Paris - Eurotunnel, the company that operates the Channel Tunnel connecting France and Britain, said on Wednesday that it had made profits of 39.72 million euros (50 million dollars) in 2008 and would pay out the first dividend in its history.

Despite a fire in one of the tunnels that drastically reduced traffic in the last four months of the year, Eurotunnel was able to increase its operating margin by 5 per cent, to 421 million euros, the company said in a statement.

As a result, Eurotunnel will propose to its shareholders, "for the first time in its history ... the payment of a dividend of 4 cents of a euro per share," Eurotunnel said.

Turnover for the year fell by 9.1 per cent, to 703.9 million euros, largely due to the 16-hour fire which broke out on September 11 and led to the temporary closing of one of the three undersea tunnels.

The fire, which injured 14 people, caused a reduction in capacity of about 50 per cent in the last quarter of 2008, which provoked a drop in passenger traffic of 37 per cent in the quarter and of 11 per cent for the year, compared to 2007.

The fire-damaged section of the tunnel did not open to traffic until February 9.

Eurotunnel head Jacques Gounon said, "despite the incident in September, the year 2008 clearly marks the end of financial uncertainty for Eurotunnel. Through its efficiency and the control of its costs, the group has recorded a solid profit which, for the first time in our history, allows us to pay a dividend to our loyal shareholders."

Long-suffering Eurotunnel shareholders were also rewarded for their loyalty by a surge in the price of Eurotunnel shares, which were up 22.5 per cent, to 3.43 euros, in mid-day trading on the Paris Bourse.(dpa)