MINOAN LINES Announcement - Hellenic Seaways

Announcement

Minoan Lines wishes to reaffirm its strategic choice to acquire control of Hellenic Seaways, despite the disappointing financial results of fiscal year 2016, which the Managing Director of HSW announced to the press.

It should be noted that the economic environment for the Greek coastal shipping in general and HSW in particular was positive during the fiscal year 2016, due to the recorded 12-year low of fuel prices.

More specifically, the financial results of HSW for the fiscal year 2016 did not meet the expectations of its shareholders, as according to the announcements of the executive management of the company:

•    Turnover was stagnated at the amount of € 132 million despite the operation of the company with three additional vessels (Nissos Samos, High-Speed 7 and Hellenic High-Speed).

•    Operating profitability EBITDA was decreased by 27% or € 6,5 million and was shaped  at € 18 million compared to € 24,5 million in 2015, despite the drop in the international fuel oil prices, which recorded a 12-year low.

•    Profits after taxes arising from the operation of the company, declined, to zero levels in fact, as the announced Net Profits of € 6,5 million derived from an acrobatic accounting process, i.e. certain vessels’ reversal of impairment, which is an extraordinary and non-recurring event .

The responsibilities of the executive management of HSW are obviously important, as they indicate its inability to produce positive results, and also, its lack of strategy and long-term business planning.

Specifically, according to the announcements of HSW’s administration: 

A) It invested "several millions" for the repair - renovation of a 30-year old conventional ship which was already moored for years.

B) It proceeded to the sale of vessels with a successful commercial activity, jeorpadizing company's profitability potential. In particular, the catamaran speed-boat High-Speed 6 was sold, which was successfully deployed and operated in the popular commercial line of Santorini, against € 19,6 million.

C) The incorrect business actions and practices brought about the deterioration of the company’s financial position with the reduction of cash and cash equivalents and the substantial increase of the company's liabilities.

For year 2017, taking into account the approximately 25% increase in fuel prices, we estimate that there will be a further deterioration of HSW’s financial performance. Therefore, we believe it is imperative that the understanding/agreement of the company’s shareholders be achieved at the upcoming extraordinary General Meeting so that decisions can be taken for the reversal of its financial course.

 
From MINOAN LINES Press office
Heraklion, 5th April 2017

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