ΑΝΕΚ Α.Ε.

FINANCIAL RESULTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2011

ANEK LINES S.A.

 

PRESS RELEASE

 

FINANCIAL RESULTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2011

 

 

   Group Turnover: € 205.4 mil.

   Group EBITDA: € 20.2 mil. versus € 7.3 mil. in 9m of 2010

  

 

ANEK LINES S.A. (ANEK) announces its financial results for the nine-month period ended September 30th 2011 (9M 2011), in accordance with the International Financial Reporting Standards (IFRS):

 

The deepening crisis and uncertainty, both in the Greek and the Eurozone economy, has negatively affected the activity of most sectors of the economy and even more the passenger ferry industry. Moreover, the constant increase in international oil prices (indicatively, during the nine months of 2011 ended September 30, fuel prices rose by 26% over the corresponding period last year) along with the declining  passenger and freight traffic due to the sustained recession and the subsequent decline in consumption, have led the industry in an adverse position. The passenger ferry industry is undergoing major restructuring and reorganization in order to best cope with the financial crisis by means of streamlining operating cost and smoothening the competition, which combined with the recent reductions in third party levies, are undoubtedly steps in the right direction.

 

During 9m of 2011, ANEK Group operated in the Adriatic Sea (Ancona, Venice), Crete (Chania, Heraklion), Dodecanese, Cyclades and East Aegean routes. The Group's management amid the hard financial conditions, has achieved, by means of specific strategic actions carried out during 9m of 2011 (special chartering of its vessels, share capital increase, sale of a vessel, joint venture establishment and fleet restructuring), to reduce contain operating cost and enhance the Group's capital structure.

 

Turnover

More specifically, Group turnover in 9m 2011 amounted to euro 205.4 mil. versus euro 214.6 mil. in 9m 2010 marking marginal decrease by 4.3%. Accordingly, the Parent Company's turnover amounted to euro 170.3 mil. versus euro 190.7 mil. in 9m of 2010.

 

Gross Profit

Consolidated gross results for 9m 2011 amounted to profit of euro 39.4 mil. versus 30.9 mil. in 9m 2010 marking an increase by 27.2%. The Group's cost of sales eased by 9.6%, as a result of a more efficient fleet utilization in spite of the significant rise of the cost of fuel, which is the most significant cost factor for the passenger ferry companies. Respectively, the Parent Company's gross profits stood at euro 33.7 mil. versus euro 21.4 mil. in 9m 2010. 

 

EBITDA

Group profits before interest, taxes, financial and investment expenses, and depreciation (EBITDA) marked substantial improvement as compared to 9m 2010, as they formed to euro 20.2 mil. in 9m 2011 versus euro 7.3 mil. in 9m 2010. Respectively, Parent Company's EBITDA formed at euro 18.2 mil. versus euro 0.5 mil. in 9m 2010.

 

Net results

Finally, Group's net results after taxes and minority interests in 9m 2011 marked significant improvement and amounted to marginal losses of euro 1.0 mil., versus losses of euro 15.6 mil. in 9m 2010. The corresponding Parent Company's net results after tax amounted to losses of euro 1.9 mil. versus losses of euro 20.5 mil. in 9m 2010.

 

Recent developments – Significant events

 

  • In April of 2011 the Company completed a share capital increase via rights issue and payment in cash, and the total proceeds amounted to euro 16.3 mil. were used to cover working capital requirements.

 

  • Moreover, within the scope of the Group's more efficient fleet utilization and restructuring, the sale of F/B LISSOS was agreed and completed in May 2011 and the proceeds were used to reduce outstanding bank debt.   

 

  • Finally, in May 2011, ANEK Group incorporated a new joint venture with Group ATTICA HOLDINGS S.A. in order to establish combined routes using vessels from both companies in the international route “Patra – Igoumenitsa – Ancona” as well as the passenger ferry route “Piraeus – Heraklion”. The objective of the joint venture is to optimize and restructure the capacity offered creating new dynamics for the growth of both routes.

 

The main concern of ANEK Group's management is to constantly seek and take actions in order to best cope with the adverse conditions stemming from the current financial crisis and ongoing recession. The Group's management remains committed to the strategic objectives and in view of leveraging any emerging opportunities intensify its efforts towards optimization of fleet management and resources while constantly improving its services delivered.

 

 

 

Chania, November 17th, 2011

 

THE BOARD OF DIRECTORS