Published: 2015-02-26 20:02:19 CET
Eimskipafélag Íslands hf.
Financial Statement Release

Eimskip announces 2014 financial results

  • Operating revenue EUR 451.6 million, up by EUR 17.7 million or 4.1% from 2013
  • Operating profit, EBITDA, EUR 38.5 million, up by EUR 1.5 million or 4.0% from 2013
  • Net earnings EUR 13.6 million, up by EUR 2.8 million or 25.8% from 2013
  • Transported volume in North Atlantic liner services up by 7.9% from 2013
  • Transported volume in reefer forwarding services up by 11.0% from 2013
  • Equity ratio was 65.2% and net debt was EUR 24.9 million at the end of the year
  • The Board proposes a dividend payment representing 45.7% of net earnings for the year
  • EBITDA forecast for the year 2015 is in the range of EUR 39 to 44 million

Gylfi Sigfússon, President and CEO

“The results of the fourth quarter 2014 were in line with expectations, showing 11.2% increase in revenue from the fourth quarter 2013 and EBITDA in the amount of EUR 8.8 million, up by 12.2%. Revenues for the full year 2014 amounted to EUR 451.6 million and grew by 4.1% from 2013. EBITDA of the year amounted to EUR 38.5 million, showing an increase of 4.0% from the previous year. Net earnings for the year amounted to EUR 13.6 million and grew by 25.8% from 2013.

Transported volume in our North Atlantic liner services grew by 7.9% from 2013. There was considerable growth in transported volume to and from Iceland and the Faroe Islands. Volumes in the company’s reefer forwarding services rose by 11.0% from 2013, mainly due to Intra Asia business, new commodities, new markets and increased activity in inbound cargo where Eimskip completes custom clearance and door-to-door delivery by handling the cargo on both ends.

In the first quarter of 2014 and in February 2015 Eimskip made changes to its sailing schedule in order to make the system more efficient and reliable and thus further strengthen services for customers. In 2014 the Gray Line was added, serving between the Faroe Islands and Scotland, and adjustments were made to the ports of call on the Red Line which connected the coastal services in Iceland with Europe. In February 2015 the Red Line and the Green Line, which served between Iceland and North America with a port call in Sortland in Norway, were combined under the name Green Line with three container vessels in service. The new Green Line will be sailing directly between Europe and North America, without transloading, with calls in Icelandic ports to serve importers and exporters in Iceland. The change will increase the total number of voyages between Europe and North America by five per year. In cooperation with the port of Halifax and Halterm terminal, the company will strengthen its transportation services between the US and Canada.

Eimskip’s Board and management have spent considerable time on evaluating potential investment projects in the company’s search for opportunities to grow and to strengthen its current position in markets outside of Iceland. This is in line with the company’s vision of being a leading transportation company in the North Atlantic.

In the first two months of 2015, Eimskip has entered into partnerships, established and invested in various companies and infrastructure projects. The forwarding company Jac. Meisner in Rotterdam in the Netherlands was acquired and a new ship management company was established in Hamburg in Germany in cooperation with König & Cie. Eimskip Denmark took over the warehouse operation of Damco in Aarhus, making Eimskip the largest warehouse operator in this second largest port in Scandinavia. In cooperation with Harbour Grace Shrimp Company Ltd., Eimskip purchased the operation of the cold storage in St. Anthony in Newfoundland and Labrador, but Eimskip has called the port in St. Anthony since 2005. Eimskip has also signed a purchase agreement with the owners of the forwarding company Cargocan in St. John’s in Newfoundland and Labrador to acquire the company. The total investment in these companies is about EUR 6 million and it is expected to increase the company’s annual operating revenue by EUR 16 million with an expected EBITDA ratio of 8-10%.

At the beginning of the year, Eimskip started the construction of the 10,000 ton cold storage in Hafnarfjördur in Iceland. Furthermore, the company has invested in infrastructure projects in Iceland by purchasing three lots at Grundartangi and two new harbor cranes. Eimskip will continue to evaluate potential investment projects in the coming months and is currently working on various projects.

The process of building the 875 TEU container vessel Bakkafoss is not proceeding on schedule and the company is expecting further delay in respect of delivery, which was planned to take place in the fourth quarter this year. Eimskip is considering available options due to the delay. The total amount already invested in the project is EUR 11.4 million. The payments made to the shipyard are guaranteed by a first class state owned Chinese bank if Eimskip decides to seek a refund of the payments already made.

The Board of Directors proposes a dividend payment to shareholders in 2015 in the amount of ISK 5.00 per share. The proposed dividend payment is ISK 933.2 million, or EUR 6.2 million, which represents 45.7% of net earnings for the year 2014.

The EBITDA forecast for the year 2015 is in the range of EUR 39 to 44 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 - Financial Results 2014.pdf
Eimskip - Consolidated Financial Statements 2014.pdf