DAVY VIEW

ICG reported in-line EBITDA of €68.4m (Davy: €68m), down €12.6m on last year due to the well-publicised delay and technical issues with the fleet. However, Ro-Ro freight has started strongly in 2019, and we fully expect ICG to outperform the market significantly once again in 2019. The Container and Terminal business continues to perform strongly. With fuel prices ticking up, we may modestly adjust our EBITDA forecast of €91m towards €88m but still expect a big year-on-year recovery. Net debt at €80.3m will be c.€40m by end-FY2019 as investments in scrubbers in dry docking are taken. The interim dividend increased by 5% to 8.56c. We remain ‘Outperform’ with a price target of €6.