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The Board of Directors of Blue Star Maritime S.A. is pleased to announce that Blue Star Group significantly improved its financial results in the first half of 2006. Revenue stood at Euro 62.30 mln against Euro 55.32 mln in the first half of 2005, an increase of 12.6%. Earnings before taxes, investing and financial results, depreciation and amortization (EBITDA) grew to Euro 14.79 mln against Euro 11.14 mln (32.8% increase) while Profit after Tax and Minority interests stood at Euro 6.24 mln, a significant increase against Euro 1.15 mln in the same period last year (442.8% increase).
The Group’s key financials for the first half of 2006 compared to the first half of 2005 were:
Contributing factors to the Group’s increased revenue were:
- The improvement in load factors in the Cyclades and Dodecanese routes, where, over 19.1% fewer sailings compared to the same period last year, total volumes carried increased significantly both in passengers and private vehicles as well as in freight units.
- The significant growth in freight carried on the Greece – Italy routes.
Operational profitability for the Group (EBITDA) improved considerably despite the continuous upward trend in the price of fuel oil. Total fuel and
lubricants expenses for the Group rose by 41.7% compared to the same period in the previous year despite the fewer sailings performed. Nevertheless, operational profitability (EBITDA) improved considerably due to:
- The significant revenue growth;
- The deployment of vessels on routes on which they can be fully exploited year-round;
- The decrease of other operational expenses of the vessels compared to the same period in the previous year;
- The upholding of distribution and administrative expenses at approximately the same levels as in the previous year.
Further to the improvement of EBITDA, another reason for the significant increase in Profit after Tax was the reduction in financial expenses following the successful refinancing of the Group’s debt obligations in June 2005 and the approximately Euro 1 mln profit booked from the sale of passenger catamaran Seajet 2 which was concluded in March 2006.
As regards the Balance Sheet and the Cash Flow Statement, it is worth noting that the Group maintained its high level of cash and cash equivalents, although it fully repaid its short-term debt obligations, which stood at Euro 2.2 mln and the Euro 2.1 mln fine imposed by the European Union Competition Authorities, using its own cash. The above considerations combined with the significant increase in operational expenses due to the increase in the price of fuel oil and the fact that the first half does not include the summer period which traditionally exhibits the largest volumes and accounts for the greater part of Group revenue, testify that the Group achieved an impressive performance due to the sound management of its assets.
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The most important developments in the sector in the course of the first half of 2006 were:
- The sharp increase in the average price of fuel oil which in the course of the first half of the year was 49.2% higher for the heavy fuel oil for bunkering at the port of Piraeus compared to the same period in 2005. This negative development affected all companies in the sector.
- The recent (May 2006) liberalization of fares in the majority of the Greek domestic lines. This decision of the Greek government is a step closer towards the harmonization of the Greek regulatory framework with European Regulation 3577/92 on maritime transport within Member States, although there are still many issues to be resolved until a fully liberalized environment of operation is in place. As a result of this decision, companies in the sector are now able to apply a flexible pricing policy based on demand and supply aiming at the expansion of their customer base.
- The recent (July 2006) abolition of the age limit applying to vessels trading in the Greek domestic market subject they conform to high safety standards. This decision is one more step closer to the harmonization of the Greek regulatory framework regarding maritime transport with the international shipping standards. As a result of this decision, vessels will be able to sail, regardless of their age, as long as they comply to all regulations regarding safety at sea, for as long as their employment is commercially viable.
Total volumes for the Group, for the first half stood at 1,567,831 passengers, 206,305 private vehicles and 70,558 freight units. Compared to the same period last year, total volumes carried grew by 4.4% in passengers, by 9.9% in private vehicles and by 19.3% in freight units. It should be noted that the above growth was attained against 14.8% fewer sailings compared to the first half of 2005.
In July 2006, the Group's parent company, Blue Star Maritime S.A., in the course of strengthening its presence in the Greek domestic market, acquired the total assets of D??? Sea Line through an auction and specifically, car-passenger ferries Diagoras, Patmos and Rodos and certain items of real estate in the town of Rhodes. The total acquisition cost stood at Euro 19.9 mln. Car-passenger ferry Diagoras, following the completion of the necessary maintenance and repair works, was deployed on 12th August to the Dodecanese Islands' routes, where our Group now offers daily sailings with vessels Blue Star 2 and Diagoras.
Following the positive developments presented hereabove, in terms both of financial results and traffic volumes as well as regarding the developments on the liberalization of Greek domestic market, and having already covered the greater part of the summer period, the Group's management, judging from the high load factors of the vessels and the timely deployment of Diagoras on the Dodecanese route during the high season, expect an improvement in the financial results of the current year compared to 2005.
Lastly, it should be noted that the Group’s management is constantly following the developments in the Greek domestic market and studies the development of new routes, through the acquisition or building of modern conventional vessels of the highest standards, provided that suitable market conditions develop.
Voula, 25th August, 2006
The Board of Directors
The Consolidated and Company Financial Statements will be published in the press and will be posted on the Athens Exchange and Group (www. bluestarferries.com) websites today, Friday 25th August, 2006.
For more information please contact:
Mr Dionissis Theodoratos
BLUE STAR MARITIME S.A.
Tel.: +30 210 891 9820
Fax: +30 210 891 9829
e-mail: theodoratos@bluestarferries.com
www.bluestarferries.com
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