NEL LINES S.A. management, beyond the publicized financial statements on 31.03.2008, would like to provide the investors with better information about the Company's financial results.
Company's gross result of the 1st quarter of 2008 appear to have been increased for 30% in comparison to the equal period of the previous fiscal year. The results, on the basis of traveled miles, inform us that the gross result increase is attributed to the 4,5% increase in vessels' revenue, due to the increased traffic figures and pricing policy, and to the 2,5% decrease in vessels ' operating and management expenses (excluding depreciation).
Apart from the fact that during the specific period the average fuel cost per mile increased for 39%, the most important factors that benefited the operating expenses in comparison to the 1st quarter of the previous fiscal year are: a) decrease of 8,5% in crew cost as a result of the efficient employment of the crew and b) decrease of 36% in rest cost elements (except insurance cost) as a result of the more realistic and effective use of materials. It should be mentioned that at the gross result of the 1st quarter of 2008, is also included the amount of EURO 1.689 thousand (in proportion of 78,9%), concerning the high speed vessels' operating and management expenses, which were inactive during this specific period.
The equal percentage for the 1st quarter of the previous fiscal year amounts to EURO 1.966 thousand (in proportion 62,9%). Administrative and Distribution expenses of the Group (apart from agents' fees) decreased for 49,7% in comparison to the equal period of the previous fiscal year, as a result of the organizational restructuring of the company and the improvement of company's productivity. Interest expenses decreased for 42% in comparison to the equal period of the previous fiscal year due to the decrease in bank liabilities.
'Earnings before taxation, financing and investing results, and depreciation (EBITDA)' for the current quarter appeared as loss amounted to EURO 2.293 thousand instead of EURO 1.384 thousand profit of similar period of the previous year, and 'Profit/Loss after taxes' for the current period appeared as loss amounted to EURO 4.623 thousand instead of EURO 2.571 thousand during the equal period of the previous year. It should be mentioned that results (EBITDA and results after taxes) of the 1st quarter of the previous year were benefited with the reversal impairment of high speed vessels that amounted to EURO 5.067 thousand.
The most significant factor that had a negative impact on the aimed profit margin was the increase in fuel prices.