20/03/2007     Minoan Lines S.A. Press Release- Financial Results 2006

Minoan Lines S.A. announces the financial results for the fiscal year 2006.

• € 21.6 MILLION CONSOLIDATED NET PROFITS (+22.7%)
• THE HIGHEST TURNOVER THAT HAS EVER BEEN ACHIEVED € 206.7 MILLION
• SIGNIFICANT REDUCTION OF COMPANY’S LEVEL OF BANK DEBT
• € 0.135 per SHARE PROPOSED DIVIDEND

Financial Results (Company)

The revenues stood at € 206.7 million in 2006 versus € 204.2 in 2005(increase 1.2%) despite the reduction of the company’s fleet by one vessel (F/B Daedalus).
The contribution of the subject vessel in the revenues of 2005 amounted to € 8.4 million.
The operating results (EBITDA) stood at € 61.4 million compared to € 56.0 million in 2005 (increase 9.6%). In the operating results (EBITDA) the profit of € 11.2 million from the sale of H/S/F Ariadne Palace is included. It should be noted that the company’s operating profitability has been significantly affected for the past two years by the enormous increase in fuel prices (increase 25% in comparison to the fiscal year 2005).

The company’s net profits after taxes stood at € 18.3 million against € 17.0 million in 2005 (increase 7.4%).
The management of Minoan Lines will propose dividend of € 0.135 per share in the annual general meeting of shareholders.

Financial Results (Group)
The consolidated financial results do not present any significant differentiation as compared to the parent financial results. The revenues stood at € 206.9 million and earnings before taxation and depreciation (EBITDA) at € 61.4 million for the fiscal year 2006.The consolidated net results after taxes stood at € 21.6 million in 2006 against € 17.6 million in 2005 (increase 22.7%) while the net profits per share shaped at € 0.30 compared to €0.25 in 2005. The differentiation of € 3.3 million between the consolidated financial profit (€ 21.6 million) and the company’s results (€ 18.3 million), is due to the positive financial results of the associated company HELLENIC SEAWAYS S.A. The aforementioned company has managed to improve both revenues and net profits. More specifically, revenues stood at € 165.4 million in 2006 versus 141.1 in 2005 while the net profits, according to international financial reporting standards, shaped at € 10.1 million in 2006 compared to € 2.0 million the previous year.

Traffic volumes – Market shares
In Ancona and Venice routes, for the year 2006, the company carried in total 581 thousand passengers, 154 thousand private cars and 91 thousand trucks, maintaining its leading position regarding market shares among the companies operating in the north Adriatic market. The market shares for passengers, cars and trucks shaped at 35.7%, 37.5% and 35.2% respectively which are higher than the market share of trips (33.4%). In the Heraklion – Piraeus route during the year 2006 the company carried in total, 968 thousand passengers, 126 thousand private cars, and 66 thousand trucks. The market shares for passengers, cars and trucks stood at 71.0%, 62.1% and 49.6% respectively which are higher than the market share of trips (48.6%)

Important developments – Company’s prospects
Over the past year Minoan Lines has significantly reduced the bank debt in € 365.6 compared to 453.8 million in 2005 (reduction € 88.2 million). For the current year, the traffic data along with the bookings for the summer period are positive indications for the revenues of the current year. Additionally, the quality of fleet, the significant decline of the company’s level of bank debt, the rationalization to a great degree of north Adriatic market (capacity reduction) and the moderate decline of fuel prices make the management of Minoan Lines optimistic for further improvement and healthy profitability over the next years.

Source: MINOAN LINES S.A.