Published: 2014-08-28 21:44:07 CEST
Eimskipafélag Íslands hf.
Financial Statement Release

Eimskip announces Q2 2014 financial results

EBITDA amounted to EUR 11.0 million, up by 1.2 million or 12.3% from Q2 2013

  • Operating revenue EUR 109.0 million, up by EUR 0.9 million from Q2 2013
  • Operating profit, EBITDA, EUR 11.0 million, up by EUR 1.2 million from Q2 2013
  • Net earnings EUR 4.6 million, up by EUR 2.6 million from Q2 2013
  • Transported volume in North Atlantic liner services up by 7.1% from Q2 2013
  • Transported volume in reefer forwarding services up by 4.9% from Q2 2013
  • Equity ratio was 65.4% and net debt was EUR 32.0 million at the end of June
  • Forecasted EBITDA for the year 2014 unchanged, in the range of EUR 37 to 41 million

Gylfi Sigfússon, President and CEO

“The operational results of the second quarter are in line with our expectations. The company’s revenues for the quarter amounted to EUR 109.0 million compared to EUR 108.1 million for the same period last year. EBITDA for the second quarter grew by 12.3% from previous year and amounted to EUR 11.0 million. The increased EBITDA is, among other, explained by increased transported volume and more efficient sailing system following the changes made on the Red Line route and by adding the Gray Line in the first quarter this year. Net earnings for the period more than doubled from last year, amounted to EUR 4.6 million and grew by EUR 2.6 million from the second quarter 2013, mainly due to currency movements.

Revenues for the first six months were flat with last year, in the amount of EUR 213.2 million. EBITDA for the first six months remained the same as last year, or EUR 17.1 million. Transported volume in the company’s North Atlantic liner services for the first six months increased by 9.1% from the same period last year. Imported volume to Iceland has been growing this year and it is constructive to see a positive trend in categories such as vehicles and construction supplies after stagnation in recent years. Transported volume in the company’s reefer forwarding services rose by 9.2% from the same period last year, mainly due to increased activity in inbound cargo. Inbound means that Eimskip takes care of custom clearance and door-to-door delivery of the cargo.

The 875 TEU container vessel Lagarfoss, the first of the two container vessels being built for Eimskip in China, was delivered in China on 24 June. The vessel, which arrived in Reykjavik on 17 August, is already in service and will replace Selfoss on the Yellow Line. The Lagarfoss will increase the line’s capacity by 151 TEU, besides being a faster, more cost-efficient per TEU and more environmentally friendly vessel. The Selfoss will replace the chartered vessel Horst B on the Red Line in September. These vessel fleet changes are expected to increase the company’s current EBITDA by 2-3% on a yearly basis. The Lagarfoss will increase the service reliability, which is extremely important for export of seafood from Iceland and the Faroe Islands to the UK and mainland Europe. The delivery of the Lagarfoss also gives an opportunity of adding new ports of call in order to increase services to our customers. We are very proud to finally have the Lagarfoss in operations.

It has been decided to complete negotiations of finishing the building of Bakkafoss, the sister vessel of the Lagarfoss. The shipyard has offered further discount of the vessel’s purchase price in the amount of USD 0.8 million and the estimated delivery is in the fourth quarter 2015. After the negotiated discount, the total contract price for the second vessel will be USD 18.0 million.

There is still uncertainty in the labor market in Iceland and the company has open agreements with a part of the Icelandic crew members of its container vessels and the ferry Herjólfur. There is also some uncertainty in international markets, especially regarding Russia’s food import restrictions which took place now in August. It is still uncertain how the sanctions will hit Eimskip’s operations, but they are expected to affect the transport of seafood from Newfoundland and Norway to Russia. Iceland is not included in the Russian embargo.

Regarding the investigation of the Icelandic Competition Authority, Eimskip is still, without success, seeking information on its subject matter to get a better understanding of the investigation. The company decided to appeal to the Competition Appeals Committee following the Icelandic Competition Authority’s gathering of further information in June this year. The company is waiting for the second ruling of the Competition Appeals Committee.

Eimskip continues to evaluate its external growth opportunities to strengthen its current position in markets outside Iceland and in line with the company’s vision of being a leading transportation company in the North Atlantic. The company continues working on preparing the dual listing of its shares in relation to these potential investments.

We keep our EBITDA forecast for the year 2014 unchanged in the range of EUR 37 to 41 million.”

Further information

  • Gylfi Sigfússon, President and CEO, tel.: +354 525 7202
  • Hilmar Pétur Valgardsson, CFO,  tel.: +354 525 7202
  • Erna Eiríksdóttir, Senior Manager of Investor Relations, tel.: +354 825 7220, email:

Eimskip - Second Quarter 2014 Financial Results.pdf
Eimskip - Financial Statements Q2 2014.pdf