Minoan Lines Expects 58% Profit Increase In 1999

Minoan Lines expects its group 1999 profit to grow 58 percent to $49.4 million. Company officials said that revenues from its Greece to Italy routes in the first 10 months of the year were up 15.1 percent to $71.9 million. Total revenues in the same period from its international routes were up 9.5 percent to $90.9 billion. "Based on the 10-month results, Minoan Lines managed to achieve significant revenue growth despite the Kosovo crisis which affected the first half results," company officials said. Revenues from domestic routes in the first 10 months of the year were maintained at last year's levels and reached $34.1 million. Minoan Lines has ordered seven newbuildings at a cost of $660 million. Four are being built by Italy's Fincantieri shipyards and another three at Samsung shipyard in South Korea. The company's fleet modernization plan allows it to sell older, fully depreciated vessels, officials said. This month, the firm will sell its Phaedra and Erotokritos ships and realize extraordinary gains of about $21.5 million. Its 70-percent subsidiary Minoan Flying Dolphins recently completed a buying spree with the acquisition of 34 vessels. It will proceed with a capital increase of $414.7 million. Minoan Flying Dolphins will go public in 2000 and seek a listing on the Athens bourse. Likewise, subsidiary Forthnet, an Internet service provider, is headed for a listing in the first half of next year. Another subsidiary, Air Greece, will be merged with Aegean Airlines and as a result its financial results will not need to be consolidated with those of parent Minoan Lines.