Post by ferryfast admin on May 16, 2005 14:50:08 GMT -5
Sea Containers Announces First Quarter Results
HAMILTON, Bermuda, May 11 /PRNewswire-FirstCall/ --
Excerpt:
Sea Containers Ltd.
(NYSE: SCRA and SCRB)
(http://www.seacontainers.com), passenger and freight
transport operator, marine container lessor and manufacturer, and leisure
industry investor, today announced its results for the first quarter ended
March 31, 2005. The net loss for the period was $6.8 million (loss of $0.26
per common share diluted) on revenue of $382 million, compared with a net
loss of $16.9 million ($0.73 per common share diluted) on revenue of $373
million in the prior year.
The quarter benefited from a gain of $41 million from the sale of shares
in Orient-Express Hotels, however, there were non-recurring charges of $9
million in connection with the settlement with the Strategic Rail Authority
in the U.K. related to the rail franchise which expired on April 30, 2005. A
new 10 year franchise commenced on May 1, 2005 and no further non-recurring
charges with respect to the expired franchise are anticipated. The company
also incurred closure costs of its Irish Sea fast ferry service of $3 million
and a loss on sale of containers of $1.2 million. It also established a
charge of $2.5 million related to the dispute with GE Capital, however, it is
expected this amount will be recovered through arbitration.
The first quarter is normally a loss-making period because of seasonal
losses in the company's ferry businesses. Those losses were greater in this
year's first quarter than in last year's, due in the case of Silja Line
primarily to the lay-up of the m.v. Finnjet representing an adverse variance
of $4 million and a recognition in this year's first quarter of $4 million of
costs which were previously phased to later quarters. Silja's fuel costs on a
like for like basis were $2.1 million higher than in the first quarter of
2004.
The fast ferry fleet incurred $2.3 million more refit costs in the period
than last year and $0.4 million additional fuel costs.
The company is currently un-hedged for its forward fuel requirements,
although it was hedged for part of its first quarter consumption. Fuel prices
are under constant review by the ferries division management and hedges are
arranged when they feel the risk/reward relationship justifies them.
Mr James B Sherwood, President, said that the poor performance of the
ferry division was receiving the close attention of management, however, it
will not be possible to turn around the business significantly until 2006 and
further non-recurring charges are likely to be required in the process.
The new Aegean Speedlines service employing one of the company's SeaCats
will commence operations on May 19th. This will be the first non-Greek flag
vessel to be employed in the domestic trades of Greece and if the operation
is successful, other fast ferries of the company will be deployed to Greek
waters in 2006. A third, large fast ferry, not owned by the company, will be
chartered in for operation in the SNAV-Hoverspeed fast ferry service between
Italy and Croatia this season. A new route between Ancona and Zadar will be
opened this year using one of the company's SeaCats within the
SNAV-Hoverspeed joint venture.
www.seacontainers.com.
HAMILTON, Bermuda, May 11 /PRNewswire-FirstCall/ --
Excerpt:
Sea Containers Ltd.
(NYSE: SCRA and SCRB)
(http://www.seacontainers.com), passenger and freight
transport operator, marine container lessor and manufacturer, and leisure
industry investor, today announced its results for the first quarter ended
March 31, 2005. The net loss for the period was $6.8 million (loss of $0.26
per common share diluted) on revenue of $382 million, compared with a net
loss of $16.9 million ($0.73 per common share diluted) on revenue of $373
million in the prior year.
The quarter benefited from a gain of $41 million from the sale of shares
in Orient-Express Hotels, however, there were non-recurring charges of $9
million in connection with the settlement with the Strategic Rail Authority
in the U.K. related to the rail franchise which expired on April 30, 2005. A
new 10 year franchise commenced on May 1, 2005 and no further non-recurring
charges with respect to the expired franchise are anticipated. The company
also incurred closure costs of its Irish Sea fast ferry service of $3 million
and a loss on sale of containers of $1.2 million. It also established a
charge of $2.5 million related to the dispute with GE Capital, however, it is
expected this amount will be recovered through arbitration.
The first quarter is normally a loss-making period because of seasonal
losses in the company's ferry businesses. Those losses were greater in this
year's first quarter than in last year's, due in the case of Silja Line
primarily to the lay-up of the m.v. Finnjet representing an adverse variance
of $4 million and a recognition in this year's first quarter of $4 million of
costs which were previously phased to later quarters. Silja's fuel costs on a
like for like basis were $2.1 million higher than in the first quarter of
2004.
The fast ferry fleet incurred $2.3 million more refit costs in the period
than last year and $0.4 million additional fuel costs.
The company is currently un-hedged for its forward fuel requirements,
although it was hedged for part of its first quarter consumption. Fuel prices
are under constant review by the ferries division management and hedges are
arranged when they feel the risk/reward relationship justifies them.
Mr James B Sherwood, President, said that the poor performance of the
ferry division was receiving the close attention of management, however, it
will not be possible to turn around the business significantly until 2006 and
further non-recurring charges are likely to be required in the process.
The new Aegean Speedlines service employing one of the company's SeaCats
will commence operations on May 19th. This will be the first non-Greek flag
vessel to be employed in the domestic trades of Greece and if the operation
is successful, other fast ferries of the company will be deployed to Greek
waters in 2006. A third, large fast ferry, not owned by the company, will be
chartered in for operation in the SNAV-Hoverspeed fast ferry service between
Italy and Croatia this season. A new route between Ancona and Zadar will be
opened this year using one of the company's SeaCats within the
SNAV-Hoverspeed joint venture.
www.seacontainers.com.