Annual Report on the Greek Ferry Sector (2010-2011) “Danger in sight” August 2011 Annual Report on the Greek Ferry Sector 2011 TABLE OF CONTENTS LIST OF TABLES __________________________________________________________________________________________ 3 LIST OF FIGURES _________________________________________________________________________________________ 4 EXECUTIVE SUMMARY _________________________________________________________________________________ 5 1. INTRODUCTION ______________________________________________________________________________________ 6 2. GREEK FERRY SECTOR MARKET PRESENTATION _________________________________________ 7 2.1. MARKET OVERVIEW ________________________________________________________________________________ 7 2.2. DEMAND ANALYSIS OF LISTED COMPANIES AND HELLENIC SEAWAYS ______________________ 9 2.3. SUPPLY ANALYSIS OF LISTED COMPANIES AND HELLENIC SEAWAYS ______________________ 11 2.4. MARKET SHAREHOLDER STRUCTURES___________________________________________________________ 13 3. MARKET FINANCIAL ANALYSIS _______________________________________________________________ 16 3.1. COST ANALYSIS __________________________________________________________________________________ 16 3.2. TURNOVER FROM OPERATIONS __________________________________________________________________ 17 3.3. EBITDA __________________________________________________________________________________________ 19 3.4. NET RESULTS BEFORE TAX _______________________________________________________________________ 20 3.5. BANK DEBT _______________________________________________________________________________________ 21 3.6. COMPANY COMPARATIVE ANALYSIS ____________________________________________________________ 22 4. COMPANY PRESENTATION AND ANALYSIS ________________________________________________ 25 4.1. LISTED ____________________________________________________________________________________________ 25 4.1.1. ANEK LINES ________________________________________________________________________________ 25 4.1.2. ATTICA GROUP ____________________________________________________________________________ 26 4.1.3. MINOAN LINES _____________________________________________________________________________ 27 4.1.4. NEL LINES __________________________________________________________________________________ 29 4.2. NON-LISTED COMPANIES _________________________________________________________________________ 31 4.2.1. HELLENIC SEAWAYS ______________________________________________________________________ 31 5. SUBSIDIES ___________________________________________________________________________________________ 32 6. CONCLUSIONS _____________________________________________________________________________________ 33 REFERENCES ____________________________________________________________________________________________ 36 2 Annual Report on the Greek Ferry Sector 2011 LIST OF TABLES Table 1: Shareholder Stake Evolution (2005-2011) .................................................................................................... 14 Table 2: Fleet per Group ............................................................................................................................................. 15 Table 3: ANEK LINES Fleet Deployment 2011......................................................................................................... 25 Table 4: ANEK LINES Basic Figures (2009-2010)................................................................................................... 26 Table 5: ATTICA GROUP Fleet Deployment 2011 ................................................................................................... 27 Table 6: ATTICA GROUP Basic Figures (2009-2010) .............................................................................................. 27 Table 7: MINOAN LINES Fleet Deployment 2011 ................................................................................................... 28 Table 8: MINOAN LINES Basic Figures (2009-2010) .............................................................................................. 28 Table 9: NEL LINES Fleet Deployment 2011 ............................................................................................................ 30 Table 10: NEL LINES Basic figures (2009-2010) ...................................................................................................... 30 Table 11: HELLENIC SEAWAYS Fleet Deployment 2011 ...................................................................................... 31 Table 12: HELLENIC SEAWAYS Basic Figures (2009-2010) ................................................................................. 32 Table 13: SWOT Analysis ........................................................................................... 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Bookmark not defined. 3 Annual Report on the Greek Ferry Sector 2011 LIST OF FIGURES Figure 1: : Greek Ferry Traffic Figures (2004-2009) .................................................................................................... 7 Figure 2: Main Itinerary Analysis (2009) ..................................................................................................................... 8 Figure 3: Passenger Traffic Figures of Listed Companies and HELLENIC SEAWAYS (2004-2010) ........................ 9 Figure 4: Car Traffic Figures of Listed Companies and HELLENIC SEAWAYS (2004-2010) ................................ 10 Figure 5: Truck Traffic Figures of Listed Companies and HELLENIC SEAWAYS (2004-2010) ............................ 11 Figure 6: Fleet Analysis of Listed Companies and HELLENIC SEAWAYS (2000-2011) ........................................ 12 Figure 7: Fleet Analysis per Vessel Type (2000 – 2011) ............................................................................................ 12 Figure 8: Shareholder Structure 2011 ......................................................................................................................... 13 Figure 9: Fuel Cost of Listed and HELLENIC SEAWAYS (2004 – 2010) ................................................................ 16 Figure 10: Fuel Cost Contribution to Total Operating Costs for Listed and HELLENIC SEAWAYS (2004 – 2010)17 Figure 11: Turnover per Region of Operation for Listed and HELLENIC SEAWAYS (2004 – 2010) ..................... 18 Figure 12: Turnover Contribution per Region for Listed and HELLENIC SEAWAYS (2004 – 2010) ..................... 18 Figure 13: EBITDA Listed and HELLENIC SEAWAYS (2004-2010) ..................................................................... 19 Figure 14: EBITDA per Company (2009-2010) ......................................................................................................... 20 Figure 15: Net Results for Listed and HELLENIC SEAWAYS (2004 – 2010) ......................................................... 20 Figure 16: Bank Loans of Listed and HELLENIC SEAWAYS (2004-2010) ............................................................. 21 Figure 17: Market Analysis based on Transported Units (2004-2010) ....................................................................... 22 Figure 17a: Average Revenue per Transported Unit ................................................................................................... 23 Figure 17b: Average Cost per Transported Unit ......................................................................................................... 23 Figure 17c: Revenue/Cost Differnece per Transported Unit ....................................................................................... 23 Figure 17d: Average Fuel Cost per Transported Unit ................................................................................................. 23 Figure 17e: EBITDA per Transported Unit ................................................................................................................ 23 Figure 17f: EBITDA Margin per Transported Unit .................................................................................................... 23 Figure 18: Market Financial Analysis (2004-2010) .................................................................................................... 24 Figure 19: ANEK LINES Fleet (2000-2011) .............................................................................................................. 25 Figure 20: ATTICA GROUP Fleet (2000-2011) ........................................................................................................ 26 Figure 21: MINOAN LINES Fleet (2000-2011) ......................................................................................................... 28 Figure 22: NEL LINES Fleet (2000-2011) ................................................................................................................. 29 Figure 23: HELLENIC SEAWAYS Fleet (2000-2011) .............................................................................................. 31 Figure 24: Ferry Subsidies Analysis ........................................................................................................................... 32 4 Annual Report on the Greek Ferry Sector 2011 EXECUTIVE SUMMARY 1. The financial status of the ferry companies is rather worrying as they report the biggest losses in history. 2. Fiscal adjustments in Europe and Greece affect the Greek ferry sector for second year in row. 3. Fleet renewal is just not feasible under the present economic conditions. 4. The intense competition in key itineraries has shrank companies’ revenues significantly,