Published: 2015-05-21 18:48:53 CEST
Eimskipafélag Íslands hf.
Financial Statement Release

Eimskip announces Q1 2015 financial results

  • Operating revenue EUR 112.7 million, up by EUR 8.5 million or 8.1% from Q1 2014
  • Operating profit, EBITDA, EUR 5.8 million compared to EUR 6.0 million in Q1 2014
  • Net earnings EUR 1.5 million, improvement of EUR 2.3 million from Q1 2014
  • Transported volume in North Atlantic liner services down by 3.2% from Q1 2014
  • Transported volume in reefer forwarding services up by 4.1% from Q1 2014
  • Equity ratio 62.9% and net debt EUR 30.3 million at the end of March
  • EBITDA forecast for the year 2015 is unchanged, in the range of EUR 39 to 44 million

Gylfi Sigfússon, President and CEO

“Eimskip’s net earnings for the first quarter 2015 are above expectations, mainly due to large positive currency exchange fluctuations. Operating revenue grew by 8.1% from the first quarter 2014. EBITDA amounted to EUR 5.8 million, in line with the first quarter of the previous year but slightly down, or by EUR 0.2 million. Net earnings amounted to EUR 1.5 million compared to a net loss of EUR 0.8 million in the first quarter last year, which is a positive change of EUR 2.3 million. The first quarter of the year has historically been the company’s weakest quarter in terms of EBITDA.

The main currencies of the company’s operation are the EUR, USD, ISK and NOK. Currency exchange fluctuations, where the USD, ISK and NOK strengthened towards the EUR, resulted in a EUR 2.9 million currency exchange gain compared to a EUR 0.2 million currency exchange loss in the first quarter 2014.

Transported volume in the North Atlantic liner services decreased by 3.2% from the first quarter last year due to decreased volumes from Norway, where bad weather affected the fishing industry. The discharged cod in Norway was 23% down in the first quarter compared to the same period last year, but has been regaining its strength in recent weeks, both in the company’s liner and forwarding services. There was good growth in volumes to and from Iceland and the Faroe Islands. Transported volumes in the company’s reefer forwarding services grew by 4.1% from the first quarter last year. Downturn in transported volumes from Norway due to decreased fishing affected the total volume and volumes of fish transported from Europe to Asia have also generally decreased. Still, markets in Asia remain strong and are showing growth.

Adverse weather conditions affected the company’s operations in the first quarter. Vessels had problems with keeping schedule due to this and cost of overtime and increased fuel consumption. In addition, the company’s reefer vessels in Norway had problems during the period. The domestic operation in Iceland was also negatively affected by bad weather, mainly the inland trucking and the terminal operations.

During the first half of the second quarter, transported volumes in the company’s liner system have so far been growing beyond expectations and the increase for the first six weeks of the second quarter is showing 4.5% growth in the liner system from the same period 2014, mainly because of Norway getting back on track and also due to continued growth of transported volume to and from Iceland. A vessel had to be temporarily added to the system in April and early May to increase capacity for imported volumes to Iceland and the Gray Line, serving between the Faroe Islands and Scotland, has three times been routed to mainland Europe to increase the company’s capacity due to overbookings from Europe. Growth in transported volume in the reefer forwarding in April is 11.0% up from the same month last year.

In April, further adjustments were made to the Blue Line and the Yellow Line, which will from now on both call Hamburg every other week and in the other week the Yellow Line will call a new port, Vlissingen in the Netherlands, to serve the aluminum industry in Iceland. Due to growing import of vehicles, the Gray Line will continue assisting with increased volumes from Europe until the transport is rebalanced.

The companies that Eimskip finalized the acquisition of in the first quarter will be fully realized in the company’s operation by the end of the second quarter. The outlook in terms of volume in Eimskip’s liner and forwarding systems is positive.

Eimskip, like other companies in Iceland, faces uncertainty in the labor market related to the negative impact that possible labor strikes in the upcoming weeks may have on the company’s operations. In addition to Russia’s continued embargo on Norway and Newfoundland Labrador, the company will also have to deal with uncertainty concerning China’s new restriction on import from Norway in terms of special health inspection of imported products from Norway, which can cause delays that may cause problems for Norwegian exporters.

In April, Eimskip and Íslandsbanki signed a EUR 10 million long-term loan agreement for the construction of Eimskip’s new 10,000 ton cold storage facility in Hafnarfjördur, Iceland. In addition, a credit line in the amount of EUR 12 million was signed in order to support further investment projects. Eimskip has also renegotiated the interest terms of a total of EUR 45 million mortgage loans with Icelandic banks.

Eimskip is still considering its position regarding the building of the new vessel Bakkafoss which is not proceeding on schedule. As earlier disclosed, delivery was planned in the fourth quarter this year, but further delay is expected and a final decision on the issue will be made before the end of August.

In the beginning of May, Eimskip acquired all shares in Seatours (Sæferdir ehf.) in Stykkishólmur, Iceland. The company offers sea-related tourist services in Breidafjördur and operates the ferry Baldur and the vessel Særún. Approval of the Icelandic Competition Authority is awaited in order to finalize the transaction.

Eimskip’s Board of Directors and management continue evaluating potential investment projects in order to grow the company, in line with its vision. As mentioned in the Chairman’s speech at the Annual General Meeting in March, Eimskip is still continuing to pursue a dual listing of its shares outside Iceland and has obtained approvals from the Central Bank of Iceland. Further steps towards dual listing will be taken based on potential investments, market conditions, the status of the capital controls in Iceland and the status of the Icelandic Competition Authority’s case.

The EBITDA forecast for the year 2015 is unchanged, 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 Statements Q1 2015.pdf
Eimskip - First Quarter 2015 Financial Results.pdf