SEA CONTAINERS LTD. AND SUBSIDIARIES (SCL)

                    SUMMARY OF OPERATING RESULTS (UNAUDITED)

 

                                         Three months ended  Six months ended

                                              June 30,           June 30,

                                         2005      2004      2005     2004

                                         $000      $000      $000     $000

    Revenue:

    Ferry operations - Silja            160,952   161,179   280,733  299,070

    - Other                             18,443    30,588    24,001   34,771

    Rail operations                     235,055   208,261   449,759  408,466

    Container operations                36,571    26,436    73,164   52,294

    Other                               6,964     5,925     11,940   11,066

 

    Total revenue                       457,985   432,389   839,597  805,667

 

    Operating income/(losses) before

    non-recurring charges:

    Ferry operations:

    Silja                               (1,272)   12,699    (20,350)   6,989

    Other                               (12,852)  (9,079)   (27,724) (17,557)

                                        (14,124)  3,620     (48,074) (10,568)

 

    Rail operations                     15,608    12,450    29,772   23,433

 

    Container operations:

    Investment in GE SeaCo *            6,540     8,282     13,870   15,123

    Other                               3,978     2,713     5,651    5,367

                                        10,518    10,995    19,521   20,490

    Other, including property,

    publishing

 

    and plantations                     (326)     41        (1,613)  (977)

 

    Losses on sale of assets            (806)     -         (1,962)  -

 

    Non-recurring charges               (4,525)   -         (19,025) -

 

    Corporate costs                     (4,691)   (4,668)   (9,629)  (8,369)

 

    Operating income / (loss)            1,654    22,438   (31,010)  24,009

 

    Net finance costs                  (21,219)  (19,873)  (42,353) (40,603)

 

    Gain on sale of Orient-Express

    Hotels Ltd.

    shares                              -         -         41,099   -

 

    (Losses)/earnings before income

    taxes                               (19,565)  2,565     (32,264) (16,594)

 

    (Provision for)/benefit from income

    taxes                                (2,726)   (1,000)   4,343    3,500

 

    Investment in Orient-Express Hotels

    Ltd.                                 4,651     5,429     3,747    3,492

 

    Earnings from other equity

    investments                          -         69        -        87

 

    Net (losses)/earnings                (17,640)  7,063     (24,174) (9,515)

 

    Preferred share dividends            (105)     (272)     (377)    (544)

 

    Net (losses)/earnings on class A and

    class B common shares               (17,745)  6,791     (24,551) (10,059)

 

    Net (losses)/earnings per class A

    and

    class B common share:                 $         $         $        $

    Class A:

    Basic and diluted                    (0.64)    0.30      (0.91)   (0.44)

    Class B:

    Basic and diluted                    (0.64)    0.27      (0.91)   (0.44)

 

    Weighted average number of class A

    and

    class B common shares:

    Class A:

    Basic and diluted ('000)             26,099    21,426    25,651   21,434

    Class B:

    Basic and diluted ('000)             1,466     1,513     1,477    1,513

 

    * After finance costs

 

                   SEA CONTAINERS LTD. AND SUBSIDIARIES (SCL)

                CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

                                                   June 30,   December 31,

                                                       2005         2004

    Assets                                             $000        $000

 

    Cash                                            133,985      129,079

    Restricted cash                                  22,964       17,056

    Accounts receivable                             134,972      125,979

    Due from related parties                         30,586       38,030

    Prepaid expenses and other                       25,235       27,604

    Inventories                                      39,111       43,001

    Total current assets                            386,853      380,749

 

    Property, plant & equipment, net book value   1,673,222    1,829,113

    Investments                                     353,546      397,755

    Goodwill                                         19,617       18,725

    Other assets                                    118,526      109,758

 

                                                  2,551,764    2,736,100

 

    Liabilities and Shareholders' Equity

 

    Working capital facilities                        1,404          305

    Accounts payable                                134,663      145,733

    Accrued liabilities                             226,261      254,533

    Deferred revenue                                 18,264       14,545

    Current portion of long-term debt and

 

    capital leases                                  145,043      165,825

    Total current liabilities                       525,635      580,941

 

    Long-term debt and obligations under

 

    capital leases                                1,264,645    1,364,750

    Minority interest                                 1,861        1,646

 

    Redeemable preferred shares                           -       15,000

 

    Shareholders' equity                          1,150,884    1,165,024

    Class B common shares with voting rights

 

    owned by a subsidiary                          (391,261)    (391,261)

 

                                                  2,551,764    2,736,100

 

 

                  SEA CONTAINERS LTD. AND SUBSIDIARIES (SCL)

                            SUPPLEMENTARY INFORMATION

 

    1, Sea Containers Ltd. EBITDA Summary

 

                                        Three months ended  Six months ended

                                               June 30,           June 30,

                                          2005      2004     2005     2004

                                          $000      $000     $000     $000

    EBITDA from Operations before Non-Recurring Charges:

    Silja operations                      10,677    23,958    3,880   29,027

    Other ferry operations              (10,468)   (6,500) (22,844) (12,600)

    Rail operations                       19,421    16,027   38,869   31,425

    Investment in GE SeaCo*                6,540     8,282   13,870   15,123

    Other container operations            15,266    13,861   28,179   27,699

    Property, plantations and publishing    (31)       369  (1,015)    (357)

 

    Total EBITDA from Operations,

 

    Before Non-Recurring Charges          41,405    55,997   60,939   90,317

 

    Losses on sale of assets               (806)         -   (1,962)       -

    Non-recurring charges                (4,525)         -  (19,025)       -

    Corporate costs                      (4,691)    (4,668)  (9,629)  (8,369)

    Investment in OEH and other equity

 

    investments                            4,651     5,498    3,747    3,579

    Gain on sale of OEH shares                 -         -   41,099        -

 

    Total EBITDA                          36,034    56,827   75,169   85,527

 

    Depreciation and amortization        (29,729)  (28,891) (61,333) (57,939)

    Net finance costs                    (21,219)  (19,873) (42,353) (40,603)

    Taxation                              (2,726)   (1,000)   4,343    3,500

 

    Net (Losses)/Earnings                (17,640)    7,063  (24,174)  (9,515)

 

* Investment in GE SeaCo represents SCL's 50% share of GE SeaCo earnings before tax. Including SCL's 50% share of GE SeaCo EBITDA rather than 50% share of earnings before tax would increase SCL's EBITDA to $48.3m and $98.1m in the three months and six months ended June 30, 2005, respectively ($63.6m and $98.7m for the equivalent 2004 periods).

 

    2, Non-Recurring Charges

 

                                         Three months ended  Six months ended

                                              June 30,           June 30,

                                           2005      2004     2005     2004

                                           $000      $000     $000     $000

    Belfast-Troon closure costs (Other

    Ferries)                                  -         -    (3,000)      -

    SRA franchise payments (Rail)        (3,000)        -   (12,000)      -

    GE Capital dispute charge (Corporate

    Costs)                               (1,525)        -    (4,025)      -

    Total Non-Recurring Charges          (4,525)        -   (19,025)      -