Published: 2016-05-26 20:32:28 CEST
Eimskipafélag Íslands hf.
Financial Statement Release

EIMSKIP: EBITDA growth was 66.5% in first quarter 2016

Forecast for 2016 raised to EUR 49 to 53 million

  • Revenue EUR 113.3 million, up by EUR 0.6 million from Q1 2015
  • EBITDA EUR 9.6 million compared to EUR 5.8 million, up by 66.5% from Q1 2015
  • Net earnings EUR 1.8 million compared to EUR 1.5 million, up by 21.1% from Q1 2015
  • Transported volume in North Atlantic liner services up by 8.1% from Q1 2015
  • Transported volume in forwarding services up by 5.9% from Q1 2015
  • Equity ratio 59.9% and net debt EUR 33.4 million at the end of March
  • EBITDA forecast for the year 2016 has been raised to the range of EUR 49 to 53 million


“Eimskip’s EBITDA for the first quarter 2016 was EUR 9.6 million, up 66.5% compared to the same period last year. Revenue for the quarter amounted to EUR 113.3 million, up by 0.5%, but lower cargo rates in international forwarding affected the revenue growth. The company took action in recent months to change its sailing system in order to be able to operate more efficiently during the winter season. Due to the streamlining of operations and increased cost control measures, operating expenses excluding salaries were down in the quarter. Total operating expenses including salaries were down by 3.0%, an excellent performance despite materially increased cost related to Icelandic wage agreements. Net earnings came to EUR 1.8 million and grew by 21.1% from the first quarter 2015, despite a negative turnaround of currency exchange difference of EUR 3.7 million. Cash flow from operating activities amounted to EUR 12.7 million compared to EUR 3.1 million in the same period last year and the cash position at the end of March stood at EUR 47.3 million. This is the company’s best first quarter in terms of revenue, EBITDA, EBIT and cash flow since 2009, but the first quarter has historically been Eimskip’s weakest quarter of the year.

Transported volume in the North Atlantic liner services grew by 8.1% from the first quarter 2015. There was good growth in transport related to Iceland, the Faroe Islands and Norway and especially good growth in Norway compared to their difficult first quarter last year. From now on we will be presenting changes in transported volume in the company’s total forwarding services for both reefer and dry cargo forwarding, which grew by 5.9% from the same period last year.

Eimskip and Royal Arctic Line, the national carrier of Greenland, have signed a letter of intent to connect Greenland with Eimskip’s international sailing system. The companies plan to invest in and operate three approximately 2,000 TEU container vessels designed and built for the special conditions in the North Atlantic and they will connect the transport systems of Greenland and Iceland with Scandinavia, Europe and North America. The new vessels will be more fuel efficient and better for the environment. This will be a strategic relationship that will create cost efficiency, increase capacity and is a future step for Eimskip’s fleet renewal program. The estimated time of designing and building the vessels is two to three years.

Eimskip continues to evaluate strategic acquisitions and growth investment opportunities. The company is in the position to gain from its strong financial position as the ongoing consolidation in the industry continues. We are in advanced acquisition process and anticipate closing transactions in the third quarter.

The second quarter looks favorable compared to last year. The EBITDA forecast for the year 2016 has been raised and is now in the range of EUR 49 to 53 million, from the range of EUR 46 to 50 million as presented last February. Estimated EBITDA related to new acquisitions and strategic investments and cost related to the transactions is not included in the current EBITDA forecast for the year.”


  • 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 - First Quarter 2016 Financial Results.pdf
Eimskip - Financial Statements Q1 2016.pdf