to 2015 at a constant exchange rate and scope of consolidation. EBITDA has exceeded the target published for 2016 by €14 million on a comparable basis2.

Trading profit was €364 million, an increase of €26 million (+8%).

The Group’s pre-tax profit from continuing operations for 2016 was €154 million, an improvement of €74 million compared to 2015, including a €50 million profit arising from the revaluation at their fair value of the shares in ElecLink already held by the Group.

The consolidated net result for the Eurotunnel Group for 2016, after taking account of the net result of the discontinued businesses (€64 million including €39 million net profit from the sale of GB Railfreight Limited and €24 million arising from the finance leases of the maritime segment’s ferries), is a profit of €200 million, compared to €75 million (recalculated) for 2015.

The available cash flow at 31 December 2016 was €347 million.



In 2016, the Eurotunnel Group once again demonstrated its ability to deliver on its commitments and to make progress.

The Group remains very confident in the robustness of the Fixed Link’s economic model. The Tunnel remains and will increasingly confirm its place as the pre-eminent element in trade between the UK and continental Europe.

The Eurotunnel Group is determined to stimulate further traffic growth through the Channel Tunnel whilst at the same time increasing its margins. To do this, the Group will continue with its major investments for both capacity and quality of service: increase in terminal capacity, entry into service of three new Truck Shuttles and the opening of new FlexiPlus lounges in 2017. Through these investments, the Tunnel will become a preferred strategic partner for all its customers and will be able to carry 2 million trucks and 3 million passenger vehicles on its Shuttles by 2020.

The Eurotunnel Group, which created value in rail freight, will focus on the development of Europorte in 2017, putting an accent on operating profitability.

The Group also intends to extract further value from its infrastructure through the construction of a 1,000 MW electrical interconnector between the UK and the Continent. In August 2016, it acquired the share of ElecLink held by Star Capital and will complete the construction of the interconnector which began in the last quarter of 2016.

The Eurotunnel Group will continue to prepare the refinancing of its debt, particularly with regard to the floating rate tranches, in order to minimise, market conditions allowing, over the long term, the cost of servicing its debt.

On the strength of this confidence in the future, the Group confirms its financial target of an EBITDA of €530 million for 2017 and has set a financial target of an EBITDA of €560 million for 2018, on the basis of an exchange rate of £1=€1.175 and on the basis of the existing scope of consolidation.

As a consequence, the Group confirms its intention to continue its policy of regular dividend growth for shareholders with the objective of reaching a dividend of €0.35 per share for the 2018 financial year. Against this background, the proposal is to increase the dividend payment in respect of the 2016 financial year to €0.26 for each share having rights to a dividend payment.


Get the full results in the attached document below.


  1. All comparisons with the annual accounts for 2015 are made at the exchange rate for 2016, £1=€1.216 and restated in accordance with IFRS 5 following the sale of GB Railfreight Limited.
  2. At a constant exchange rate and excluding discontinued activities.