Eurotunnel bullish over prospects despite Brexit

PARIS, March 1 (Reuters) - Channel tunnel operator Eurotunnel (Paris: FR0010533075 - news) was bullish over its prospects despite Britain's vote to leave the European Union, predicting a further increase in profits and dividends this year and next year.

Eurotunnel carries Eurostar high-speed trains between Paris, Brussels and London, as well as shuttle trains containing passenger cars, coaches and freight trucks.

"We are extremely confident over 2017 and 2018 because the volumes are there. We are not seeing any slowdown in our business segments," Chief Executive Jacques Gounon told a conference call.

Eurotunnel lost as much as a third of its value in the immediate aftermath of the Brexit vote in June 2016 despite offering reassurances that it would not suffer.

However, Gounon said the company stood to benefit from continuing growth in the British economy this year and the start of a new Eurostar London-to-Amsterdam route in 2017.

Bookings on the shuttle trains for 2017 so far were "slightly above" levels seen for the same period for 2016, Gounon said, adding: "Brexit is not affecting us".

Eurotunnel forecast earnings before interest, taxes, depreciation and amortisation (EBITDA) of 530 million euros ($559.4 million) this year and 560 million in 2018.

The company's EBITDA 2016 figure rose by 32 million euros from the previous year to 514 million.

The 2017 and 2018 forecasts were made on the basis of an exchange rate of 1.175 euros per pound. The exchange rate retained for 2016 was 1.216 euros per pound.

Eurotunnel raised its 2016 dividend by 18 percent to 0.26 euros per share, with the dividend set to rise to 0.30 euros for 2017 and to 0.35 euros for 2018.

Eurotunnel had already reported a 4 percent rise in 2016 revenues, with truck shuttle traffic rising 11 percent to a record level, thanks to growth in the British economy.

Eurostar passenger traffic figures fell 4 percent last year as the French tourist industry was affected by deadly Islamist militant attacks in the country in 2015 and 2016.

However, Eurostar traffic picked up in the fourth quarter to rise 2 percent, as a weaker pound attracted tourists to Britain.

($1 = 0.9475 euros) (Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta and Adrian Croft)