by business editor Trevor Sturgess

Fire, snow and recession have dented profits at Eurotunnel.

The Channel Tunnel operator today (9) reported a slump in net profit to £1.26m in 2009, down from £30m the previous year.

Eurotunnel's financial performance was affected by the aftermath of the devastating Chunnel fire in September 2008 which partially closed the tunnel until February 9 last year.

Services were also cancelled during the Big Freeze in December.The Anglo-French business said that the truck market had fallen by a fifth compared to 2007.

Profit would have been higher but for claims by Eurostar, the high-speed operator, and SNCF, French Railways, with Eurotunnel's insurers regarding the partial tunnel closure.

The legal dispute has delayed insurance payments to Eurotunnel which has had to put aside £62m until a ruling is made.

It said Eurotunnel was taking "all appropriate measures" to ensure it receives full compensation for losses to which it is entitled under the insurance policies.

"These actions do not call into question the principle of compensation, but they do delay the receipt of payments awaited from the insurers."

Eurotunnel welcomed a rise in Eurostar passengers to 9.2m despite disruptions caused by the fire and train failures in the run-up to Christmas.

Eurotunnel cut costs and reduced its debt servicing charges by £56m. It said that insurance premiums, which increased to £28m last year following the fire, would reduce to £19m in 2010. It is also proposing a dividend for shareholders following the group's annual meeting on May 26.

Jacques Gounon, chairman and chief executive of the Eurotunnel Group, said: "The results for the year 2009 are proof or Eurotunnel's resilience in the face fo difficulties, Our group has remained profitable in an unfavourable economic context.

"This performance shows that the group is in good shape to benefit from the economic recovery, as soon as it begins. The payment of a dividend is a demonstration of our confidence and determination for 2010."