Blue Star Ferries reports nine-month results

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

29 Nov 2007

The Board of Directors of Blue Star Maritime S.A. is pleased to announce that Blue Star Group substantially improved its financial results in the nine months period ended September 30, 2007. Particularly, consolidated revenue stood at Euro 136.78 mln against Euro 113.28 mln in the nine months ended September 30, 2006, an increase of 20.7%. Earnings before taxes, investing and financial results, depreciation and amortization (EBITDA) grew to Euro 42.94 mln against Euro 36.25 mln (18.4% increase) while Net Profit after taxes and Minority Interests stood at Euro 25.43 mln considerably increased from Euro 22.41 mln in the same period of the previous year (13.5% increase). The Group’s key financials for the nine months ended 30th September, 2007, compared to the same period of 2006 were in Euro thousand (except sailings): Sailings: 3,500 in 2007, 3,190 in 2006, Change +9.7%
Revenue: 136,778 in 2007, 113,282 in 2006, Change +20.7%
Earnings before Taxes, Investing & Financial Results, Depreciation & Amortization (EBITDA): 42,940 in 2007, 36,255 in 2006, Change +18.4% Net Profit after Taxes & Minority interests: 25,430 in 2007, 22,412 in 2006, Change +13.5% Contributing to the growth in revenue was the significant improvement in total volumes carried in the Dodecanese Islands routes, both in passengers and private vehicles as well as in freight units, due to the deployment of car – passenger ferry Diagoras throughout the nine months period ended September 30, 2007. The vessel was acquired in July 2006 and was deployed in August 2006. The increase in revenue is also due to the increase in yield obtained per passenger and vehicle carried in the Cyclades and the Dodecanese routes, following the partial liberalization of the pricing policy in the Greek domestic market routes in May 2006 and the introduction by our Group of a flexible commercial policy matching supply and demand.Lastly, the improvement in load factors across the Greece – Italy routes, also contributed to the revenue growth, where by executing 47.6% fewer sailings, after the redeployment of vessel Blue Star 1 in the North Sea route, the Group significantly improved the volumes carried by vessel Blue Horizon and the revenue per sailing compared to the same period last year. In the Scotland – Belgium route in the North Sea, where Group's vessel Blue Star 1 is deployed since 29th of January 2007, load factors have reached particularly high levels while average revenue per passenger, private vehicle and freight unit carried is much higher compared to revenue produced by the same vessel in the Greece - Italy routes in the same period of the previous year.Operational profitability for the Group (EBITDA) improved by 18.4% mainly due to the significant revenue growth, the slight increase in administrative expenses as well as the deployment of vessels on routes on which they can be fully exploited year-round. This improvement was achieved despite the significant increase by 11% of the average fuel oil prices during the third quarter of 2007, compared to the same period of the previous year.Lastly, it should be noted that in the course of nine months ended September 30, 2007, the Net Profit after Taxes and Minority Interests does not include any extraordinary profit from vessels’ sales, which in the same period of 2006 stood at Euro 1.3 mln approximately. As regards the Balance Sheet and the Cash Flow Statement, the Group maintained its strong cash position with cash and cash equivalents growing to Euro 53.18 mln compared to 2006 year-end that stood at Euro 42.24 mln and reduced significantly its long-term liabilities. Furthermore, cash flow from operating activities improved and stood at Euro 27.73 mln against Euro 23.28 mln in the nine months period ended September 30, 2006, confirming the sound management of Group's assets.The most important developments in our Group in the course of the nine months ended September 30, 2007, were:In January 2007, the vessel Blue Star 1 was redeployed from the Greece-Italy route to the Scotland-Belgium route in the North Sea. Blue Star 1 commenced successfully its service on the route on 29th January, 2007.In March 2007, our Group was voted ''Best Shipping Company for traveling to the Greek Islands'' by readers of Voyager magazine for second consecutive year. Our Group was specifically awarded top votes by the readers of the magazine across the categories of: Feeling of safety, Cleanliness, Quality of Service, Cabins.

In June 2007, the Annual General Meeting of Shareholders decided upon the distribution of dividend for the fiscal year 2006 of Euro 0.09 per share. The payment of dividend began on Monday 9th July, 2007.Also, in June 2007, the Group released its first report regarding the Group’s Social Responsibility program that includes the activities that Blue Star Ferries undertook in 2006 and in the first months of 2007 with respect to Corporate Social Responsibility. In September 2007, the parent company Blue Star Maritime S.A., sold its properties (office buildings) located in the city of Piraeus and in the town of Rhodes. The total sale price stood at Euro 2.4 mln, enhancing the Group’s cash position. On October 23, 2007, MIG SHIPPING S.A., a wholly owned subsidiary of MARFIN INVESTMENT GROUP HOLDINGS S.A. (following the acquisition of the majority of the voting rights of Attica Holdings S.A. from the above mentioned company), submitted a mandatory Public Offer to the shareholders of Blue Star Maritime S.A. in respect of the purchase of the entirety of their common bearer shares with voting rights, at the price of Euro 3.83 per share, in cash.The mandatory Public Offer is in progress. On November 15, 2007, the total (direct and indirect) participation of MARFIN INVESTMENT GROUP HOLDINGS S.A. in the share capital and voting rights of Blue Star Maritime S.A. was 50.18%. It should be also noted that as from 1st October 2007, according to a decision of competent Greek Authorities, all passenger ships operating on regular services are obliged to comply with the European Directive regarding the use of Low Sulphur fuel. The higher cost of Low Sulphur fuel (approximately Euro 15-20 per m/t) combined to the fact that current fuel prices have reached very high levels, will have a negative impact in the financial results of all companies in the sector. Total volumes for the Group, for the nine months ended September 30, 2007, stood at 2,960,661 passengers, 395,384 private vehicles and 122,033 freight units. Compared to the same period last year, total volumes carried grew by 3.6% in passengers, by 8.5% in private vehicles and by 15% in freight units. Following the developments presented above, in terms of financial results as well as regarding the developments on traffic volumes, the Group’s management by taking into consideration the increase in fuel oil prices marked during the third quarter of 2007, as well as in October and November, ascertains that if such a tendency continues upward, it will constitute a restraining factor for Group’s performance in the fourth quarter of 2007.The Group’s management will continue to examine the development of new routes and the strengthening of the existing ones in the International and Greek domestic market, through the acquisition or building of modern conventional vessels, provided that suitable market conditions develop. The Group’s management is in contact with shipyards for building new vessels.Source: Blue Star FerriesBlue Star Ferries reports nine-month results (KAINOYRIO) (15)The Board of Directors of Blue Star Maritime S.A. is pleased to announce that Blue Star Group substantially improved its financial results in the nine months period ended September 30, 2007. Particularly, consolidated revenue stood at Euro 136.78 mln against Euro 113.28 mln in the nine months ended September 30, 2006, an increase of 20.7%. Earnings before taxes, investing and financial results, depreciation and amortization (EBITDA) grew to Euro 42.94 mln against Euro 36.25 mln (18.4% increase) while Net Profit after taxes and Minority Interests stood at Euro 25.43 mln considerably increased from Euro 22.41 mln in the same period of the previous year (13.5% increase). The Group’s key financials for the nine months ended 30th September, 2007, compared to the same period of 2006 were in Euro thousand (except sailings): Sailings: 3,500 in 2007, 3,190 in 2006, Change +9.7%
Revenue: 136,778 in 2007, 113,282 in 2006, Change +20.7%
Earnings before Taxes, Investing & Financial Results, Depreciation & Amortization (EBITDA): 42,940 in 2007, 36,255 in 2006, Change +18.4% Net Profit after Taxes & Minority interests: 25,430 in 2007, 22,412 in 2006, Change +13.5% Contributing to the growth in revenue was the significant improvement in total volumes carried in the Dodecanese Islands routes, both in passengers and private vehicles as well as in freight units, due to the deployment of car – passenger ferry Diagoras throughout the nine months period ended September 30, 2007. The vessel was acquired in July 2006 and was deployed in August 2006. The increase in revenue is also due to the increase in yield obtained per passenger and vehicle carried in the Cyclades and the Dodecanese routes, following the partial liberalization of the pricing policy in the Greek domestic market routes in May 2006 and the introduction by our Group of a flexible commercial policy matching supply and demand.Lastly, the improvement in load factors across the Greece - Italy routes, also contributed to the revenue growth, where by executing 47.6% fewer sailings, after the redeployment of vessel Blue Star 1 in the North Sea route, the Group significantly improved the volumes carried by vessel Blue Horizon and the revenue per sailing compared to the same period last year. In the Scotland – Belgium route in the North Sea, where Group's vessel Blue Star 1 is deployed since 29th of January 2007, load factors have reached particularly high levels while average revenue per passenger, private vehicle and freight unit carried is much higher compared to revenue produced by the same vessel in the Greece - Italy routes in the same period of the previous year.Operational profitability for the Group (EBITDA) improved by 18.4% mainly due to the significant revenue growth, the slight increase in administrative expenses as well as the deployment of vessels on routes on which they can be fully exploited year-round. This improvement was achieved despite the significant increase by 11% of the average fuel oil prices during the third quarter of 2007, compared to the same period of the previous year.Lastly, it should be noted that in the course of nine months ended September 30, 2007, the Net Profit after Taxes and Minority Interests does not include any extraordinary profit from vessels’ sales, which in the same period of 2006 stood at Euro 1.3 mln approximately. As regards the Balance Sheet and the Cash Flow Statement, the Group maintained its strong cash position with cash and cash equivalents growing to Euro 53.18 mln compared to 2006 year-end that stood at Euro 42.24 mln and reduced significantly its long-term liabilities. Furthermore, cash flow from operating activities improved and stood at Euro 27.73 mln against Euro 23.28 mln in the nine months period ended September 30, 2006, confirming the sound management of Group’s assets.The most important developments in our Group in the course of the nine months ended September 30, 2007, were:In January 2007, the vessel Blue Star 1 was redeployed from the Greece-Italy route to the Scotland-Belgium route in the North Sea. Blue Star 1 commenced successfully its service on the route on 29th January, 2007.In March 2007, our Group was voted ''Best Shipping Company for traveling to the Greek Islands'' by readers of Voyager magazine for second consecutive year. Our Group was specifically awarded top votes by the readers of the magazine across the categories of: Feeling of safety, Cleanliness, Quality of Service, Cabins.

In June 2007, the Annual General Meeting of Shareholders decided upon the distribution of dividend for the fiscal year 2006 of Euro 0.09 per share. The payment of dividend began on Monday 9th July, 2007.Also, in June 2007, the Group released its first report regarding the Group's Social Responsibility program that includes the activities that Blue Star Ferries undertook in 2006 and in the first months of 2007 with respect to Corporate Social Responsibility. In September 2007, the parent company Blue Star Maritime S.A., sold its properties (office buildings) located in the city of Piraeus and in the town of Rhodes. The total sale price stood at Euro 2.4 mln, enhancing the Group's cash position. On October 23, 2007, MIG SHIPPING S.A., a wholly owned subsidiary of MARFIN INVESTMENT GROUP HOLDINGS S.A. (following the acquisition of the majority of the voting rights of Attica Holdings S.A. from the above mentioned company), submitted a mandatory Public Offer to the shareholders of Blue Star Maritime S.A. in respect of the purchase of the entirety of their common bearer shares with voting rights, at the price of Euro 3.83 per share, in cash.The mandatory Public Offer is in progress. On November 15, 2007, the total (direct and indirect) participation of MARFIN INVESTMENT GROUP HOLDINGS S.A. in the share capital and voting rights of Blue Star Maritime S.A. was 50.18%. It should be also noted that as from 1st October 2007, according to a decision of competent Greek Authorities, all passenger ships operating on regular services are obliged to comply with the European Directive regarding the use of Low Sulphur fuel. The higher cost of Low Sulphur fuel (approximately Euro 15-20 per m/t) combined to the fact that current fuel prices have reached very high levels, will have a negative impact in the financial results of all companies in the sector. Total volumes for the Group, for the nine months ended September 30, 2007, stood at 2,960,661 passengers, 395,384 private vehicles and 122,033 freight units. Compared to the same period last year, total volumes carried grew by 3.6% in passengers, by 8.5% in private vehicles and by 15% in freight units. Following the developments presented above, in terms of financial results as well as regarding the developments on traffic volumes, the Group's management by taking into consideration the increase in fuel oil prices marked during the third quarter of 2007, as well as in October and November, ascertains that if such a tendency continues upward, it will constitute a restraining factor for Group's performance in the fourth quarter of 2007.The Group's management will continue to examine the development of new routes and the strengthening of the existing ones in the International and Greek domestic market, through the acquisition or building of modern conventional vessels, provided that suitable market conditions develop. The Group’s management is in contact with shipyards for building new vessels.