Irish Continental Group
Interesting infrastructure assets
As the name implies, Irish Continental Group ($IR5B.IR) is a ~€800 million Irish-based maritime transport group. It operates through two segments: “Ferries” and “Container & Terminal”, with a pivotal position in the logistics chain and facilitating Ireland's international trade and tourism. It also provides ship leasing, administration, and container handling services. The company was founded in 1972 and is based in Dublin, Ireland.
CEO Eamonn Rothwell owns ~19% of the shares, with the rest being free float: among the top shareholders there are famous value-oriented shops Wellington Management (10%) and Marathon Asset Management (5%).
Similar to many other Irish companies, Irish Continental Group (ICG going forward) is also listed on the London Stock Exchange under ticker $ICGC.L, which is more liquid.
History
Originally called Irish Continental Line, ICG was set up in 1972 as a joint venture between state-owned Irish Shipping and Scandinavian partners to provide a direct ferry link from Ireland to Continental Europe.
Following the receivership of Irish Shipping, in 1987 Irish Continental Line was acquired by a group of investors and in 1988 was listed on the Irish Stock Exchange, changing its name to Irish Continental Group and operating just three vessels (from Rosslare to Cherbourg and Le Havre in France and from Belfast to Liverpool).
In 1992 the Group further increased the scale of its operations through the acquisition of B&I Line (whose history extends back to 1836), which broadened the group’s activities to include the short sea links with the UK (Ireland’s largest trading partner) and also extended operations into container transport and port operations.
Current business
Activity is organised around two business units:
Ferries (66% of revenues, 76% of operating profits): ICG owns a fleet of multi-purpose ferries carrying passengers and cars, “Roll on Roll off (RoRo)” freight shipping and container “Lift on Lift off (LoLo)” freight services on short sea routes between Ireland, Britain, and Continental Europe, together with vessel chartering operations. The ferry services trades under the Irish Ferries brand operating four routes utilising a fleet of eight vessels, six of which are owned and two are chartered-in.
Container and Terminal (34% of revenues, 24% of operating profits): provides door-to-door and feeder LoLo freight services, stevedoring, and container shipping services between Ireland and Continental Europe. The division principal activities include shipping activities under the Eucon brand and the operation of two container terminals, Dublin Ferryport Terminals and Belfast Container Terminal, the two main ports in Ireland.
