Business

Eurotunnel to pay first dividend

09:45 am on 5 March 2009

Eurotunnel is to pay a dividend for the first time since it was created in 1986.

The operator of the tunnel between Britain and France will pay four euro cents per share after making a net profit of 40 million euros ($US50 million) in 2008.

The BBC reports the dividend is despite reduced passenger traffic after a fire closed the tunnel between Britain and France in September.

Eurotunnel recorded a profit for the first time in 2007 after successfully restructuring huge debts.

Last year, Eurostar carried more than nine million passengers in one year for the first time, after a high-speed rail link between St Pancras station in London and the tunnel, opened in November 2007.

Eurostar operates the passenger train services linking London to Paris and Brussels, paying Eurotunnel a levy per passenger.

Eurotunnel was saved from bankruptcy in 2007 after creditors agreed to cut its debt by taking a stake in a newly-listed company.