Shipping giant Minoan Lines said in a statement this week that it reaffirms its strategic choice to acquire control of Hellenic Seaways (HSW) despite the company’s disappointing 2016 financial results.
According to the statement, HSW’s results failed to meet the expectations of its shareholders despite the dropping fuel prices: turnover came to 132 million euros despite the launch of three additional vessels (Nissos Samos, High-Speed 7 and Hellenic High-Speed); operating profitability EBITDA dropped by 27 percent or 6.5 million euros to 18 million euros compared to 24.5 million euros in 2015.
Minoan said in its statement that HSW’s poor performance in 2016 is a result of a lack in strategy and long-term business planning. ”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,’’ the statement said.
Minoan Lines said it was ”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’’, particularly taking into account that for 2017 and with an expected 25 percent increase in fuel prices, ”we estimate that there will be a further deterioration of HSW’s financial performance”.