Published: 2015-10-13 11:06:29 CEST
Eimskipafélag Íslands hf.
Company Announcement

Eimskip has received a USD 16.1 million refund

Eimskip published on 31 August 2015 cancellation of the building of a container vessel in China.

The company has received a cash payment based on a bank guarantee in the amount of USD 16.1 million, equal to about EUR 14.2 million. Eimskip has capitalized approximately EUR 12.1 million for the vessel construction. The difference between the refund and the capitalized amount is EUR 2.1 million and is recorded as operating revenue, but the amount is considered as gain on disposal of assets and indemnity which is recorded as operating revenue.

The refund positively affects the company’s cash position and EBITDA results. Current EBITDA forecast for the year 2015 has therefore been updated and the new EBITDA forecast is in the range of EUR 43 to 47 million instead of being in the range of EUR 41 to 45 million, as published at the end of August.

Gylfi Sigfússon, President and CEO

“It is very positive that this matter has now been closed and that we have received the payment. Careful preparation of documentation concerning the ship-building negotiation led to successful refund. Following this, we will continue evaluating investments in second hand vessels similar to Lagarfoss, which has served the company well.”

About Eimskip

Eimskip runs a network of 56 offices in 19 countries and operates 19 vessels. The total number of employees is about 1,530. Approximately half of Eimskip’s operating revenue comes from operations outside Iceland. The company’s vision is to provide outstanding transportation services through a dependable transport system in the North Atlantic, as well as offering an extensive worldwide network of reefer logistics services.