ANEK hit by high fuel costs

2022-10-13T17:40:23+00:00 October 13th, 2022|Finance|

ANEK lines, the subject of a takeover by Attica, reported an increase in group turnover to €74.2 mill for the first half of this year, compare with €58.2 mill for 1H21.

However, costs increased to €81.8 mill, versus €55.6 mill, mainly due to the fuel price hike.

During 1H22, the sharp recovery from the pandemic in conjunction with the considerably positive developments in tourist traffic and the relevant proceeds during the summer period, created optimism regarding the performance of the ferry sector and the Greek economy in general.

But the deterioration of the international economic climate with the ongoing geopolitical instability and energy crisis, led to an increase in costs and prices in general, resulting in a climate of uncertainty.

During 1H22, the passenger shipping sector recorded a significant upturn versus the comparable period in the previous year. The Group, saw strong performances in terms of traffic volumes and turnover, however the huge increase in the price of fuels at unprecedented levels, weighed heavily on the operating cost, absorbed the benefit from turnover increase, worsened the operating results significantly and prevented the Group from preserving adequate working capital.

At the operating level, in 1H22, ANEK Group, through owned and chartered vessels on the Adriatic and Cretan routes, executed combined itineraries in a joint venture with Attica Holdings.

In the Cyclades and Dodecanese, itineraries on public service routes continued, while the chartering of a vessel overseas was also continued.

Operating 15% less itineraries, compared to 1H21, the Group carried 257,000 passengers, compared with 159,000 in the comparable period the year before (an increase of 61%), 59,000 vehicles versus 46,000 (28% increase) and 59,000 trucks, compared to 66,000 in 1H21 (a decrease of 11%).

Consolidated gross results were losses of €7.5 mill. versus a profit of €2.5 mill during the comparable period. The Group’s gross results were a loss of €8.5 mill, compared to a profit of €0.4 mill.

EBITDA during 1H22 was a negative €12 mill, compared to €0.7 mill in 1H21.Consolidated net results after taxes and minority interests for 1H22 amounted to losses of €22.6 mill versus €12.1 mill in the first half of 2021.

On 26th September, the company’s Board decided to start the  merger procedure with Attica. The completion of the transaction is subject to the approval of the ANEK and Attica Boards, according to the applicable legislative framework and the terms and conditions – approval by the Hellenic Competition Commission – as well as other required approvals or licenses.

At the same time, Attica Holdings announced that the Group had agreed bilateral credit facilities with three Greek credit institutions for a total amount of €210 mill with periods of between five to seven years, successfully concluding the long-term refinancing of all Group’s credit facilities maturing in 2022/2023.