Minoan Lines are announcing the financial results for the first quarter of 2006. The main market determinants which affected negatively the financial results of all companies operating in the sector were, namely, the crew strike, which lasted for a week, and the high bunker prices reaching the maximum price level of the last years.
The Parent Company:
Despite the aforementioned adverse market conditions, the Company managed to improve its net results by 8.5%. The turnover reached euro 33.1 million against euro 34.1 million, reduced by 3.0% in relation to the respective period of 2005, a fact, owing to the decrease of the number of trips by 12.8% due to the crew strike and the sale of F/B DAEDALUS. The Companys operating profitability (EBITDA) stood at euro 3.9 million showing decrease of euro 1.8 million in relation to the first quarter 2005. This reduction is solely attributed to the increase in the bunker prices, which increased the relevant cost of the Company by 47.1% and the total operating cost by euro 4.1 million regardless the significant reduction in the number of trips. The net loss for the period in effect reached euro 5.3 million versus euro 5.8 million in the respective period of 2005, including the profit from the sale of the Companys stake on MINOAN AGENCIES amounted to euro 1.4 million.
The Group:
The Groups turnover reached euro 33.1 million versus euro 34.3 million in the previous respective period. The Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) shaped at euro 3.8 million instead of euro 5.7 million of the first quarter 2005. The Groups net loss for the 3-month period reached euro 7.7 million against euro 7.8 million in the first quarter 2005. The difference noted in the Groups financial results in relation to the respective one of the parent company, is mainly due to the financial results for the period of the affiliated company, Hellenic Seaways S.A. in which, Minoan Lines possess 33.3% of its share capital. It is also noted that due to the intense seasonality, Hellenic Seaways high profitability is recorded during the summer period.